In this era of globalization, both the manufacturing and service industries face the challenge of meeting and exceeding the customers’ expectations. As far as the employees are concerned, all the routine activities they perform on the job on a day-to-day basis constitutes “work” for them. A collection of such activities (work) that delivers the final output and outcome to the customers is often called a ‘process’. Say for example in a McDonald outlet, while one of the employees makes the burger, the other services the customer and yet another collects the money. As far as these employees are concerned, it is the “work” they do, day in and day out, without really realizing that they are one of the links in the chain of activities called a “process”. In manufacturing parlance, we call this as ‘process capability’, and is often expressed as Cp or Cpk. It indicates the capability of a manufacturing process to deliver a defect free product or a component from the process. The process capable of delivering its intended outcome, fails to do so when the volume of work goes up. Hence, the process definition cannot be set in stone forever. It needs a metric that shows its capability and which will drive the process owners to take up process re-engineering initiatives when they fail to meet the expectations of their customers.
We are living in a competitive world. In the blink of an eye, old orders are swept away. Companies everywhere are being forced to improve the way they do business in order to survive and to flourish. Well, the first step is to understand your business better. It’s not enough to know what your business does, it is just as important to know how your business does it, how are the new products launched. Business processes are those ordered activities and tasks within the organization that connect the people with the management systems consisting of the organization’s operating procedures. Simply put, any function within an organization that enables the organization to successfully deliver its products and services is a business process. The second is taking this understanding and using it to identify the business’ strengths and weaknesses. The third step is to find the quickest and smartest way to first fix when it’s broken and improve when it’s not optimized.
If we say we are managing some aspects of a business, we need a management system. Dr. Edward Deming defined a management system as establishing a system of PDCA cycle in a company. PDCA means Planning, Doing, Checking and Acting. If an organization wishes to manage its processes, it must have a Process Management System which has all the elements of PDCA i.e. Planning a process, Doing the work as per the process, Checking the efficacy of the process using a metric and Acting to improve. The Process Management System consulted by SSA is known as BPMS – Business Process Management System.
Why is Business Process Management System (BPMS) so critical to companies?
BPMS helps the managers to make the bold changes happen that are necessary to turn the current challenges to their benefit – by making their businesses stronger, fitter and smarter. As Albert Einstein once said, “Insanity is doing the same thing over and over again and expecting different results.” So BPMS helps a company to rise to the challenge and embrace the need for change. In an increasingly competitive environment, an organization’s business success depends on its ability to achieve efficiencies through effective process management.
What are the Objectives of BPMS?
BPMS aims to achieve the following objectives:
- Link processes with strategy
- Unambiguous Process definition
- Create accountability of process steps
- Aid training of new employee in a shortest time
- Measure Process efficiency and effectiveness
- Process maturity measures to drive improvements
- Drive continuous improvements
BPMS is an acronym for Business Process Management System which combines the benefit of BPR – Business Process Re-engineering and Six Sigma. BPMS was adopted by GE as a precursor of Six Sigma for toning up the business processes. Business Process Management System (BPMS) is a process definition and reengineering methodology considering the value chain of the organization, starting from Customer requirement identification until the delivery of the final product/ service.It enables companies to model, deploy and manage mission-critical business processes, which span across multiple enterprise applications, and corporate departments. BPMS is usually used for making processes repeatable and reliable. All the business processes are mapped and critically examined for their effectiveness to achieve the business goals.
How BPMS study is conducted?
A BPMS study is a study of end-to-end activities in the business value chain commencing from the receipt of customer’s order till its delivery. It is a comprehensive study of all the processes in the value chain that link all the functions in an organization, in order to identify the process disconnects, opportunity for improvements and automation that will improve the efficiency of the organization. It is explained in the following section in detail. SSA applies its RMAOR® methodology which is one of its thought leaderships.
Benefits of BPMS
- Improves process quality
- improves Customer Satisfaction
- Engenders Continuous Process Improvement
- Reduces Costs
- Improves the Customer Experience
- Improves Business agility
- Reduces time
- Improves Process efficiency
- Ensures optimum resource utilizations and improved productivity
- Ensures Process Standardization
- Improves Process control