sap business process improvement new process progress key

PUBLIC

SAP Digital Business Services | SAP SE

September, 2019

SAP Business Process Improvement NEW process progress key figures

2PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

This presentation outlines our general product direction and should not be relied on in making a

purchase decision. This presentation is not subject to your license agreement or any other

agreement with SAP. SAP has no obligation to pursue any course of business outlined in this

presentation or to develop or release any functionality mentioned in this presentation. This

presentation and SAP's strategy and possible future developments are subject to change and may

be changed by SAP at any time for any reason without notice. This document is provided without a

warranty of any kind, either express or implied, including but not limited to, the implied warranties of

merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no

responsibility for errors or omissions in this document, except if such damages were caused by

SAP intentionally or grossly negligent.

Disclaimer


Learn about a complete new key figure category and how this will provide even

more transparency on current process performance

• Motivation for new key figure category

• Concept of new process progress key figures

• How does it look like

Agenda

Motivation for new key figure category


• Increase business process efficiency by

reducing manual rework and reprocessing

• Increase degree of business process

automation

Reduce TCO• Improve throughput & performance

Value of SAP solution: Business Process Improvement Scope & deliverables

TimelinePlan & Build GoLive Run

Busin

ess

IT

Optimization of Business / Value

Driver (e.g. DSO, DPO, DII, Fast Close, Reduce

costs for purchasing, finance or manufacturing,

improve Supply Chain Planning accuracy)

Support foundation

for digital transition• Improving (transactional) data

quality to support

• Fast Closing

• MRP Planning

• Inventory Optimization

• Support clean-up activities for

old & obsolete business data /

prepare archiving

Reduce Complexity• Identification of customers,

materials, vendors, etc. with

no / low activity

• Support standardization /

harmonization projects

• Identification of incorrect /

not ideal application

configuration

• Identification of inactive

organizational units or

document types


Key Figure Overview (1/2)Types of key figures and their respective use cases

Measu

reU

se C

ases

Throughput

No. of

documents/

items posted in

time frame

• Go-Live support/

hypercare

Backlog

No. of documents/

items not completely

processed until

expected date

• Go-Live support

• Process excellence

/ improvements

• Process compliance

& audits

• Data archiving

support

• Migration prep.

Exception

No. of error

messages (incl.

msg. texts) raised in

selected time frame

• Integration tests

• Go-Live support


/ improvements

• Process compliance

& audits

• Root cause analysis

Lead Time

Avg. processing

time for completed

process instances


/ improvements

Automation

rate

How many

documents were

processed manually

vs. automatically

• Go-Live support

• Process efficiency

increase / process

cost reduction

• Process

harmonization /

standardization


Key Figure Overview (2/2)Types of key figures and their respective use cases

Measu

reU

se C

ases

Usage

Configuration /

master data not

(much) used

• Use better

• Reduce

complexity

• Process

harmonization /

standardization

Changes

All (dialog) changes

per master data /

business document


/ improvements


increase / process

cost reduction

• Reduce complexity

Configuration

check

• Integration tests

• Go-Live support

• Run better

„Wrong“ configuration

typically leading to

performance

problems

Process

progress

Process progress &

leakages within given

timeframe


/ improvements


increase / process

cost reduction


Customers starting with an initial analysis, where many backlog key

figures show high results, do not know where the biggest problems are

lying and hence where an analysis and improvement should start.

Lead time measurements cannot be easily related to throughput

measurements of a business process.

Backlogs cannot be easily related to neither throughput nor lead time

measurements.

While organizational units can be easily compared per key figure (via

benchmarking in Business Process Analytics or via respective Business

Process Operations Dashboard), it is not really possible to compare

process performance across organizational units.

Challenge


Example: Order to Cash performance

In order to get a good understanding of the

business process performance (e.g. Order to Cash)

you typically have to

• Activate 10+ different key figures

• Configure just as many AKFIs

• Build a corresponding dependency diagram

Concept of new process progress key

figures


What if

Imagine you could

• Visualize a process performance with just one data collection and no single AKFI

• Visualize the process performance for a single organizational unit or virtual characteristic via dynamic

filtering

• Visualize the process performance for specific starting documents, important materials or customers,

vendors also just via dynamic filtering

• Get throughput, lead time and leakage measurements based on the same set of starting documents

and hence

• See relations between process roadblocks, inefficiencies and increased lead times

• Identify the biggest leakages in a given timeframe and/or organizational unit

• Get out-of-the-box process flows for business processes where no such process flow is visualized

in SAP ECC (e.g. purchasing, manufacturing)

