Business‐process modelling and simulation for manufacturing management : A practical way forward

Many companies are taking a process view as a result of business‐process re‐engineering exercises, statutory compliance (e.g. Securities and Futures Authority), reaction to market forces (e.g. to achieve accreditation under ISO9001:2000 or BS5750) and the promotion of integrated computer and information systems (e.g. computer integrated manufacture). This means questioning the way in which companies operate and has implications for management. Business process modelling (BPM) and business‐process simulation (BPS) help to facilitate process thinking. BPM provides management with a static structured approach to business improvement, providing a “holistic” perspective on how the business operates, and provides a means of documenting the business processes while BPS allows management to study the dynamics of the business and consider the effects of changes without risk. There are a number of BPM and BPS methodologies, approaches and tools available, each of which may be applicable to different circumstances. This paper briefly reviews the diverse literature in relation to manufacturing management. Evidence from the literature indicates that few tools are available for supporting manufacturing‐business‐process‐management and that, except for a few small‐scale processes, BPS implementations in manufacturing have had limited success. This paper identifies the reasons for this and suggests a practical way forward until hardware and software limitations are overcome.