Lecture 3

Process Modelling (part 1)

1
Learning Objectives

• Understand key concepts of business processes, and the importance of

systematically managing such processes to improve organizational performance
• Identify and document business processes at different levels of detail using
contemporary process modelling techniques
Content

Process Modelling
• Describe the essential concepts of process models, namely how process models relate to
process instances.
• Definition of the Process Architecture.
• Explain the four main structural blocks of branching and merging in process
models. These define exclusive decisions, parallel execution, inclusive decisions,
and repetition
• Learn how to use sub-processes to reduce
the model’s complexity, and how to reuse these sub-process models from within
different process models
• Exercise 3 -4
Course structure

Process
Week 2
identification

Process Weeks 3-4

discovery

Process
Weeks 12-14 Process Weeks 5-7
monitoring and
controlling analysis

Weeks 10-11 Process Process Weeks 8-9

implementation redesign
Purposes of process modeling
Process
• Communication identification
• Documentation
Process
Process architecture
architecture
• Analysis (e.g. simulation)
Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model
Business Process Model and Notation (BPMN)

• OMG standard
• Suitable for capturing models for process discovery, analysis, and implementation
• Supported by numerous tools, incl.
• Apromore – available for free to students in this course (see Slack)
• GBTEC BIC Design
• Bizagi Process Modeler (free)
• Signavio (academic version: academic.signavio.com)
BPMN from 10,000 miles…

A BPMN process model is a graph consisting of four types of core

elements:

start end
activity event gateway sequence flow
Let’s start modeling
Order-to-cash

An order-to-cash process is triggered by the receipt of a purchase order from a

customer. Upon receipt, the purchase order has to be checked against the stock to
determine if the the requested item(s) are available. Depending on stock availability
the purchase order may be confirmed or rejected.
If the purchase order is confirmed, an invoice is emitted and the goods requested are
shipped. The process completes by archiving the order.
Let’s start modeling – break it down
Order-to-cash

• An order-to-cash process is triggered by the receipt of a purchase order from a

customer.
• Upon receipt, the purchase order has to be checked against the stock to determine if
the the requested item(s) are available.
• Depending on stock availability the purchase order may be confirmed or rejected.
• If the purchase order is confirmed, an invoice is emitted and the goods requested are
shipped. The process completes by archiving the order.
Let’s start modeling – break it down
Order-to-cash

• An order-to-cash process is triggered by the receipt of a purchase order from a

customer.
• Upon receipt, the purchase order has to be checked against the stock to
determine if the the requested item(s) are available.
BPMN Model
Order-to-cash

Check stock
availability
Purchase
order
received
Let’s start modeling – break it down
Order-to-cash

• An order-to-cash process is triggered by the receipt of a purchase order from a

customer.
• Upon receipt, the purchase order has to be checked against the stock to determine if
the the requested item(s) are available.
• Depending on stock availability the purchase order may be confirmed or
rejected.
• If the purchase order is confirmed, an invoice is emitted and the goods requested
are shipped. The process completes by archiving the order.
BPMN Model
Order-to-cash

end
activity
Reject order event
Items not in
Order
stock
rejected
Check stock split gateway end
availability
Purchase event
order Items in
received stock Confirm Emit Archive
Ship goods
start order invoice order
Order
event fulfilled

Naming conventions

• Event: noun + past-participle verb (e.g. insurance claim lodged)

• Activity: verb + noun (e.g. assess credit risk)
Execution of a process model
The “token game”
Order #1
Order #2
Order #3
Reject order
Items not in
Order
stock
rejected
Check stock
availability
Purchase
order Items in
received stock Confirm Emit Archive
Ship goods
order invoice order
Order
fulfilled
A little bit more on events…

start
A start event triggers a new process instance
event
by generating a token that traverses the
sequence flow (“tokens source”)

end
event
An end event signals that a process instance has
completed with a given outcome by consuming
a token (“tokens sink”)
Order-to-cash example revisited…
[…] If the purchase order is confirmed, an invoice is emitted and the goods
requested are shipped (in any order). The process completes by archiving the
order. […]

Reject order
Items not in
Order
stock
rejected
Check stock
availability
Purchase
order Items in
received stock Confirm Emit Archive
Ship goods
order invoice order
Order
fulfilled
First try
Order-to-cash

Reject order
Items not in
Order
stock
rejected
Check stock
availability split Emit invoice
Purchase
order Items in
received stock Confirm Emit Archive
Ship goods
order invoice order
Order
split join fulfilled

Ship goods
A little more on gateways: XOR Gateway

An XOR Gateway captures decision points (XOR-split) and

points where alternative flows are merged (XOR-join)

condition

XOR-split  takes one outgoing branch

¬ condition

XOR-join  proceeds when one incoming branch has

completed
Example: XOR Gateway
Invoice checking process
A little more on gateways: AND Gateway

An AND Gateway provides a mechanism to create and

synchronize “parallel” flows.

