Bai So 2
Bai So 2
Bai So 2
Abstract
Process Management or Business Process Management (BPM) ideas published in a book Hammer’s Business Process
Reengineering Concept, are implemented in many businesses nowadays. Process management helps companies
achieve quality, time, and cost goals. In quality management systems, the concept of process management is the core
integrates into the performance and risk management system. On the other hand, an interesting research question is
what is the role of process management in the context of the 4th industrial revolution and smart factories. The number
of solutions for automated processes in the smart factories will be increasing, and due to this fact, traditional
management tools and techniques should be revised. Business process management is one of them. Based on this fact,
we have tried to answer the research question — What is the role of BPM for Industry 4.0? — in this paper. This
research question deals in this article, which focuses attention on selected aspects of BPM within the Industry 4.0
concept. The paper also attempts to mention the impacts and needs of current technical education in this area.
Keywords
Business Process Management, Industry 4.0, Engineering Education, Quality Management
One of the prerequisites for the successful implementation of this management concept is the understanding of
processes in the company and the description of process models. Experience shows that these process models could
be used to implement information systems to support the management of all business activities, from operations
management to supply chain management. In the past, many businesses have also focused on supporting the
implementation of process management as a way to help them achieve their goals in terms of quality, cost, and time.
The concept of business process management has been adopted for quality management standards. Due to this reason,
many companies implemented this concept for their management.
Based on the mentioned facts, the research question has been formulated. The core research question is What is the
role of business process management (BPM) for Industry 4.0? This paper deals with an answer to the formulated
research question.
With the adoption of the fourth industrial revolution and its Digital transformation, society must adapt to changing
technologies. Here we can again see the benefits of BPM. In the short term, BPM helps organizations reduce costs
and increase efficiency. It can mean higher revenue and growth for this organization. In the long term, BPM helps to
create a competitive advantage by improving organizational agility. Using BPM can help increase the efficiency,
agility, and success of any organization in the private and public sectors.
B) Productivity
BPM supports the automation of repetitive elements and regular procedures. It is possible to eliminate bottlenecks
with the introduction of parallel processing and with the removal of unnecessary steps. Thanks to its employees can
spend more time on core activities and does not have to deal with support functions (processes). It also increases
productivity. It focuses primarily on achieving goals by improving management, control, analysis, and modeling tools.
By investing in new tools it helps companies increase productivity. It is necessary to identify technologies that provide
increased production efficiency and integrate them into business and infrastructure.
C) Efficiency
With BPM support, is better visibility and transparency of business processes. It is, therefore, possible to focus on
inefficiency. We increase efficiency and, with these, save our resources. At the end are better designed, optimized,
and monitored processes. The main focus is on process automation (automating repetitive low-value processes), IT
outsourcing (significantly improving the quality of IT services and reducing its costs), setting achievable goals (setting
motivating goals based on real analysis).
E) Customer Focus
Thanks to optimized processes and higher productivity, we can better focus on the customer. We can better respond
to his proposals, create solutions faster, and adapt to them. Customers determine the success or failure of our company.
If we ignore them, someone else will come who will not ignore them.
F) Measurability
All processes are measurable and can be compared with results at any time. BPM provides reporting and analysis
tools. Processes can be quantified, optimized, and used as support for effective decision making. Types of process
performance metrics (efficiency, effectiveness, capacity, productivity, quality, profitability, competitiveness, value
indicators)
G) Technology Integration
BPM tries to bridge the communication gap between user and IT support. The main effort is to use standards (e.g.,
BPMN). This is especially important when implementing Industry 4.0.
BPM is not software; it is a way of working. In its concept, it enables companies to be proactive and agile. The
processes are better visibility and transparency and can be optimized. Activities are organized in individual processes
and can be managed very well from a strategic, organizational, and technological point of view Škrinjar and Trkman
(2013). Everything can be integrated into the technology chain to achieve Digital Transformation 4.0.
that analysis can be executed on simulation of the Cyber-Physical Production System. An analysis is focused on
reconfigurability, adaptability, and reliability of the Cyber-Physical Production System. Model-Driven Architecture
(MDA) principles and standards are exploited to propose this notation. Because of this, they are exploiting
considerable advantages such as easy customization and improved automation are obtained. In the end, there is an
application example where the business process supports the execution of the Cyber-Physical Production System. The
result of this work is an approach in metamodeling for the characterization of Cyber-Physical System resources in
Industry 4.0 business process. BPMN metamodel extension is presented and used for managing resources involved in
the business process, which is executed by the Cyber-Physical Systems. This system can be assembled with different
components such as sensors, actuators, communication interfaces, control units, and other more. The aim of the
proposed approach is to provide support to model complex structures. Analysis of model focuses performance and
reliability of the business process at a design stage, and then an evaluation is performed considering the impact of
every component in the structure.
