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Business Process Modeling, Simulation, and design
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Business Process Modeling, Simulation, and design
by Johan Marklund, Manuel Laguna
Business Process Modeling, Simulation and Design
Cover
Title Page
Contents
Preface
chapter 1 Introduction to Business Process Design
1.1 What Is a Business Process?
1.1.1 Process Types and Hierarchies
1.1.2 Determinants of the Process Architecture
1.1.3 Workflow Management Systems
1.2 The Essence of Business Process Design
1.2.1 Incremental Process Improvement and Process Design
1.2.2 An Illustrative Example
1.3 Business Process Design, Overall Business Performance, and Strategy
1.4 Why Do Inefficient and Ineffective Business Processes Exist?
1.5 Summary
1.6 References
1.7 Discussion Questions and Exercises
chapter 2 Process Management and Process-Oriented Improvement Programs
2.1 Process Management and the Power of Adopting a Process View
2.1.1 Phase I: Initialization
2.1.2 Phase II: Definition
2.1.3 Phase III: Control
2.1.4 An Illustrative Example: Managing a Document Distribution Process
2.2 Six Sigma Quality Programs
2.2.1 Six Sigma Definitions
2.2.2 The Six Sigma Cost and Revenue Rationale
2.2.3 Six Sigma in Product and Process Design
2.2.4 The Six Sigma Framework
2.2.5 Concluding Remarks: Key Reasons for the Success of Six Sigma
2.3 Business Process Reengineering
2.3.1 Reengineering and Its Relationship with Other Earlier Programs
2.3.2 A Brief History of Reengineering
2.3.3 When Should a Process Be Reengineered?
2.3.4 What Should Be Reengineered?
2.3.5 Suggested Reengineering Frameworks
2.4 Revolutionary Versus Evolutionary Change
2.5 Summary
2.6 References
2.7 Discussion Questions and Exercises
chapter 3 A Simulation-Based Framework for Business Processes Design Projects
3.1 Step 1: Case for Action and Vision Statements
3.2 Step 2: Process Identification and Selection
3.3 Step 3: Obtaining Management Commitment
3.4 Step 4: Evaluation of Design Enablers
3.4.1 Example: The Internet-Enabling Change at Chase Manhattan Bank
3.4.2 Example: New Technology as a Change Enabler in the Grocery Industry
3.5 Step 5: Acquiring Process Understanding
3.5.1 Understanding the Existing Process
3.5.2 Understanding the Customer
3.6 Step 6: Creative Process Design
3.6.1 Benchmarking
3.6.2 Design Principles
3.7 Step 7: Process Modeling and Simulation
3.8 Step 8: Implementation of the New Process Design
3.9 Summary
3.10 References
3.11 Discussion Questions and Exercises
chapter 4 Basic Tools for Process Design
4.1 Process Flow Analysis
4.1.1 General Process Charts
4.1.2 Process Flow Diagrams
4.1.3 Process Activity Charts
4.1.4 Flowcharts
4.1.5 Service System Mapping
4.2 Workflow Design Principles and Tools
4.2.1 Establish a Product Orientation in the Process
4.2.2 Eliminate Buffers
4.2.3 Establish One-at-a-Time Processing
4.2.4 Balance the Flow to the Bottleneck
4.2.5 Minimize Sequential Processing and Handoffs
4.2.6 Establish an Efficient System for Processing Work
4.2.7 Minimize Multiple Paths Through Operations
4.3 Additional Diagramming Tools
4.4 From Theory to Practice: Designing an Order-Picking Process
4.5 Summary
4.6 References
4.7 Discussion Questions and Exercises
chapter 5 Managing Process Flows
5.1 Business Processes and Flows
5.1.1 Throughput Rate
5.1.2 Work-in-Process
5.1.3 Cycle Time
5.1.4 Little’s Law
5.2 Cycle Time and Capacity Analysis
5.2.1 Cycle Time Analysis
5.2.2 Capacity Analysis
5.3 Managing Cycle Time and Capacity
5.3.1 Cycle Time Reduction
