Proof Model to Execute Concept with SAP BPM
as part of the holistic approach to continuous improvement
Menno Boon (Application Manager), ERP Center of Excellence
René Tiesma (NetWeaver Integration Architect), ERP Center of Excellence
April 26, 2011

Agenda
Tata Steel
Company introduction & it’s challenges
Scope
The holistic approach & proof of technology SAP BPM
Results
Business Rules Management
Integration aspects
Exception handling
Process insight
Project / development aspects
Next steps
© 2011 SAP AG. All rights reserved. 2

Tata Steel
Company Introduction

Tata Group – A worldwide company
Tata Steel Group
• Fortune 500 company
• Top 10 steel company
• 28 million tons steel per year
• Over 80.000 employees
• $ 22,8 billion turnover
Tata Steel Europe
• 1999 merger between Hoogovens & British Steel
• 2007 Corus Group plc became part of Tata
• Name change to Tata Steel in 2010

Tata Steel Europe – Market sectors
Automotive Building Energy & Power Engines
Packing Rail Industry Strip & Long
Shipbuilding, Engineering, Defense &
Safety, Aviation

Tata Steel Europe – New Operating Model
• One integrated, customer focused company
• Strong values and reputation
• Understand and support customers
• Cooperate as partners and grow together

Tata Steel
Challenges
© 2011 SAP AG. All rights reserved. 7

Challenges - Business processes “not common”
Important characteristics of Tata Steel business processes
Span multiple BU’s & multiple applications
Collection of multiple isolated automated functions, (manual) procedures and individual knowledge
Are implicitly embedded in minds, documents and applications
Tata Steel expects lots of business processes to change next few years
Shift from “local & functions” minded towards “corporate & process” minded
© 2011 SAP AG. All rights reserved. 8

Challenges - Heterogeneous IT environment
SAP “majority” environment
Tata Steel environment, PP & SD significantly in non-SAP
Mainframe / Custom Apps
PP EHS FC MM HR PM SD PS
Websphere, .Net, Java
© 2011 SAP AG. All rights reserved. 9

Scope
The holistic approach & proof of technology SAP BPM
© 2011 SAP AG. All rights reserved. 10

The holistic approach & proof of technology SAP BPM
Tata Steel considers “the holistic approach” to achieve continuous
improvement
Enterprise Architecture to translate the business vision and strategy into effective
enterprise change
BPM (as a discipline) for continuous operational improvement
BPM (as an IT component) to automate process models (model to execute)
BUSINESS VISION &
OPERATIONS MODEL
BUSINESS
ARCHITECTURE
BUSINESS PROCESS
MODEL & PATTERNS
FUNCTIONAL &
TECHNICAL APPLICATION MODEL
ARCHITECTURE
INFRASTRUCTURE
MODEL
The scope was to demonstrate the “model
to execute” concept with SAP BPM.
© 2011 SAP AG. All rights reserved. 11

Results
• Business Rules Management – Process Flexibility
• Integration aspects
• Exception handling
• Process insight
• Project / development aspects
© 2011 SAP AG. All rights reserved. 12

Business Process
Real world Tata Steel business process
IJmuiden plant transports of type “Mixed Cargo”
Handled by external carrier
Excel/e-mail managed process
Approx. 700 transports per week
Identified as business improvement process
As-Is known within the ERP CoE due previous study
Business informed, not involved
© 2011 SAP AG. All rights reserved. 13

Business Process
Real world Tata Steel business process
IJmuiden plant transports of type “Mixed Cargo”
Handled by external carrier
Excel/e-mail managed process
Approx. 700 transports per week
Identified as business improvement process
As-Is known within the ERP CoE due previous study
Business informed, not involved
Freek de Wolf Mix Cargo
ed
Process Owner
Mixed Cargo Top Level
Mixed Cargo contract Mixed Cargo Mixed Cargo execution SES
Masterdata mgmt Self Billing
ECC ECC SAP BPM ECC
© 2011 SAP AG. All rights reserved. 14

Business Rules Management
BRM & BPM – Separate process & rules
Determine if carrier is allowed to invoice
automatically and act upon it.
BRM & UI – Separate ui & rules
Range of cost centres per PO
Changes on a regular base
Maintained by Tata Steel controllers
© 2011 SAP AG. All rights reserved. 15

Integration Aspects
Non-SAP Integration via IBM Websphere
ERP Backend simulated in IBM Websphere to prove
mainframe / custom application integration
Microsoft .Net integration
Employee details via Active Directory Services
SAP Enterprise Services
Planned usages of a composite ES skipped,
considered proven technology.
Reuse existing asynchronous interface
Service Entry Sheets are created automatically from
the process by reusing an existing SAP PI Interface.
External carrier integration
Identified as real business benefit. Out of scope in
this proof of technology, considered proven
technology
© 2011 SAP AG. All rights reserved. 16

Exception handling
Intermediate event
Catch asynchronous messages
Correlate to correct process instance
Model exception path
Deal with last minute changes, identified as a
process bottleneck
Happy path Exception
© 2011 SAP AG. All rights reserved. 17

Process Insight
Process Performance Indicators (PPI)
# of processes per day
# of current process instances
# of processes started by…
Top 5 longest process instances
“out of the box” dashboards
design once, use always
Key Performance Indicators (KPI)
Business Process specific
# transports per location
# of emergency transports
# of “one time right” transports
© 2011 SAP AG. All rights reserved. 18

Project / development aspects
UI via SAP Portal
Visual Composer UI in CE Portal. Linkage into Tata
federated portal possible.
Accelerated & agile development
Generated User Interfaces
Parallel build (model, ui’s, services, dashboards)
Milestone definitions
Source control & team development
NWDS / NWDI integration (model & UI’s)
Project management
Finished within budget
Joint effort Tata & partner Intenzz to safeguard knowledge
Exceeded time due to CE server installation issues
© 2011 SAP AG. All rights reserved. 19

Next steps
© 2011 SAP AG. All rights reserved. 20

The holistic approach & proof of technology SAP BPM
Roadshow to demonstrate BPM capabilities from an IT perspective
Evangelize the “holistic EA/BPM approach”
Start a real world “business involved” project
Embedding BPM into the organisation
• Governance
• BPM decision model
• Roles & responsibilities
• Project methodology
•…
© 2011 SAP AG. All rights reserved. 21

www.sapespresso.nl
Thank You!
Contact information:
René Tiesma
SAP NetWeaver Integration Architect
Rene.Tiesma@tatasteel.com
+31 (0) 2514 93419

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