Automotive Aftermarket

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Anna-Lena Jger
Global Purchasing
Processes in the Business
Sector Automotive
Aftermarket
Development of a Reference Model
Forewords by Prof. Dr.-Ing. Jrgen Gottschalck

and Dipl.Ing. Jochen Polke
Anna-Lena Jger
Pforzheim, Germany
ISBN 978-3-658-04647-7 ISBN 978-3-658-04648-4 (eBook)

DOI 10.1007/978-3-658-04648-4
The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie;

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Springer Fachmedien Wiesbaden 2014
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Foreword V
Foreword
The present work connects in an exemplary manner methodical approaches to a practical

problem formulation and provides a crucial solution in the end. Through this, it was possible
to begin the implementation of the compiled suggestions in a contemporary way at the Robert
Bosch GmbH. Exactly this is the aim of the education in the course of studies Business Ad-
ministration and Engineering at the University of Applied Science Pforzheim.
Prof. Dr.-Ing. Jrgen Gottschalck

Professor for Purchasing and Logistic at the University of Applied Science Pforzheim
Foreword VII
Foreword
"Processes make slow, processes interfere, cost time and resources". These or similar
statements can be heard often when processes should be implemented new or reworked; and it
may be even right partially if there are no guidelines or every business unit only did what and
how they wanted to. However, if an enterprise or a functional area reaches a certain size, sev-
eral locations are to be led in different countries or even regions, processes are more than es-
sential. The savings of resources and time by avoiding iterations, the "do it right at the first
time", balance from experience each additional effort.
The business division Automotive Aftermarket of the Robert Bosch GmbH, and with it also
the purchasing area, has grown enormously in recent years. Especially purchasing plays a
crucial importance with its strategic significance and responsibility regarding cost-quality-
logistic. Today a considerably three-digit number of employees deal in almost three dozen
locations worldwide with purchasing subjects and purchasing quality management. Supplier
A delivers product B in region C and product D in region E; the product group F is purchased
from supplier G from region H for the regions I and J. These and similar complex relations in
a worldwide operating, transnational and vertical function are only controllable successfully
with standardized and globally consistent processes which are at the same time lean, fast and
focused.
The present thesis describes the approach as well as the results of the modification of existing
purchasing processes and accordingly the development and implementation of new guidelines
and standards; the suitable process development was very challenging and both criteria - the
process design as well as with the innovative aspect - were realized.
The real attractiveness of the work was that the subject was not a theoretical issue. The entire
purchasing process map is implemented worldwide and for the first time more than 20,000
employees in a business division are affected and act integrative within their daily operations
by using the new guidelines and standards.
Dipl.Ing. Jochen Polke

Director Purchasing Quality Management Automotive Aftermarket, Robert Bosch GmbH
Acknowledgement IX
Acknowledgement
The present master thesis was written from March to September 2013 in the business sector
Automotive Aftermarket at the Robert Bosch GmbH in Karlsruhe in the Purchasing Quality
Management Department. Due to the purchase of many companies in recent years and a still
growing Automotive Aftermarket business sector, it was moreover indicated that a reorgani-
zation of the Process Map is unavoidable. It became clear that it was the only way to satisfy
the new complex process requirements in future as well as to coping with the new challenges.
Hence, the subject arose from suggestions by the Purchasing Quality Management Depart-
ment and the importance and implementation was confirmed by the management. The goal of
the master thesis is accordingly the development of a reference model for all purchasing pro-
cesses in the Automotive Aftermarket area.
I thank the Robert Bosch GmbH for the possibility to write the thesis in the enterprise. More-
over, I thank all employees of the involved Purchasing Departments for their active support
by the realization of the master thesis. In addition, I would like to thank particularly for the
extensive support and the professional assistance on the part of the enterprise Mr. Thomas
Wald, Mr. Jochen Polke as well as the whole team of my department.
I owe thanks to Prof. Dr. Jrgen Gottschalck for the extraordinary support and comprehensive
scientific supervision of the work by the University of Pforzheim. Furthermore I would like to
thank Dipl. Phys. Bernd Kuppinger for the second correction.
Finally I would like to thank all people who have supported me by the realization of my mas-
ter thesis as well as throughout my whole studies. These special thanks are valid above all for
my family and my friends.
Anna-Lena Jger
List of Contents XI
List of Contents
List of Figures ........................................................................................................................XV

List of Abbreviations ......................................................................................................... XVII
1 Introduction ....................................................................................................................... 1
1.1 Problem........................................................................................................................ 1
1.2 Goals and Limitations .................................................................................................. 2
1.3 Structure and Contents................................................................................................. 3
2 Company Profile ............................................................................................................... 6

2.1 Robert Bosch GmbH ................................................................................................... 6
2.2 Business Sector Automotive Aftermarket ................................................................... 7
2.3 Organization Structure of AA/PU ............................................................................... 8
3 Theoretical Backgrounds ............................................................................................... 10

3.1 Business Process Management .................................................................................. 10
3.1.1 Definition ........................................................................................................... 10
3.1.2 Importance and Duties of Business Process Management ................................. 13
3.1.3 Business Process Management Loop ................................................................. 14
3.1.4 Different Approaches in Practice ....................................................................... 16
3.2 Business Modeling .................................................................................................... 17
4 Approach of the survey and modeling of processes ..................................................... 19

4.1 Preparation for the Process Analysis ......................................................................... 19
4.1.1 Principles according Modeling Rules ................................................................ 19
4.1.1.1 Intention of the principles ............................................................................... 19
4.1.1.2 Description of the single principles ................................................................ 20
4.1.2 Definition of general conditions ......................................................................... 21
4.1.2.1 Setting of a Framework .................................................................................. 21
4.1.2.2 Description and Selection of Survey Methods ............................................... 22
4.1.3 Procedure for the Process Modeling .................................................................. 24
4.1.3.1 Definition of the Modeling Purpose ............................................................... 24
XII List of Contents
4.1.3.2 Determination of Rules for the Modeling Purpose ......................................... 25

4.1.3.3 Definition of Modeling Language and Modeling Tool .................................. 26
4.2 Analysis of the initial situation .................................................................................. 28
4.3 Approach with the creation of the new processes ..................................................... 29
4.4 Implementation of the new processes ........................................................................ 32
5 Process Modeling with BPMN ....................................................................................... 35

5.1 The BPMN Language ................................................................................................ 35
5.2 Important Elements of the BPMN Language ............................................................ 36
5.2.1 Swimlanes .......................................................................................................... 36
5.2.2 Flow Objects ...................................................................................................... 37
5.2.2.1 Start and End Event ........................................................................................ 37
5.2.2.2 Activity ........................................................................................................... 37
5.2.2.3 Gateways ........................................................................................................ 38
5.2.3 Connectors .......................................................................................................... 40
5.2.3.1 Sequence Flow ................................................................................................ 40
5.2.3.2 Association ..................................................................................................... 40
5.2.4 Artifacts .............................................................................................................. 41
5.2.4.1 Data Object ..................................................................................................... 41
5.2.4.2 Data Store ....................................................................................................... 41
5.3 Modeling with inubit Suite ........................................................................................ 42
6 The Project BPM@AA ............................................................................................... 44

6.1 Project Description .................................................................................................... 44
6.2 Overview of the PU-Reference Model ...................................................................... 45
6.3 Optimized and Developed Processes ......................................................................... 47
6.3.1 Define and agree on RPP projects ...................................................................... 47
6.3.2 Define purchasing targets ................................................................................... 49
6.3.3 Evaluate existing parts to identify potential ....................................................... 51
6.3.4 Conduct contracting ........................................................................................... 52
6.3.5 Supplier enabling projects with suppliers .......................................................... 53
6.3.6 Release series production ................................................................................... 54
List of Contents XIII
6.3.7 Maintain supplier master data ............................................................................ 55

6.3.8 Negotiate and provide contract .......................................................................... 56
6.3.9 Define and conduct incoming inspection process .............................................. 57
6.3.10 Monitor achievement of purchasing targets ....................................................... 59
6.3.11 Monitor supplier performance via cockpit chart ................................................ 60
6.3.12 Manage complaints with suppliers ..................................................................... 61
6.3.13 Reimbursement of non-conformity costs ........................................................... 63
6.3.14 Supplier development quality............................................................................. 64
6.3.15 Perform supplier audit ........................................................................................ 66
6.3.16 Supplier development project with suppliers ..................................................... 68
7 Conclusion and Future Prospects .................................................................................. 71
Index to Appendixes ............................................................................................................... 75

References ............................................................................................................................... 95
List of Figures XV
List of Figures
Figure 1: Structure of the thesis ................................................................................................. 4

Figure 2: All divisions in the Automotive Technology Business Sector ................................... 7
Figure 3: Organization Structure of the Purchasing Department ............................................... 8
Figure 4: Sequence of a process ............................................................................................... 10
Figure 5: Chart of a business process ....................................................................................... 11
Figure 6: Process landscape of Bosch ...................................................................................... 12
Figure 7: Reference points of BPM.......................................................................................... 13
Figure 8: BPM Loop ................................................................................................................ 14
Figure 9: Different survey methods ......................................................................................... 23
Figure 10: Level Concept ......................................................................................................... 26
Figure 11: RASIC Chart ........................................................................................................... 28
Figure 12: Pool with two lanes ................................................................................................. 36
Figure 13: Start and End Event ................................................................................................ 37
Figure 14: Activity ................................................................................................................... 37
Figure 15: Exclusive Gateway ................................................................................................. 38
Figure 16: Parallel Gateway ..................................................................................................... 39
Figure 17: Inclusive Gateway .................................................................................................. 39
Figure 18: Sequence Flow ........................................................................................................ 40
Figure 19: Association ............................................................................................................. 41
Figure 20: Data Object ............................................................................................................. 41
Figure 21: Data Store ............................................................................................................... 42
Figure 22: Different phases of the project ................................................................................ 47
List of Abbreviations XVII
List of Abbreviations
AA Automotive Aftermarket
AA/COR Automotive Aftermarket Controlling Department
AA/PU Automotive Aftermarket Purchasing
AA/PUC Automotive Aftermarket Purchasing Controlling
AA/PUR Automotive Aftermarket Purchasing of Trade Goods
AA/PUQ Automotive Aftermarket Purchasing Quality Management
AA/QM Automotive Aftermarket Quality Management
BC Braking Components
BMO Benchmark and Organization Department
BPM Business Process Management
BPMI Business Process Management Initiative
BPMN Business Process Modeling Notation
BU/FC Business Unit Controlling Department
BU/PU Business Unit Purchasing Department
CFA Function Controlling, Finance and Administration Department
COR Function Controlling Department
CP Central Purchasing
CPC Cockpit Chart
CP/PUQ Central Purchasing Quality Management Department
DG Diagnostics
FI Filter
KPI Key Performance Indicators

