MPM701 Module 9 Slide Pack 3 Slides Per Page

8/07/2015
BPM and Service
Module 9
Deakin University CRISCO Provider Code: 00113B
Module Learning Objectives

At the successful completion of this module students can:
Articulate the value of BPM to service oriented industries
Employ BPM methodology to invoke process change in a service organisation
Diagram process problem scope and solutions in a service organisation
Analyse problem scope and compare current states and proposed change in a
service organisation
The Rental Cars-R-Us Case Study

Chapter 14 of our Harmon (2014 pp.353-375) reference book
Although this is a fictitious case, it will provide you with realistic scenarios that
you would typically confront whilst navigating a detailed BPM methodology.
The case profile will resonate with many of you, i.e. it is a small service company
(providing rental cars to clients) which is currently on a growth curve.
This slide deck contains diagrams from Chapter 14 which might be used in
seminar discussions.
The next slide though is drawn from Chapter 13, p. 350, Figure 13.8 An
overview of process redesign for revision before moving into case discussions.
8/07/2015
13.8 An overview of process redesign

Major Steps and Objectives
Diagrams and Worksheets that May be Used
Corporate Process Management

Undertaken by Executive Committee, Strategy Committee, Business Architecture Committee or Process
Sponsor
Determine corporate strategy
Identify opportunities and threats
Identify corporate processes to be improved
Scope projects
Set general goals for project
Organization Goals & Measures Worksheet

Supersystem Diagram of Organization
Value Chain Diagram
Phase 1. Understand Project

Undertaken by Process Sponsor, Steering Team, and Project Facilitator
Detailed Diagram of Organization
Organization Opportunities & Threats Worksheet
Project Plan and Business Case
Refine scope of project

Establish project schedule and plan
Phase 2. Analyze Process

Undertaken by Project Facilitator and Process Redesign Team
Detailed Diagram of Organization
AS-IS Process Diagrams to various levels of detail
Define AS-IS process
AS-IS Process Analysis & Improvement Worksheet
Define AS-IS activities
AS-IS Specific Activity Analysis Worksheet
Define AS-IS management system
AS-IS Activity Cost Worksheet
Identify key disconnects
Phase 3. Redesign Process
Undertaken by Project Facilitator and Process Redesign Team

TO-BE Process Diagrams to various levels of detail
TO-BE Porcess Diagrams with measures
TO-BE Process Analysis & Improvement Worksheet
TO-BE Specific Activity Analysis Worksheet
TO-BE Activity Cost Worksheet
Process/Function Role/Responsibility Worksheet
Eliminate disconnects & improve process fit

Define MAY-BE processes
Define TO-BE process
Define TO-BE activities
Define TO-BE management system
Phase 4. Implement Redesigned Process

Managed by Process Sponsor; Undertaken by several specialized teams
Create and test new software needed for new process TO-BE Workflow Model
Use Case and other software models
Create new job descriptions required
Job Model
Develop training
Job Analysis Worksheets
Phase 5. Roll-Out Redesigned Process

Managed by Business Managers responsible for the new process
Manage transition and change
Manage ongoing process
Figure 14.1 An Overview of the Organization of Rental Cars-R-Us
Rental Cars-R-Us
Headquarters
All one Local Areas

cars are maintained by
a single Service Depot
Operating Company
One operating company for each country

in which Rental Cars-R-Us does business.
Local Area Franchise
Cars are owned by Local Area franchises
Service Depot
Three categories:
- Airport
- City
- Agency
Branch
Figure 14.2 A quick overview of where some of the Rental

Cars-R-Us processes occurred
Rental Cars-R-Us
Headquarters
National Operating
Company
Local Area Branches
Establish Company
Strategies and
Plans
Promote Brand
Develop National
Strategies and
Plans
Develop Local
Goals and Plans
Plan Local
Marketing Efforts
Oversee Operating
Companies
Establish Company
Policies
Oversee Local Area

