wawa evolution of_business_process_design

The Evolution of Our Business Process Design Methodology

Mark McClure - Sr. Business Process Designer

Diane Schade - Lead Process Architect

Wawa, Inc.

27 June 2011 | ProcessWorld 2011 | 2

Agenda

� Introduction to Wawa

� Team Structure

� Process Design Methodology

�Plan

�Design

�Build

�Transition

� Conclusions & Lessons Learned

� Questions & Answers


Wawa Yesterday, Today & Tomorrow

www.wawa.com

� Privately Held Company

� Started in 1803

� First Convenience Store Opened in 1964

� 583 Stores in 5 Mid-Atlantic States:�PA, NJ, DE, MD, VA�293 Fuel Stores�290 Non-Fuel Stores

� 3 Distinct Businesses:�Convenience �Quick-Serve Restaurant�Fuel

� 17,000 Associates

� $7 Billion in Revenue

� Coming to Florida 2012


Wawa’s Process Journey

1994 1997

2005

IncrementalImprovement

BigChange

2003

2007 20082005

1995

Wawa Opens1st Gas Store

GE WorkOut

CFQ

BusinessTransformationTeam & ARISProcess by

Projects

2000

ASRSAutomatedStorage &

Retrieval System

“X Stream”Redesign ofSupply Chain

New CEO&

“N-Zone”SAP/ERPProject

2011

EnterNewMarket

Dr. Michael HammerComes to Wawa

2009 2010

IntroduceLottery

ImplementNew HRIS

&POS

Systems

450 Stores$500 MM

580 Stores$7 B


Processes: Increase

value to the customer

by continuously

improving service

and speed and

reducing costs

Wawa’s Corporate Strategy


Lessons Learned

Prior to ARIS

� Drive process thru projects/programs

� Find willing business leaders to build credentials

� Sustainability is hard

� Senior leadership must promote process centricity


Change Management•SEAMLESS Change Mgmt Execution

•Communication Management

•Business Readiness Assessment

•Implementation Monitoring & Metrics

•WorkOut Process Delivery

•BT Competency Development &

Delivery

Business Intelligence• Develop Enterprise Data Solutions in BW

to Satisfy Cross Functional Needs

• Support Operational BW & BIA Systems

• Design Solutions to Deliver EIM

Process Improvement• Process Design Leadership

• E2E Process Documentation

• Impact Assessment

• Metrics Identification & Delivery

• Enterprise Information Mgmt

• ARIS System Administration

• ARIS Repository Governance

Program Management •Standard Methodology for

Project Mgmt & Governance

•Manage Enterprise Programs

(IT and Business)

•Develop Project Mgmt Competency at

Wawa

Wawa’s Business Transformation Team


Process Design Methodology Evolution

Started with ……

2008

� New designer tool (ARIS)

� 3 novice ARIS users

� A willing business partner

(Real Estate)


Wawa’s BPM Objectives

� Partner with business owners and process performers to design business processes to meet organizational objectives

� Identify and define process and result metrics to ensure process performance, compliance, and relevance

� Understand, challenge, and redesign business processes to increase efficiency and build competitive advantage

� Create and maintain a single repository for enterprise wide business process documentation and metrics


Wawa’s BPM Methodology

Plan Design Build Transition

Scope Process

Decompose Process

Prioritize Process

Design Work

Challenge Existing Process

Design New Process

Identify Metrics

Assess Change Impact

Build Models in ARIS

Conduct Peer Review

Validate Model

Obtain Sign Off

Publish Model

Estimate Resources

Research Industry Best Practice(s)

Review Industry Best Practice(s)


Identify process owner

Identify core business processes & processes

(Levels 1 & 2)

Identify input(s) & outputs(s)

Determine process measures and project

scope

Confirm scope and set priorities

Identify dependencies

Establish time line

Scope Process

Utilize BPM estimating model to estimate time

Identify sub-processes & activities

(Levels 3 & 4)

Identify level of documentation below level 5

Construct process decomposition (Levels 1 – 4)

Don’t recreate the wheel

APQC

SCOR

Business contacts

Estimate Resources

Prioritize Process Design Work

Decompose Process

Research Industry Best

Practice(s)

Plan


Acquire Sites Design & Permit Projects Construct Stores Manage Real Estate Assets

Manage PortfolioManage Pre-Construction ActivitiesPlan Network

Manage Non-Op Properties

Select & Sign Sites

Develop Engineering Plan (Site)