XVIII List of Abbreviations
LOG Function Logistic Department
LPA Lean Plant Assessment
MAG Employee Performance Review Discussion
MCR Material Cost Report
MKP Function Marketing Packaging Department
MKT Function Marketing Department
OMG Object Management Group
OPL Open Point List
PA Power Train
PDCA Plan-Do-Check-Act
PU Purchasing
PUC Function Purchasing Controlling Department
PUQ Function Purchasing Quality Management Department
PUR Function Purchasing Department
QAA Quality Assurance Agreement
QMM Quality Management and Methods Department
Regional PUR Regional Purchasing Department
RM Rotation Machines
RPP Ratio Project Planning
SP Spark Plugs
TCO Total Cost of Ownership
V-Ist Current forecast
WIRE Economic calculation

1 Introduction 1
1 Introduction
1.1 Problem
Business processes are essential operational procedures for the creation of products and per-
formances. Almost all business, organizational and information technology issues are con-
nected directly or immediately with business processes of a company. Consequently the spe-
cific comprehensive consideration of business processes with all related aspects is of great
importance.1
Today's companies are suspected to many, constantly changing challenges whose overcoming
assumes the creation of suitable processes. Moreover to these, there belongs the reduction of
the product life cycle, the increasing international competition due to the globalization, legal
rules, new information technology developments, rising cost pressure as well as quickly vary-
ing customer's preferences and rising customer requirements. The Business Process Manage-
ment (BPM) assists in overcoming these challenges and therefore is an important fundament
for the preservation and improvement regarding the competitiveness of a company. On that
score companies deal in total with a very complicated and dynamic context. Complexity orig-
inates from the huge number of mutually influencing factors as for example globalization and
high customer requirements. The high dynamism is caused by the immediate change of many
of these factors.2
To be able to assert oneself in such a context as well as to preserve and improve the own
competitiveness, companies are forced to reach the highest efficiency and to develop itself
constantly. The overcoming of the mentioned challenges is connected on a large scale with
the creation of suitable business processes. The improvement of business processes and its
active management form a basis for the maximization of economic advantages. They are an
important assumption for the success and the long term survivability of a company. Moreover
methods and techniques of the BPM provide assistance for the handling of the complicated
subject. These support companies in controlling and optimizing the complexity of business
processes and as a result receive and improve their competitiveness.3
For the overcoming of the mentioned challenges it is requested an efficient design and devel-
opment, a flexible adaptation and a permanent optimization of the business processes as a
1
Allweyer (2005), p. 25.
2
Allweyer (2005), p. 3-4.
3
Allweyer (2005), p. 7.
Anna-Lena Jger, Global Purchasing Processes in the
Business Sector Automotive Aftermarket, BestMasters,
DOI 10.1007/978-3-658-04648-4_1, Springer Fachmedien Wiesbaden 2014
2 Introduction
strategic success factor. For that reason the Robert Bosch GmbH deals with this subject. Due
to many company purchases and furthermore a still growing Automotive Aftermarket (AA)
business sector it was obvious that the company needs to adapt its business process map to the
new conditions to satisfy the new requirements. In addition the existing manuals were too
complex, less user friendly, contained too much unnecessary information and partially had
become outdated. Consequently for every department it was developed a reference model4
with the new and current business processes. The acquired companies should be integrated
and the processes should be updated and designed more efficient as well as to incorporate the
new developed processes by an active treatment of the respective reference models. Moreover
the business processes of a company are linked directly with the holistic Supply Chain. On
this occasion the optimization affects beneficial on the overall value chain. The new process
map illustrates the Supply Chain of Bosch in which also purchasing plays an important role.
Consequently the change of the process map as well as the reorganization and the develop-
ment of business processes, both have a positive effect on the companys Supply Chain and
arise automatically as affirmative and valuable results. Therefore the Board of Management of
the AA business sector has estimated the utilization of the BPM as important and precedent-
setting.
But how can the company guarantee in future that its business processes are worked on more
efficient and more effective and that the BPM is run actively and continuously? What expects
Bosch with the change of the overall business processes and were the linked targets and ex-
pectations fulfilled? Could the company satisfy the new requirements and deal with the com-
petitive pressure? These questions must be reflected critically by the company and the em-
ployees and serve for the present master thesis as a fundament due to the overcoming of the
problem definition.
1.2 Goals and Limitations
Strategy and targets of the Automotive Aftermarket Purchasing (AA/PU) organization within
the AA business sector are derived from the targets of the Central Purchasing (CP) of the
Robert Bosch GmbH as well as from targets of the AA Board of Management itself. To these
goals belong beside cost, quality and logistic targets also the worldwide coordination and the
central management of purchasing activities. Nevertheless on account of the mostly heteroge-
neous purchasing processes the worldwide process coordination and central process control
4
The Robert Bosch GmbH describes an information model that is valid worldwide for every business sector as a
reference model.
1 Introduction 3
cannot be performed without difficulties. In this context problems are close to complex pur-
chasing processes, lack of standards with the documentation, the communication and the in-
formation technology tools. These circumstances create the demand for more clarity and
transparency in the purchasing processes. For this reason the thesis should argue and deal
with the described problems. The goal of the present work is to analyze, optimize, remodel
and document the worldwide purchasing processes for Trade Goods in the AA business sec-
tor. Thereby the purchasing processes are developed under current methods of the BPM and
illustrated in the Purchasing (PU)-Reference Model to increase the worldwide transparency
and to reach a better process harmonization. Moreover the new processes should be adapted
to the changed conditions as well as the description and explanation of the new processes
should be simplified. Thus, Bosch has the goal to work worldwide more efficiently on cost
savings and on remaining competitive.
The fundament of the master thesis is the PU-Reference Model which means that only pur-
chasing processes were analyzed, new developed and modeled. On this occasion reference
models of the other AA departments are not considered. The BPM project within purchasing
was split at the beginning in three phases. The present work deals without limitation with the
phase 2. Before the beginning of the thesis the project was already in progress for half a year
(phase 1) and therefore the first processes were previously finished. Hence, the thesis has to
deal merely with the 16 processes that are still in its original state. The purchasing processes
are illustrated for Trade Goods because the AA business sector is worldwide responsible for
them and by contrast the processes for Raw Materials for Fabrication are worked on by a pro-
ject team within CP. Furthermore within the thesis it is explained the precise approach of the
process analysis and a detailed description of the new developed processes. Additionally there
are not considered the description of the old existing processes as well as the explicit naming
of the weak spots; beyond that the implementing phase (phase 3) is not covered as well. The
worldwide roll out of the processes and also the trainings of the employees follow in the peri-
od from September 2013 until February 2014 and accordingly cannot be a part of the present
thesis.
1.3 Structure and Contents
In figure 1 the structure of the thesis is exposed visually and shows that the content is divided
into seven chapters.
4 Introduction
Chapter 1:
Introduction
Chapter 2:
Company Profile
Chapter 3:
Theoretical Backgrounds
Chapter 4: Chapter 5:
Approach of the process Process Modeling with
analysis BPMN
Chapter 6:
The Reference Model
Chapter 7:
Conclusion and Future Prospects
Figure 1: Structure of the thesis

Source: Own illustration.
After a short introduction in chapter 1, which includes the definition of the existing problem
as well as the goals and limitations, the company profile ensues in chapter 2.
Theoretical backgrounds are exposed in chapter 3. The topics BPM and Business Modeling
are explained in detail as well as fundamental terms which are important for the development
and understanding of the thesis. Therefore chapter 3 generates the basis for the following
chapters 4 and 5.
Chapter 4 describes the approach of the survey and the modeling of processes. Besides the
principles according modeling rules, there will be given details regarding general conditions
and the procedure for the process modeling. Moreover the analysis of the initial situation as
well as the approach within the creation of the new processes is described. The chapter is
topped off with the explanation of the worldwide release and implementation in the AA busi-
ness sector at the Robert Bosch GmbH.
1 Introduction 5
The Business Process Modeling Notation (BPMN) and its important elements are components
of chapter 5. Additionally there will be given an overview of the modeling tool inubit Suite
where the processes will be modeled and resided.
The complete description of the project BPM@AA as well as the PU-Reference Model is
part of chapter 6. After a short introduction of the project itself, an overview of the PU-
Reference Model follows and afterwards the different developed and modeled purchasing
processes will be described more in detail. Additionally there will be shown for each designed
process a flowchart, the appropriate RASIC5 as well as a full description.
The thesis closes with chapter 7 which contains a substantial summary of the work, recom-
mendations on the basis of the acquired results as well as future prospects.
5
A RASIC is a Bosch specific matrix which applies to describe the responsibilities of different roles in a pro-
cess.
6 Company Profile
2 Company Profile
2.1 Robert Bosch GmbH
In 1886 Robert Bosch founded the company as the Workshop for Precision Mechanics and
Electrical Engineering in Stuttgart, where the todays company headquarters is still located.
Since 1964 Bosch belongs to one of the biggest industrial foundations of the world. About
92% of the common capital stock of the Robert Bosch GmbH is in the ownership of the Rob-
ert Bosch Stiftung GmbH. In particular the foundation counts several areas for example hy-
giene, education, art, culture as well as social and natural sciences to the development zone. In
view of the non-profit status, the Robert Bosch Stiftung GmbH has renounced and transferred
the right to vote to the Robert Bosch Industrietreuhand KG.6
In the business year 2012 the Bosch-Group gained a turnover of approximately 52.3 billion
Euros worldwide with its 306,200 employees, which made it to one of the most international
leading technology and service enterprises.7 Today the group includes the Robert Bosch
GmbH and its more than 350 subsidiaries and regional corporations in over 60 countries; in-
cluding distributors the company is represented in 150 countries worldwide. Bosch is a very
internationally straightened enterprise. 61 percent of the employees work beyond the German
borders and 77 percent of the overall turnover is achieved outside of Germany.8 Actually the
European market with a sales share of 57 percent is the most important one for the enterprise.
Here occupies Bosch 195,700 employees in 171 manufacturing locations. Indeed, the Asian
market gets an even greater focus of attention with a present sales share of 24 percent.9
The global economic crisis in 2008/ 2009 caused Bosch sales to fall by around 15 percent to
approximately 38.2 billion Euros in fiscal 2009, and meant that the company recorded an op-
erating loss for the first time since the Second World War. But in 2010, Bosch had left the
crisis behind with the highest turnover of the companys history. The crisis did not affect
the companys long-term strategy, a strategy which is not only geared toward opening up
promising areas of business, but also incorporates an understanding of corporate responsibil-
ity based on the principles of the company founder Robert Bosch.10
6
Intranet Robert Bosch GmbH (2013a), p. 1.
7
8
9
10
2 Company Profile 7
The Bosch-Group is actually divided into four independently operating corporate sectors: Au-
tomotive Technology, Industrial Technology, Consumer Goods and Energy and Building
Technology. The coordination and consolidation occurs in the single enterprise areas.11
2.2 Business Sector Automotive Aftermarket
AA is part of the Automotive Technology business sector. Furthermore this sector includes
seven other divisions like Gasoline Systems, Diesel Systems, Chassis Systems Control, Elec-
trical Drives, Starter Motors and Generators, Car Multimedia and Automotive Electronics.12
In figure 2 there is an overview where all these areas are located in a vehicle.
Automotive Electronics
Car Multimedia
Gasoline Systems
Diesel Systems
Starter Motors
and Generators
Electrical Drives
Chassis Systems Control
Steering Systems
Automotive Aftermarket
Figure 2: All divisions in the Automotive Technology Business Sector