Franchises
Support Local
Community
Report to Operating
Co. & HQ
Optimize Finances
Ensure Compliance
Report to HQ
Manage Operations
Report to
Shareholders
Plan Competitor
Acquisitions
Management
Processes
Plan to Acquire and

Dispose of Cars
Optimize Franchises
Develop Franchise
Model
Value Chain
Sign up
Franchisees
Monitor Franchise
Performance
Launch Franchise
Terminate Franchise
Agreement
Optimize Franchise
Performance
Value Chain
Acquire Customers
Acquire Corporate
Accounts
Develop Marketing
Strategy
Manage Corporate
Accounts
Optimize Customer
Loyalty
Run ABC
Advertizing
Promote Local Car

Rentals
Rent Cars Value Chain

Reserve Cars
Process Corporate
Payments
Pickup Car
Return Car
Maintain Cars
Process Payments
Prepare Cars
Provide IT Support
Improve Processes
Support
Processes
Acquire
Employees
Provide Facilities
Acquire and Dispose of Cars
8/07/2015
Figure 14.3 The Organization Chart of the Calgary Local Area

Franchise. Only the Airport Branch is shown on this chart
Figure 14.4 Simple Overview of Rent Cars Value Chain
Figure 14.5 A Stakeholder Diagram for the Rent Cars Value Chain
HQ and
Operating
Company
Policies
Information on
Reservations
& Customers
Service
Depot
City &
Provincial
Agencies
ROI
Capital
Business
Licenses
Cars Ready for

Use
Returned Cars
Car Suppliers
New
Cars
Income
Taxes &
Fees
Request for car
Rent Cars
Process
Data on
Activities
Payments
Owners /
Managers of
Local Area
Payment
Data on
Cars &
Customers
Skills &
Knowledge
Corp. IT
Group
Renters
Rented car
Salaries
Employees
8/07/2015
Figure 14.6 An Initial Scope Diagram of the Rent Car Value Chain
Establish
Company
Policies
Acquire
Corporate
Accounts
Corporate
Agreements
Rental
Inquiry
Policies
Renter
Manage
Operations
Customer
History
Resource
Plan
Guides
Rental
Agreement
(Acceptance)
Renter
Rental
Car (Returned)
Renter
Payment
Renter
Complaints
Optimize
Customer
Loyalty
Customer
Information
Approve
Possible
Charge
Credit Card
Approval
Rental
Agreement
l
Car
Rent Cars
I
n
p
u
t
s
Reserve Car
Pickup Car
Return Car
Maintain Cars
Undertaken
Prepare Cars
Process Payments
Process Corporate Payments
Renter
10
Optimize
Customer
Loyalty
O
u
t
p
u
t
s
Customer
Information
Compliance
Reports
Obtain
Credit Card
Approval
Employees
Rental
System
Facilities
Acquire
Employees
Provide IT
Support
Provide
Facilities
Optimize
Finances
Optimize
Customer
Loyalty
Process
Performance
Enablers
Renter
Ensure
Compliance
Improve
Processes
Approve
Possible
Charge
Figure 14.7 A cause-effect diagram designed to explore incomplete an

inaccurate reservations in more detail
Management
Guidance
Renter
No policies or business rules

exist to define a complete
and proper reservation
Renter sometimes misstates or

changes what he/she wants
Reservations
often incomplete
or inacurate
Reservation system cant check

for completeness as there is no
comprehensive set of rules to
describe completeness
Employees dont know how

to complete reservations
No one knows
how to do it the
policy and rules
are incomplete
Employees
need more
training?
Reservation system
doesnt check for
completeness
IT
11
Employees
Figure 14.8 A Scope Diagram with problems indicated and a line to

