{"id":5236,"date":"2020-04-14T09:47:59","date_gmt":"2020-04-14T09:47:59","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=5236"},"modified":"2024-06-17T12:02:37","modified_gmt":"2024-06-17T12:02:37","slug":"business-process-management-and-methods","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/business-process-management-and-methods\/","title":{"rendered":"Business Process Management and Methods"},"content":{"rendered":"\n<p>Business Process Management initiatives can help drive continuous process improvement through a factory.  In addition, they can be used in conjunction with software platforms such as CRM, MRP, ERP.<\/p>\n\n\n\n<!--more-->\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"667\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/business-process-management-and-methods.jpg\" alt=\"business-process-management-and-methods\" class=\"wp-image-5240\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/business-process-management-and-methods.jpg 1000w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/business-process-management-and-methods-300x200.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/business-process-management-and-methods-768x512.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\">Business Process Management seeks to align manufacturing processes with business goals. <\/figcaption><\/figure>\n<\/div>\n\n\n<p><em>You can also listen to this article:<\/em><\/p>\n\n\n\n<iframe loading=\"lazy\" title=\"Business Process Management and Methods\" height=\"122\" width=\"100%\" style=\"border: none;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/media\/player\/42m7n-e01e5e?from=pb6admin&#038;download=1&#038;version=1&#038;auto=0&#038;share=1&#038;download=1&#038;rtl=0&#038;fonts=Helvetica&#038;skin=1&#038;pfauth=&#038;btn-skin=103\"><\/iframe>\n\n\n\n<p>Optimum efficiency has always been the goal of manufacturing companies.&nbsp; Without it, a factory cannot remain competitive in its market as costly material, labor and opportunity are wasted.&nbsp; To uncover optimum efficiency, manufacturing companies work to revise and refine inefficient processes, develop new processes and to manage those processes continuously.<\/p>\n\n\n\n<p>To accomplish this, companies may turn to Business Process Management methods to help them put the right processes in place.&nbsp; Business Process Management (BPM) is part of general operations management where managers <a rel=\"noreferrer noopener\" href=\"https:\/\/books.google.com\/books?id=8Q6pAgAAQBAJ&amp;pg=PP1&amp;dq=business+process+management&amp;hl=en#v=onepage&amp;q=business%20process%20management&amp;f=false\" target=\"_blank\">utilize specified methods<\/a> to discover, model, analyze, measure, improve, optimize and automate their business processes.&nbsp; This can be a single methodology or a combination of methodology and other tools such as software such as <a rel=\"noreferrer noopener\" aria-label=\"ERP (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/enterprise-resource-planning\/\" target=\"_blank\">ERP<\/a> and MRP programs as well as other formal programs such as TQM to achieve their goals.<\/p>\n\n\n\n<p><em>Read more about <\/em><a rel=\"noreferrer noopener\" aria-label=\"Material Requirements Planning (MRP) (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/material-requirements-planning\/\" target=\"_blank\"><em>Material Requirements Planning (MRP)<\/em><\/a><em>.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Levels of Business Process Management<\/h2>\n\n\n\n<p>BPM seeks to align manufacturing processes with business goals.&nbsp; The system seeks to improve existing processes and then maintain them through metrics that allow refinement and adjustment.&nbsp; It is rarely department or factory specific and is usually done at the enterprise level to capture optimum benefit.<\/p>\n\n\n\n<p>A company-wide BPM initiative has three distinct levels:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><em>Process Assessment<\/em><\/strong> \u2013 Also referred to as \u201cprocess mapping\u201d, process assessment is the level where a manufacturer defines its core processes and focusses on documenting current processes as a benchmark.<\/li>\n\n\n\n<li><strong><em>Process Improvement<\/em><\/strong> \u2013 As deployment teams begin to enact the elements of the BPM program, they will identify inefficiencies by digging into the deeper level of how these processes work and why.&nbsp; Once the full process has been intricately mapped, the team will develop and then implement process improvements.