Wawa Evolution of Business Process Design PDF

The Evolution of Our
Business Process Design

Methodology
Mark McClure - Sr. Business Process Designer

Diane Schade - Lead Process Architect
Wawa, Inc.
Agenda
Introduction to Wawa
Team Structure
Process Design Methodology
Plan
Design
Build
Transition
Conclusions & Lessons Learned
Questions & Answers
27 June 2011 | ProcessWorld 2011 | 2
Wawa Yesterday, Today & Tomorrow
Privately Held Company

Started in 1803
First Convenience Store
Opened in 1964
583 Stores in 5 MidAtlantic 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
www.wawa.com
Coming to Florida 2012
Wawas Process Journey

450 Stores
$500 MM
580 Stores
$7 B
ASRS
Automated
Storage &
Retrieval System
Wawa Opens
1st Gas Store
1995
1994
2000
1997
X Stream
Redesign of
Supply Chain
2003
New CEO
&
N-Zone
SAP/ERP
Project
2005
2005
Enter
New
Market
2009 2010 2011

2007 2008
Business
Transformation
Team & ARIS
Process by
Projects
CFQ
Implement
New HRIS
&
POS
Introduce
Systems
Lottery
Dr. Michael Hammer

Comes to Wawa
GE WorkOut
Incremental
Improvement
Big
Change
Wawas Corporate Strategy
Processes: Increase
value to the customer
by continuously
improving service
and speed and
reducing costs
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
Wawas Business Transformation Team
Process Improvement
Process Design Leadership
E2E Process Documentation
Impact Assessment
Metrics Identification & Delivery
Enterprise Information Mgmt
ARIS System Administration
ARIS Repository Governance
Business Intelligence
Develop Enterprise Data Solutions in BW
to Satisfy Cross Functional Needs
Support Operational BW & BIA Systems
Design Solutions to Deliver EIM
Program Management
Standard Methodology for
Project Mgmt & Governance
Manage Enterprise Programs
(IT and Business)
Develop Project Mgmt Competency at
Wawa
Change Management
SEAMLESS Change Mgmt Execution
Communication Management
Business Readiness Assessment
Implementation Monitoring & Metrics
WorkOut Process Delivery
BT Competency Development &
Delivery
Process Design Methodology Evolution

Started with
2008
New designer tool (ARIS)

3 novice ARIS users
A willing business partner
(Real Estate)
Wawas BPM Objectives

Partner with business owners
Understand, challenge, and
Identify and define process
Create and maintain a single
and process performers to

design business processes to
meet organizational
objectives
and result metrics to ensure

process performance,
compliance, and relevance
redesign business processes

to increase efficiency and
build competitive advantage
repository for enterprise

wide business process
documentation and metrics
Wawas BPM Methodology

Plan
Design
Build
Transition
Scope
Process
Challenge
Existing
Process
Build Models
in ARIS
Validate
Model
Research
Industry Best
Practice(s)
Review
Industry Best
Practice(s)
Conduct Peer
Review
Obtain Sign
Off
Decompose
Process
Design New
Process
Prioritize
Process
Design Work
Identify
Metrics
Estimate
Resources
Assess
Change
Impact
Publish Model
Plan
Scope
Process
Research
Industry
Best
Practice(s)
Decompose
Process
Prioritize
Process
Design
Work
Estimate
Resources
Dont recreate the Identify sub-processes Confirm scope and

wheel
& activities
set priorities
(Levels 3 & 4)
APQC
Identify
Identify core business
Identify level of
dependencies
processes & processes
SCOR
documentation
(Levels 1 & 2)
below level 5
Establish time line
Business contacts
Identify input(s) &
Construct process
outputs(s)
decomposition
(Levels 1 4)
Determine process
measures and project
scope
Identify process
owner
Utilize BPM
estimating model
to estimate time
Site Identification to Disposition
Acquire Sites
Plan Network
Design & Permit Projects
Develop Engineering Plan (Site)
Construct Stores
Manage Pre-Construction Activities
Manage Real Estate Assets
Manage Portfolio
Build 5 & 10 Year Network

Plans
Design Engineering Plan
Bid and Award Contracts
Assess Portfolio
Select Markets
Conduct Engineering Review
Initiate Utility Relocation
Make Portfolio Decisions
Optimize Markets
Update Project App with

Engineering Estimate
Optimize Sub-Markets
Appeal Taxes
Design Interior Layout
Manage Contractors
Close Stores
Assess Sites
Design Prototype
Perform Internal Inspections
Conduct Semi-Annual Post