The paper (Rehse et al., 2018) deals with an application case in the DFKI Smart Lego Factory. Paper is presenting an
application case in model of Smart Factory build from Lego parts. Because of this model, there is an illustration of
how can established techniques from Business Process Management (BPM) can provide answers to a new challenge
rising with Industry 4.0. DFKI Smart Lego Factory is a fully automated “smart factory” build-out of LEGO® bricks.
Demonstration of the potential of business process management methodology in Industry 4.0 is shown in three
application cases which are proposed in this work. Application cases are following model-based management, process
mining, and prediction of the manufacturing process in smart factories. Challenges that arise from presented specific
application cases are conquered with business process management. The result of this work shows that suitable
business process methods can address those challenges. DFKI-Smart-Lego-Factory can cover many real-life
challenges and serves as a learning tool on how to better implement future concepts and projects. Potential of DFKI-
Smart-Lego-Factory is far more significant, and presented application cases do not exhaust the field which Industry
4.0 provides.
Problems on Blockchain-based business process management (BPM) framework for service composition in Industry
4.0 present paper (Viriyasitavat at al., 2018). The authors mention that Business process management (BPM) is a tool
to optimize business processes to reach a better performance of a system, for example, higher profit, quicker response,
and better services. Industry 4.0 gives a requirement for a business process management systems to digitize and
automate business process workflows and make interoperations of service vendors more transparent. BPM systems
have a bottleneck in evaluation, verification, and transformation of trustworthiness and digitized assets. Blockchain
technology is explored as a service in an open business environment, which should serve as an automated BPM
solution. There is a proposal to transfer and verify the trustiness of business and partners by Blockchain technology.
The paper contains an illustration of developed BPM framework how Blockchain technology can be integrated to
provide many benefits when evaluating and transferring Quality of Services in the workflow composition and
management. The result of this work expects an automatization of service selection and composition by BPM systems
in Industry 4.0 to have more transparent interoperations of dynamic organizations.
In the current state, there is still a need for third-party certificates as an essential part of selecting and composing
services for business projects. This need leads to a number of issues with BPM systems. Scalability is a barrier for the
growing population of available services. Another one is the potential of transformation loopholes. When verification
trustworthiness, a time delay can occur, which can be the next issue. The last issue mentioned in this paper rises in
openness and security concerns. The biggest issue solved in this paper is to effectively solve the trustworthiness issue
in the open business environment with Blockchain Technology. This work gives an in-depth look at Blockchain
technology as an ideal candidate to replace third-party authorities. From this, a Blockchain technology-based approach
is developed.
The paper (Hitpass et al., 2019) focuses on challenges rising from Industry 4.0 together with digitalization where
business process management can be used as a systematic approach to identify, map, document, design, implement,
measure, and control business processes. This gives more emphasis on IT systems as a support to improve, innovate,
and manage processes. Every phase of product or service marketing, purchase, sale, and distribution through the
internet will be backed by E-Commerce. With Industry 4.0, every logistic aspect will be digitized (e.g., purchase, sales
processes), and business process and e-commerce need to be managed together, not separately. With revolution in the
industry (Industry 4.0) we are experiencing a shift of paradigm from centralized to decentralized paradigm, which
results in a big impact on the relation between BPM and e-Commerce.
There will be far more transparency from traceability and monitoring in production and logistic systems, more
autonomy in the value chain links management, intelligence in activities or devices responsible for decision making
and integration of all the payment services and business transactions and integration involving external agents that
interact in the value chain. This overview of challenges establishes Industry 4.0 as a leader to a new kind of business
processes and e-commerce. The trend is shown by decentralizing processes with more significant decision making
autonomy, real-time control of the automated organizational processes, improved performance and quality of
environment-integrated logistic organizational processes, and e-Commerce integration at each point as transaction
enabler.
3. Implementation of Industry 4.0
It is important to realize that 4.0 implementation in industrial enterprises can not be done abruptly, but rather it is a
gradual change. If we focus on the implementation of Industry 4.0 to the small and medium-sized enterprises, it is
necessary to make this change in the several phases (Benesova and Tupa, 2017):
● Process analysis
● Data collection
● Horizontal integration and vertical integration
● Self-controlling system.
The related research question is “How principles of business process management can be applied in each
implementation phase? The research results based on literature review is presenting in the next part in relation to each
steps. The implementation of the BPM is described based on implementation of a Deming PDCA cycle (Plan-Do-
Check-Act). This concept enables to achieve the requirements for process management system. Figure 1 presents
activities for implementing each phase of PDCA.
as Petri net, IDEFO, IDEF3, BPMN 2.0, ARIS-eEPC, etc.; formal description type such as WPDL, XML, process
algebra, predicative logic, etc.; and object-oriented type such as IDEF4 and UML. The overall model is analysed on
the individual models. Models would have to contain all process attributes and static and dynamic parameters such as
process time, process threats, cost, etc.
