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• High-level organizational set-up
• An agile way of work
• Challenges we experienced
• Our ongoing transformation and continuous improvement process
• Improvements in passenger quality
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• Interested in transformation of organizations with complex processes
• Interested in process mining for operational processes
• Interested in newly connected processes to Celonis
• Interested in an agile way of work
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The whole of an airline’s operations (flight, ground, technical) is characterized by complex and global processes. One example is the aircraft turnaround between two flights. Dozens of activities like fueling, de-boarding/boarding, catering, cleaning etc. take place in parallel or in sequence. Our goal at Lufthansa is to achieve operational excellence and therefore continuously improve our processes. Not only will this mean higher quality for customers (higher punctuality), but higher production efficiency. As Celonis delivers a digital twin for parts of our organization, it is an integral part of our continuous process improvement program.
This session will focus on:
• Setup for our “ground operation / operation steering” and “technical operation” processes
• High-level organizational set-up
• An agile way of work
• Challenges we experienced
• Our ongoing transformation and continuous improvement process
• Improvements in passenger quality
Intended audience:
• Interested in transformation of organizations with complex processes
• Interested in process mining for operational processes
• Interested in newly connected processes to Celonis
• Interested in an agile way of work
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Companion resources:
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• Buy the book - https://tkmgacademy.com/products/metrics-based-process-mapping/
• Take the TKMG Academy course - https://tkmgacademy.com/courses/metrics-based-process-mapping/
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5. Stant History
1898
George Stant
Founded
“Stant”
1915
Became World’s
largest producer of
precision piano
tuning pins
1921
Developed lock for
Moto-Meter
temperature gauge on
radiators
1927
Designed flying quail
for 1st Ford Model A
1960
Stant invented the Lev-R
Vent safety pressure cap
1987
2005
2002
Stant introduced
the 1st safety
pre-vent fuel cap
1991
Stant pioneers
advanced ORVR
tech for fuel
systems
Stant Launches Next
generation closure
system “Capless
Refueling”
Stant introduced 1st electro-
mechanical leak detection
valve and single sourced
by OEM – Saves OEM $9
per vehicle
Stant pioneers 2nd
generation ORVR
System – Saves OEM
$13 per vehicle
2010
2015
2018
2020
Stant developing
innovative carbon
media alternative
2022
Stant developing 1st
Industrial engine
electronically controlled
Thermostat
Stant launching
ORVR in Asia
meeting regulatory
requirements
Stant launches Evaporative
Emission Carbon Canister &
Fuel Filler Pipes and
completes the full system
offerings
9. Stant Business Challenge
• High turnover with temporary AP workforce (training challenges/learning curve)
• Multi-System (2 ERP) learning curve
• Plex AP invoice approval workflow not utilized efficiently/correctly
• Low throughput / Large backlog of AP invoices (3 weeks +)
• Band-aid approach (“get invoices in”); no time for root-cause analysis
• Limited / inaccurate reporting on root-cause
• High risk of supplier payment delays
• Inaccurate Financial Reporting
13. Bot Logic Details
• Bot 1: AP invoice matching (daily)
• Preparation
• Ms Outlook Inbox review
• Sending .pdfs to OCR functionality / OCR field transcription into MS Excel
• MS Excel Logic data validation/preparation
• Renaming of .pdf files / save to Network Drive
• ERP (2 different ERP) matching logic
• Checks: Duplicate Invoice? Unique Receipt Record? Currency match?
• Overwrite specific Invoice Fields / Add “additional lines” if pre-approved (e.g. freight)
• Match on Supplier / Shipper Number / Total Invoice Amount / Part Quantity, Price, etc.
