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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
2
Real Experience. Real Advantage.
[
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
Real Experience. Real Advantage.
[ 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
Real Experience. Real Advantage.
[ 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
Real Experience. Real Advantage.
[ 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.
6
Real Experience. Real Advantage.
[ 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.
7
Real Experience. Real Advantage.
[ 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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Real Experience. Real Advantage.
[ 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
Real Experience. Real Advantage.
[ Vision and Strategy - Definitions
10
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
Real Experience. Real Advantage.
[
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”
11
Real Experience. Real Advantage.
[Metcalf’s Law - Value of Interconnectiveness & Networking
12
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
Real Experience. Real Advantage.
[
Blueprinting
Change Impact
Document / Record
Mobile
Solution Manager as a project document repository
Real Experience. Real Advantage.
[ How we delivered this visionGenerally Accepted Modeling Principles (GAMP) 3
14
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
Real Experience. Real Advantage.
[ 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
15
Real Experience. Real Advantage.
[
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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Real Experience. Real Advantage.
[ 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
Real Experience. Real Advantage.
[
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
Real Experience. Real Advantage.
[ How we delivered this visionTool Integration User Perspective Under “Project Documentation” double click on
ARIS Model
19
Real Experience. Real Advantage.
[ How we delivered this visionTool Integration User Perspective6,7,8
The model opens inside the Sol Man window
20
Real Experience. Real Advantage.
[Solution Manager as a project document repository
Real Experience. Real Advantage.
[ 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
Real Experience. Real Advantage.
[ 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
Real Experience. Real Advantage.
[ 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
Real Experience. Real Advantage.
[
25
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
Real Experience. Real Advantage.
[
26
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
Real Experience. Real Advantage.
[
27
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
Real Experience. Real Advantage.
[
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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
Real Experience. Real Advantage.
[
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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
Real Experience. Real Advantage.
[
30
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
Real Experience. Real Advantage.
[ 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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Real Experience. Real Advantage.
[ 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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Real Experience. Real Advantage.
[
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[
] Thank you for participating.
SESSION CODE: 3106
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For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc