- Research Article
28
- 10.1016/j.procs.2019.12.182
KPI-Based Approach for Business Process Improvement
- Jan 01, 2019
- Procedia Computer Science
- Aicha Wannes + 1 more +1
KPI-Based Approach for Business Process Improvement
Modelling business processes as stochastic processes has a long tradition. Most models focus on the dynamics of the complete state of the process. In this article we propose a new approach which concentrates on the stochastic paths of measurable quantities like key performance indicators. Using this concept a strong analogy to current results in statistical physics is exposed which leads to a general expression for the entropy of a business process as well as results quantifying the performance loss in processes due to fluctuations. Finally, path probabilities and averages of key performance indicators of a process are given in terms of business constraints expressed as variational principles.
KPI-Based Approach for Business Process Improvement
KPI-Based Approach for Business Process Improvement
A Model-Driven Approach for Generating Business Processes and Process Interaction Semantics
Business process modeling (BPM) is one of the key technologies to benefit enterprises with higher efficiencies and greater business values. However, BPM requires intensive business expertise and human resources. Thus, it is valuable and challenging to enable fast delivery of reusable business process designs, regarding the existence of various popular business processes modeling languages and fast changing markets. In this paper, we generate language-specific business process models and process interaction semantics from UML 2.0 process models. A WS-BPEL metadata model and a process interaction semantics metadata model is defined to annotate UML 2.0 business process model as stereotypes; with a set of transformation patterns, we can generate a WS-BPEL business process model and a process interaction semantics file from each annotated UML 2.0 process model. Our approach can also be similarly applied to other process modeling languages to highly reuse the business process model in UML 2.0.
Read morePreventing KPI Violations in Business Processes based on Decision Tree Learning and Proactive Runtime Adaptation
The performance of business processes is measured and monitored in terms of Key Performance Indicators (KPIs). If the monitoring results show that the KPI targets are violated, the underlying reasons have to be identified and the process should be adapted accordingly to address the violations. In this paper we propose an integrated monitoring, prediction and adaptation approach for preventing KPI violations of business process instances. KPIs are monitored continuously while the process is executed. Additionally, based on KPI measurements of historical process instances we use decision tree learning to construct classification models which are then used to predict the KPI value of an instance while it is still running. If a KPI violation is predicted, we identify adaptation requirements and adaptation strategies in order to prevent the violation.
Read moreKey Technical Performance Indicators for Power Plants
In this chapter, we will underline the importance of the key performance indicators (KPIs) computation for power plants' management. The main scope of the KPIs is to continuously monitor and improve the business and technological processes. Such indicators show the efficiency of a process or a system in relation with norms, targets or plans. They usually provide investors and stakeholders a better image regarding location, equipment technology, layout and design, solar and wind exposure in case of renewable energy sources and maintenance strategies. We will present the most important KPIs such as energy performance index, compensated performance ratio, power performance index, yield, and performance, and we will compare these KPIs in terms of relevance and propose a set of new KPIs relevant for maintenance activities. We will also present a case study of a business intelligence (BI) dashboard developed for renewable power plant operation in order to analyze the KPIs. The BI solution contains a data level for data management, an analytical model with KPI framework and forecasting methods based on artificial neural networks (ANN) for estimating the generated energy from renewable energy sources and an interactive dashboard for advanced analytics and decision support.
Read moreMutatis mutandis: An abstraction with reusable building block used to teach business process modeling
ion in business processes (BP) modeling arises from the recognition of similarities to the detriment of its differences. However, teaching modeling to beginning students in the context of process management is a hard task to perform, given the high level of abstraction required for these students to develop. This paper uses BP fragments to facilitate the teaching of BP modeling. Thus, two different process models were used from a BP Office. This observation resulted in the fragments being abstracted and defined by a group of students, later another group applied the third model. Thus, two fragments were abstracted, specified, and reused. In addition to the approach itself and the template used to define the fragments here presented, this research’s main contribution is the role that abstraction plays in BP learning and modeling skills. Finally, the fragments were validated by ten specialists, who emphasized the feasibility of using these fragments.
Read moreA techno-economic analysis of post-combustion CO2 capture and compression applied to a combined cycle gas turbine: Part I. A parametric study of the key technical performance indicators
A techno-economic analysis of post-combustion CO2 capture and compression applied to a combined cycle gas turbine: Part I. A parametric study of the key technical performance indicators
Read moreAnalisis Kinerja Perusahaan PT. X dengan Metode Performance Prism
Penelitian ini bertujuan untuk menentukan dan memvalidasi KPI (Key Performance Indicator) pada PT. X, menentukan pembobotan KPI pada perusahaan dengan menggunakan metode AHP (Analytical Hierarchy Process), menentukan nilai performansi perusahaan dengan metode Objective Matrix (OMAX), menganalisis kinerja PT. X berdasarkan hasil pengukuran yang didapatkan, serta memberikan saran perbaikan untuk indikator kinerja yang memerlukan perbaikan. Langkah-langkah dalam penelitian ini adalah mengidentifikasi KPI dengan metode performance prism dan selanjutnya adalah memvalidasi KPI dengan uji statistik. Setelah itu melakukan pembobotan KPI dengan metode AHP. Lalu menentukan nilai performansi dengan metode OMAX dibantu dengan tools Traffic Light System. Hasil penelitian menunjukkan terdapat 24 KPI pada perusahaan yang terdiri dari 8 KPI kriteria strategi, 8 KPI kriteria proses, dan 8 KPI kriteria kapabilitas. Nilai performansi untuk kriteria KPI Strategi sebesar 7,207, nilai performansi untuk kriteria KPI Proses sebesar 7,345, nilai performansi untuk kriteria KPI Kapabilitas sebesar 8,040, serta nilai performansi untuk perusahaan sebesar 7,419. Dengan menggunakan metode OMAX dapat diketahui bahwa KPI yang masuk dalam kategori hijau sebanyak 14 KPI, sedangkan yang masuk dalam kategori kuning sebanyak 7 KPI dan yang masuk kategori merah sebanyak 3 KPI.
Read morePenerapan Balanced Scorecard Dalam Penyusunan Rencana Strategi Bisnis (RSB) Tahun 2020-2024 Di Rumah Sakit Jiwa X Magelang
This research uses a qualitative approach through descriptive analysis of the application of the balanced scorecard in the preparation of a business strategy plan for the mental hospital X Magelang 2020-2024. The results showed that based on the SWOT analysis conducted by active observation methods, group discussion forums (FGD) and documentation studies produced vision, mission and organizational values which were then translated into strategic targets, key performance indicators and targets all based on a balanced scorecard that is divided into four learning and growth perspectives, internal business processes, customers, and finance as well as with key performance indicators / Key Performance Indicators (KPI) on each strategic goal. The competitive position of the hospital is in quadrant II so that the strategic steps taken are maintaining organizational stability or strengthening organizational quality by improving organizational governance, management system capabilities, hospital management information systems, business processes and building organizational culture. Required joint commitment from all levels in the mental hospital. X Magelang to implement the Business Strategy Plan (RSB) based on the balanced scorecard period 2020-2024 and periodically evaluate the performance of each perspective.
Read moreBusiness Process Quality Computation: Computing Non-Functional Requirements to Improve Business Processes
Business process modelling is an important part of system design. When designing or redesigning a business process, stakeholders specify, negotiate, and agree on business requirements to be satisfied, including non-functional requirements that concern the quality of the business process. This thesis addresses the question of how to specify and compute the quality of a business process, given the model that stakeholders use. The motivation for this thesis is the increasing importance of the quality of business processes. Knowing the quality of specific business processes enables stakeholders to judge if these processes need improvement. Knowing the quality of the constructs of those processes (viz., events, inputs, activities, and outputs) and the way they are structured enables a more detailed analysis of their shortcomings and provides a basis for the design of improvements. The research challenge of this thesis is grounded in the assumption that: “Organisations need an appropriate means to effectively compute achievement of their goals and objectives by their business processes.” Given this challenge, the main research question on which this thesis focuses is: “Can the quality of a business process be computed quantitatively at different levels of granularity?” The research objective is: “To develop frameworks, factors, and metrics for computing non-functional requirements (quality) of business processes quantitatively at different levels of granularity.” The outcomes of this thesis are: 1) BPIMM, a language-independent business process integrating meta-model, based on the concepts of seven mainstream business process modelling languages: BPMN, EPC, RAD, UML AD, SADT, IDEF0, and IDEF3. 2) BPC-QC (Business Process Concept - Quality Computation), an approach to quality computation at the lowest level of granularity of a business process. The approach consists of: i. BPC-QEF (Business Process Concept - Quality Evaluation Framework), a language-independent generic framework and algorithm to compute the quality of the constructs of a business process: event, input, activity, and output. ii. A set of business process quality dimensions and factors. The following quality dimensions are distinguished: performance, efficiency, reliability, recoverability, permissibility, and availability. Each dimension categorises different quality aspects in terms of factors. A non-exhaustive set of sixteen quantitative factors is provided. iii. Quality metrics for each of the quality factors, to facilitate a quantitative computation of the quality of a specific construct of a business process. 