Business Process Management

This document provides a comprehensive study on Business Process Management (BPM). It includes scenarios of helpdesk and insurance processes, BPMN models, cycle time efficiency, average number of requests, constraint identification, issue register, and TO-BE models. The document also discusses pain points and proposes improvements for the insurance process. References are provided for further reading.

Running head: BUSINESS PROCESS MANAGEMENT
Business Process Management
Name of the Student
Name of the University
Author’s note:

1BUSINESS PROCESS MANAGEMENT
Table of Contents
Part B...............................................................................................................................................2
4. Advanced BPMN/BPM Lifecycle...............................................................................................2
4.A Scenario of Helpdesk:...........................................................................................................2
4.A.1 AS-IS BPMN Model:.....................................................................................................2
4.A.2 Process Classification:...................................................................................................2
4.A.3 Cycle Time Efficiency:..................................................................................................3
4.A.4 Average Number of Requests:.......................................................................................4
4.A.5 Main Constraint Identification:......................................................................................4
4.A.6 Issue Register:................................................................................................................4
4.A.7 To-Be Model:.................................................................................................................7
4.B Insurance Scenario of ABC:.................................................................................................8
4.B.1 Diagram of Value Chain:...............................................................................................8
4.B.2 AS-IS Model:.................................................................................................................8
4.B.3 Pain Points:....................................................................................................................9
4.B.4 To-Be Model:...............................................................................................................12
Bibliography:.................................................................................................................................14

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Part B
4. Advanced BPMN/BPM Lifecycle
4.A Scenario of Helpdesk:
4.A.1 AS-IS BPMN Model:
Figure 1: BPMN AS-IS Diagram for IT helpdesk
(Source: Created by Author)
4.A.2 Process Classification:
VA BVA NVA
Submission of a request Register the submitted request Request to be checked by
staff belonging to level-1
Staff from level-2 evaluates Checks id the generated request communication of resolution

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a new request is already “known” to client is carried out
Research is carried out ad
request is resolved.
Level-2 prioritizes a particular
request
the new request spent waits
for the staff from level-2
Witting of resolution to
request is done
The staff of level-2 picks up
Client is sent to problem
resolution
The staff of level-1 fetches
resolution from the system
dedicated for job tracking.
The test results are emailed
to staff of Level-1.
Wait till the client tests the
resolution.
Level-1 forwards the
request to Level-2
4.A.3 Cycle Time Efficiency:
Only the application processing time is considered in the theoretical cycle time.
Therefore the calculation is 5+10+(5*0.2)+(0.8*(20+5+120+20))+((0.2*2)+((20+5+120+20)*(1-
0.2))) = 280.4 minutes = 4.67 hours
Cycle time is waiting time and processing time. Therefore the average cycle time is 114.9
hours
Formula for cycle time efficiency = Theoretical Cycle Time (TCT) / Cycle Time (CT) =
4.67/114.9=4.06%

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4.A.4 Average Number of Requests:
Cycle time (CT) is 4.78 days. Arrival rate of the requests per day is provided as 50.
Therefore, the Work In Progress (WIP) = λ*CT: 50*1.92
= 239.92
≈ 240
4.A.5 Main Constraint Identification:
The internal communication is considered as the biggest constraint among all in this
particular process. This problem results in delay of 2016 minutes in the process. The customers
so not agree in paying for the delay in the process. This particular issues must be mitigated.
Some changes have been implemented, they include automation of back processes must be
implemented for reducing the waiting time, implementation of internal medium of
communication and tracking the job status.
4.A.6 Issue Register:
Numbe
r
Issue Type Assumptions Qualitative
impact
Quantitative
Impact
1 The staff of level 2 is
dependent on the
staff of level 1 for
the purpose of new
requests and request
resubmission.
The level 1 staff
send the requests to
the level 2 staff
after they write the
resolution of the
requests they know
0.8*(20+5+120+20)
= 132 hours
theoretical cycle
time
0.8*(20+120+5+
120+1200+20+
1200+20)