AND-split  takes all outgoing branches

AND-join  proceeds when all incoming branches

have completed
20
Example: AND Gateway
Airport security check
Revised order-to-cash process model

Reject order
Items not in
stock Order
rejected

Check stock
availability XOR-split Send invoice
Purchase
order Items in
received stock
Archive
Confirm order
order
Order
AND-split AND-join fulfilled

Ship goods
Between XOR and AND
Order distribution process
A company has two warehouses that store different products: Amsterdam and
Hamburg. When an order is received, it is distributed across these warehouses: if some
of the relevant products are maintained in Amsterdam, a sub-order is sent there;
likewise, if some relevant products are maintained in Hamburg, a sub-order is sent
there. Afterwards, the order is registered and the process completes.
Solution 1
Order distribution process

XOR-split XOR-join

AND-split AND-join
Solution 2
Order distribution process

AND-split AND-join

XOR-split XOR-join
OR Gateway

An OR Gateway provides a mechanism to create and

synchronize n out of m parallel flows.

cond1

OR-split  takes one or more branches depending on

condn
conditions

OR-join  proceeds when all active incoming

branches have completed
26
Solution using OR Gateway
Order distribution process
What join type do we need here?
Beware: Beginner’s Mistake…
Guidelines: Naming Conventions

1. Give a name to every event and task

2. For tasks: verb followed by business object name and possibly a
complement
• Issue Driver Licence, Renew Licence via Agency

3. For message events: object + past participle

• Invoice received, Claim settled

4. Avoid generic verbs such as Handle, Record…

5. Label each XOR-split with a condition
• Policy is invalid, Claim is inadmissible
Poll: Which model do you prefer?
One more guideline…

• Model in blocks
• Pair up each AND-split with an AND-join and each XOR-split with a XOR-join, whenever possible
• Exception: sometimes a XOR-split leads to two end events – different outcomes (cf. order
management example)
Rework and repetition

Address ministerial correspondence

In the minister’s office, when a ministerial inquiry has been received, it is registered
into the system. Then the inquiry is investigated so that a ministerial response can be
prepared.
The finalization of a response includes the preparation of the response itself by the
cabinet officer and the review of the response by the principal registrar. If the registrar
does not approve the response, the latter needs to be prepared again by the cabinet
officer for review. The process finishes only once the response has been approved.
XOR-join: entry point XOR-split: exit point
Quick Note: Implicit vs. explicit gateways

A A

C = C

B B

B B

A
= A

C C
 How this process starts? How it ends?

Collect Sort
mail mail
New mail Document
arrived requisition
Not compiled
Check acceptable Compile
Register
mail for document
mail
compliance requisition
Document
New email Acceptable response
arrived
prepared
Prepare
Capture
document
matter details
response

Physical
file
printed
Capture party Print
Pay fee
details physical file
What’s wrong with this model? How to fix it?

X
Process Modelling Viewpoints
Organization
Who?
Lanes &
Pools
What?
Tasks When?
Events
Flows
Gateways

Which?
Data Objects,
Data / Materials Stores
Organizational Elements in BPMN – Pools & Lanes
Pool
Captures a resource class. Generally used to model a business party (e.g. a
whole company)

Pool

Lane
A resource sub-class within a pool. Generally used to model departments (e.g.
shipping, finance), internal roles (e.g. Manager, Associate), software systems
(e.g. ERP, CRM)
Lane
Pool

Lane
Lane
Lane
Order-to-cash process with lanes
Message Flow

A Message Flow represents a flow of information between two process

parties (Pools)
Message

A Message Flow can connect:

• directly to the boundary of a Pool  captures an informative message to/from that party
• to a specific activity or event within that Pool  captures a message that triggers a
specific activity/event within that party

Pool 2

Pool 2
Receive
Pool 1

Send Receive

Pool 1
Send
Order-to-cash process with a black-box customer pool
 Pools, Lanes and Flows: syntactic rules

1. A Sequence Flow cannot cross the boundaries of a Pool (message flows can)
2. Both Sequence Flow and Message Flow can cross the boundaries of Lanes
3. A Message Flow cannot connect two flow elements within the same pool
One more guideline…

• Start modeling with one single “white-box” pool

• Initially, put the events and tasks in only one pool – the pool of the party who is running the
process
• Leave all other pools “black-boxed”
• Once you have modeled this way, and once the process diagram inside the white-box pool
is complete, you can model the details (events and tasks) in the other pools if that is
useful.
• In this course we will only model processes with one single white-box pool – all other pools
are black-box
Process Modelling Viewpoints

Which?
Data Objects,
Data / Materials Stores
BPMN Information Artifacts

A Data Object captures an artifact required

Purchase Invoice
order
(input) or produced (output) by an activity.
Emit
• Can be physical or electronic
invoice

A Data Store is a place containing data objects

Oracle CRM Client info
that must be persisted beyond the duration of
a process instance.
Retrieve client
information
It is used by an activity to store (as output) or
retrieve (as input) data objects.
Order-to-cash process, again

Send
invoice

Confirm Archive
Items in order order
stock Order
fulfilled
Check stock
Ship goods
availability
Purchase
order Items not in
received stock
Reject order
Order
rejected

The purchase order document serves as an input to the stock availability

check. Based on the outcome of this check, the status of the document is
updated, either to “approved” or “rejected”. If the order is approved, an
invoice and a shipment notice are produced.
 Model with information artifacts

Purchase Invoice
Order Purchase
Purchase Purchase Send Order
Order Order invoice
[checked]

Confirm Archive
Items in order order
stock Order
fulfilled
Check stock
Ship goods
availability
Purchase
order Items not in
received stock
Reject order
Order Orders DB
rejected Purchase Shipment
Order notice
Warehouse DB

Purchase Purchase
Order Order
[rejected] [approved]

Beware: This diagram is a too detailed. It is for illustration purposes.

In practice, try to only model the most important data objects and associations. Keep the model
readable.
A Final Note: BPMN Text Annotations

A Text Annotation is a mechanism to provide additional text information to the

model reader
• Doesn’t affect the flow of tokens through the process

Includes packaging For blocked invoices

Clear vendor
Ship goods
line items
BPMN Poster (link in “Readings” page)