operational efficiency business process excellence mehul rajparia
TRANSCRIPT
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 1/20
Operational Efficiency
ThroughBusiness Process Excellence
Mehul RajpariaManaging Director, IDS Scheer India
May 28, 2009
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 2/20
Agenda
•Process Management and Improvement to achieve operational
efficiency
•SAP/IDS Scheer Offering for Business Process Management
•Case Study: Petro China
© SAP 2009 / Page 2
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 3/20
© SAP 2009 / Page 3
The Corporate Value Pyramid
Business Strategy
Operational Strategy
Operations
Valuation
Share Price
Top Line Growth
People Processes Technology
C o n t i n
u o u s I m
p r o v e
m e n t
C r e
a t i o n o f V
a l u
e
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 4/20
© SAP 2009 / Page 4
… represents the corporate memory and
is the only element in the business
foundation that is 100% under
management’s control
Processes in the operational foundation…
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 5/20
© SAP 2009 / Page 5
Gartner Executive SurveyTop Business Priorities for 2009
Business process improvement 1
Reducing enterprise costs 2
Improving enterprise workforce effectiveness 3
Attract ing and retaining new customers 4
Increasing the use of information/ analytics 5
Creating new products and services (innovation) 6
Targeting customers and markets more effectively 7
Manage change initiatives 8
Expanding current customer relationships 9
Expanding into new markets or geographies 10
Source: Gartner EXP worldwide survey http://www.gartner.com/it/page.jsp?id=855612
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 6/20
What does process improvement really mean?
One needs to have complete end to end view of businessprocesses including:
What needs to be done
Why
Who should do it
What information is needed / generated at each step What resources / systems are available to complete the step
How is it really done?
Measure performance of live running process
Identify bottlenecks or areas for improvement
Align “what should be” and “how” to improve process and
operational efficiency
© SAP 2009 / Page 6
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 7/20
Business Process ManagementHelps improve processes and achieve operational excellence
As the latest Gartner EXP survey emphasizes, today’s challengingeconomy means the focus on Business Process Management (BPM) is
more important than ever. The survey underscores the value BPM can
provide to help companies “survive, thrive and capitalize” in an economic
downturn.
BPM is seen as a lifeline keeping organizations above water Attendees response at a recent Gartner event – source biztech2 arcticle
3/17/09
According to Michele Cantara, VP of Research at Garner:
In a survival mode, many companies’ cost cutting measure result inderailment of critical programs. Process visibility (via BPM) should be
used to cut cost with surgical precision so as to understand its impact on
critical processes
© IDS Scheer AG www.ids-scheer.com 7
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 8/20
SAP and IDS Scheer OfferingWhat Should be Done (Process Design and Analysis)
Document end to end processes in a structured manner Process, People, System & Input/Output
Build a Central process repository that can foster Process transparency
Process re-use
Communicate process information to masses in an
unambiguous manner
Foster constructive feedback
Reduce learning curve for new employees and improve productivity
Enforce standard way of working
Prepare reports on roles, job descriptions, procedures, policies, etc.
Run impact analysis on processes across all linkages
Perform what-if analysis on processes for improvement© SAP 2009 / Page 8
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 9/20
SAP and IDS Scheer OfferingHow it is really getting done today?
© SAP 2009 / Page 9
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 10/20
© IDS Scheer AG www.ids-scheer.com 10
Challenges of the Process Performance
Management
Which processes do not perform as planned?
How can we derive improvements?
Who can tell what’s going wrong?
Could we avoid those bottlenecks?
What are the reasons and circumstances?
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 11/20
© SAP 2009 / Page 11
SAP Process Performance Management(Example Quote-to-Cash)
ERPERPCRMCRM
SAP PPM Process Warehouse
InquiryInquiry
Document-/
workflow
Process
chain
Time
Create
Offer
Field
staff
Collect
Order data
Office
employee
Create
Delivery not e
Clerk
Compile
Bill
Clerk
Check
Payment
Clerk
FI/COFI/CO
Extractor Extractor
Assignment Assignment
Extractor Extractor
ShippingShipping
order order BillingBillingPaymentPayment
receiptreceipt
Extractor Extractor
Offer Offer
Process-auto-extraction out of source data
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 12/20
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 13/20
© SAP 2009 / Page 13
Continuous Improvement of Business Process
Performance
Transparent end-to-end processesMonitor
Business
Performance
Analyze
Business
Performance
Analyze Structures
of Processes
and of Organization
Establish
Continuous
Improvement
Reveal cause & effect chains
Recognize optimization potential
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 14/20
Customer Benefit
Our Solution
Business Challenges
Industry
Topic
© IDS Scheer AG www.ids-scheer.com 14
RAS Oil and Gas Company (RASCO)
www.raslanuf.ly
Oil&Gas
PPM for finance and accounting
Ras Lanuf Oil and Gas Processing Company (RASCO) is a
subsidiary company of NOC, the National Oil Corporation of Libya, and was founded in 1982. Its petrochemical complex
is composed of a Refinery Plant, an Ethylene Plant,
Polyethylene Plants, and associated Utilities Facilities. The
company has approx. 3500 employees.