• Advise ERP invoice approval workflow on status (OK to pay, pricing issue, other issues)
• Add .pdf attachment to ERP invoice
• Screen Time-out/load workaround logic
• Communication
• Error Log / Completion Log / Retry Log / Indirect ready for receiving Log
• Email notifications to team
14. Bot Logic Details
• Bot 2: Retry bot (MON-SAT)
• Retry matching of invoices for 14 days (if Bot 1 could not find a match)
• Matching of invoices which did not go through Bot 1 logic
• Log Count of Retries (13 max)
• Email notifications
• Bot 3: AP Manual Invoice Entry (MON-FRI)
• Preparation
• Review of Network Drive Folder (Input)
• Split of 1 invoice across multiple ERP/PCNs
• Adding of invoice:
• Check if Invoice already entered
• Data entry in ERP
• Final cross-check of all PCN totals
• Communication:
• Error Log/ Completion Log
• Email notification
15. Results
• Reduced invoice backlog (for matching) from 3 weeks to 4 days
• Reduced temporary AP workforce
• AP team focus on troubleshooting/root-cause analysis
• Approx. $50K annual savings
• Improved Pareto/Analysis
17. Stant Business Challenge
• No ERP automation of auto-emailing/-printing of customer invoices. Invoice Volume approx. 2200/month
• 30 min/day per site spent on emailing/printing invoices
• Confusion on local processes (e.g. Mexico e-invoicing government requirements, China Golden Tax)
• Multi-System (2 ERP) learning curve
• Invoices not sent to customer / “Wrong” format invoices sent to customer / invoices sent late
• Customer non-payment / significant AR aging
• Unnecessary & redundant internal follow-up / significant customer follow-up on aged invoices
• Significant Cash Flow Impact
18. Bot Logic Details
• Bot 1-3: AR shipment invoice delivery (daily)
• Master Data setup accuracy / Prerequisites
• Accurate Invoice Delivery setup on Customer Master (Print, E-mail, Customer Portal, EDI,…)
• Accurate Customer Contact email setup (so Plex e-mail window populates with correct e-mail address)
• Bot process:
• ERP 1
– Log-in; kick off of invoice batch process (will print, email invoices, book to ledger)
• ERP 2
– Log-in
– Filtering based on invoice delivery setup of “print” print invoices from “yesterday”
– Filtering based on invoice delivery setup of “E-mail” email invoices from “yesterday”
– Error handling
• Communication
– Completion Log (includes Errors or information if no invoices needed to be processed)
– Email notification
19. Timing & Results
Timing
• Scope Development Go-live: 2 months (Nov 2018)
Results
• 2000+ invoices processed in 2 ERP, 7 locations
• All invoices/Credits sent or printed based on defined business rules &
distribution lists
• Positive Cash Flow Impact
21. Hurdles
• Local vs. global processes
• Inaccurate ERP Master Data (important to base bot logic on)
• Scope creep / change in requirements
– “oh, I forgot, I also do this….”
– “well, it’s different for this specific supplier / customer / location…”
• Supplier compliance on AP invoice formats / Supplier Portal
processes
– .pdf state (scan vs. electronic format)
– Missing / inaccurate critical data (shipper number, PO Number…)
• Internal Skillset Business Functions
22. Path to Success
• Pick processes which are
– Data based
– Rules driven
– Repeatable
– Functional and stable
• Business Process Ownerships engagement and Scope
development critical!
• Agree on roles & responsibilities for subsequent bot / process
monitoring
• Make sure ERP Master Data and “rules” are solid
• Are there other tools to do what you’re attempting to do?
• Start with something “easy”! Don’t rush through the scope!
Bot automation great tool long-term if requirements
are met and processes are efficient and stable
24. Team &
Duration
Critical
Success
Factors
Structure
Goals
Deliverables
Getting Started
• 16 weeks
• 1 Stant employee
• 6 consultants
• Strong program
management
• Involvement of business
• High value bot
Core Team
Quick &
Demonstrated ROI
5 Bots
3 trained
Grow
• Years 1 & 2
• Stant employees
ramp up
• Consultants ramp down
• Transition & enablement
phase
• Increased training
• Finalize CoE &
Governance
Central Competency
BPO Driven
Automation scale-up
Training
Helpdesk
10+ Bots
Institutionalize
• 2+ year
• Stant employees
• Consultants as required
• Strong PMO
• COE + BPO drives
constant lean initiatives
throughout company
Central Competency
BPO and Company
Driven
Automation Culture
Self Driving
20 - 50 Bots
Enablement
Transfer
ownership
Sustained
results
Partnership
Strategy
25. Other Bot Ideas
• Finance
– Fine-tuning of existing AR bots to
• Meet local needs/requirements (statutory regulations)
• Upload invoices to customer portals
– Entering of government regulatory exchange rates into Plex (Mexico, Czech Republic, etc.)
– Compilation of/Emailing of customer and supplier statements
– Accounts Payable Payment process: Identifying approved and due invoices, initiating payment
process in ERP, finalizing in bank software
• PUR: Emailing of Supplier Purchase Orders
• HR: Search of LinkedIn candidates based on key words for recruiting purposes
• Sales: Creation of SalesForce Opportunities