Business process simulation and analysis is the third step in process modeling
. When a business process model is designed, it may be fully capable of delivering the desired output but it may not do that at a performance level that delivers the output for the expected cost or within the desired timeframe. In other words, a business process model that has been designed may be functional but may not be optimal.
This issue can be overcome by running a business process simulation, whose goal is to help in the analysis and understanding of the business process model. With this understanding, one can change the model and apply other enhancements to improve its results. The strategic objectives of process simulation are optimization to enhance performance and cost reduction of business process.
Efficiency of a business process is dependent on the efficient handling of the following basic factors:
Time
Cost
Getting the work done and achieving the desired output in lesser amount of time for lesser cost are certainly welcome goals of a business process manager.
The process simulation can be easily setup and run again and again for different scenarios. This analysis of the current AS-IS process and the proposed TO-BE process is critical for process improvement. Users can create various scenarios based on different resource allocations, timing parameters and quality of business rules. Process simulations can then be easily setup and run again and again for these different scenarios. Analysis of the results provide important feedback about what changes would improve the process and by how much.
Process Simulation is extensively used as a tool for evaluating business processes but it frequently focuses on investigating rather conceptual steady-state circumstances. Such analyses are supportive for the initial design of a business process but are less appropriate for equipped decision making and constant enhancement.
process simulation is an recognized way of investigating processes and one of the oldest application of computing the realistic significance of business process simulation is inadequate. The cause is that it is time-consuming to build and preserve simulation models and that frequently the simulation results do not match with authenticity.