5.3.2 Increasing Process Capacity
5.4 Theory of Constraints
5.5 Summary
5.6 References
5.7 Discussion Questions and Exercises
chapter 6 Introduction to Queuing and Simulation
6.1 Queuing Systems, the Basic Queuing Process, and Queuing Strategies
6.1.1 The Basic Queuing Process
6.1.2 Strategies for Mitigating the Effects of Long Queues
6.2 Analytical Queuing Models
6.2.1 The Exponential Distribution and Its Role in Queuing Theory
6.2.2 Terminology, Notation, and Little’s Law Revisited
6.2.3 Birth and Death Processes
6.2.4 The M/M/l Model
6.2.5 The M/M/c Model
6.2.6 The M/M/c/K Model
6.2.7 The M/M/c/8/N Model
6.2.8 Queuing Theory and Process Design
6.3 Introduction to Simulation
6.3.1 Simulation Models
6.3.2 Discrete Event Simulation
6.3.3 Spreadsheet Simulation of a Single-Server Process
6.4 Summary
6.5 References
6.6 Discussion Questions and Exercises
chapter 7 Introduction to Extend
7.1 Extend Elements
7.2 Extend Tutorial: Basic Queuing Model
7.3 Basic Data Collection and Statistical Analysis
7.4 Adding Randomness to Processing Times
7.5 Adding a Second Underwriting Team
7.6 Adding a Labor Pool
7.7 Customizing the Animation
7.8 Calculating Costs and Using the Flowchart View
7.9 Summary
7.10 References
7.11 Discussion Questions and Exercises
chapter 8 Modeling and Simulating Business Processes
8.1 General Modeling Concepts
8.2 Items and Values
8.2.1 Generating Items
8.2.2 Assigning Attributes to Items
8.2.3 Prioritizing Items
8.3 Queuing
8.3.1 Blocking
8.3.2 Balking
8.3.3 Reneging
8.3.4 Priority Queues
8.4 Routing
8.4.1 Multiple Paths
8.4.2 Parallel Paths
8.5 Processing Time
8.6 Batching
8.7 Resources
8.8 Activity-Based Costing
8.9 Cycle Time Analysis
8.10 Model Documentation and Enhancements
8.11 Process Design Case: Software Support
8.11.1 Modeling, Analysis, and Recommendations
8.12 Process Design Case: Hospital Admissions
8.13 Summary
8.14 References
8.15 Discussion Questions and Exercises
8.16 Modeling, Simulation, and Design Projects
chapter 9 Input and Output Data Analysis
9.1 Dealing with Randomness
9.2 Characterizing the Probability Distribution of Field Data
9.2.1 Goodness-of-Fit Tests
9.2.2 Using Stat::Fit to Fit a Distribution
9.2.3 Choosing a Distribution in the Absence of Sample Data
9.3 Random Number Generators
9.3.1 The Runs Test
9.4 Generation of Random Variates
9.5 Analysis of Simulation Output Data
9.5.1 Nonterminating Processes
9.5.2 Terminating Processes
9.5.3 Confidence Intervals
9.5.4 Sample Size Calculation
9.5.5 Hypothesis Testing
9.6 Summary
9.7 References
9.8 Exercises
chapter 10 Optimizing Business Process Performance
10.1 Introduction to Optimization by Evolutionary Computation
10.2 Optimizing Processes
10.3 Process Optimization Tutorial
10.4 Alternative Optimization Models
10.5 Summary
10.6 References
10.7 Process Modeling and Simulation Projects
10.7.1 Staffing a Process with Multiple Job Types
10.7.2 Loan Applications
chapter 11 Process Benchmarking with Data Envelopment Analysis
11.1 Graphical Analysis of the Ratio Model
11.1.1 Efficiency Calculation
11.2 Linear Programming Formulation of the Ratio Model
11.3 Excel Add-in for Data Envelopment Analysis
11.4 DEA in Practice
11.5 Summary
11.6 References
11.7 Discussion Questions and Exercises
Appendix
Index
Copyright
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chapter 4 Basic Tools for Process Design
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chapter 5 Managing Process Flows
1
The bottleneck is the resource with lowest capacity in the process
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