Business Process Management for an integrated supply chain
- Restructuring processes worldwide with SAP and RBE PPA

IBIS: Mr. Fayterna, at the 12th SAP-IBIS conference you presented the strategic BASF project, "Accelerator." What are the project's objectives and scope?

Peter Fayterna: Very often these days we're confronted with business processes that have been optimized for specific regions, sites or business units. Even globally consistent business concepts have been implemented differently in various IT systems. The Accelerator project is designed to define and employ consistent, harmonized processes across all regions and companies and for every business unit. Our goal is to structure business processes in a more efficient and customer-oriented manner. To this end, the project identifies the best SAP processes and standardizes process key performance indicators.

IBIS: In the course of this project you designed the Process Operating Model. Can you tell us a little bit about that?

Peter Fayterna: The Process Operating Model is an internal procedure model. It illustrates BASF's complex, global approach to designing, evaluating and controlling business processes. It's comprised of five related elements.  Business Process Management is at the center and is fed by a second element, a process library, which ensures that only uniform processes are used within the company. Linked to this is a third element that furnishes employees with process knowledge. A fourth element, Business Process Governance, makes sure that processes are carried out correctly. The Performance Dashboard provides an overview of process efficiency and facilitates management of the ongoing improvement process.

IBIS: What exactly is the Performance Dashboard?

Peter Fayterna: Our Performance Dashboard measures efficiency and costs of processes based on what's referred to as key performance indicators (KPIs). At various different levels and for every process, target values are defined and checked regularly. The Dashboard also shows the relationship between quality indicators and key business parameters, ensuring high quality and efficiency of processes from both angles.

IBIS: Which solution do you use for this Performance Dashboard?

Peter Fayterna: We opted for RBE Plus. With the RBE Plus Potential Analysis we can examine the quality of the SAP systems. The RBE Process Pipeline Analysis measures process quality on the basis of quality indicators. We use these results to help us make improvements. The process quality indicators are uploaded to Aeneis, our BPM tool, to be implemented in designing processes. The RBE outcome also enables us to enrich our process library and obtain master data on process usage.

IBIS: Can you give us some specific examples of how you apply RBE results?

Peter Fayterna: Well, for one, we were able to apply them to examine and improve usage and standardization of our SAP system. More specifically, we analyzed how we'd been using company-specific customizing and modifications.

RBE Plus is helping us compare the different SAP systems and simplify them before beginning the upcoming release upgrade. So, for example, we use the process quality indicators in RBE PPA to examine and draw parallels between the business processes, based on variants in the different regional SAP systems. This way we can compare the number and quality of automatic processes to the same metrics in manual ones and pinpoint what's most efficient in each case.

What's more, it enables us to determine for each user group how successful our qualification programs are, or to ensure that process improvements are sustained. I'd like to cite an example of how we were able to track down anomalies in the purchase requisitions process. The Process Pipeline Analysis showed us that an unusually large number of open purchase requisitions were being deleted in our plants. This led us to the discovery of a problem in process quality and pointed us to a specific organization.

IBIS: How would you rate the benefits RBE results have brought you?

Peter Fayterna: We've reaped the greatest benefits from the Potential Analysis by removing SAP elements that were used rarely or not at all. And master data, customizing, transactions or reports made transparent by the Potential Analysis are key for gauging support costs and detecting potential problems in the process flow. The Process Pipeline Analysis is a real boon in that it helps you assure and increase the quality of process flows. It assists you in recognizing and avoiding redundant tasks and disruptions in the process flow. It also reduces the necessity for process monitoring, that is, the tracking of individual cases. Plus, employees use individual SAP functions more effectively, thanks to targeted training sessions, for instance. Approximately 100 BASF process experts currently implement results from RBE Analyses with a time expenditure of somewhere between just one hour and five days per quarter.

IBIS: What ultimately influenced your decision to choose IBIS products?

Peter Fayterna: Essentially there were three points that decided it: One, they're comparatively inexpensive. Two, RBE tools only extract and use relevant, pre-formatted data and they don't require a separate data warehouse. And three, RBE tools contain extensive business content for all SAP processes.

IBIS: Which RBE activities has BASF got planned for this year?

Peter Fayterna: We'd like to conduct the RBE Plus Potential Analysis twice a year for each system. We'll do the RBE Process Pipeline Analysis periodically. We still need to decide on frequency and who will be receiving the analyses. We'd also like to transfer a portion of the Process Pipeline Analysis results to SAP BW. We've just purchased the necessary license to do this.