Source: Own illustration adapted from Intranet Robert Bosch GmbH (2013c), p. 24.
The AA sector is the worlds largest supplier of cutting-edge automotive technology and has
59 percent share of sales. This number clarifies the importance of this unit for the enterprise.13
Bosch is the world market leader in the AA field through the high quality products and com-
11
12
Intranet Robert Bosch GmbH (2013b).
13
Intranet Robert Bosch GmbH (2013c), p. 7.
8 Company Profile
plete range of services.14 For that reason car manufacturer like Audi, Volkswagen or BMW
trust in the products of Bosch.15
2.3 Organization Structure of AA/PU
Purchasing is part of the Centers of Competencies16 and operates within AA as an interface

to external suppliers. The major scope of duties is the purchase of Trade Goods17 as well as
some Raw Materials for Fabrication18. Additionally AA/PU contributes to the overall AA
business strategy and targets by working on direct and indirect material as well as services
providers for the suppliers and all business units like Power Train (PA), Filter (FI), Braking
Components (BC), Diagnostics (DG), Rotation Machines (RM) and Spark Plugs (SP). In fig-
ure 3 there is shown an overview of the organization structure and the different separate de-
partments within purchasing.
Figure 3: Organization Structure of the Purchasing Department

Source: Own illustration adapted from Intranet Robert Bosch (2012b), p.1.
The AA Purchasing of Trade Goods (AA/PUR) supports the Product Marketing of each busi-
ness unit with the enlargement of the product assortment by additional purchase of products
14
15
16
The "Centers of Competencies" support the different business sectors by the supply of necessary services and
consultations.
17
Trade Goods are bought-in products (item and packaging) intended for resale as independent products as part
of or supplementary to the in-house product range.
18
Raw Materials for Fabrication are parts and materials which go into the finished product.
2 Company Profile 9
with external goods suppliers. Purchasing activities in Asia Pacific are coordinated via
AA/PUR-AP, located in Shanghai. AA/PUR-US in Chicago (USA) coordinates North Ameri-
ca purchasing activities; Latin America is coordinated by AA/PUR-LA in Campinas (Brazil).
The departments AA-DG/PUR, AA-RM/PUR, AA-BC/PUR, AA-FI/PUR and AA-SP/PUR
are responsible for the worldwide purchase of Raw Materials for Fabrication as well as specif-
ic Trade Goods. The worldwide purchasing controlling and the coordination of different in-
formation technology projects is part of the scope of duties of the AA Purchasing Controlling
(AA/PUC).19
The present master thesis is written in AA Purchasing Quality Management (AA/PUQ). The
Purchasing Quality Management Department (PUQ Function) is responsible for all business
units and locations worldwide in the AA sector. The current main efforts are the realization of
the worldwide quality management due to purchasing aspects as well as the definition and
implementation of standardized processes. Additionally the department is fully accountable
for supplier audits, supplier evaluations, supplier development projects and trainings for sup-
pliers and AA employees.20
19
Intranet Robert Bosch GmbH (2013d).
20
Intranet Robert Bosch GmbH (2013d).
10 Theoretical Backgrounds
3.1 Business Process Management
3.1.1 Definition
To understand the context and main aspects of the thesis it is essential to explain explicitly the
most important terms like the definition and also the difference of a process and a business
process as well as the BPM itself.
Schmelzer and Sesselmann define a process as a content-related finished, temporal and logi-
cal set of activities which generate a defined output from a defined input. A process needs an
input factor, for example information or resources, and generates thereof an output like solu-
tions, services or products. Related to a process, it is often spoken of a supplier-customer rela-
tionship because the input is provided by suppliers and the output is determined for custom-
ers.21 A sequence of a process is shown in figure 4.
Figure 4: Sequence of a process

Source: Own illustration adapted from Schmelzer and Sesselmann (2010), p. 62.
A business process, as it is defined by Gadatsch, is as a purposeful, temporal-logical se-

quence of activities that are performed on the principle of labor division from several organi-
zations and organization units under the use of information and communication technologies.
It serves to an added value according to the given and derived targets from the corporate strat-
egy.22 Start and end of business processes are customers. The inputs are requirements, expec-
tations or needs of the customers and the process end is the provision of the desired output.
Thus, business processes are often named as end-to-end-processes and in contrast to normal
processes refer as a requirement-performance relationship. Compared to a process, a business
process distinguishes itself in a crucial point: they deal with company specific activities.23 A
business process can be illustrated graphically like in figure 5 exposed.
21
Schmelzer and Sesselmann (2010), p. 62.
22
Gadatsch (2012), p. 36.
23
3 Theoretical Backgrounds 11
Figure 5: Chart of a business process

Business processes can be classified into management, core and support processes. Manage-
ment processes are responsible for the overall and holistic interactions, like the strategy de-
velopment or corporate planning, and thus they act as an entrepreneurial clamp. Core process-
es are business processes with a high proportion of added value. Usually they are critical due
to competition and describe the value added process ensuing from the customers requirement
up to the desired outcome. Typical issues regarding core processes are for instance order pro-
cessing, product development or service. As opposed to this, support processes have no or a
low proportion of added value and are normally not critical due to competitive aspects. These
include duties like accounting, human resource management or reporting.24
Nowadays business processes are provided in a process landscape which gives a graphical
overview of all existing and planned processes within a company as wells as the interactions
between the processes and the internal and external customers.25 A layout of the process land-
scape of the Robert Bosch GmbH is illustrated in figure 6. In the center of the landscape there
are all core processes which are affected by inputs from the left and outputs from the right
side. Above there are situated the management processes and below the support processes.
24
Gadatsch (2012), p. 38-39.
25
Gadatsch (2012), p. 39.
Management Processes
Core Processes
Input Output
Support Processes
Figure 6: Process landscape of Bosch

Source: Own illustration adapted from Intranet Robert Bosch GmbH (2013e), p. 1.
Schmelzer and Sesselmann define Business Process Management as an integrated system of

management, organization and controlling that enables a purposeful governance of business
processes. It is aligned to fulfill requirements of customers and other interest groups and con-
tributes essentially to achieve strategic and operative goals of a company. The information
technology is a main supporting element which has a strong impact on the efficiency of busi-
ness processes, but is not central.26
Figure 7 show that the BPM and the business processes have two reference points. The first
one is the corporate strategy (vertical axis). It determines which processes are required and
which strategic goals are to be implemented within the processes. This information provides
the basis for the identification and targeting of the business processes. Changes in the corpo-
rate strategy result automatically in process changes. The second reference point is the con-
nection with customers (horizontal axis). At this axis it is fixed which objects are to be
adapted with which requirements in the single business processes. Due to changes, it is essen-
tial that both axes have to be adjusted consecutively.27
26
27
Schmelzer and Sesselmann (2010), p. 6-7.
Figure 7: Reference points of BPM

3.1.2 Importance and Duties of Business Process Management
Economical changes and technological developments force companies to a continuous reflec-

tion with the own market position and business processes. The added value of companies is
mostly based on their business processes and the linking with information technology sys-
tems. An improvement of company procedures can lead to an increase in efficiency and quali-
ty as well as to a cost reduction and therefore to competitive advantages. Against this back-
ground, many companies develop an active and efficient BPM to be able to adapt their own
processes to the constantly changing market requirements.28 Therefore business processes and
their linked performances like costs, times or resources are understood as central success fac-
tors within a company. Above all, the strong effects of process operations on profits and costs,
product quality and customer service just as the need to cooperate between single departments
lead companies to deal with BPM.29
The duty of BPM consists in ensuring that business processes fulfill strategic as well as cus-
tomers targets. On this occasion, instruments like process management, process organization
and process controlling create conditions to achieve the given targets and also to improve con-
tinuously the own business processes.30 Moreover BPM deals with the documentation, devel-
opment and improvement of business processes and is mostly supported by information tech-
nology which means a process-oriented company structuring. The business process documen-
tation and development predicated generally on standardized modeling languages for example
28
Becker et al. (2009), p. 2.
29
Becker et al. (2009), p. 3-4.
30
the Event-driven Process Chain or the BPMN.31 Nevertheless the main purpose is to increase
the effectiveness and efficiency in a long term way, to maximize economic advantages as well
as to raise the companys value by process optimization. In this context, long term means to
achieve process objectives permanently and future-compatible.32
3.1.3 Business Process Management Loop
There are different possibilities to structure the subject BPM for example after the phases of
an improvement project for business processes or after different consideration levels.
Allweyer has structured the subject with the help of a BPM loop which connects both men-
tioned organization possibilities. As in figure 8 shown, the loop consists of four subject blocks
which are connected with each other through a circle. This makes apparent that BPM is not a
singular project, but a continuous challenge.33
Bosch Automotive Aftermarket
Strategic Process
Management
Process Process
Controlling Design
Process
Implementation
Figure 8: BPM Loop