Build Stores

Secure Permits & Approvals Manage Post-Construction Activities

Develop Architectural Plan (Building)

Improve Operating Properties

Build 5 & 10 Year NetworkPlans

Select Markets

Optimize Markets

Optimize Sub-Markets

Assess Sites

Approve Sites

Negotiate & Execute Contracts

Manage Contract Terms

Design Engineering Plan

Conduct Engineering Review

Update Project App withEngineering Estimate

Design Interior Layout

Design Prototype

Create Construction Plan

Secure Entitlements

Execute Agency Agreements

Post Securities

Bid and Award Contracts

Initiate Utility Relocation

Obtain Certificate of Occupancy

Transfer Store to Operations

Open Store

Perform 30-Day Post OpeningReview

Assess Portfolio

Procure Materials & Equipment

Manage Contractors

Perform Internal Inspections

Administer External Inspections

Perform Punch List Walk

Make Portfolio Decisions

Improve Sites

Negotiate Leases

Appeal Taxes

Market Non-Op Property

Close Stores

Assess Non-Op Property Value

Conduct Semi-Annual PostStore Opening Review

Select Disposition Strategy

Remodel Stores

Maintain Non-Op Properties

Secure Bond Release

Level 1 - Core ProcessLevel 2 - Process

Level 3 - Sub ProcessLevel 4 - Activity

Legend

Site Identification to Disposition

Level 1 - Core ProcessLevel 2 - Process

Level 3 - Sub ProcessLevel 4 - Activity

Legend

Process Decomposition Example


Plan - Estimating Resource Model Process Model Level

Model

Type Develop Build Review

Est.

Hours

Act.

Hours

Model

Status

%

Comp

Manage Store Cash 3 VACD Low Medium Low 6 7.0 First Draft 75%

Perform Cashier Safe Functions 4 EPC Medium High Low 13 Not Started 0%

Perform Manager Safe Functions 4 EPC Medium High Low 13 11.0 First Draft 75%

Perform Day-Shift Manager 4 VACD Medium High Low 13 1.5 First Draft 75%

Envelope Drop 5 EPC Low Low Low 4 Not Started 0%

Quick Drop 5 EPC Low Low Low 4 Not Started 0%

Perform Safe Loan 5 EPC Low Medium Low 6 2.5 Started 25%

Perform Safe Reconciliation 5 EPC Low Medium Low 6 3.0 First Draft 75%

Perform Safe Adjustment 5 EPC Low Medium Low 6 3.5 Started 25%

Perform Safe Drop Reconciliation 5 EPC Low Medium Low 6 5.0 Owner Review/Signoff100%

Collect E-Safe Canisters 5 EPC Low Medium Low 6 4.0 Design Team Review100%

Order Coin 5 EPC Low Medium Low 6 4.5 First Draft 75%

Perform Bank Deposit 5 EPC Low Medium Low 6 6.0 First Draft 75%

Cash Delivery 5 EPC Low Medium Low 6 2.5 First Draft 75%

Safe Transfer 5 EPC Low Medium Low 6 3.0 First Draft 75%

Employee Setup - Add Employee 5 EPC Low Low Low 4 Not Started 0%

Employee Setup - Delete Employee 5 EPC Low Low Low 4 Not Started 0%

Employee Setup - Edit Employee 5 EPC Low Low Low 4 Not Started 0%

119 53.5

Number Level 1 Models 1 62

Number Level 2 Models 2 4

Number Level 3 Models 4 First Draft Complete 11

Number Level 4 Models 9 Design Team Review 1

Number Level 5 Models 62 Owner Review/Signoff 1

Total Number of Models 7847%Percent

Not StartedModel Status

Started


Challenge Existing Process

Design New Process

Identify Metrics

Assess Change Impact

Review Industry Best

Practice(s)

Understand process

Identify issues with current process

Determine if issues result from design or execution problems

Design

Challenge the best practice

Challenge ourselves to accept the best practice

Start with the end in mind

Identify primary value-added activities

Construct the process flow

Challenge the new design

Answer the question … “How will we know if the new

design performs as designed?”

Identify “R” and “P”measures that drive execution, quality, and accountability

Answer the question … “What other than the process needs to change?”