3) BP-QC (Business Process - Quality Computation), an approach to compute the quality at the highest level of granularity of a business process. The approach consists of: i. BP-CQCF (Business Process - Compositional Quality Computation Framework), a language-independent generic framework and algorithm to compute the quality of a business process as a whole, given the quality of its constructs. ii. A set of generic business process modelling patterns to decompose a business process into more succinct parts, namely: sequential, parallel with synchronisation, exclusive, inclusive, simple loop, and complex loop. iii. A set of over one hundred computational formulae. For each combination of modelling pattern and a quality factor, there is a formula to compute the quality. 4) AAV (Approach to Application and Validation), an evaluation plan to evaluate BPIMM, BPC-QC and BP-QC in practice, together with expert stakeholders. The plan consists of the units of measure, a measurement model, and a case study procedure. To evaluate the applicability of the contributions of this thesis to real world business needs, four case studies have been conducted in different environments: a Dutch educational institution, a global financial institution, an international financial service provider, and a Dutch research project on crisis management. Each of these case studies concerns a different, single business process. This thesis shows that: 1) A quality computation approach can be adopted independent of a business process modelling language. 2) Quantitative quality factors can be introduced specifically for the constructs of a business process. 3) Quantitative metrics and computational formulae can be developed for specific quality factors, allowing the computation of different aspects of the quality of a business process quantitatively at different levels of granularity. 4) An evaluation plan can be developed to evaluate the applicability of the contributions of this thesis (viz., BPIMM, BPC-QC, and BP-QC). The contributions of this thesis are designed to be beneficial to the areas of business and management, requirements engineering, software engineering, and business process modelling. In the areas of requirements engineering and software engineering, these contributions are intended to help practitioners to consider non-functional requirements at the earliest stage. In the area of business process modelling, information systems, service computing, and cloud computing, the contributions can be used for quality-driven modelling, design, and redesign. To conclude, knowing the quality value of a business process at different levels of granularity provides a basis for its improvement.
Read moreInventory Management, a Decision Support Framework to Improve Operational Performance
Enterprise Resource Planning systems have been introduced to support the efficient and effective execution of business processes. In practice, this may not fully succeed. This also holds in particular for inventory management (IM), which forms a part of supply chain management. Within this research, by analyzing the IM business process theoretically, eleven potential benefits are indicated. Next, by using a Business Intelligence approach, key performance indicators (KPIs) are selected to measure the performance of IM sub-processes. Integration of these approaches yields an IM performance decision support framework that can be used to obtain a generic, coherent picture of the fundamental IM processes in an organization. In addition, by tracking and analyzing KPI measurements, adequate decisions can be prepared towards the improvement of the operational IM performance. The proposed framework is validated using experts’ opinions and a comparative case study. The experts’ comments yielded a list of top-10 KPIs, based on the measurements of which a set of quick wins can be determined. The case study results show that some of the identified potential benefits are also observed in practice. Future research may reveal that comparable performance improvements are possible in other IM environments (and even in other supply chain domains) based on similar decision support frameworks.
Read moreApplication of organization goal-oriented requirement engineering (OGORE) methods in erp-based company business processes
The implementation of an information system that supports company goals is the main strategy of an organization. But aligning business strategies with information system(IS) and information technology(IT) is not as easy as it seems, because there are several gaps of strategies between upper level and practical level. Often the focus in system development is only on the architecture of the future system, even though the study says that the engineering model of needs is the most important thing in the process of developing the company’s system. PT. SBS is a distributor and supplier company. Along with the development of its business, business processes also become more complex. The information system that was originally felt to be sufficient is considered to be no longer optimal so that it often results in delays in delivery with a fairly large percentage. Therefore, an Enterprise Resources Planning(ERP) system will be developed but it must be ensured that the business processes used are oriented towards organizational goals. The purpose of this study is to introduce and explain the stages of the Organization Goal-Oriented Requirement Engineering (OGORE) method as a requirement engineering method in a company’s business processes that focuses on organizational goals. The research method was done by collecting business process data and defining key performance indicators(KPIs) in a small discussion group with stakeholders in the company. The results of this method were Goal Tree Model (GTM) diagrams which was then used as a reference in describing new business processes and in preparing the requirements specification documents. The conclusion obtained that the stages of the OGORE method are able to eliminate needs according to the organization’s goals. It is also recommended to use the OGORE method as one of the requirements management steps in the Enterprise Architecture method to create new method as an agenda for the future.