Store Opening Review
Approve Sites
Create Construction Plan
Administer External Inspections
Negotiate & Execute Contracts
Manage Contract Terms
Legend
Level 1 - Core Process
Level 2 - Process
Level 3 - Sub Process
Level 4Legend
- Activity
Level 1 - Core Process
Level 2 - Process
Level 3 - Sub Process
Level 4 - Activity
Negotiate Leases
Procure Materials & Equipment
Select & Sign Sites
Develop Architectural Plan (Building)
Build Stores
Secure Permits & Approvals
Manage Post-Construction Activities
Improve Operating Properties
Remodel Stores
Secure Entitlements
Perform Punch List Walk
Execute Agency Agreements
Obtain Certificate of Occupancy
Post Securities
Transfer Store to Operations
Maintain Non-Op Properties
Open Store
Select Disposition Strategy
Perform 30-Day Post Opening

Review
Assess Non-Op Property Value
Secure Bond Release
Market Non-Op Property
Process
Decomposition Example
Improve Sites
Manage Non-Op Properties
Plan - Estimating Resource Model

Process Model
Manage Store Cash

Perform Cashier Safe Functions
Perform Manager Safe Functions
Perform Day-Shift Manager
Envelope Drop
Quick Drop
Perform Safe Loan
Perform Safe Reconciliation
Perform Safe Adjustment
Perform Safe Drop Reconciliation
Collect E-Safe Canisters
Order Coin
Perform Bank Deposit
Cash Delivery
Safe Transfer
Employee Setup - Add Employee
Employee Setup - Delete Employee
Employee Setup - Edit Employee
Number Level 1 Models

Total Number of Models
Level
3
4
4
4
5
5
5
5
5
5
5
5
5
5
5
5
5
5
1
2
4
9
62
78
Model
Type Develop
Build
VACD
Low Medium
EPC Medium High
EPC Medium High
VACD Medium High
EPC
Low
Low
EPC
Low
Low
EPC
Low Medium
EPC
Low Medium
EPC
Low Medium
EPC
Low Medium
EPC
Low Medium
EPC
Low Medium
EPC
Low Medium
EPC
Low Medium
EPC
Low Medium
EPC
Low
Low
EPC
Low
Low
EPC
Low
Low
Review
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Est.
Hours
Act.
Hours
6
13
13
13
4
4
6
6
6
6
6
6
6
6
6
4
4
4
119
7.0
11.0
1.5
2.5
3.0
3.5
5.0
4.0
4.5
6.0
2.5
3.0
Model
Status
%
Comp
First Draft
75%
Not Started
0%
First Draft
75%
First Draft
75%
Not Started
0%
Not Started
0%
Started
25%
First Draft
75%
Started
25%
Owner Review/Signoff
100%
Design Team Review
100%
First Draft
75%
First Draft
75%
First Draft
75%
First Draft
75%
Not Started
0%
Not Started
0%
Not Started
0%
53.5
Model Status
Not Started
Started
First Draft Complete
Design Team Review
Owner Review/Signoff
62
4
11
1
1
Percent
47%
Design
Challenge
Existing
Process
Understand process
Identify issues with
current process
Determine if issues
result from
design or
execution
problems
Review
Industry
Best
Practice(s)
Challenge the best
practice
Challenge ourselves
to accept the
best practice
Design
New
Process
Identify
Metrics
Assess
Change
Impact
Start with the end in Answer the question Answer the question
mind
How will we
What other
know if the new
than the process
Identify primary
design performs as
needs to change?
designed?
value-added
activities
Identify linkages to
Identify R and P
other processes
Construct the
measures that
process flow
drive execution,
Identify everyone
quality, and
affected by the
Challenge the new
accountability
new design
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
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
By design, work is performed where
Ensure 100% quality throughout
Provide a single point of contact for
Ensure a continuous flow of the
it makes the most sense
customers and suppliers whenever

possible
Process performers should be
involved in the analysis, design, and

implementation of improvements
the process
"main sequence (those activities

that directly add value to the
customer)
Design the process first, then

automate it
Build
Build
Models
in ARIS
Build ARIS folder
structure to match
process decomposition
Value Added Chain
Diagram VACD
(Levels 1 3)
Event-Driven Process
Chain - EPC
(Level 4)
Conduct
Peer
Review
Evaluate model(s)
against established
methods and
conventions
utilizing checklist
Identify problems and
fix them early in
the lifecycle
Functional Allocation
Diagram - FAD
(Level 5)
Process Levels & Models
Level 0
Enterprise Process Model