Identify linkages to other processes

Identify everyone affected by the new design


Process Design Principles

� Look at business from outside-in, i.e. the customer's perspective, as well as inside-out

� Initially design work flow around value-added tasks, not departments

� By design, work is performed where it makes the most sense

� Provide a single point of contact for customers and suppliers whenever possible

� Process performers should be involved in the analysis, design, and implementation of improvements

� Push decision-making down to the lowest levels that make sense

� Consider every handoff as an opportunity for error; have as few handoffs as possible in a process

� Ensure 100% quality throughout the process

� Ensure a continuous flow of the "main sequence“ (those activities that directly add value to the customer)

� Design the process first, then automate it


Build Models in ARIS

Conduct Peer Review

Build ARIS folder structure to match

process decomposition

Value Added Chain Diagram – VACD(Levels 1 – 3)

Event-Driven Process Chain - EPC(Level 4)

Functional Allocation Diagram - FAD(Level 5)

Build

Evaluate model(s) against established

methods and conventions

utilizing checklist

Identify problems and fix them early in the lifecycle


Process Levels & Models

Levels 0 thru 5 define what we do!

Levels 6 & below define how we do it!

EPM

VACD

VACD

VACD

EPC

FAD

Job Aids

EPM

Buy to Sell

Manage

Product Offer

Maintain DairyInventory

Order Milk

Manage

Dairy Offer

Level 0

Level 1

Level 2

Level 3

Level 4

Procedures

Level 5

Level 6

Enterprise Process ModelComprised of Core Business Processes

Core Business ProcessesComprised of Processes

ProcessesComprised of Sub-Processes

ActivitiesComprised of Tasks

TasksComprised of Procedures

Sub-ProcessesComprised of Activities

Model Type Example


Obtain Sign Off

Publish Model

Validate Model

Move model into QA environment

Collect feedback

Edit model in DEV environment

Move model back into QA

environment

Transition

Review edited model with business owner(s)

Obtain business owner sign off

Move approved model into PROD environment

Review model in 90 days

Establish maintenance schedule with business owner


Started with ……

2008

� New designer tool (ARIS)

� 3 novice ARIS users

� A willing business partner (Real Estate)

Today ……

2011

� ARIS repository (4,000 models)

� ARIS Business Publisher utilization

� 3 experienced ARIS users

� Knowledge of ARIS Administration

� Process design principles

� Process design methodology

� Process design tools

� Buy-In from organization

� More demand for our services

� Process part of corporate strategy

� Power user pilot

Conclusions


Real Estate Project Benefits

� Opened 33 new stores since beginning of program

� Improved return on new stores by 25%

� Designed & integrated new site selection process

�Reduced site pipeline by 60%

� Developed multiple store prototypes

�Access to smaller sites

� Reduced new store costs by 5% to 10% per year for the past 3 years

�Realized $16 million in cost savings through 2010

� Improved real estate governance

�Updated & modified portfolio review process

�Developed 10-year network planning process

� Implemented new departmental structure

“The Real Estate Efficiency Program has helped us maximize the return on new

stores, while improving the efficiency of the Real Estate Department. This was

done by redesigning processes, which increased levels of collaboration and

improved information flows and decision making.”


Lessons Learned

� Need a methodology

� Get involved at the beginning of projects

� Execute model peer reviews

� Group folder structure should follow process decomposition

� Utilize ARIS Business Publisher from the start

� Weekly business process design meetings

� Install ARIS with Software AG’s assistance vs. them doing the work

� Removed model ID attribute


Contact Information

Established 1803

Diane SchadeLead Process Architect

Tel 610.361.3874 / Cell 610.742.8020 / Fax [email protected] / www.wawa.comWawa, Inc. / 260 W. Baltimore Pike, Wawa, PA 19063

Established 1803

Mark McClureSr. Business Process Designer

Tel 610.558.8587 / Cell 610.308.9707 / Fax [email protected] / www.wawa.comWawa, Inc. / 260 W. Baltimore Pike, Wawa, PA 19063


Questions?


Appendix


ARIS Process Modeling Objects

Objects used in Value Added Chain Diagrams (VACD)

An SAP Value-Added Chain is used to model scenarios that will be synchronized to Solution Manager.

An Organizational Unit object is used to show the department responsible for performing the individual process.

A Value-Added Chain is used to model Non-SAP scenarios and/or high level processes. Typically used for levels 1 through 3.

A Business Partner object is used to show which Wawa business partner is responsible for performing the individual process.

A KPI Instance is used to show success metrics for and within a process. It typically includes both the metric and the target.

An Assignment is a symbol that is attached to an object, indicating a navigational link to another model. Double clicking on this symbol will take you to the other model. Assignments are commonly used in EPM, VACD and EPC models.

Objects used in Event-Driven Process Chains (EPC)

A Function represents an activity or task performed in the execution of a process.

