asug 2010 session 3106

]

JENNIFER BUKO[ASUG INSTALLATION MEMBER MEMBER SINCE: 2006

RICHARD RAUCH[ASUG INSTALLATION MEMBER MEMBER SINCE: 1999

ERIC SYNSTELIEN[ASUG INSTALLATION MEMBER MEMBER SINCE: 2000

Nuclear Generation Business Benefits through Business Process Management & Design Integration

John SuzanneAlex Andrade

Real Experience. Real Advantage.

[ Our Agenda Today

Learning Points Speakers Introduction South Texas Project Nuclear Operating Company Paragon Project Vision and Strategy / Definitions How did we deliver this vision

TRIZ - Structured Innovation and Sustainability Metcalf’s Law – Exponential value of interconnected

networks PwC Nuclear Template and Business Process

Management Project Outcome References

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[

3

Learning Points

Leverage your inter/intra industry innovation and knowledge/competency network to accelerate your value proposition

Integration of KPIs, Process Design and Business Benefits

How process templates and reference models reduce risk and facilitates communication between the business

How to leverage Solution Manager and ARIS during Blueprint Phase


[ Speaker Introduction – Alex Andrade

Director in PwC Energy practice, advising on process improvement and business transformation at Utilities and Oil and Gas companies.

Significant experience planning, managing and implementing large process improvement initiatives, benchmarking, best practices and SAP programs.

Has been working with SAP based process improvement projects since 1994.

Has led international teams in US, Canada, Brazil, Argentina, Germany, France, Russia, South Korea and China.

http://www.linkedin.com/in/andradealex4

http://www.linkedin.com/in/andradealex


[ Speaker Introduction – John Suzanne

John Suzanne, DSA, PMP, MBB is an Enterprise Solution Architect and Sr. Project Manager at South Texas Project (STP) Nuclear Operating Company

Mr. Suzanne’s 22+ years experience spans multiple industries including Nuclear, Aerospace, Defense, Medical Devices &

Pharma Alumni Member of the FedEx Global Revenue

$Billion Club He has led global process improvement teams

across 200+ countries, 24 time zones, 12+ VPs & thousands of stakeholders

John has presented at ProcessWorld Americas and Berlin

http://www.linkedin.com/in/johnsuzanne 5

http://www.linkedin.com/in/johnsuzanne


[ South Texas Project Nuclear Operating Company 5

One of the newest and largest nuclear power facilities in the nation, providing clean energy to two million Texas homes.

In February 2009, STP achieved a Total Safety Industrial Accident Rate of 0.0.

Top ten percent of U.S. nuclear plants for personal safety. STP has earned more honors than any other nuclear plant

nationwide, including the U.S. nuclear industry's highest honor, the B. Ralph Sylvia Best of The Best Award, which STP has received three times.

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[ Paragon Project

Scope SAP Blueprint for STP Units 1 and 2

Goal Paragon will allow us to unify, standardize and

streamline our business processes into one system, providing customers with a high-quality product that helps promote STP’s most critical business goals and allow STP to retain its stature as a world-class organization.

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[ Paragon Project Objectives

Tag sharing programs Reliability centered maintenance Procurement and vendor management cost

savings Reduced Health Physics costs Project execution efficiencies Project management efficiencies (elimination of

duplicate efforts, improved cost controls) Use of closed-loop performance feedback, real

time access to World Association of Nuclear Operators (WANO) and Institute of Nuclear Power Operations (INPO), indices to mitigate event

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[ Paragon Project Teams

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Manage Employee Lifecycle Plan and Support Business

Supply Chain Optimization Enterprise Asset Management

Operational Efficiency Plan and Manage Work

Quality Assurance Environmental Health & Safety

Project Management Program Management OfficeSAP NetWeaver Technology

Organizational Change Management

Support Services Records & Document Management


[ Vision and Strategy - Definitions

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Project VisionA world class business transformation of station processes in support of the site's vision, mission and core values.

STP Vision Improving Lives Through Excellence in Energy Generation

MissionImplement innovative business solutions that enhance productivity and promote STP as a nuclear industry leader.