Source: Own illustration adapted from Allweyer (2005), p. 91.
On the one hand the four blocks of this loop can be considered as continuous phases in that
order, however on the other hand refer also predominantly to different consideration levels.34
At the end of one cycle the loop closes with the transfer from the process controlling to the
strategic process management. The results of the process controlling, possibly in form of
31
Becker et al. (2009), p. 3.
32
33
Allweyer (2005), p. 89.
34
Allweyer (2005), p. 90.
evaluations about quality, reliability or efficiency of the implemented business processes,

have again an effect on the strategic process management. By means of this information, it is
decided on fundamental changes and consistent further developments of the business process-
es.35 To understand the single blocks as well as to get an impression of their importance with-
in the loop, they will be described more in detail.
The Strategic Process Management deals generally with the company conception and fixes
further the strategic planning. Thus, supplementary duties are to make a decision which per-
formances should be produced by the company and sold on which markets as well as the gen-
eral structure of the company. In addition the business processes need to be integrated in the
corporate strategy and it must be clear that these maintain the strategic objectives of the com-
pany. Moreover the value added core processes also need to be defined and it is important that
they are adjusted to the corporate structure. A tool for the structuring and visualization of the
key figures is for example the Balanced Scorecard. Nevertheless, one of the most important
duties is that the idea and significance of the process orientation are known and that the BPM
is introduced and lived in the operational business within the company.36
The duties of the Process Design are to identify, to document and to analyze business pro-
cesses. Furthermore the improved processes should be developed and described that they can
be implemented afterwards. An essential instrument for the documentation and analysis of
processes is the business process modeling. Contiguous to the analysis approach, the creation
of target processes and the process design itself belong to this issue as well.37
Part of the Process Implementation is the realization of the designed processes; in particular
the form of the organizational measures and structures as well as the implementation of in-
formation systems. On this occasion, one of the greatest challenges is to achieve the motiva-
tion of the affected employees.38
The last phase in the BPM loop is the Process Controlling. If the processes are implemented
they must be monitored constantly that it can be determined whether the expected improve-
ments were reached effectively or not. In addition changes should be recognized by key fig-
ures and upcoming problems appeared early. For this purpose the appropriate key figures
must be defined and also how they should be calculated and evaluated. Nevertheless the em-
35
Allweyer (2005), p. 93.
36
Allweyer (2005), p. 90-91.
37
Allweyer (2005), p. 92.
38
Allweyer (2005), p. 92.
ployees expertise is recently necessary for an excellent monitoring and an improvement of

business processes.39
3.1.4 Different Approaches in Practice
Nowadays only those companies will survive in the hard competition, which succeed in or-
ganizing and optimizing their business processes in an appropriate way. With the help of the
BPM the relevant business processes can be improved strategically in the company with last-
ing effect. Basically there are two approaches to optimize the performance of business pro-
cesses: the process renewal and the process improvement.40 While the process renewal will
only be implemented in specific situations because remarkable changes are expected, the pro-
cess improvement is realized continuously in the routine operational business and is to be
characterized rather as a small change. Therefore it is often spoken in literature in terms of
process renewal about revolution and regarding process improvement about evolution.41
The best known method of the process renewal is the Business Process Reengineering which
was developed in 1993 by M. Hammer and J. Champy. Changes of the business environment,
the corporate strategy or the corporate structure can lead to the fact that present business pro-
cesses are not in line or competitive any more with the overall companys business focus. In
such cases, it can be essential and suggestive to substitute radically existing business process-
es with new ones.42
The objective is to increase the performance of business processes by leaps and bounds and to
reach improvements on the subject of costs, time and quality by a radical reorganization as
well as to protect the competitiveness on the market. On this occasion the procedure entails
considerable chances, but also huge risks and is carried out as a project in a relatively short
period of time.43 Therefore the Business Process Reengineering needs to be limited to busi-
ness processes which own a high strategic significance and indicate at the same time serious
tactical risks and performance deficits. If these conditions do not apply, the methods of the
continuous process improvement are to be preferred.44
In contrast process improvements orientate themselves by existing business processes, distin-

guish themselves in a progressive increased performance, include employees, entail a low risk
39
Allweyer (2005), p. 93.
40
Bsing (2006), p. 12.
41
42
43
44
and are carried out as a permanent and continuous project.45 The stabilization of performance
leaps and in particular the continuous increase of the process performance, belong to the du-
ties of the process improvement. On this occasion the most used methods in practice are the
Total Cycle Time, Kaizen and Six Sigma. In case of the Total Cycle Time the elimination of
process barriers and non-value added activities have priority. Kaizen pursues the elimination
of wastes which means activities that do not generate an appreciation of value. In practice this
method is mostly called continuous improvement process. With the Six Sigma method pro-
cess improvements will be generated through the reduction of variation. This basically means
that the factors which generate divergences from the target value of the process performance
will be eliminated.46 In addition to the already mentioned methods many other single methods
are also used in practice.47
Business Process Reengineering, Total Cycle Time, Kaizen and Six Sigma exclude them-
selves not, but complement each other. While Business Process Reengineering renews busi-
ness processes, the methods of the process improvement are focused on the advancement and
development of existing ones. Because of their close link it is important to use the single
methods not in isolation, but to integrate them efficiently into the companys BPM.48
3.2 Business Modeling
One of the most important objectives of the BPM is the optimization of business processes
itself. The reveal of optimization potential is only partly possible without transparency. To
attain transparency of the company procedures and the responsibilities according related ac-
tivities, it makes sense to illustrate them in a uniform model. As a result of this the process
optimization can be supported and the process-oriented understanding of the employees can
be promoted as well.49 Business processes can be documented in different ways. Possibilities
are for instance the description in form of text, tabular presentation, graphic flowcharts as
well as the creation of models according to a certain notation. The appropriate method of the
process documentation depends on the intended purpose. Many companies, which practice
extensive process management activities, have decided to model their business processes after
45
46
47
48
49
Becker et al. (2012a), p. 47.
a defined notation. The methods of the process modeling form a language with which the rela-
tions of a process can be described formally.50
For the process modeling, with the help of a graphical notation, it has to be clarified first in
which range the processes are modeled and how they should be described. As a rule, the con-
trol flow will be central. Further it can be add the description of the provided performances,
the used resources as well as the material and information flow. Furthermore the environment
of the processes is relevant, in particular the company organization structure and the structure
of the used and generated information.51
50
Allweyer (2005), p. 130.
51
Allweyer (2005), p. 135-136.
4 Approach of the survey and modeling of processes 19
4 Approach of the survey and modeling of processes
4.1 Preparation for the Process Analysis
4.1.1 Principles according Modeling Rules
4.1.1.1 Intention of the principles
Basic requirements for models are formulated by the principles according modeling rules to
guarantee the assurance of their quality. Therefore the intention of these principles is the re-
duction and control of modeling information due to the existing complexity.52 In fact of the
meaning of modeling information concerning the quality of application systems which are
indisputable in the software engineering area and also valid for other model purposes,
measures should be developed which permit a comparable and high quality model creation.
The principles according modeling rules provide criteria and with a basis of these, the con-
struction of models can be valued. Hence two aspects are estimated: Targets and modeling
customs. Targets are necessary to be able to make statements about the quality of modeling
information but due to specified targets they pursue a normative approach. By contrast, mod-
eling customs are guidelines which should be kept during the modeling, so that an improve-
ment of the model quality can be reached.53
The principles according modeling rules are held in a general fundamental form and thus are
valid for any kind of modeling projects. To be able to apply those practically in a modeling
project, operative realizable guidelines and strict standards have to be defined. A customer-
oriented model quality understanding acts as a guideline for the definition of modeling goals
that have to be achieved. Besides the primary duty of the principles entails in raising the mod-
el quality even if the central issue for the evaluation of models is to cover the user require-
ments. The quality of a model is the higher; the lower the discrepancy is between the user
requirements and the effective suitability of the model regarding problem solving. For this
reason a quality assessment of a model as well as the practical capability of the principles are
only possible in a concrete context and under the consideration of an intended purpose.54
52
Becker et al. (2012b), p. 49.
53
54
4.1.1.2 Description of the single principles
The principles according modeling rules have primary the purpose to give the user defined
standards and guidelines to reach a higher data and information quality and therefore a supe-
rior model as well as a common understanding of different user. Furthermore with these prin-
ciples, there will be pursued specified targets which should be taken into consideration during
the modeling. The six principles are a crucial structural component which assumed to be the
essential quality criteria within the scope of the modeling and should be taken into considera-
tion at all stages of the process analysis to get a model of high quality.55
When is a model accurate? To be able to answer this question the principle of accuracy can
be taken into account. In this context the accuracy can be distinguished into two types: the
syntactic and the semantic one. A model is syntactically correct if it maintains all rules that
are provided by the modeling language. The syntactic accuracy only makes sure that a model
is formally correct. Whether the model represents what was intended by the modeler and of
high quality, it is not guaranteed yet for the model user. Here the semantic accuracy initiates.
A model is semantically correct when in the discourse of the user and the expert an agreement
has been achieved. Then herewith a consensus-oriented accuracy concept comes into effect.56
The principle of relevance limits the model from two perspectives. The model should con-
tain all facts which have been formulated as useful and convenient for the modeling purpose
in the real world or the required world. This means that only the facts and information should
be modeled that are relevant for the underlying modeling purpose. There should be nothing in
the real world that has been defined as useful or convenient and does not exist in the model.
However on the other side there should also be nothing in the model what is not appropriate
or suitable in the real world.57
The principle of economic efficiency consists in the fact that a model should be improved
only that long until the additional costs amount just to the additional benefit which results
from the improvement. It should also give consideration to reference models which can be
consulted by the development of company specific models. A reference model has a general
validity for a certain sector, a certain industry or function. By the use of such reference mod-
55
56
Becker et al. (2012b), p. 32-33.
57
Becker et al. (2012b), p. 33-34.
els, the modeler needs not to start from scratch, but can use existing models and can adapt
them easier to the explicit circumstances within the company.58
The principle of clarity is aimed at the comprehensibility of models. Here are issues like
readability, descriptiveness or intelligibility in the focus. In particular the appropriate
hierarchization, the layout creation and the filtering are aspects of the clarity.59
The principle of comparability consists in the fact that procedures of the real and the re-
quired world should be also identical in the model and therefore the equality from the real
world should be reflected in the model as well that both models are comparable.60
The principle of systematic design requires defining exactly the interfaces of related areas
because due to the complexity there is mostly only given a segment of the considered reality.
If in a process model are noted for example organization units, these organization units should
correspond to those that are consigned in the organization model.61
4.1.2 Definition of general conditions
4.1.2.1 Setting of a Framework
The setting of a framework is in particular important to make the processes, their interfaces
and links recognizable within the whole company. Therefore the framework organizes all rel-
evant declared elements and relations of an original in a chosen structure mode into any lan-
guage.62 The whole AA business processes are classified in different hierarchy steps and
linked up among each other in various manners. To show the single detailed reference models
of the different departments in an overall context, a framework is used as a superior model.
The purpose of a framework consists in providing an overview about the original and in dis-
closing the connection to other elements and relations of the framework as well as the classi-
fication of elements and links in subordinated levels in detail.63 As a framework the AA Busi-
ness Process Map (see appendix 1) is used for the current thesis (principle of clarity).
The new AA Business Process Map exists of five management (M1 - M5), five core (C1 - C5)
and eight support processes (S1 - S8). The core processes are completed by the appropriate
inputs and outputs. The particular support processes have close again sub processes which are
58
59
60
61
62
Bleicher (2013), p. 41-42.
63
Bleicher (2013), p. 42.
more exactly broken down in the single reference models of the respective departments. On
this occasion the complete process map illustrates a logical approach as well as an entire and
holistic structure. Beginning with the corporate strategy, over the corporate governance, the
product portfolio and the product development up to the whole product development process,
there are illustrated all relevant business processes in the new model for the AA business sec-
tor.
The management processes are conducted by the Board of Management and all managers.
They cover the whole structure of the process map within the company and therefore have a
very strategic character. Besides they also have a direct influence on the core processes and
are accordingly responsible for the control and organization of them. In this level, strategical-
ly important decisions were made which influence the whole process map and the manage-
ment system of the company.64 In the centre of the process map are the core processes and are
accomplished by organizations like Logistics, Sales as well as Development and Manufactur-
ing. They are responsible for the direct realization of the customer requests and customer re-
quirements. Core processes start with an input by the customer and end with an output to the
customer.65 The support processes are necessary to perform the added value of the core pro-
cesses and to provide all necessary services and consultations, nevertheless without making a
direct contribution to the creation of value. Indeed they maintain and influence the core pro-
cesses at the proper appreciation of value. These processes are realized by organizations like
Purchasing, Communication or Human Resources.66
4.1.2.2 Description and Selection of Survey Methods
Survey methods of the empiric social research are used to get all relevant and essential infor-
mation about aspects of the reality. After Schnell et al. the methods of the survey are distin-
guished into instruments like content analysis, interview and observation.67 As in figure 10
shown, the interview implies verbal questioning, written interview, telephone interview and
web-based interview. However the observation contains direct and indirect observation.
64
Intranet Robert Bosch GmbH (2011), p. 36-38.
65
Intranet Robert Bosch GmbH (2011), p. 84-86.
66
Intranet Robert Bosch GmbH (2011), p. 124.
67
Schnell et al. (2008), p. 319.
Survey Methods
Content Analysis Interview Observation
Verbal Questioning Direct Observation
Written Interview
Indirect Observation
(Questionnaire)
Telephone Interview
Web-based Interview
(Questionnaire)
Figure 9: Different survey methods