&nbsp; At this level, formal methodologies such as <a href=\"https:\/\/www.mrpeasy.com\/blog\/what-is-lean-manufacturing\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Lean (opens in a new tab)\">Lean<\/a> or <a rel=\"noreferrer noopener\" aria-label=\"Six Sigma (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/what-is-six-sigma\/\" target=\"_blank\">Six Sigma<\/a> may be introduced.<\/li>\n\n\n\n<li><strong><em>Process Automation\/Optimization<\/em><\/strong> \u2013 After the process has been identified and mapped and after improvements have been applied, use of deep technology such as advanced monitoring and control systems or advanced analytics can help monitor and measure the system at a level faster than human intervention.&nbsp; This allows for further improvement and optimizes the system through automation.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Process Stages<\/h2>\n\n\n\n<p>By formalizing process improvement in Business Process Management, processes can be seen as having phases.&nbsp; Each deep dive takes a process from its natural and inefficient state to one of ever-increasing efficiency until it has been optimized.&nbsp; By formalizing the process, BPM provides a structure and a framework for analysis and action that can be used successfully for any project.&nbsp; <\/p>\n\n\n\n<p>Two methods for managing the phases of the improvement process are known as DMEMO and DMAIC.&nbsp; <\/p>\n\n\n\n<p>Phases of DMEMO are:<\/p>\n\n\n\n<p><strong><em>Design <\/em><\/strong>\u2013 Asks how a process is done and what\nsteps need to be taken.<\/p>\n\n\n\n<p><strong><em>Model <\/em><\/strong>\u2013 Asks why a process is done a\nspecific way and what can be done to improve it.&nbsp; It also seeks to eliminate unneeded steps and\nautomate the process.<\/p>\n\n\n\n<p><strong><em>Execute<\/em><\/strong> \u2013 This is the action step where\nadjustments are made for improvement.<\/p>\n\n\n\n<p><strong><em>Monitor<\/em><\/strong> \u2013 This phase tracks the process to\nverify results are as desired.<\/p>\n\n\n\n<p><strong><em>Optimize<\/em><\/strong> \u2013 This phase asks what more can be done to improve the process.&nbsp; If additional improvements can be made, the phases can be repeated.<\/p>\n\n\n\n<p>DMAIC is similar in scope and is most often used with Six Sigma methodology. <\/p>\n\n\n\n<p>The phases of DMAIC are:<\/p>\n\n\n\n<p><strong><em>Define<\/em><\/strong> \u2013 In this phase, efficiency and\nprocess problems are defined in terms of the customer.<\/p>\n\n\n\n<p><strong><em>Measure<\/em><\/strong> \u2013 Here the current process is\nmeasured as is to provide a benchmark.<\/p>\n\n\n\n<p><strong><em>Analyze<\/em><\/strong> &#8211; In the analyzation phase, data\ntaken from the process measurement phase is analyzed to identify cause and\neffect.<\/p>\n\n\n\n<p><strong><em>Improve<\/em><\/strong> \u2013 Like Execute in DMEMO&lt; the\nImprove stage of DMAIC is the action stage where improvements are undertaken to\nchange and optimize the process.<\/p>\n\n\n\n<p><strong><em>Control<\/em><\/strong> \u2013 The control stage in DMAIC is seen\nas the stage for identifying deviations from the new process and providing an\nadjustment or correction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of Business Process Management<\/h2>\n\n\n\n<p>Unsystemized and inefficient business processes can cost manufacturers\nmoney as well as market share.&nbsp; In some\ncases, it can threaten a company\u2019s existence.&nbsp;\nThese inefficient processes impact many key areas of the factory and may\nhave a ripple effect to departments outside of manufacturing such as\npurchasing, finance and maintenance.&nbsp;\nThey can lead to a greater number of errors, incomplete or missing data\nand can even affect company culture and morale.<\/p>\n\n\n\n<p>There are many benefits to a formal Business Process Management initiative in any company.&nbsp; These benefits include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Companies\ndeploying BPM can gain control of inefficient and wasteful processes.<\/li>\n\n\n\n<li>BPM\ncan also improve operational efficiency as all areas of the factory are managed\nunder a single, systemized structure.<\/li>\n\n\n\n<li>BPM\nprovides a measurable and ongoing discipline for continuous improvement.