Mapping and analysis of the finance andaccounting processes using ARIS Toolset
Design of the optimized business processes
Process performance monitoring of the finance
and accounting processes using ARIS Process
Performance Manager and ARIS Web Publisher
Solution for Business Process Monitoring
Process portal with the optimized processes
increases visibility of best practices
Feedback from Process Performance Management
system helped increase process efficiency
Establishment of Process Improvement Culture
ARIS Too lset ,
ARIS Web Publi sher ,
ARIS Pro cess Perfo rmance Manager
No consistent process documentation
No process transparency
No clear process in place how to measure internal
and external service levels
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 15/20
Petrochina at a glance
15
PetroChina – the no. 7 oil&gas company worldwide
Revenues of Euro 68.898 bill ion in the fiscal year 2006
China's flagship energy enterprise, plays an important
role in China's oil and gas production and supply
Strong distribution network with more than 18,000 gas
stations
0ne of the largest technical and engineering service
suppliers
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 16/20
Nordic Process Days 2005, Gothenburg, Sweden© IDS Scheer AG www.ids-scheer.com
Project Roadmap for PetroChina
1 0 . 2 0 0 7
“Compliance Project”
SOX Document Modelling and Test
Management Automation
“ BPM Project”
Enterprise Process Architecture
SAP blueprint modelling and
synchronization
Business Process Modelling and Analyzing on gas stat ion process
and financial reporting process
“ BPM and Compliance Project”
Support Total Risk Management with
Process Portal, Process modelling,
Process Auditing and Process Performance
Monitoring
0 8 . 2 0 0 6
Internal Contro l System Implementation Project Roadmap for PetroChina
1 2 . 2 0 0 8
Phase IIPhase I
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 17/20
Nordic Process Days 2005, Gothenburg, Sweden© IDS Scheer AG www.ids-scheer.com 17
Project framework for PetroChina on ERM, BPM and PPM
Enterprise
Risk
Manageme
nt
Process
Manage
ment
Perform
ance
Manage
ment
Topic
Phase
Strategy Design ImplementImplement Control Portal
SOX System
Design
ERM system
Design
Identify Risk
Design
Control
SOX Doc.Modeling
Manual
Control
IT Control
Control test
And Repor tERM portal
Process
Architecture
Process Mgt.
system
Process
design
Process
Modeling
ModelingConvention
IT implement
Org.
implement
Process
Performance
Monitering
BPM portal
PM system
design
KPI design
E2E process
design
PPM
implementation
KPI monitor
KPI analyze
PPM portal
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 18/20
Benefits Summary to PetroChina
•Improve the effectiveness of SOX Documentation administration
•Pass the SOX audit with Zero-deficiency in fiscal year 2007
•Easy sharing of compliance knowledge through portal
•Cost reduction for test result analysis, reporting, and SOX Manualmanagement
•Ensure ERP implementation comply with internal control
requirement
•BPM culture throughout the company using integrated platform
•Established Process Owner and Process Management Policies
•To Implement an Integrated Portal to support ERM, BPM and PPM
© SAP 2009 / Page 18
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 19/20
•To achieve operational efficiency,•Company must get transparency on processes
•Processes should be measured
•Processes should be improved
•Process Management and Continuous Improvement should become
culture of an organization
•ELSE
Summary
© SAP 2009 / Page 19
OO + NT = EOO(Old Organisation+ New Technology = Expensive Old Organisation)
8/10/2019 Operational Efficiency Business Process Excellence Mehul Rajparia
http://slidepdf.com/reader/full/operational-efficiency-business-process-excellence-mehul-rajparia 20/20
© SAP 2009 / Page 20© SAP 2007 / Page 20
Thank You !