Comprised of Core Business Processes
Level 1
Levels 0 thru 5
define what
we do!
Level 2
Level 3
Level 4
Level 5
Levels 6 & below Level 6

define how we do it!
Core Business Processes

Comprised of Processes
Processes
Comprised of Sub-Processes
Sub-Processes
Comprised of Activities
Activities
Comprised of Tasks
Tasks
Comprised of Procedures
Procedures
Model Type
Example
EPM
EPM
VACD
Buy to Sell
VACD
Manage
Product Offer
Manage
Dairy Offer
VACD
EPC
Maintain Dairy
Inventory
FAD
Order Milk
Job Aids
Transition
Validate
Model
Move model into QA
environment
Collect feedback
Edit model in DEV
environment
Move model back
into QA
environment
Obtain Sign
Off
Review edited
model with
business
owner(s)
Obtain business
owner sign off
Publish
Model
Move approved
model into PROD
environment
Review model in 90
days
Establish
maintenance
schedule with
business owner
Conclusions
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
Real Estate Project Benefits

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.
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
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 AGs assistance vs. them doing the work
Removed model ID attribute
Contact Information
Established 1803
Diane Schade
Lead Process Architect
Tel 610.361.3874 / Cell 610.742.8020 / Fax 610.558.6700
diane.schade@wawa.com / www.wawa.com
Wawa, Inc. / 260 W. Baltimore Pike, Wawa, PA 19063
Established 1803
Mark McClure
Sr. Business Process Designer
Tel 610.558.8587 / Cell 610.308.9707 / Fax 610.558.6700
mark.s.mcclure@wawa.com / www.wawa.com
Wawa, Inc. / 260 W. Baltimore Pike, Wawa, PA 19063
Questions?
Appendix
ARIS Process Modeling Objects

Objects used in Value Added Chain Diagrams (VACD)
ARIS
Process
Modeling
Object
Job-Aid
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.
Assignment
Objects used in Event-Driven Process Chains (EPC)
AND
OR
XOR
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.
Plan Work Below Level 5
Posters
in our
Business Transformation
Conference 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?
Two Types of Metrics
Process Metrics (P Measures)

Systemic
Technological
Human Performance
Results Metrics (R Measures)

Output Quality defined by customer
Business/Financial
Process Efficiency
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 resource

providers
Supporter for the new process
Consulted, people who are accountable for other processes
impacted 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!

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The Evolution of Our

Business Process Design

Mark McClure - Sr. Business Process Designer

27 June 2011 | ProcessWorld 2011 | 2

Wawa Yesterday, Today & Tomorrow

Privately Held Company

583 Stores in 5 MidAtlantic States:

PA, NJ, DE, MD, VA

Wawas Process Journey

2009 2010 2011

Dr. Michael Hammer

Wawas Corporate Strategy

27 June 2011 | ProcessWorld 2011 | 5

27 June 2011 | ProcessWorld 2011 | 6

Wawas Business Transformation Team

27 June 2011 | ProcessWorld 2011 | 7

Process Design Methodology Evolution

New designer tool (ARIS)

27 June 2011 | ProcessWorld 2011 | 8

Wawas BPM Objectives

Understand, challenge, and

Identify and define process

Create and maintain a single

and process performers to

and result metrics to ensure

redesign business processes

repository for enterprise

27 June 2011 | ProcessWorld 2011 | 9

Wawas BPM Methodology

27 June 2011 | ProcessWorld 2011 | 10

Dont recreate the Identify sub-processes Confirm scope and

27 June 2011 | ProcessWorld 2011 | 11

Site Identification to Disposition

Design & Permit Projects

Develop Engineering Plan (Site)

Manage Pre-Construction Activities

Manage Real Estate Assets

Build 5 & 10 Year Network

Design Engineering Plan

Bid and Award Contracts

Conduct Engineering Review

Initiate Utility Relocation

Make Portfolio Decisions

Update Project App with

Design Interior Layout

Perform Internal Inspections

Conduct Semi-Annual Post

Create Construction Plan

Administer External Inspections

Negotiate & Execute Contracts

Manage Contract Terms

Procure Materials & Equipment

Select & Sign Sites

Develop Architectural Plan (Building)

Secure Permits & Approvals

Manage Post-Construction Activities

Improve Operating Properties

Perform Punch List Walk

Execute Agency Agreements

Obtain Certificate of Occupancy

Transfer Store to Operations

Maintain Non-Op Properties