Source: Own illustration
Content-analytic procedures are not to be imagined as not existing in the empiric social re-
search any more, the importance rose during the last years. By means of content analysis
there can be analyzed communication contents like texts, pictures or films, but though the
main focus lies on the analysis of texts.68
Interview means communication between two or more people. Verbal reactions (answers) are
caused by verbal stimuli (questions). This happens in specific situations and is subjected by
mutual expectations. Answers refer to experienced and reminded occurrences, show opinions
and assessments. The interview is still valid as the standard instrument of the empiric social
research with the determination of facts, knowledge, opinions, attitudes or assessments.69 A
verbal questioning outlines a process of an inclusion of given answers caused by asked ques-
tions and is therefore a verbal communication.70 It is spoken of written interviews in terms of
two circumstances. On the one hand there are interviews in which a team of several respond-
ents are present at the same time to fill out the questionnaires in attendance of an interviewer.
68
Atteslander (2010), p. 195.
69
70
In general at the use and realization of this method, it will be sent out the questionnaires to the
respondents by mail with the request to fill it out and send it back accordingly.71 Nowadays
market institutes and option research centers deal in majority with their questionnaires by tel-
ephone interviews. The main reason for this is that this instrument is a cost-saving, temporal
efficient procedure.72 Above all in the research are carried out web-based interviews for some
years. Reasons for the fact are that the interviews are faster practicable, no interviewers are
needed as well as that the collected data must not be gathered. Web-Based interviews can be
sent for example as a questionnaire by mail or the questionnaire is provided by a program
which runs through a web server.73
In general the aspect of observation is described as the systematic conception, the adherence
and the interpreting of a perceptible behavior by senses at the time of its occurrence.74 The
observation can be divided into direct and indirect. In the narrower sense with the direct ob-
servation a behavioral observation is understood. In contrast indirect observations deal with
procedures that do not refer to the behavior itself but to its vestiges, effects or objectifica-
tions.75
In the process analysis of the present thesis the content analysis as well as the interview are
used as survey methods which are framed grey in figure 10. The use of the content analysis is
applied in the analysis of the initial situation and accordingly the interview in form of verbal
questioning as well as group discussions for the creation of the new processes.
4.1.3 Procedure for the Process Modeling
4.1.3.1 Definition of the Modeling Purpose
As in the principle of relevance was already mentioned before, several intended purposes im-
pose different content and methodical requirements on a process model. While almost every
company disposes of organizational charts which are relatively simple to create and change
only slightly over time, not all companies own a current description of their business process-
es. Provided that process documentations exist, these are often developed independently of
each other in terms of single projects or on the initiative of employees. Therefore they are
71
72
73
74
75
Schnell et al. (2008), p. 390-391.
mostly neither content nor regarding the used modeling techniques agreed among one anoth-
er.76
The modeling purpose of the present thesis pursues the objective to raise the transparency
about the processes and to advance thereby the communication. Furthermore through this, it
should be improved considerably the availability and the extent of the documentation of the
initial organization. The new model should be understandable easily because in principle eve-
ry organization member should be aware of the model. Therefore it contains the existing cir-
cumstances including process descriptions and documentations as well as the AA organiza-
tion itself with the target of the development of a new reference model to optimize the world-
wide purchasing processes.
4.1.3.2 Determination of Rules for the Modeling Purpose
For the design of the modeling standard it is important that depending on the relevant per-
spectives, the communication ways need to be fixed early within the scope of the model use.
Moreover conventions give guidelines for an adequate structure of the modeling purpose and
guarantee the comparability of various models. In the present thesis the conventions are lim-
ited to a level concept (principle of comparability). On the one hand the level concept helps to
reduce the complexity and on the other hand to fulfill the demand of different model users for
special levels of detail. The upper level serves the overview of the processes and the lower
levels show higher information content.77
The level concept is illustrated in figure 11 and built up in four levels. In the upper level (lev-
el 0) of the level concept is situated the AA Business Process Map. It gives an entire overview
of all AA processes. The first level (level 1) structures the whole process in main processes.
In the second level (level 2) the main processes are broken down in sub processes. Here is
also shown up the purchasing support process "S1 Provide Purchasing Services". In the last
level (activity level), every sub process is divided into activities and illustrated in flowcharts.
To prevent an inadequate description of the model elements, the following name conventions
are given. Activities are named with a noun and a verb like for identify supplier, data objects
are labeled as the template itself and data stores similar to the name of the explicit system for
instance SAP.
76
Becker et al. (2012b), p. 52-53.
77
Becker et al. (2012b), p. 61-62.
Figure 10: Level Concept