Read moreModeling and re-engineering of business processes of a company selling sushi-market products
The work is devoted to modeling and reengineering of business processes of a sushi market company. The object of the study covers business processes related to the purchase of ingredients, preparation of dishes, inventory management, customer service and delivery. The subject of the study is precisely the modeling and reengineering of processes, with a special emphasis on analyzing the current state, identifying problem aspects and implementing new solutions to increase efficiency. The purpose of this work is to develop optimized business process models based on reengineering, which will increase the efficiency of the company, reduce costs, improve product quality and service level. It was established that the business processes «Sushi market activities», namely its subprocesses «Order reception and processing», require reengineering, and the main drawback is the lack of order delivery. Measures were proposed to reengineer the business processes of a sushi market sales company aimed at implementing online order delivery services, namely, adding new business processes «Order Delivery» and establishing a connection between other business processes such as: «Dish Preparation», «Order Reception and Processing», «Financial Transactions». Measures were also proposed to implement a warehouse management system to control the quantity of products. IDEF0, IDEF3 diagrams were constructed for the «AS-IS» and «TO-BE» options, and their comparative analysis was performed. The proposed models have real practical significance, as they can be applied both in specific sushi markets and in similar food enterprises. The implementation of reengineering allows companies to increase their competitiveness, stabilize and strengthen profitability, and also meet modern consumer requirements and expectations
Read moreBusiness Process Management
Information System is one of the key domain in which lot of research has been done in the past few years. Applying Information systems to heterogeneous and distributed environments is one of the current research areas. Business Process Management Systems is the information systems which deal with the administration of tasks in the business processes, organizational structures, or in the related context. The Workflow Management system, the early idea of BPM, controls the workflow in an organization, data transfer, and integration of legacy information systems with existing programs and program modules, delegation of business tasks. Offering task management services especially modeling of business processes and underlying organizations, BPM serves it meaning and incorporates the WFM system. BPM supporting the use of knowledge concerning the awareness/unawareness of integrated software, and analysis of processes and organizational structure in terms of verification, modification, evaluation are key management in BPM system I.INTRODUCTION TO BPM: Combination of corporate restructuring and mergers urged the department and processes to be automated and linked together. Unfortunately it created largely disconnected spaghetti of systems and applications. Business Process Management (BPM) was born from a strong need to streamline internal processes and connections between both internal and external functions. It provides ability to model, monitor, manage and manipulate processes quickly in response to changes in strategy and market forces. BPM is an extension of classical Work Flow Management (WFM) systems and approaches. BPM delivers the maximum utility of legacy system. It is a method for revolutionizing the way the work moves throughout an organization. II.COMPONENTS OF BPM: The four key elements in Business Process Management are: Process modeling, Process rule, Process management, and Process performance analytics. Process modeling: Process modeling describes the flow of information (business process).It helps in building a model of process and mapping into an implementation frame work. Modeling requires a consistent analysis and representation of the processes. It forms the basis for the userspecific process environment. Process Rule: Process Rule is a heart of the BPM. It involves execution of discrete steps & integration of information. A process rules engine is used for this purpose. The engine is to monitor and manage the given steps by providing a flow control over the business process. If a process fails or delayed, a compensated action can be done to rectify. Process Management: Process Management is to correlate business/application events to fundamental business metrics .It enables the organization to monitor and optimize the business process. Once the process has been analyzed, modeled and the associated rules are formed. The next stage involves the visualization and management. Visualization means transaction data ranging from holistic to process-state or client state specific rules. Process Performance Analytics: Process Performance Analytics is a transition data source available for sophisticated management analytics .This data should be available on a retrospective or real-time basis. It should answer to one of the most difficult question like “how much does it cost to process a specific transaction?” By this way BPM mainly addresses four components. They are Work Flow Management, Content and records management Enterprise Application Integration (EAI) and Business Activity monitoring (BAM). III.RELEVENCE TO SYSTEM INTEGRATION: BPM can be fitted easily on the top of existing IT system. It is the Process rules that governs all the happenings and optimizes the process. BPM will not be able to work without the connectivity provided by the EAI layer. EAI layer provides BPM to gain and measure the value from the investment. On the other hand, BPM provides value to the EAI technology layer of Information technology. BPM layer offers business management the view of the message processing layer. It is used to unlock the value of the information held in the integration layer. It is also used to gather data of every transaction in the lifecycle. IV.APPLICATION OF BPM: BPM can be applied to any application which needs these advantages. BPM reduces unnecessary high losses in time critical transactions, helps to provide any critical information, practical application yield fast ROI ,better control over the information, identifying and maximizing the benefits faster, better analysis and tracking, provides enterprise-wide visibility of business processes, improve the effectiveness of the core operations, provides ability to coordinate interactions between information systems, business process and the people, flexible and easily changed by non-technical business people.
