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MPM701 Module 9 Slide Pack PDF
MPM701 Module 9 Slide Pack PDF
Module 9
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.
Rental Cars-R-Us
Headquarters
Operating Company
Service Depot
Branch
Three categories:
- Airport
- City
- Agency
National Operating
Company
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
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
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
Manage Corporate
Accounts
Develop Marketing
Strategy
Optimize Customer
Loyalty
Run ABC
Advertizing
Pickup Car
Return Car
Maintain Cars
Process Payments
Prepare Cars
Provide IT Support
Improve Processes
Support
Processes
Acquire
Employees
Provide Facilities
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
Car Suppliers
New
Cars
Income
Taxes &
Fees
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
Figure 14.6 An Initial Scope Diagram of the Rent Car Value Chain
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
10
Policies
Optimize
Customer
Loyalty
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
O
u
t
p
u
t
s
Renter
Ensure
Compliance
Improve
Processes
Approve
Possible
Charge
Renter
Reservations
often incomplete
or inacurate
11
No one knows
how to do it the
policy and rules
are incomplete
Employees
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
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
O
u
t
p
u
t
s
Renter
Ensure
Compliance
Improve
Processes
Approve
Possible
Charge
13
Front Office
Make
Reservation
Use Car
Return
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
Approve
Possible
Charge
Debut
Account
HQ Services
The
Management
Structure of
the Processin-Scope
Reservations
Branch Office
Customer
(Renter)
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
Level 1 Process: Rent Car Process
Corporate HQ
CEO
Customer
(Renter)
Make
Reservation
Pick-Up
Car
Corp. Finance
VP
Reservations
Manager
Reservations
HQ Services
Payments
Manager
Reserve
Car
Payments
IT Support
CIO
Local Area
Manager/Owner
Front Office
Branch Office
Pick-Up Car
Rental Lot
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
Figure 14.12 The initial As-Is flow diagram of the rent car process
HQ Services
Reservations
Branch Office
Customer
(Renter)
Front Office
Make
Reservation
Use Car
Return
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
Pick-Up
Car
Maintain
Car
Rental System
Approve
Possible
Charge
Debit Account
Issues with
Inputs
Analyst:
Where will I get the data, how often will I get it, how
will I get it?
Customer complaints
Issues with
Support
(Including IT
& Employees)
Issues with
Subprocesses
& Flows
Issues with
Process
Management
17
Decide to
Rent Car
Examine
Options
Identify
Preferred
Vendor
Contact
Vendor
Establish
Credit
Define
Requirements
(Inc. Payment
Method)
Establish
Credit
phone:
wait for
answer
Establish
Identity
Confirm
Reservation
(phone)
Check
Availability
Reservations
Discuss
Alternatives
18
Confirm
Reservation
(email)
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
Establish Identify
Define Requirements
Check Availability
Undertaken
Confirm Reservation
Establish Reservation Record
O
u
t
p
u
t
s
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
Customer
(Renter)
Corporate
Travel
Office
Establish
Identity
Define
Requirements
(Inc. Payment
Method)
Reservations
Confirm
Reservation
(phone)
Check
Availability
Other
Individuals
Establish
Credit
confirm or
deny request
Establish
Reservation
Record
confirm
reservation
IT Support
Rental System
Confirm
Reservation
(email)
Discuss
Alternatives
request
reservation
20
Confirm
Reservation
(email)
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
has
possession
of
accepted
request for
pick-up
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
RTU
time unit
Return Car
Return Car
Check Car for
Damage
22
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
Level 1 Process: Rent Car Process
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
Depot
Manager
23
Pick-Up
Car
Return Car
Prepare
Car
Maintain
Car
Figure 14.20 The basic To-Be process that the BPM team came up with
Level 1 Process: Rent Car Process
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
Activity 2
Dept 1
Dept 2
Create
Record
Use Case:
Create Record
Dept 3
IT
Service:
Create Record
XYZ
Software System
25