Source: Hertes (2012), p. 2.
If the start and the end of the process are only declared as "start" and "end" in the flowchart
there is a lack of information regarding the input and output relation of the process. Hence,
the connection between the sub processes should be named clearly or it should be pointed out
the fact which event triggers the process and which result exists after the process is finished
(principle of systematic design). Nevertheless to be able to guarantee the aspect of a lean pro-
cess, this information is not noted directly in the flowchart but behind the start and the end
point. The user can receive by a double click on the respective point the additional infor-
mation. The same procedure will be realized by the short descriptions of the most important
activities. The additional information is saved within inubit Suite directly behind the relevant
activities and can be provided to the user by a double click on the respective activity.
4.1.3.3 Definition of Modeling Language and Modeling Tool
Models are forms of a certain modeling language which are provided in a modeling tool.
Hence according to the defined modeling purpose there need to be selected an appropriate
modeling language and modeling tool.
A modeling language represents a certain modeling technique which is used for the modeling
itself. The most known modeling languages for the graphic modeling in a flowchart are for
example the Event-driven Process Chain, the Value-added Chain Diagram or the Petri Net.78
A modeling tool that is made available for a whole company has to fulfill a huge number of
78
requirements. Beside the technical requirements as for instance user friendliness or the con-
figuration of the tool to the specific requirements at the company, there are also general crite-
ria like availability of know-how regarding the project team or within the company, adequate
and available training offers as well as the cost aspect which need to take into consideration
for the choice of a modeling tool. The most common modeling tools that are used in practice
are for example MS Visio or ARIS.79
Up to now within the whole Bosch-Group there was used for the process modeling the Event-
driven Process Chain and MS Visio. The processes were modeled in a flowchart and after-
wards integrated in the process documentations, manuals or central directives. With the pur-
chase of the inubit AG in 2011 the tool inubit Suite was introduced at Bosch. The integrated
modeling language in this tool is BPMN 2.0. Therefore in future all processes will be dealt
with inubit Suite and thus the processes that are worked on in the master thesis are modeled in
this tool with the given and integrated modeling language.
Beside the definition of the modeling language and the tool, in this context there must be tak-
en into account another company specific issue of the process modeling. At Bosch every pro-
cess includes a related RASIC chart. A RASIC chart is a matrix which is applied to describe
the responsibilities of different roles in automotive purchasing processes. It assigns to all rele-
vant activities one of the five roles and consequently the corresponding responsibilities. This
definition is a fix part of the flowcharts in the activity level. The matrix has five roles with the
following meaning:
x R stands for Responsible: Those who do the work to achieve the task. There is typical-
ly one role with a participation type of responsible, although others can be delegated
to assist in the work required.
x A stands for Approval: Approval is the one signing off the task or specific parameters
of the task. Typically functional experts from other departments have to check and
verify certain parameters, which are proposed by responsible.
x S stands for Support: Those whose opinions are sought, typically subject matter ex-
perts; and with whom there is two-way communication. Unlike cooperation, which
has to provide input to the task, support may assist in completing the task. Responsible
decides to ask for support's opinion.
79
Becker et al. (2012b), p. 99-101.
x I stands for Inform: Those who are informed of the output/ decision created in the ac-
tivity if this information is essential for executing their activities; and with whom there
is just one way communication. Responsible cares for information flow.
x C stands for Cooperation: Resources allocated to responsible. Cooperation has to as-

sist in completing the task.80
Figure 12 shows a RASIC chart in which are assigned the roles to the involved organization
units for every process activity.
Figure 11: RASIC Chart

Source: Intranet Robert Bosch GmbH (2012c), p. 3.
4.2 Analysis of the initial situation
The analysis of the initial situation is the basis for the identification of weak spots and the
localization of improvement potentials. An adequate knowledge of the actual situation is re-
quired for the development of the target state.81 The primary target of the analysis is to show
the current structures and processes of a company. In addition merely known or evident weak
spots and improvement potentials are documented. Furthermore the objective of the analysis
is to create an entire and consistent list of all weak spots and improvement potentials on the
basis of the considered models. Based on the before discussed characteristics, the current
80
81
model is evaluated. Besides the assessment of the identified weak spots and improvement
potentials concerning their significance for the company it is limited mostly to a verbal argu-
ment.82 Another step within the scope of the analysis is the identification of information
sources. Potential information sources are for example available organization manuals as well
as process documentations. Available documentations are not often on the newest stand and
do not reflect the companys reality including the existing deficits. Hence these sources are to
be sifted and to evaluate concerning actuality and relevance. Moreover to a particular im-
portance for a successful analysis of the initial situation is the integration of qualified experts
who know well the company and the existing processes, because only they can provide valid
information about actual circumstances within the company.83
Up to now every process was documented in a manual or a central directive at Bosch. This
contains beside an exact description of the single activities also a summary, the definition of
specific terms, the description of procedure, a flowchart as well as responsibilities in forms of
a RASIC. Nevertheless the most documents were extensive and contained too many infor-
mation. For the user it was very difficult to keep an overview and to make a distinction con-
cerning important and unnecessary information. For that reason there will not be a current
process description anymore in future. Thus the new activity descriptions should contain only
the most essential information and the flowcharts will modeled as lean as possible.
Hence for the analysis of the initial situation it was chosen the content analysis. All available
documentations, the AA specific manuals as well as central directives from the companys
headquarters were used. The content analysis was the basis for the development of the new
processes. To make sure that there is an entire and common basis, all corresponding and rele-
vant information were already transmitted to all involved persons in advance via e-mail.
4.3 Approach with the creation of the new processes
On the basis of the current model and the weak spot analysis, new processes can be developed
and modeled. On the results of the development of the new processes there are raised expecta-
tions from the management as well as from the employees. These were issues for example
related to cost savings, the streamlining and simplifying of work routines or a better commu-
nication between the company units and departments.84 To receive an overview of the consid-
ered area, there has to be carried out a broad capture of the available procedures and structures
82
83
Becker et al. (2012b), p. 167-168.
84
before the proper modeling. From special interest are the available technical terms and pro-
cesses.85 Within the organization the process models are primarily of interest because the
transparency of the business processes shows an important target of the organization docu-
mentation. In the models there is reflected the organizational interlocking of the company
procedures. Particularly the following question is of interest: Who performs which activities?
Hence for the reorganization of process-oriented company procedures and therefore due to the
development of new business processes it is suggestive to create more detailed models.86
The development of the new processes can be realized through single interviews or group
discussions. During single interviews selected processes with particularly qualified experts
are discussed and modeled. Single interviews permit an efficient process creation because
excessive discussions of different interest teams do not occur. Another important advantage is
that the experts are rather willing to discuss weak spots during the single interview which they
would not be mentioned due to negative consequences in group discussions. Because only the
perspective of a single person is illustrated, the results are to be introduced as a decision pro-
posal in group discussions and management meetings. This was the only way that a general
acceptance of the results can be achieved. The group discussions also had the target to devel-
op new processes as well as to commit the results. Nevertheless in this context, a meeting of
several experts can lead to various discussions. Besides there exist risks that weak spots are
only partly discussed due to the apprehension of negative effects. In such discussions, critical
technical circumstances are discussed as well as organizational problems resolved.87
Often there exist different opinions about the content and the design of new processes. The
moderator must run the discussion in such a way that according to the target of the interviews
or the group discussions, an excessive discussion of single aspects regarding weak spots is
avoided and that no deficient or incomplete information is communicated. Furthermore it has
to be paid attention with the argument due to the discussion of weak spots and improvement
potentials that serve to the development of new processes. After the interviews or group dis-
cussions the considered model has to be editing carefully and present to the participants to
review on the proposal. If necessary there will be discussed existing deficits once again in a
following meeting.88
85
86
87
Becker et al. (2012b), p. 176-177.
88
The new designed processes must define independent on the achieved level of detail, at least
the target and the purpose of the process as well as containing an exact description of the pro-
cess activities. To derive out of this a suitable name for the new process, it was decided that
the titling of each process should already reflect the content to outsiders.89
The approach with the creation and therefore the development of the new processes were real-
ized in forms of interviews and group discussions. After the structured preparation, the inter-
view partners and participants of the group discussions have to be determined. All participants
were selected according to the process and subject area by which it was guaranteed that the
affected departments as well as the process experts were involved. However it should be no-
ticed that leading employees often dispose of a process oriented perspective due to their areas
of responsibility and executive employee have detailed knowledge about activities and pro-
cesses. The basis for interviews and group discussions were the in advance sent information
and documents to the participants. This approach was crucial for the modeling of the new
processes and also for an efficient realization of the discussion itself. Thereby it could be
guaranteed that all involved persons were perfectly prepared, had equal and relevant infor-
mation and it was given a similar data fundament and therefore a common basis for discus-
sion. Disadvantages of the data quality from the content analysis could be defused according-
ly with this procedure. Besides there should be made possible a better exchange of infor-
mation, the clarification of questions and the removal of ambiguities and misunderstandings
as well (principle of clarity). In addition weak spots and improvement potentials could be
found easier due to the early provision of information and the analysis of documents. Indeed it
must also be noticed that with such an approach it is required a huge time exposure for the
preparation and reworking of the interviews and group discussions.
For the development of a single process it was required in total several meetings by means of
different scopes. The duration of the single meetings was chosen with the help of the extent
and complexity of the process as well as the number of participants and the available infor-
mation. Nevertheless on average it was needed for every meeting approximately 1.5 hours.
Hence it was carried out as a rule that no more than three interviews or group discussions
were made per day because every discussion had to be prepared and reworked, further there
must be given full attention during each single meeting. In the first meetings there would be
explained backgrounds in more detail, targets and the procedure. In following ones there were
determined weak spots and improvement potentials with the help of the present documents. In
89
Becker et al. (2012b), p. 219-220.
this context it were already designed the new flowchart and the corresponding RASIC. After-
wards the new process was discussed and confirmed by the responsible head of department. If
necessary the flowchart and the RASIC had to be adapted and introduced new in another
meeting with the head of department. Afterwards a simple description of the single activities
could be worked out in a further meeting with the previously defined participants.
4.4 Implementation of the new processes
A crucial challenge by the realization of projects lies beside the conception also in the imple-
mentation of new structures. The process which encloses all planned, steered, organized and
controlled changes in strategies, business processes, structures and systems is called change
management. The management of changes should be consciously steered and oriented in
long-term effects.90 There is no best way of an implementation; rather there must be selected
useful and suitable measures due to circumstances within the company. Beside the question of
a suitable organizational structure up to the support of the conversion, a temporal sequence
must be developed to know the procedure how the project should be implemented.91
With the selection of a radical approach, the introduction takes place companywide at the
same time and therefore the achievable benefit is higher compared to a gradual introduction.
Shorter introduction periods and all cross-departmental processes can be realized in one step
so that all involved areas are equally concerned. However the advantages face also risks. The
introduction risk is clearly higher with a radical approach than by a gradual introduction be-
cause the scope of the project imposes higher requirements on the control of the interdepend-
ences. In addition the project must own a very high priority at the management so that neces-
sary decisions can be made immediately. With this procedure the organizations are claimed
especially strong within a restricted time interval because a huge number of organizational
and technical risks accumulate within a very short period. Besides no pilot stage exists within
this approach and consequently experiences cannot be collected prior.92
Hence there consist threats due to the planned changes within big reorganization projects and
single areas of a company have different information regarding them. This leads to the con-
struction of undesirable speculations and a negative attitude towards the project what endan-
gers the acceptance of the whole project. To counteract already from the beginning against
such disturbances and to give a feeling of certainty about the future developments to all in-
90
91
92
volved, it is advisable to begin early with the creation and communication of an implementa-
tion concept. In addition resistances can be identified on time and suitable measures can be
taken to eliminate them. The implementation concept serves, as the creation of transparency
in the whole company and guarantees a consistent course of action.93 By punctual information
unnecessary rumors can be avoided. On this occasion all involved persons should be provided
with all essential information. Besides it is not adequate to present a solution but to communi-
cate the intended improvements and the argument for the choice of a certain procedure.94 Be-
side the information, the trainings of the employees are another important instrument which
can be a decisive factor regarding the success of the project. It is not sufficient to generate a
positive attitude towards the objectives and the measures of the project. All involved persons
must be enabled to fulfill their assigned tasks competently in future. Moreover it is necessary
and recommendable to plan trainings already before the proper implementation.95
In an additional review meeting the new developed processes were finally committed with the
respective manager of the Purchasing Department (PUR Function). Moreover the new pro-
cesses were introduced in the regular worldwide heads of department meetings. This was es-
pecially important so that all heads of department were informed about the current status of
the project and furthermore before the final release, the new processes were discussed there.
Each process was introduced, reviewed and as appropriate carried out changes within this
meeting. Moreover the new developed processes had to be argued with all involved depart-
ments within single meetings. On the one hand it was important to introduce the new process
to the respective departments and on the other hand it needs to be committed the activities
shown in the flowchart and by implication to make some significant and issue-specific chang-
es as well. Finally all processes had to be released by the heads of department as well as by
the Purchasing Area Manager. Next to that the released processes had to be implemented in
inubit Suite. After the implementation and the official final release in September 2013 the
processes will be provided automatically to all employees in the Bosch Intranet which is al-
ready linked up with inubit Suite. Moreover in the following months, process and software
trainings will be offered to all affected employees worldwide. Processes change constantly,
must be reworked or new processes come in addition. Therefore it has to be guaranteed that
all employees would know inubit Suite very well and receive all relevant information of the
system and also regarding to the BPM issue. With the help of the Benchmark and Organiza-
93
94
Becker et al. (2012b), p. 285-286.
95
Becker et al. (2012b), p. 285-286.
tion Department (BMO) a training plan was worked out which allows an appropriate process
and software training worldwide.
One of the most important aspects for the success of the project was the creation of transpar-
ency as well as to provide information. At the beginning all involved employees were in-
formed about the project and its importance. Besides it was tried to inform the employees
continuously and to create transparency by regular updates. This procedure was quite im-
portant for the acceptance of the project as well as the everyday use of inubit Suite. It was
generally agreed that through a high degree of integration of the employees, it would be gen-
erated a sensitization and a gradual introduction on the subject and therefore a smoothly deal-
ing in future with the new situation. However this approach could be allowed primarily for the
local colleagues. For all colleagues who were not involved in this manner and therefore not
informed extensively, another approach has to be considered. On the one hand the heads of
department were updated to the latest version in every heads of department meeting and ac-
cordingly asked to inform their employees. On the other hand phone and video conferences
with the foreign locations were made regularly to bring at last all employees on the actual
status and also to create transparency.
5 Process Modeling with BPMN 35
5 Process Modeling with BPMN
5.1 The BPMN Language
The BPMN is a symbol language which fixes the standards of the business process modeling.
Stephen A. White has developed the language in 2001 and three years later it was published
as BPMN 1.0 by the Business Process Management Initiative (BPMI).96 The BPMI is a con-
sortium which consists of representatives of different modeling companies, organizations and
individuals.97 Their purpose was to provide a business-friendly graphical notation for process
descriptions expressed in the business process modeling language. In the meantime the BPMI
has become a member of the Object Management Group (OMG) which is already known for
several software standards like the Unified Modeling Language.98 After years of intensive
work the next version of the BPMN standard, BPMN 2.0, was adopted and published in Janu-
ary 2011 by the OMG.99 The notation elements of the former version have not significantly be
changed in the new one. It was only been extended by several constructs and by a few new
model types.100
BPMN is an uncomplicated and easy language to business users. Each shape was given a pre-
cise operational semantics so that the meaning and the logical sequence of the diagram is not
dependent on the modelers idea, but standardized and subject to automated validation. There
are defined rules and characterizations which make it easy to understand a created process
without being explained in detail to a person inside or outside a company.101 The language
consists of different symbols and elements which are a time consistent sequence of activities.
In general there will be done things in a process (activities) which caused in results (events),
possibly under certain conditions (gateways). These three flow objects are connected with
each other through a sequence flow, but only within a pool or a lane. Furthermore there are
artifacts that give additional information about the process, but cannot have influence on the
sequence of the flow objects.102
96
Allweyer (2010), p. 10.
97
White and Miers (2008), p. 24.
98
Allweyer (2010), p. 10.
99
Allweyer (2010), p. 10.
100
Allweyer (2010), p. 11.
101
Silver (2009), p. vii.
102
Freund and Rcker (2012), p. 21.
The processes of the thesis are modeled with BPMN 2.0 in the inubit Suite software. There-
fore the most important elements (see chapter 5.2) that are used and needed for the process
modeling are described more in detail.
5.2 Important Elements of the BPMN Language
5.2.1 Swimlanes
The entire process is modeled in a pool and is a general kind of box for a complete process.
Every process is situated within a pool and usually labeled with the process name.103 In figure
13 the pool is named Process Modeling and divided into two lanes.
A lane is part of a pool and is used to assign different activities to the responsible person or
organization unit; generally it is recommendable to use the name of the organization or the
department, but not of a single person. The lanes in figure 13 describe which activities of the
process are performed by the department and which ones by the project manager.104
Figure 12: Pool with two lanes