Read moreTransforming Myalgic Encephalomyelitis/Chronic Fatigue Syndrome (ME/CFS) Care with Data-Driven Key Performance Indicators (KPIs): Insights and Impacts
Background: Myalgic encephalomyelitis/chronic fatigue syndrome (ME/CFS) is a debilitating and poorly understood condition, often underrepresented in healthcare planning and resource allocation. Integrated care models for ME/CFS patients are hindered by the lack of reliable and actionable key performance indicators (KPIs) that measure both clinical outcomes and the effectiveness of comprehensive, multi-disciplinary care strategies. The project lzp-2024/1-0343 “Digital monitoring for integrated progression assessment of myalgic encephalomyelitis/chronic fatigue syndrome” seeks to establish robust KPIs tailored for ME/CFS, enhancing patient management and advancing holistic, patient-centred care. Approach: Our multi-phase approach incorporates extensive stakeholder engagement to develop effective KPIs for integrated care of ME/CFS patients. We collaborated with healthcare providers, patient advocacy groups, data scientists, and policymakers to identify and define key performance metrics. Personal and Public Involvement (PPI) was integral to our methodology, with ME/CFS patients contributing insights on meaningful outcomes and care priorities. The KPIs were designed to reflect clinical improvement, patient quality of life, healthcare access, and system-level efficiency. Additionally, data-driven tools, including digital phenotyping and patient-reported outcome measures (PROMs), were leveraged to ensure that the KPIs are patient-centric and evidence-based. Results: Our comprehensive set of KPIs includes measures of symptom severity, functional capacity, patient satisfaction, and healthcare utilization. Pilot testing demonstrated that these indicators effectively capture the complexity of ME/CFS, facilitating early identification of disease progression and treatment responsiveness. Initial findings also reveal that using these KPIs can streamline care pathways, optimize resource allocation, and improve interdisciplinary communication. The alignment of digital monitoring metrics with traditional clinical indicators further supports the validity and reliability of our proposed framework. Implications: Establishing well-defined KPIs for ME/CFS integrated care provides a blueprint for improving patient outcomes and enhancing service delivery. Our results emphasize the need for adaptive, data-driven metrics that inform clinical decision-making and policy development. Future work will focus on validating these KPIs across diverse healthcare settings and incorporating them into clinical guidelines. We encourage healthcare leaders and policymakers to consider the scalability of our approach, contributing to a more coordinated and efficient care model for chronic and complex conditions like ME/CFS.
Read moreУправління бізнес-процесами торговельних підприємств в умовах воєнного стану в Україні
The article defines the peculiarities of managing business processes of trade enterprises in the conditions of martial law. The author focuses on the World Bank study “Adversity and Adaptation: How Ukrainian Private Firms Survive During the Russian Invasion” and on the monthly study conducted by the Association of Retailers of Ukraine using an online survey among hundreds of owners and CEOs of enterprises across the country, the results of which indicate a very limited number of closed commercial facilities and shops, according to which only 3% of companies were closed with the beginning of the full-scale invasion of the Russian Federation in Ukraine, while 97% continued their activities. A SWOT analysis was conducted for the business process management strategy of trading enterprises. The article outlines the main problems faced by trade enterprises in wartime conditions, among which the main ones are: a decrease in demand for goods and services, which in turn led to a reduction in sales volumes and a decrease in the profits of trade enterprises; a change in market conditions, a change in the competitive environment, fluctuations in the exchange rate, an increase in the cost of production and supply - all this affects the efficiency and profitability of the enterprise; security and supply risk, restrictions on the movement of goods, reduction in the quality of logistics services; significant outflow of buyers of goods in many regions of Ukraine; outflow of personnel due to mobilization, evacuation abroad, migration to western regions; decrease in purchasing power of consumers, etc. Based on the results of the research, proposals were developed regarding measures and an algorithm of actions to overcome the problems faced by trading enterprises, in particular: establishing clear goals and strategies for the business process of a trading enterprise; assessment of the current state of the business process; definition of key performance indicators (KPIs); development of a business process optimization plan, establishment of specific measures and steps to be taken to achieve set goals; implementation of planned activities and making changes in the business process, in particular in the organizational structure, procedures, technologies, communication, etc.; monitoring and control of implementation of planned changes, measurement and analysis of results, verification of achievement of goals; constant improvement of business process management based on innovative technologies.
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