Traditional Business Transforms Into a Process-Driven Enterprise

Kneipp defined a "Model-to-Execution" roadmap that outlined long-term goals and strategy

. This was critical to their success with a product range that spans over 30 production types and a manufacturing process that incorporates 170 different plant extracts, minerals and vitamins. Kneipp's business complexities are similar to a much larger enterprise. Yet Kneipp operates on a small-to-medium enterprise-sized budget in order to stay competitive.

The first tasks were to replace hand-drafted working instructions and department-bounded thinking with modeled processes and documented end-to-end relationshipsand here Business Process Management and IDS Scheer Consulting's model played an important role. By systematically analyzing each process, it was clear which sub-processes could be removed to optimize the process overall.

The change from static to project organization using a Business Process Management Suite has reduced the effort for product launches by 30 percent, in part because uniform decision-making processes have removed the burden from sub-departments. The production, fabrication, procurement and logistics organizations were each optimized in a similar manner and omitting handmade reporting lists alone is saving the company 1.9 person-days per month.

Kneipp has been able to streamline its organization into three primary processes using BPM: Product Life Cycle Management, Supply Chain Management and Sales and Distribution. This organization enables them to avoid duplicate work. "Because the processes have been kept simple within the BPM software, the workflows are clearer than before," said Schulze. As a result, Kneipp has been able to reduce their processing times and improve their product quality and delivery reliability.

Process orientation via BPM has been especially beneficial for Kneipp, as generally their employees have to perform a wider range of tasks than in a large-scale enterprise. Hence, the complete process overview for everyone is important because it allows them to identify and realize potential for improvement enterprise-wide.

Using B2B technology, data exchanges via EDI with their biggest business partners has brought Kneipp end-to-end transparency and control. This not only connects their business partners, but fully integrates their processes and provides real-time availability and product detail data.

Daily 2,000+ order transactions are processed. Kneipp monitors the business activity to determine the status of individual processes.

End-to-end transparency built on a stable foundation

Schulze considers these first projects solid confirmation of the decision to employ the ARIS Platform and webMethods Business Process Management Suite. With these, Kneipp has a stable foundation for further IT integration and future process management projects.

Kneipp's results to-date are impressivethey have a 30 percent reduction in effort for new product launches, customer and partner satisfaction has increased and they have significantly improved innovation capabilities and time-to-market.

Traditional Business Transforms Into a Process-Driven Enterprise

By: Callie Brown

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