STP Core Values Safety, Integrity, Teamwork, Excellence


[

Artshuler’s Categorization Summary 2

Vision and Strategy – Sustainability and Innovation TRIZ – a method for sustainable innovation -

Russian acronym for the “Theory of Innovative Problem Solving”

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[Metcalf’s Law - Value of Interconnectiveness & Networking

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Two phones can make only one connection

Five can make ten connections Twelve can make 66 connections n (n − 1)/2, is proportional to n2

asymptotically Think of the value not only in

phones but transportation networks, the internet, social networking and Business Process Focused Enterprise Architecture

http://upload.wikimedia.org/wikipedia/commons/0/0d/Network_effect.png


[

Blueprinting

Change Impact

Document / Record

Mobile

Solution Manager as a project document repository


[ How we delivered this visionGenerally Accepted Modeling Principles (GAMP) 3

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PRINCIPLE VALUE/BENEFIT

Correctness Closely represents reality in structure and behavior

Relevance Strategic Alignment, scope, detail, SAP transaction ID, objectives, KPIs

Cost versus benefit Focus on value generation: avoid rabbit holes and low value / low risk exceptions

Clarity Effectiveness of visual model with object links enables users to quickly achieve understanding

Comparability Framework, naming conventions – Solution Manager, ability to compare, simulate and optimize models using automation

Systematic Structure Alternative views – Strategy, SOX, objectives, roles, Business Process Optimization, technology – in consistent manner


[ General Principles - SolMan <-> ARIS integration ARIS master for ‘structure’, except for the initial

download from Sol Man project ‘Paragon’ Structure is what is referred to as the process

hierarchy as it is displayed in Sol Man (Business Blueprint), consisting of Scenarios, Business Processes, and Process Steps

Solution Manager is master for SAP configuration & documentation i.e. RICEFWs

Do NOT ‘model structure’ in Sol Man ARIS and Solution Manager will be synchronized

with each other in regular intervals to make sure both systems are in sync

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[

SAP Busines Suite

ARIS

Business Architect

MODELINGTOOLS

PROCESS CONFIGURATION

SAPSAPNon-SAP SAP

DISRU

PTIOND

ISR

UPT

ION MODELING

TOOLS

PROCESS CONFIGURATION

SAPSAPNon-SAP SAP

DISRU

PTIOND

ISR

UPT

ION

SAP NW XI

First synchronization of BPM database with objects and processes selected in SAP Solution Manager

SAP Solution Manager

1. Process Scenario2. Business Process3. Process Step4. SAP Transaction

Ids-ScheerARIS

1. Process Scenario2. Business Process3. Process Step4. SAP Transaction

Transform SAP Ref Process to Client Business Process

Elimination of process gaps

Definition of rules Addition of organizational

units

Consistency of business processes and implementation processes

Initial Synchronization of BPM and SAP Solution Manager

Synchronization BPM to SAP Solution Manager

Crea

tion

of

holis

tic p

roce

ss

flows

Significant Savings in Implementation Time & Cost by starting with SAP Best Practice Process Templates for Core processes and PwC Nuclear Template.

Faster, Cheaper upgrades down the road because all key processes & configuration steps are DOCUMENTED.

BPM “Bridges the Gap” between Business and IT. Business is involved in the project from Blue-Print to Go-Live. Better Acceptance of the TO-BE Enterprise solution.

Business Process Modeling & Solution Manager

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[ How we delivered this vision - ARIS with Solman

Sync

hron

izat

ion

ARIS Solution Manager

Level 1

Level 2

Level 3

Scenario

Process

Processstep

Business process hierarchy

SAP process hierarchy

TA

Based on the project requirements, the integration

level must be identified by linking the business

processes to the SAP processes or process steps


[

Process landscape

Process flow logic

Non-SAP process information

Requirements

Organizational structure

Generic roles

Local positions

Risks and controls

SAP-relevant process

information(main source indicated by

icon)

Configuration itemsProcess landscape

Process flow logic

Non-SAP process information

Requirements

Organizational structure

Generic roles

Local positions

Risks and controls

Scenarios / processes /

process steps

Link to customizing

documentation in Knowledge Warehouse

Transactions / IT systems

Administrative information

Business process hierarchy => configuration structure

SAP-relevant documentation, e.g., configuration design documents,

test cases

IMG objects and othertypes for customizing

ARIS SolMan: Shared and Individual Content


[ How we delivered this visionTool Integration User Perspective Under “Project Documentation” double click on

ARIS Model

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[ How we delivered this visionTool Integration User Perspective6,7,8

The model opens inside the Sol Man window

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[Solution Manager as a project document repository


[ How we delivered this vision – Integrating KPIs and Process How to account for KPIs during Blueprint?

Mean Time To Repair (MTTR) Mean Time Between Repair (MTBR) Outstanding Tasks / Overdue Tasks Planned Maintenance Tasks Adherence to Deadlines Plan/Actual Deviations

How to link and embed those KPIs to Processes? Notifications: Activities / Tasks / Items / Causes Maintenance Orders: Costs and Allocation /

Operations / Scheduling How to ensure Business Benefits are measured?