suggest a project scope
Establish
Company
Policies
Acquire
Corporate
Accounts
Corporate
Agreements
Rental
Inquiry
Renter
Renter
Manage
Operations
Customer
History
Resource
Plan
Guides
Rental
Agreement
(Acceptance)
Rental
Car (Returned)
Renter
Payment
Renter
Complaints
Optimize
Customer
Loyalty
Customer
Information
Approve
Possible
Charge
Credit Card
Approval
Rental
Agreement
l
Car
Rent Cars
I
n
p
u
t
s
Reserve Car
Pickup Car
Return Car
Maintain Cars
Undertaken
Prepare Cars
Process Payments
Process Corporate Payments
Renter
12
Policies
Optimize
Customer
Loyalty
O
u
t
p
u
t
s
Customer
Information
Compliance
Reports
Obtain
Credit Card
Approval
Employees
Rental
System
Facilities
Acquire
Employees
Provide IT
Support
Provide
Facilities
Optimize
Finances
Optimize
Customer
Loyalty
Process
Performance
Enablers
Renter
Ensure
Compliance
Improve
Processes
Approve
Possible
Charge
8/07/2015
Figure 14.9 Problem Analysis Worksheet for Rent Car process
13
Figure 14.10 Some important elements of a BPMN flow diagram

The Activities Through which the Customer
interacts with the Rent Car Process
Level 1 Process: Rent Car Process
Front Office
Make
Reservation
Return
Car
Use Car
Reserve
Car
Level 2
Process
Process
Payment
Payments
Pick-Up Car
Rental Lot
Return Car
Prepare
Car
HQ
Services
Depot
Maintain
Car
Cust-Car
Database
IT Support
Credit Card
Processing
Center
14
Pick-Up
Car
(L1 Process: The Rent Car)
HQ Services
The
Management
Structure of
the Processin-Scope
Reservations
Branch Office
Customer
(Renter)
Approve
Possible
Charge
Debut
Account
Figure 14.11 The initial, high-level As-Is flow diagram should reflect the existing units
within the organization that are currently responsible for the various activities in the
Headquarters Organization Chart
process
Corporate HQ
CEO
Customer
(Renter)
Make
Reservation
Pick-Up
Car
Corp. Finance
VP
Reservations
HQ Services
Payments
Manager
Reservations
Manager
Reserve
Car
Payments
IT Support
CIO
Local Area
Manager/Owner
Front Office
Branch Office
Branch Office Organization Chart
Pick-Up Car
Rental Lot
Finance & Admin.

Manager
Rental Lot
Manager
Depot
Manager
15
HQ
Services
Front Office
Manager
Prepare
Car
Depot
Branch Office
Manager
IT Support
Credit Card
Processing
Center
Rental System
Approve
Possible
Charge
8/07/2015
Figure 14.12 The initial As-Is flow diagram of the rent car process
HQ Services
Make
Reservation
Reservations
Branch Office
Customer
(Renter)
Front Office
Pick-Up
Car
Reserve Car
Process
Payment
Payments
Pick-Up Car
Rental Lot
Return Car
Prepare
Car
HQ
Services
Depot
IT Support
Credit Card
Processing
Center
16
Return
Car
Use Car
Maintain
Car
Rental System
Approve
Possible
Charge
Debit Account
Figure 14.13 An Analysis Planning Worksheet for the analysis phase of

the Rent Car process redesign effort
Analysis Planning Worksheet
Project: Rent Cars Redesign Project
Issues with
Inputs
Analyst:
What do I need to know more about?
How will I get the needed data?
Only list problems that are high priority and worth

investigating at this time
Where will I get the data, how often will I get it, how
will I get it?
Customer complaints
Tabulate customer complaints. What are the complaints?