The business process execution in terms of Industry 4.0 is related to the digital factory and application of the Cyber-
Physical System (CPS). The rules and process model can be used for the definition of elementary relationships in
CPS. The cyber level of CPS enables simulation of the process with using digital twins and makes an environment for
processes execution.
The CPS implements these elements:
● Data acquisition and data processing.
● Machine to Machine communication.
● Human-machinene interaction.
For a successful implementation of the Industry 4.0 concept, it is necessary to create an implementation team with the
appropriate competence and knowledge. The implementation team should include a process analyst or methodologist
with the following knowledge (Benesova and Tupa, 2017):
- Project management
- Engineering and technology management
- Innovation management
- Risk and ICT management
- Business process management
- Soft skills – communication, creativity
4. Conclusion
The aim of this theoretical conference paper is to focus on the elements of a Business Process Management for
implementation of the concept Industry 4.0. The concept Industry 4.0 and its technologies open new challenges for
BPM implementation nowadays. The technologies based on CPS, IoT, Digital Factory, etc. help to improved processes
based on useful process measurement, simulation, and application of predictive models. The identification of role
BPM in each implementation phase of Industry 4.0 has described in the previous chapter, and the chapter answered
the research question: What is the role of business process management (BPM) for Industry 4.0? We conclude that
Business Process Management is a relevant discipline nowadays, and with the concept Industry 4.0, the new challenges
for its successful implementation are opened. The successful implementation of process management also plays an
important role in application an integrated quality, safety and information security management system according to
international ISO standards.
Acknowledgments
This research has been supported by the Technology Agency of the Czech Republic, project No. TH02010577
“Software platform for Implementation Accelerating of Process Control and Automation Systems” and by the Student
Grant Agency of the University of West Bohemia in Pilsen, grant No. SGS-2018-016 “Diagnostics and Materials in
Electrical Engineering”.
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Biographies
Michal Svehla is a vice president of the University of West Bohemia IEOM chapter. He is also a student of the
doctoral study program at the faculty of Electrical Engineering University of West Bohemia in Pilsen. Before doctoral
study, he earned Bachelor’s and Master degree in the same University as mentioned above. His research interests
include e-Health/healthcare, processes, optimization.
Jiri Tupa received his MSc (2002) and Ph.D. (2006) in Electrical Engineering from Faculty of Electrical Engineering,
University of West Bohemia in Pilsen in Czech Republic. He is a Vice-dean of faculty and Senior Lecturer at the
Department of Technologies and Measurement. Dr. Tupa is a member of executive management at Regional
Innovation Centre for Electrical Engineering of the Faculty of Electrical Engineering at the University of West
Bohemia in Pilsen. He is also PhD supervisor, reviewer of journal and conference publications and co-organizer of
conferences. His research interests include Business Process Management, Quality Management, Risk and
Performance Management in Electrical Engineering Industry, Industrial Engineering, Electronics Manufacturing and
Diagnostics, Financial and Project Management, Copyrights and patents law, information law and transfer of IPR. Jiri
Tupa is responsible for several international research and development projects with industrial and University partners.
The project RiMaCon - Risk Management Software System for SMEs in the Construction Industry is one of the
important international projects. This project has received funding from the European Union’s Seventh Framework
Program for research; technological development and demonstration (2013-2017). The RiMaCon project’s main goal
is to implement a collaborative effort to promote the sharing of knowledge and competencies in a long-term strategic
research partnership around the development, testing, and validation of a cost-effective and user-friendly risk
management system for SMEs in the construction sector.
Frantisek Steiner was born in Rokycany in 1973. He was awarded an Ing. (MSc) degree in the field of Applied
Electronics in 1996, a Ph.D. degree in the field of Electronics in 2001 and an Associate Professorship in Electrical
Engineering in 2008. He is an Associate Professor at the Faculty of Electrical Engineering of the University of West
Bohemia. He is the head of the Diagnostics and Testing Engineering Team at The Regional Innovation Centre for
Electrical Engineering (RICE). His research fields include risk management, information security management
systems and IT services management. He has published more than 120 papers and presented 45 contributions in
35 congresses.
Tomas Rericha is a member of the Department of Technologies and Measurement at the University of West Bohemia
in Pilsen. He received his Ph.D. degree in 2007. He focused on the optimization and simulation of industrial processes
and the implementation of lean manufacturing in production companies. He is currently working as secretary of the
Department of Technology and Measurement.