Links to strategy, KPIs, Benefits Realization Plan22


[ SAP Nuclear Template

PwC SAP Nuclear Template is a knowledge repository and implementation accelerators that meets the requirements of the Standard Nuclear Process Model (SNPM), including AP-913 and AP-928 for: Asset content management Effective condition-based maintenance process Plant configuration management Effective work planning and scheduling CAP integrated with work management Business performance measurement Asset optimization

Also of interest is service.sap.com/bpr23

EAMEAM


[ How we delivered this vision – EHS Process Integration

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CH-10Chemistry

EAMFunctional LocationsEquipment

FinanceCost CentersActivity Types

SCMBOMSChemicals

Manage Employee LifecycleTraining and QualificationsPersonnel data

Operational EfficiencyNotificationsShift notes

Plan and Manage WorkWork Orders Task Lists

DMProcedures Analysis papers


[

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Tota

l Cos

t of O

wne

rshi

p

Lifecycle

Integration & standardization

Tool + Business ContentServices + MethodsSAP Solution Manager included in maintenance fee

Without SAP Enterprise Modelingof IDS Scheer and Solution Manager

With SAP Enterprise Modelingof IDS Scheer and Solution Manager

Setup Blueprint Configuration Test Training Continuous Improvement Upgrade projects

Total Cost of Ownership6


[

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Tota

l Cos

t of O

wne

rshi

p

LifecycleIntegration & standardization withStructured innovation & value network potential

Tool + Business ContentServices + MethodsSAP Solution Manager included in maintenance fee

Without SAP Enterprise Modelingof IDS Scheer and Solution Manager

With SAP Enterprise Modelingof IDS Scheer and Solution Manager

Setup Blueprint Configuration Test Training Continuous Improvement Upgrade projects

Total Cost of Ownership6


[

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Best Practices

TRIZ structured innovation approach2

Nuclear Energy Template provided by PwC Requirements Management and Traceability8

Generally Accepted Modeling Practice3

Formation of the BPM team as a center of excellence1

Current state modeling prior to development of to-be processes1


[

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Project Outcome

Lower risk of rework, increased agility Requirements–driven, KPI focus Process value-network integrated with SAP

Solution Manager On time, under budget, 20% reduced Total Cost of

Ownership(TCO) 13% in cost avoidance / risk mitigation 7% hard dollar savings


[

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Key Learnings

Ability to accelerate TCO reduction into blueprint phase

Structured innovation, integration of KPIs, Process Design and Requirements accelerates Business Benefits Realization

How process templates and reference models reduce risk and facilitates communication between the business

More extensive use of Key Risk Indicators (KRIs) for shared service operations may have increased benefits

Value of Enterprise IT Governance10 “Firms with superior IT governance have at least

20% higher profits...than firms with poor governance given the same strategic objectives." Gartner Research


[

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Questions

Consider leveraging structured innovation and the potential of your value networks

Complete and hand-in Survey Cards See more about Solution Manager and ARIS at

4pm Leverage you ASUG membership to achieve intra

and inter industry innovation


[ References

1. George, Michael L. LEAN SIX SIGMA FOR SERVICE How to Use Lean Speed & Six Sigma Quality to Improve Services and Transactions. New York: McGraw Hill, 2003.

2. Mazur, Glen. Theory of Inventive Problem Solving (TRIZ). 26 February 1996. <http://www.mazur.net/triz/>.

3. Scheer, A.W. ARIS – Business Process Frameworks. Berlin, Heidelberg, New York: Springer, 1999. (Generally Accepted Modeling Principles)

4. Kassabgi et al. Primary Technical Editor: John Suzanne. Special Edition: Using Progress V8. Indianapolis, Indiana: Que Publishing, 1996. (Encapsulation)

5. http://www.stpnoc.com/About.htm6. Engelbert, Frank. STP ARIS and Solution Manager Overview

slides.ppt, Slide 13 et al. IDS-Scheer. April 21, 2009. http://www.linkedin.com/in/frankengelbert

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http://www.stpnoc.com/About.htm

http://www.linkedin.com/in/frankengelbert

http://www.linkedin.com/in/frankengelbert


[ References

7. Rodgers, Stephanie. Programmer/Analyst, ARIS-Solman. STPNOC. 2009. http://www.linkedin.com/pub/stephanie-rodgers/17/2b8/a54

8. Woods, James. Project Manager, ARIS-Solman. STPNOC. 2009.

9. Metcalf’s Law. http://en.wikipedia.org/wiki/Metcalfe's_law10. Boyle, Louis. VP Gartner EXP.

http://www.gartner.com/it/products/podcasting/asset_141507_2575.jsp. Downloaded on 5/16/2010.

Trademarks are the property of their respective owners.The opinions of the speakers and contributors are their own and

may not represent the opinion of any other person, company or legal body.

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http://www.linkedin.com/pub/stephanie-rodgers/17/2b8/a54

http://en.wikipedia.org/wiki/Metcalfe's_law

http://www.gartner.com/it/products/podcasting/asset_141507_2575.jsp

http://www.gartner.com/it/products/podcasting/asset_141507_2575.jsp


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[

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SESSION CODE: 3106

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asug 2010 session 3106

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