What activities seem to produce them?
Compare initial rental agreements with final agreements.
Did customers change when they arrived on lot? Else why
were changes made?
Cars sometimes not as desired

Issues with
Outputs
Rental agreements sometimes have to be changed
Interview management and examine existing policies. How is

a complete reservation defined? Is there any disagreement on
this? Do existing paper forms or software interfaces ask all
the needed questions?
Study a number of reservations. How often do errors occur.
Are they random or do particular employees make specfic
types of mistakes?
Policies on certain rental issue unclear or confusing

Issues with
Guides
Issues with
Support
(Including IT
& Employees)
Rental Agreements Sometimes Incomplete. Why is this

happening? Because employees dont ask. Because the
computer system doesnt require?
Employees not trained to prepare cars correctly?
Customer systems allows incorrect rental agreements
Some cars not prepared as desired, or not maintained correctly
Watch employees take reservations. Record exactly what

they ask and do.
Study the Depot operations to see what cars are defective.
Gather data on numbers of errors and patterns.
Issues with
Subprocesses
& Flows
Issues with
Process
Management
17
Cars sometimes not as desired
What kind of supervision process does Depot have in place

to assure cars are prepared as they should be?
Policies on certain rental issue unclear or confusing
Why hasnt management established clear policies and

rules? Are they willing to make the effort required?
Figure 14.14 A more detailed look at a customers car rental process
Customer Car Rental Process

Customer
(Renter)
Decide to
Rent Car
Examine
Options
Identify
Preferred
Vendor
Contact
Vendor
Provide Information & Make

Choices
Establish
Credit
Define
Requirements
(Inc. Payment
Method)
Establish
Credit
phone:
wait for
answer
Establish
Identity
Wait for Confirmation
Confirm
Reservation
(phone)
Check
Availability
Confirm
Reservation
(email)
Reservations
Discuss
Alternatives
18
8/07/2015
Figure 14.15 A Scope Diagram of the Reserve Car process

Acquire
Corporate
Accounts
Corporate
Agreements
Establish
Corporate
Policies
Optimize
Customer
Loyalty
Prepare Cars
Policies
Customer
History
Car
Availability
Guides
Rental
Inquiry
Renter
Renter
Rental
Agreement
(Acceptance)
Prepare Cars
Car Information
Reserve Car
I
n
p
u
t
s
O
u
t
p
u
t
s
Establish Identify
Define Requirements
Check Availability
Undertaken
Confirm Reservation
Establish Reservation Record
Prepare Cars
Rental
Agreement
Pick-Up
Car
Return Car
Optimize
Customer
Loyalty
Customer
Information
Enablers
Process
Payment
Not a problem
Possible problem (Yield)
Problem that needs to be fixed (Stop)
19
Employees
Rental
System
Facilities
Acquire
Employees
Provide IT
Support
Provide
Facilities
Figure 14.16 A Level 2 flow diagram of the Reserve Car subprocess

Reserve Car Subprocess
Note: When an agency makes a
reservation, a confirmation is given to both
the agency and the individual renter.
Customer
(Renter)
Corporate
Travel
Office
Confirm
Reservation
(email)
Call for Reservation
Establish
Identity
Define
Requirements
(Inc. Payment
Method)
Reservations
Corp. Acct. &

Loyalty Accts
Confirm
Reservation
(phone)
Check
Availability
Other
Individuals
Establish
Credit
Confirm
Reservation
(email)
Establish
Reservation
Record
Discuss
Alternatives
request
reservation
confirm or
deny request
confirm
reservation
IT Support
Rental System
20
Figure 14.17 A concept model illustrating some of the terms that one would need to define
a consistent set of business rules for the Rental Cars-R-Us organization
contract
rental
contract
document
is manifested in
request for
pick-up
matches
optional
extra
includes
rental
is responsible
for
includes
rental car
rejected
request for
pick-up
<<role>>
rental
period
<<role>>
rental
duration
21
is
assigned
to
car
movement
includes
is measured
in
renter /
customer
has
possession
of
accepted
request for
pick-up
RTU
time unit
8/07/2015
Figure 14.18 Subprocesses of Return Car
Return Car
Return Car
Check Car for
Damage
22
Check Car for