Source: Own illustration from inubit Suite
Pools and lanes together are also called swimlanes because they resemble the partitioning of
swimming pools into lanes. Every participant swims only in its own lane.105
103
Allweyer (2010), p. 16.
104
Allweyer (2010), p. 17.
105
Allweyer (2010), p. 17.
5.2.2 Flow Objects
5.2.2.1 Start and End Event
An event is used to express that something has happened. It indicates a time and compared to
an activity not any duration. There need to be considered two issues by modeling an event, the
trigger as well as its effect within the process. Triggers can be for example that a condition
becomes true, an error occurs or a message arrives.106
Processes have always a start as well as an end event, shown in figure 14. The first element of
a process is the start event which activates the process and its symbol is a simple circle.107 The
last element within a process diagram is the end event which symbolized that the process is
finished. It has also a circle as a symbol but with a tick border.108
Figure 13: Start and End Event

5.2.2.2 Activity
A rounded rectangle characterizes an activity as exposed in figure 15 and represents the work
that is done within a process.109 Normally an activity takes some time to perform and involves
one or more resources from the organization. Furthermore it needs some type of input and
performs some sort of output.110 The single activities are connected with arrows which are
used for modeling the sequence flow.111
Figure 14: Activity

106
Allweyer (2010), p. 58.
107
Allweyer (2010), p. 17.
108
Allweyer (2010), p. 18.
109
Allweyer (2010), p. 17.
110
111
Allweyer (2010), p. 17.
Activities should be labeled as self-explanatory by verb and noun112 like inform supplier or
document results. In practice it is often difficult to adhere to this standard. Sometimes there
needs to be add some more words to make sure that everyone is aware of what stands behind
the activity. Therefore in some activities of the new developed processes this standard is not
maintained. To cope with the companys principles and to guarantee the adherence of the de-
sired standardization, this issue was discussed with all involved departments and decided
unanimously to give priority to the comprehensibility.
5.2.2.3 Gateways
Gateways are modeling elements that are used for splitting and merging the process flow113.
They show how a process performs under given conditions.114 Furthermore it needs to be not-
ed that gateways are purely conditional logic. That implies that gateways cannot make a deci-
sion, but show the proceeding and represent a control point in the sequence flow.115 All gate-
ways are shaped in a diamond form.116
The exclusive gateway, also called XOR gateway, is used for modeling two or more alterna-
tive paths and is characterized as a diamond shape with an X-symbol inside as shown in fig-
ure 16.
Figure 15: Exclusive Gateway

An exclusive decision represents that one sequence flow goes in the gateway but more than
one goes out.117 By splitting the gateway it will send a token118 down all outgoing paths but
thus only one outgoing path (exclusively) can be chosen according to the sequence flow con-
ditions. In case of merging the gateway it will wait for a token from one incoming path.119
112
Silver (2009), p. 27.
113
White and Miers (2008), p.133.
114
Allweyer (2010), p.24.
115
Silver (2009), p.29.
116
White and Miers (2008), p.133.
117
Silver (2009), p. 29.
118
The semantics of BPMN can be explained by the use of tokens flowing through the process and passing the
elements. They are like a theoretical concept helping to define the behavior of the process.
119
Therefore if the data condition can be framed as a yes/ no question, the exclusive gateway
should be used.120
The parallel gateway with one sequence flow in and two or more out signifies a parallel split
or AND-split.121 That means that the process will be split to create two or more parallel paths
and that all of the outgoing flows need to be followed implicitly in parallel.122 By splitting the
gateway it will send a token down all outgoing paths and by merging it will wait for a token
from all incoming ones.123
This gateway, shown in figure 17, is shaped like a diamond but with a +-symbol inside.124
Figure 16: Parallel Gateway

The inclusive gateway, also called OR-split, has one sequence flow in and multiple ones out.
That means that the conditions on the gates are independent and one or more is true and can
be activated.125 Therefore the gateway represents the logic of an (inclusive) OR.126 As in fig-
ure 18 illustrated the gateway is also shaped as a diamond with an O-symbol inside.127
Figure 17: Inclusive Gateway

