Timely delivery is becoming an increasingly important critical factor for success. As a result, it is essential that companies ensure the highest possible level of delivery reliability internally, and locate and eliminate any problems in good time. To achieve this, textile colorant manufacturer DyStar, a joint venture of Bayer, Hoechst and BASF, has decided to implement an electronic monitoring tool to monitor many of its business processes, some of which are global.

"Control is good, prevention is better"; with this in mind, DyStar was looking for an early warning and reporting system that monitors the critical processes independently and issues a warning automatically if exceptions arise. For instance, if a process is threatened when, for example, the planned production date of an important colorant cannot be produced because the raw materials supplier failed to deliver on time, warning messages can be sent automatically by email, for instance. This helps ensure that supply shortages are noticed in good time and compensated for by the implementation of countermeasures. While they may not always prevent delivery delays, these measures can certainly limit the damage. "In addition to the monitoring of critical business processes, we expected the monitoring software to provide us with information that would let us optimize internal and external procedures as part of our ongoing process of improvement," states Heiko Burgwinkel, leader of the IT project at DyStar. "If exceptions are located in the throughput times of critical processes in production or sales on a regular basis, it should be easy to reduce the problems to a minimum by making suitable adjustments to the process".

Test installation and pilot application have a positive outcome
DyStar had therefore clearly defined its software requirements for business process monitoring and optimizing, and then wanted to carry out benchmarking for a number of providers to obtain an overview of the market. Software and consulting firm PROMATIS offers a service whereby software can be tested before a company actually has to implement the new IT system, and this opportunity was of particular interest to DyStar. During a 30-day test installation of the INCOME Monitor early warning system, the DyStar project team and consultants from the IT firm first defined four key figures that were to be monitored on the database using the control tool. Transactions from receipt of the raw materials through to shipping of the sales packages were to be constantly observed with the aim of identifying critical factors immediately. In a two-day training course, end users learned how to define and install target corridors and limit values themselves. Since then, no further assistance has been required from external consultants.

The tool monitors pre-defined basic process data from SAP and non-SAP systems. To do this, it searches the database for predefined criteria at regular intervals, and logs any instances in which a the limit values are exceeded or not met. If such an exception arises, the system automatically generates a warning messages, and informs a predefined group of recipients of the events in an email, screen pop-up, or SMS. The limit values that trigger these warnings are defined internally in the system, and can also be stored in the form of an integrated Excel table, for example. This means that limit values can be defined for any dimensions, and that a time-based scale can be used for a validity period and level, if required.

Quality in the process chain can now be assessed
As part of the all-encompassing pilot application, the processes to be monitored were laid down in conjunction with selected company departments, and the key figures to be determined were decided on. One of the key factors for consideration was DyStar's supply chain. The aim was to avoid possible capacity bottlenecks, implausible data, and other deviations from the planned procedure from the outset, or to identify and correct them as quickly as possible, through continuous monitoring of production, warehouse, and sales processes. As a result of combining the SAP system, which supports logistics processes, and the INCOME Monitor, DyStar was able to improve its communication channels with vendors. "With the large number of operations involved in our day-to-day business, it is extremely important to have a good overview. For example, DyStar sends shipping orders to carriers via EDIFACT. When a transportation service provider sends a confirmation message, the data, including the goods pickup date, are entered in the SAP system, where they can be processed further. Certain specifications are defined for both the confirmation procedure and the scheduling data, and these specifications can be easily monitored and deviations documented," says Heiko Burgwinkel of some of the daily analy-ses.

"Because information on these deviations is automatically sent to the person responsible, the intended service level is maintained and employees are systematically supported by being made aware of the workplace-related control functions. In addition to continual optimization of process, this also leads to a noticeable increase in efficiency at many work stations, and not least leads to the desired effect with regard to our quality management requirements," is how Heiko Burgwinkel sums up the pilot application of the tool. As can be seen, the tool benefits the company by optimizing the operative processes themselves, and by supporting the efficiency of internal and external resources in the long term.

As a result of the positive outcome of this initial test installation, over 100 DyStar business processes are currently being monitored. In addition, over 90 message recipients are supplied with information and warnings on critical processes. With these preventive measures in place, global player DyStar may still not be able to completely rule out unforeseen events in the various business processes, but it will be certainly able to positively influence its reliability. In this way, with reasonable investment, a supplier can improve the service level for customers by creating internal process transparency and control.