Gas
Make Notes
on Contract
Obtain
Customers
Signature
Move Car to
Maintanance
Figure 14.19 We have problems with two sub processes that are largely
dependent on human performance
HQ Services
Customer
(Renter)
Reservations
Make
Reservation
Branch Office
Use Car
Return
Car
Reserve
Car
Process
Payment
Payments
Front Office
Pick-Up Car
Rental Lot
Return Car
Prepare
Car
Depot
Manager
23
Pick-Up
Car
Maintain
Car
Figure 14.20 The basic To-Be process that the BPM team came up with
Customer
(Renter)
HQ Services
Reservation
Website
(IT)
Make
Reservation
Use Car
Return
Car
Reserve
Car
Process
Payment
Payments
Branch Office
Front Office
Pick-Up Car
Rental Lot
Return Car
Prepare
Car
HQ
Services
Depot
IT Support
Credit Card
Processing
Center
24
Pick-Up
Car
Maintain
Car
Retail System
Approve
Possible
Charge
Debit Account
8/07/2015
Figure 14.21 A Create Record Use Case

Actor: Record Clerk
Role: Create Record
Task: Create Record
Activity 2
Dept 1
Dept 2
Create
Record
Use Case:
Create Record
Dept 3
IT
Service:
Create Record
XYZ
Software System
25

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8/07/2015

BPM and Service

Deakin University CRISCO Provider Code: 00113B

Module Learning Objectives

Deakin University CRISCO Provider Code: 00113B

The Rental Cars-R-Us Case Study

Deakin University CRISCO Provider Code: 00113B

13.8 An overview of process redesign

Diagrams and Worksheets that May be Used

Corporate Process Management

Organization Goals & Measures Worksheet

Phase 1. Understand Project

Refine scope of project

Phase 2. Analyze Process

Phase 3. Redesign Process

Undertaken by Project Facilitator and Process Redesign Team

Eliminate disconnects & improve process fit

Phase 4. Implement Redesigned Process

Phase 5. Roll-Out Redesigned Process

Deakin University CRISCO Provider Code: 00113B

Figure 14.1 An Overview of the Organization of Rental Cars-R-Us

All one Local Areas

One operating company for each country

Local Area Franchise

Cars are owned by Local Area franchises

Deakin University CRISCO Provider Code: 00113B

Figure 14.2 A quick overview of where some of the Rental

Local Area Branches

Oversee Local Area

Plan to Acquire and

Promote Local Car

Rent Cars Value Chain

Acquire and Dispose of Cars

Deakin University CRISCO Provider Code: 00113B

Figure 14.3 The Organization Chart of the Calgary Local Area

Deakin University CRISCO Provider Code: 00113B

Figure 14.4 Simple Overview of Rent Cars Value Chain

Deakin University CRISCO Provider Code: 00113B

Cars Ready for

Request for car

Deakin University CRISCO Provider Code: 00113B

Deakin University CRISCO Provider Code: 00113B

Figure 14.7 A cause-effect diagram designed to explore incomplete an

No policies or business rules

Renter sometimes misstates or

Reservation system cant check

Employees dont know how

Deakin University CRISCO Provider Code: 00113B

Figure 14.8 A Scope Diagram with problems indicated and a line to

Deakin University CRISCO Provider Code: 00113B

Figure 14.9 Problem Analysis Worksheet for Rent Car process

Deakin University CRISCO Provider Code: 00113B

Figure 14.10 Some important elements of a BPMN flow diagram

(L1 Process: The Rent Car)

Deakin University CRISCO Provider Code: 00113B

Branch Office Organization Chart

Finance & Admin.

Deakin University CRISCO Provider Code: 00113B

Level 1 Process: Rent Car Process

Deakin University CRISCO Provider Code: 00113B

Figure 14.13 An Analysis Planning Worksheet for the analysis phase of

What do I need to know more about?

How will I get the needed data?

Only list problems that are high priority and worth