• Still jump into all kinds of details from such a process visualization

Look into the new Business Process Analytics & Process Progress key figures


Concept of Process Progress key figures

Create sales

order

Create

outbound

delivery

Post Goods

Issue

Create SD

invoice

1 2 2 2

3 3 3

1. Select the “correct” set of documents in a selected timeframe

→ Basis

2. Calculate how many documents (absolute and in %) made it to the respective

process milestone in the selected timeframe

→ Throughput & completion

3. Calculate the average lead time “from step to step” as well as “from start to step”

for those documents that made it to this step

→ Lead / cycle times

4. Provide context what exceptions occurred (e.g. blocks, incompleteness)

→ Exceptions & Backlogs


Delivery with ST-A/PI 01T support package 2 for SAP Solution Manager ST

7.20 SP10

The following process progress key figures should be part of the upcoming ST-A/PI 01T support package 2:

Sales Procurement

Manufacturing

• Purchase order item creation to GR/IR clearing

• Purchase order item creation to invoice receipt

• Purchase order item creation (with approval) to IR

• Purch.order item creation (w. approval & conf.control)

to IR

• Sales order item creation to outb. delivery item

• Sales order item creation to SD invoice item

• 3rd party sales order item to SD invoice item

• Sales order items (via purchase to order) to SD invoice item

• Sales order items (via make to order) to SD invoice item

• Production order creation to technical completion

• Process order creation to technical completion

• PM/CS orders creation to status 'closed'

Replenishment

• Stock transport order items creation (w/o delivery) to GR

• Stock transport order items creation (with delivery) to GR

• Cross-company STO item creation to FI-AR clearing


Business Process Analytics with Process Progress Key FigureExample: From sales order item creation to FI-AR clearing

One process progress

key figure allows

tracking an entire pre-

defined business

process and indicating

where improvement

areas exist.

One can filter

dynamically per

organizational unit,

material, customer,

vendor or single

document where

applicable.


Order to Cash (1/2)From sales order item creation

to delivery item creation (KPSD000360)


Order to Cash (2/2)From sales order item creation to

invoice item creation(KPSD000361)


3rd party (drop

ship) salesFrom sales order item

creation to SD invoice(KPSD000363)


Sales via purchase to orderFrom sales order item creation to SD invoice (KPSD000364)


Sales via make to orderFrom sales order item creation to SD invoice (KPSD000365)


Procure to Pay (1/3)From purchase order item creation to MM

invoice receipt(KPPURCH261)


Procure to Pay (2/3)From purchase order item (with approval)

creation to MM invoice receipt(KPPURCH262)


Procure to Pay (3/3)From purchase order item (with approval &

conf. control) creation to MM invoice receipt(KPPURCH264)


Replenishment (1/2)From STO items (without delivery) creation to

Goods Receipt(KPPURCH560)


Replenishment (2/2)From STO items (with delivery)

creation to Goods Receipt(KPPURCH561)


Discrete

manufacturingFrom order

creation to

technical

completion (KPPP000160)


Process

manufacturingFrom order creation

to technical

completion(KPPP000260)


Plant

Maintenance

& Customer

ServiceFrom order

creation to

completion(KWPM000260)


Further information

Public SAP Web sites

Wiki Business Process Improvement: https://wiki.scn.sap.com/wiki/display/SM/Business+Process+Improvement

KPI Catalog: https://go.support.sap.com/kpicatalog/index.html?sap-language=EN

SAP Enterprise Support Value Maps: https://support.sap.com/support-programs-services/offerings/enterprise-support/academy/valuemaps.html

Public YouTube Links

Business Process Improvement for SAP Solutions

Dashboards in Business Process Improvement

Dependency Diagrams in Business Process Improvement

Process Management in Business Process Improvement

https://wiki.scn.sap.com/wiki/display/SM/Business+Process+Improvement

https://go.support.sap.com/kpicatalog/index.html?sap-language=EN

https://support.sap.com/support-programs-services/offerings/enterprise-support/academy/valuemaps.html

https://www.youtube.com/watch?v=ZG3wGHSznaM

https://www.youtube.com/watch?v=_-B9iHSO6pY

https://www.youtube.com/watch?v=tjk_HSSvlis

https://www.youtube.com/watch?v=5g82-l5W4IU&list=PLifS0SaO0R6K5culWTdHLCH-ioz6ayDQQ&index=3


Thank you!

Global CoE Business Process ImprovementDigital Business Services | SAP SE

Contact for further topic inquiries

sap business process improvement new process progress key

Documents