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The technical heart of Operational Excellence: Business Process Modeling (BPM) Level 3

Achieving Operational Excellence is no coincidence; it's like a science. And within this science, concepts such as LeanSixSigma, Lean-Agile and Sales and Operations Planning play a vital role. But before these methods can be used effectively, a foundation must be in place. That foundation is best laid with the help of Business Process Modeling (BPM) at Level 3. In this article we discuss the technical aspects of BPM Level 3 and how they contribute to achieving and maintaining Operational Excellence.

Operational Excellence by Tious Consultancy
"the blueprint of your organization"

BPM Level 3 in detail

In BPM Level 3, the activities, roles, rules, and deliverables are modeled in detail. Processes are broken down into sub-processes and even tasks. This is more than just a picture. Standardized notations such as BPMN (Business Process Model and Notation) are used to capture every detail. It is actually a walk through the organization from the perspective of a customer question. This question could be anything; think of a new order, a change or a question about an invoice or levy. Customer demand runs through your organization, across departments, people and machines. The route the question takes is determined by yes and no decisions. The route determines the processes through which the demand passes. The combination of these two makes it possible to model capacity and lead time. And capacity refers to all scarce resources: money, products, services, people, workplaces, parts, hardware, software, network capacity and so on. In short, insight is gained to be able to answer organizational issues in a truly data-driven manner. Some common issues at meta level:

  • how do I coordinate the chain(s) in such a way that the customer promise is really and demonstrably guaranteed

  • what are the knobs to turn

  • what happens in the chain and with the customer promise if I turn such a knob

Outside insight, this makes it possible to make direct implementations to workflow systems and to run simulations to identify bottlenecks and inefficiencies and to calculate the effects of interventions, such as an improvement program, of course also in euros. It is not without reason that this is the blueprint of your organization.

 

The synergy with LeanSixSigma


DMAIC

LeanSixSigma's DMAIC (Define, Measure, Analyze, Improve, Control) is a phased process that starts with defining problems and ends with checking the new processes. BPM Level 3 models are perfect for the 'Measure' and 'Analyze' phases because they provide a detailed picture of the current state. Simulations based on BPMN can even be used to 'test' before they are implemented.


Statistical Process Control

One of the key components of LeanSixSigma is Statistical Process Control (SPC). Detailed BPM Level 3 models allow SPC to be performed much more accurately, because you know exactly what the input and output variables are of each sub-process.

 

The synergy with Lean-Agile and SAFe


Value Streams

Lean-Agile and the SAFe framework emphasize the importance of 'value streams', the steps that create value for the customer. A detailed BPM Level 3 model can be used directly to map these value streams, allowing you to better respond to customer needs.


Feedback Loops

Another important component of Lean-Agile and SAFe is the emphasis on fast feedback loops. BPM Level 3 models help identify KPIs and metrics that can be used to fuel these feedback loops.

 

Sustainability and competitive advantage

Having detailed, well-designed BPM Level 3 models provides a solid foundation on which a sustainable system of Operational Excellence can be built. Organizations can use these models and the resulting insights to continuously improve, adapt to changing market conditions and build a sustainable competitive advantage.


Conclusion

BPM Level 3 is not just a management tool; it is a technical discipline that forms the basis for successful application of methods such as LeanSixSigma and Lean-Agile. It not only provides a detailed overview of how an organization functions, but it also provides the technical tools needed to successfully implement these methods and achieve a sustainable system of Operational Excellence. Would you like to learn more about the theoretical background of BPM Level 3: click here

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