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= 2164 hours of
average cycle time
Cycle time
efficiency = 6.09
2 Customers do not
have any data
regarding the job
status.
Help desk does not
use any register for
request status
update
Need back and
forth
communication
between level
1 and level 2
staff
3 Every request is
analyzed from the
very beginning.
If two similar
requests arrive, the
level 2 staff follow
each step to write
resolution instead
of using data from
the other requests
research.
If 30% of cases are
similar.
The average cycle
time for level 2
staff finding
resolution will be
for same request is
(0.8*(20+5+
120+20))*0.3
= 39.6
4 Communication
between staff of level
1 and customers for
50% of the time
customer provides
all the details in one
Automatic
customer data
validation

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gathering needed
information.
attempt method
5 Level 2 staff must
send resolution
through staff of level
1
2% of the
resolutions are
ignored due to
heavy pressure of
work load
A notification
system for
allowing the
level 1 staff to
remember
ignored
requests
6 Waiting time for
staff of level 2 for
checking new
request is high.
5% of the
resolutions are
ignored due to
heavy pressure of
work load
A notification
system for
allowing the
level 2 staff to
remember
ignored
requests

7BUSINESS PROCESS MANAGEMENT
4.A.7 To-Be Model:
Figure 2: BPMN TO-BE Diagram for IT helpdesk
(Source: Created by Author)

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4.B Insurance Scenario of ABC:
4.B.1 Diagram of Value Chain:
Figure 3: Value Chain Diagram of ABC Insurance Process Architecture
(Source: Created by Author)
4.B.2 AS-IS Model:
Figure 4: BPMN AS-IS Diagram for ABC Insurance's Claim Processing

9BUSINESS PROCESS MANAGEMENT
(Source: Created by Author)
4.B.3 Pain Points:
Numbe
r
Issue Description Assumptions Qualitative impact
Quantitative
Impact
1 Customer is not
able to connect to
ABC Insurance or
any Agent
40% of the calls
take average of 24
hours to connect to
ABC insurance
Need a better
communication
medium
2 Shop is not able to
connect call with
Agent or ABC
Insurance
20% of the calls
are not connected.
Claim validation
method ate shop
side
3 Shop has to
undertake various
financial risks
The organization
takes risk. In
average the cost
they have to bare is
$100 per am
100
4 The system is not
able to track and
claim data properly
20% of the claim
requests are
returned
If average cycle
time is 4 days then
the 20% iteration
makes it 5 days
5 Agent of ABC
Insurance and the
shop is not in sync
The agent and
ABC insurance
does not have real
A centralized
database for

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with a particular
location
time data view everyone

11BUSINESS PROCESS MANAGEMENT
Figure 5: Fishbone Diagram for Poor Communication Issue
(Source: Created by Author)

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The major cause of the issues identified in the “ABC’s insurance claim processing over a
phone call” might be categorized into some subcategories, these subcategories include service
causes, software causes, and employee base cause and hardware causes. The causes under
software because that have the major impact are lack of proper communication, lack of storage at
shops. Hardware causes occur when hardware of low quality is utilized and this hardware does
not have the capacity to handle cloud computing services. It is also caused due to the usage of
old and outdated framework. The service causes is reefed to low standard or poor customer
service as well as following a particular structure that is very old. The employee base causes is
occurred when there are less number of staffs who are trained in the modern technologies.
4.B.4 To-Be Model:
The major causes that relate to software processes within AS-IS model include no storage
at sop and lack of a medium for communication. The appropriate improvement that is directed in
the process of implementing a technology that is more modern in nature and is based on cloud
computing and such that it uses internet for the purpose of communication.
The initial step that would be taken for the purpose of solving this particular issue
includes identification of the root causes that have been underlying it. Here the major cause are
lack of space for storage facilities from the end of repair shop as well as problems in
communication. In order to solve this particular problem, a communication as well as storage
medium is required to implement which could be used without any hustle by the shop. The usage
of cloud computing as well as internet for the purpose of communication with customers might
prove to be a successful way in mitigating this issue. The cloud storage could be used by the sop
for the purpose of storing files. Using this strategy, the major issues could be resolved.

13BUSINESS PROCESS MANAGEMENT
Figure 5: BPMN TO-BE Diagram for ABC Insurance's Claim Processing
(Source: Created by Author)

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Bibliography:
Chang, J. F. (2016). Business process management systems: strategy and implementation.
Auerbach Publications.
Huang, S. Y., Lee, C. H., Chiu, A. A., & Yen, D. C. (2015). How business process reengineering
affects information technology investment and employee performance under different
performance measurement. Information Systems Frontiers, 17(5), 1133-1144.