Business Process Management Analysis with Cost Information in Public Organizations: A Case Study at an Academic Library

Abstract

Public organizations must provide high-quality services at a lower cost. In order to accomplish this goal, they need to apply well accepted cost methods and evaluate the efficiency of their processes using Business Process Management (BPM). However, only a few studies have evaluated the addition of cost information to a process model in a public organization. The aim of the research is to evaluate the combination of cost data to process modeling in an academic library. Our research suggests a new and easy to implement process analysis in three phases. We have combined qualitative (i.e., interviews with the library staff) and quantitative research methods (i.e., estimation of time and cost for each activity and process) to model two important processes of the academic library of the University of Macedonia (UoM). We have modeled the lending and return processes using Business Process Model and Notation (BPMN) in an easy-to-understand format. We have evaluated the costs of each process and sub process with the use of Time-Driven Activity-Based Costing (TDABC) method. The library’s managers found our methodology and results very helpful. Our analysis confirmed that the combination of workflow and cost analysis may significantly improve the decision-making procedure and the efficiency of an organization’s processes. However, we need to further research and evaluate the appropriateness of the combination of various cost and BPM methods in other public organizations.