A Group object represents a team of associates, working together to fulfill a specific task.

An Event can be either the input or output of a Function. It documents the outcome of the previous Function.

A Position object is used to identify the position of the individual performing or supporting the task or process step.

An SAP Function is used for a function that is performed or supported by SAP. (Transaction) This object may also be used in VACD and FAD models.

A Role object is a generic way to identify an individual performing a task, when the individual can come from a variety of positions, i.e. “Store Management Team Member”.

A Process Interface references a documented process that can come at the beginning or end of a model. They typically have an Assignment to the linked process.

An External Person object is used to identify an individual from outside the organization, who is responsible or accountable for performing a task or process step.

An AND Connector is used to connect multiple paths and indicates that all paths must be followed.

A Risk object is used to indicate a risk or risks within a process. When applicable, it can be linked to another model designed to mitigate the risk.

An OR Connector is used to connect multiple paths and indicates that at least one path must be followed. Similar to And/Or.

A Milestone is an event that marks the start or end of a sub-process through clearly defined conditions or results.

An Exclusive OR Connector is used to connect multiple paths and indicates that only one path must be followed.

Objects Used in Functional Allocation Diagrams (FAD)

An Application System Type is used to identify the system type that supports the task or process step.

The General Documentation object is a link to information associated with the Function being documented in the FAD.

The Screen object contains the SAP transaction. The name of the Screen should be the SAP transaction code.

The SAP Documentation object is a link to project information associated with the SAP Function. Documents maintained in the SAP Documentation tab of the Solution Manager project, can be synchronized over to ARIS as Project Documentation.

The Technical Term object represents the input and output data.

Assignment

AND

OR

XOR

ARISProcessModelingObjectJob-Aid


Plan Work Below Level 5


Posters in our

Business TransformationConference Room


Process Design Agenda

1. What problems or challenges do we have with the current process?

2. What must we build into the new process to overcome these challenges?

3. What starts or triggers the process? What is the input?

4. What ends the process? What is the output(s)?

5. What are the primary 5-7 activities within the process? Is this design an industry best practice?

6. What is the process flow and the dependencies among these activities?

7. Which are the critical activities within the process and what metrics can we put in place to monitor/control them? (P Measures)

8. How do we measure success for the end activities and results? (R Measures)

9. This process is linked to what other processes?

10. Who is impacted by the new design? (Impact Diagram)

11. Where will the most resistance to the change come from?


• Process Metrics (P – Measures)• Systemic• Technological

• Human Performance

• Results Metrics (R – Measures)• Output Quality –defined by customer• Business/Financial

• Process Efficiency

Two Types of Metrics


Metrics Questions

• Are your Metrics Relevant?

• Do they tell you what you need to know?

• Are they Actionable

• Can you do something with the data?

• Can they/Are they being Monitored?

• Has the owner been identified?• Is someone following up?

• Are Metric Standards and/or Goals Identified?• This is the measure of success!

• Do They Encourage Desired Behaviors?• Are people incented for the right behaviors?


Metrics – Capturing and Reporting Questions

Once metrics have been identified, the following questions need to be answered:

• How will the metric data be collected?

• Who or What will collect it?

• How often will it be collected?

• How will the data be compiled and reported?

• Who or What will do this work?

• How often will it be reported?

• To whom?

• Who is accountable for the metrics/process results?


Impact Assessment

•Create a list of everyone who is impacted by the design and implementation of the new process

• Identify the role(s) for everyone on the list:• Responsible for performing the new process, these individuals

need to be informed, prepared and trained

• Accountable for the process, decision makers and resourceproviders

• Supporter for the new process

• Consulted, people who are accountable for other processesimpacted by the new design

• Informed, people who need to be informed throughout the design and implementation of the process


Process Design Ground Rules

• Be attentive & open-minded• Generate questions & explore alternatives

• Encourage input from other participants

• Refrain from absolutes & mandates• Focus on the issue being discussed

• Avoid “war stories”• Be specific, give examples

• Manage cell phone and interruptions• No laptops

• One conversation at a time


Process Design Best Practices

• Challenge as-is process to make better decisions as an enterprise

• Focus on business process design and true business requirements

• Use standard system functionality & industry best business practices

• Reduce the cost of ownership & maintenance by shaping business processes that are enabled by vendor

• Challenge the “to-be” process to test its integrity and ability to support business requirements

• Build processes for efficiencies and norms not exceptions…create exceptions only when necessary

Thank you!