<\/li>\n\n\n\n<li>Communication\nimproves as data is unsiloed for the benefit of a unified system which may\ninclude single software programs for managing previous fragmented and disparate\nsubsystems. <\/li>\n\n\n\n<li>It\nallows more control over production and items produced as they can be tracked\naccurately through the production workflow.<\/li>\n\n\n\n<li>BPM\ncan set the stage for digital transformation of a factory.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">BPM Types<\/h2>\n\n\n\n<p>A Business Process Management initiative can take many forms.&nbsp; There are three common types of BPM that\ninclude:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><em>Integrated <\/em><\/strong>\u2013 This is the most automated type of BPM and includes processes that can be enacted with no human intervention between different software systems such as CRM, ERP, Planning and Purchasing Systems, etc.)<\/li>\n\n\n\n<li><strong><em>Human<\/em><\/strong> \u2013 In many manufacturing environments, operator and technician interface with the elements of a BPM system are critical.&nbsp; A human-based BPM type may include ultra-friendly use interfaces, simple alerts and notifications, intuitive dropdowns and simple tracking mechanisms.<\/li>\n\n\n\n<li><strong><em>Document Centered<\/em><\/strong> \u2013 Reserved for BPMs that require a chain of handling for authority such as contracts, safety requirements and compliance processes.<\/li>\n<\/ul>\n\n\n\n<p>Most manufacturers will use these in combination but with a heavy reliance on human-based BPM.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">BPM \u201cMust Haves\u201d<\/h2>\n\n\n\n<p>Business Process Management is a powerful way to formalize and systemize <a href=\"https:\/\/www.mrpeasy.com\/blog\/process-improvement\/\" target=\"_blank\" rel=\"noreferrer noopener\">process improvement<\/a>.\u00a0 Some of the best-known methodologies include Six Sigma, Lean, BP Trends and Hammer and Rummler-Brache.\u00a0 Each of these methodologies have been used successfully by a wide range of successful manufacturing companies over the last few decades.<\/p>\n\n\n\n<p>However, each of these methodologies must have critical core elements\nsuch as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><em>Defined Leadership<\/em><\/strong> \u2013 Who in an organization will manage\nthe system and how are their roles defined.<\/li>\n\n\n\n<li><strong><em>Process Improvement<\/em><\/strong> \u2013 Process improvement must be robust\nand standardized, and each phase must be defined and followed.<\/li>\n\n\n\n<li><strong><em>Metrics<\/em><\/strong> \u2013 All methodologies must have\nreliable, real-time metrics that can be used to evaluate and make decisions.<\/li>\n\n\n\n<li><strong><em>Synergy<\/em><\/strong> \u2013 The chosen methodology must align\nand have synergy with a manufacturer\u2019s core business goals.<\/li>\n\n\n\n<li><strong><em>Change Management<\/em><\/strong> \u2013 Continuous improvement\nmethodologies and the software and technology tools that are usually used with\nthem often result in a culture change.&nbsp;\nThis requires effective change management within the organization.&nbsp; If this is not understood and planned for,\nthe initiative may fail.<\/li>\n<\/ul>\n\n\n\n<p>BPM initiatives can help drive continuous process improvement through a factory.&nbsp; In addition, they can be used in conjunction with software platforms such as CRM, MRP, ERP, and others to take that improvement to the next level.&nbsp; And in most cases, they can even be tied in through API to these systems to leverage powerful analytics and other data processing, machine learning and automated attributes as well. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business Process Management initiatives can help drive continuous process improvement through a factory. In addition, they can be used in conjunction with software platforms such as CRM, MRP, ERP.<\/p>\n","protected":false},"author":4,"featured_media":5240,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[94,93],"tags":[253,119,19,3,197,40,254],"class_list":["post-5236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tips","category-production-planning","tag-business-process-management","tag-enterprise-resource-planning","tag-erp","tag-manufacturing","tag-manufacturing-resource-planning","tag-mrp","tag-process-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Business Process Management and Methods - Blog for Manufacturers and Distributors<\/title>\n<meta name=\"description\" content=\"BPM initiatives can help drive continuous process improvement through a factory. 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