By splitting there will be send a token down to all outgoing paths (inclusively) and an imme-
diate evaluation of all conditions is made. Every condition that is evaluated to be true results
120
Silver (2009), p. 108.
121
Silver (2009), p.29.
122
123
124
Silver (2009), p. 29.
125
Silver (2009), p. 110.
126
Allweyer (2010), p.31.
127
Silver (2009), p. 110.
in a token moving down the sequence flow, but at least one of these must be evaluate to be
true.128 Therefore two or more conditions can also apply at the same time. By merging the
gateway waits for all those related tokens that still can arrive due to the previous sequence
flow logic.129
5.2.3 Connectors
5.2.3.1 Sequence Flow
The sequence flow, as illustrated in figure 19, is a solid line with a filled arrowhead. It defines
an ordered sequence in a process and connects the elements within the same pool, but only the
flow objects neither any other elements of the BPMN language. Therefore the sequence flow
creates the path of the process navigated during its performance.130
Figure 18: Sequence Flow

The logic of a sequence flow can be defined by tokens. Every time when a process starts, the
start event creates a token and moves through the sequence flow to the first activity. The ac-
tivity receives the token, performs its task and releases it to the outgoing sequence flow. The
token moves through the process, across all activities and gateways, until it finally arrives at
the end event. This removes any arriving token and thus finished the entire process. 131 The
sequence flow of every process can be simulated with the help of tokens and therefore allows
analyzing if the flow within the process has been modeled correctly and logically.132
5.2.3.2 Association
An association links data objects and data stores with other BPMN elements like events, ac-
tivities or gateways.133 One of the most important intended purposes is to show that there is a
128
White and Miers (2008), p. 148-149.
129
Allweyer (2010), p. 31-32.
130
131
Allweyer (2010), p. 18-19.
132
Allweyer (2010), p. 20.
133
data input and output from activities as well as a message or signal is sent. The line demon-
strates the source and target of the data object.134 As in figure 20 exposed an association is
characterized by a dashed connector.135
Figure 19: Association

5.2.4 Artifacts
5.2.4.1 Data Object
The symbol of a data object is a dog-eared page which is illustrated in figure 21.136 When a
process performs, it uses and creates data, information, documents, files or other data objects.
Therefore there is often a data transfer by a sequence flow from one to another activity. 137
Data objects usually define inputs and outputs of activities but do not affect the structure and
flow of the process.138 Moreover, data objects only exist within a process and therefore asso-
ciations cannot cross the border of a pool.139
Figure 20: Data Object

5.2.4.2 Data Store
An indirect data exchange can be realized through writing into a data store as shown in figure
22, like a data base or software, by one process and reading the data from the same data store
134
135
Silver (2009), p. 30.
136
Silver (2009), p. 31.
137
Allweyer (2010), p. 122.
138
139
Allweyer (2010), p. 124.
by another one. The requirement for that is that both processes have access to the data store.
This is often a case when both processes belong to the same organization.140
Figure 21: Data Store

5.3 Modeling with inubit Suite
The inubit AG was founded in 1999. Since 2011 it is member of the Bosch-Group and part of
the Bosch Software Innovations GmbH, which is a 100-percent Bosch subsidiary. By now
inubit is a leading provider for a holistic process management. The company maintains their
clients in all phases of the BPM which means that they support them from the inubit Suite as a
141
technological basis up to an extensive service offer. The inubit Suite is a modular built
product for BPM and moreover responsible for the documentation of business processes as
well as for the knowledge exchange within the company. The software offers a uniform sur-
face for the whole system and the workbench is the central user interface for the configuration
of processes which is very user-friendly in its use.142
Caused by the company take-over, Bosch has set the objective to deal in future with their
worldwide business processes and the BPM itself through inubit Suite. Bosch would like to
create a standardization of business processes as well as for the modeling itself with the im-
plementation of the software. This is enabled by clearly defined and given modeling rules and
thereby it can be prevented that it comes to misunderstandings with the process design. The
objective is to model the processes as lean as possible, which can be realized by the BPMN,
and to remove unnecessary information and process steps. In addition it is realized that all
processes worldwide are filed consistently in a system and made accessible as well. Once a
user opens a process diagram it is immediately evident which departments are involved and
responsible. To guarantee the process understanding it can also be saved at the single activi-
ties detailed descriptions as well as activity or process specific templates which can be opened
and used directly from the software. Another advantage inubit offers is, that the processes can
140
Allweyer (2010), p. 135.
141
Bosch Software Innovations (2013a).
142
Bosch Software Innovations (2013b).
be linked to each other within the system but also with other ones of the Bosch-Group. Due to
the immediate access to all information, the process understanding can be improved and
strengthened. In future all employees of Bosch have the possibility to get all information and
templates, which are necessary for the operational business, from one system.
44 The Project BPM@AA
6.1 Project Description
In January 2012 the project "BPM@AA" was initiated by the AA Board of Management.
Trigger for this project was the strong growth of this business sector, the changed conditions
on the market as well as the purchase of many companies in the economic crisis. Hence, the
aim was beside the reorganization of the entire AA business process map also the adaptation
of the business processes to the new market conditions as well as the integration of the new
companies in the Bosch-Group. Therefore the Board of Management indicates an urgent need
for action in the optimization of all business processes and classified this as a strategically
important project for the whole business sector. The project implementation and the world-
wide accomplishment should be realized and closed latest within two years in February 2014
by all departments.143
At the beginning the core team of the project was put together which consists of a project
manager and a representative from each affected department. In total the core team consists of
10 people, eight of them from each affected department as well as the project manager and
one additional employee, both of them from BMO. The aim of this team was to define the
new business process map and to fix the management, core and support processes. Due to the
strategic character of the project, regular meetings as well as single workshops of the core
team were realized for the definition and the commitment of the management and core pro-
cesses. As opposed to this, the support processes which have a particularly impact on the op-
erational business were defined by several employees of the respective department who were
invited to a workshop. The results were introduced by the relevant representative and finally
approved by the core team in a regular meeting.144 Caused by the consolidation of know-how
from available models, documentations, manuals, professional concepts or expert's inter-
views, there were achieved important references for the design of the new processes. From
this top-down approach the new business process and accordingly the reference model with
the sub processes for each department were derived and developed as well.
143
Hertes (2012), p. 3-4.
144
Hertes (2012), p. 5-6.
6 The Project BPM@AA 45
6.2 Overview of the PU-Reference Model
The AA business process map contains the support process "S1 Provide Purchasing Services"
which is the fundament of the PU-Reference Model (see appendix 2). It encloses a total of 26
purchasing processes which need to be developed and modeled new and made available af-
terwards worldwide to all affected purchasing departments. The defined processes in the ref-
erence model as well as the clearly structure are determined, confirmed by the Board of Man-
agement and need to be considered as fixed; therefore it cannot be changed. The processes
which are marked dark grey in the figure are already worked out and not considered any
more, however the remaining ones are to be developed within the present master thesis.
The PU-Reference Model is divided in eight sub processes and contains the essential fields of
activity within purchasing: S1.1 Material Field Strategy and Planning, S1.2 Search and
Select Supplier, S1.3 Release Supplier, S1.4 Release Product, S1.5 Make Supplier
available for Operations, S1.6 Monitor and Report Performance, S1.7 Managing Non
Conformity Cases with Source and S1.8 Appraise Supplier/ Supplier Development. These
eight sub processes have again processes which are in purchasing of great importance and
relevant for the business procedure and realization of procurement tasks. Based on the busi-
ness unit strategy of the Marketing Department (MKT Function) a worldwide purchasing ma-
terial field strategy is developed yearly. To run this purchasing strategy and to fulfill the de-
mand, the procurement market must be analyzed systematically concerning quality, cost and
delivery criteria and searched continuously for potential suppliers. New suppliers are to be
released at plant level to guarantee the fulfillment of quality, logistic and environmental re-
quirements. If new products are necessary due to strategic, economic or technical reasons,
new products or serial production are to be released after plant release. Towards the contract
conclusion and the receipt of goods audit process, a supplier may deliver the product to
Bosch. Performances of the suppliers concerning product quality and logistics are checked,
valued and reported by different procedures. If divergences of the agreed delivery targets
arise, different methods are to be applied to minimize complaints or disorders and at latest to
remove them. To improve also the current processes of the suppliers within the scope of the
overall Supply Chain a medium-term or long-term development program has to be developed
and carried out for well-chosen suppliers. The supplier's choice has to be done in consultation
with the marketing and the logistic department. Nevertheless it has to be noticed that the pro-
cesses are assigned only thematically to the respective sub process. The horizontal as well as
the vertical classification of the processes show no obligatory temporal order in which the
processes must take place. Therefore the single processes can start, run through and closed
independently of each other. The benefit for this agreed process organization lies primarily in
the logical and understandable procedure of the procurement process as well as to demon-
strate a structured and subject-related allocation of the processes to the single sub processes.
Based on the arranged project duration of the BMP@AA of two years, after the definition
and the release of the process map there could be made available a processing time of one and
a half years, from September 2012 to February 2014, for the single reference models. Never-
theless the processing was not done by the core team, but every AA department was responsi-
ble for the development and realization of its own reference model. Due to the role and duty
allocation within purchasing, PUQ Function was responsible for the whole processing of the
project. For an efficient realization of the project it was divided into three phases by which an
actual project controlling was guaranteed as well. As in figure 24 shown the phases 1 and 2
are directly responsible for the handling of the process. Against it, phase 3 has the task to im-
plement worldwide the new processes in all AA locations as well as to provide trainings. Due
to the tight schedule, PUQ Function gets support from BMO concerning the planning and
execution of staff trainings as well as the answering of questions related to inubit Suite. It was
decided to deal in phase 1 only with 10 processes because at the beginning the project needs a
start-up phase. It was clear that there must be created first a feeling how many time is needed
for a process design as well as how the coordination and meeting situation with the other inte-
grated departments will be handled. In phase 2 there was expected regarding to the gained
experiences and the attained routine that a handling of 16 processes was achievable. Hence it
was decided within PUQ Function that concerning the huge number of process handlings to
obtain additional assistance from external in terms of a master thesis by the realization of the
project.
Figure 22: Different phases of the project

Source: Own illustration.
All modeled processes had to be committed and released by all purchasing managers as well
as the Purchasing Area Manager. On the one hand the processes were introduced in the
monthly purchasing managers meeting; on the other hand there were regular meetings with
all involved persons. This was the only way to guarantee that all managers were integrated,
state-of-the-art concerning the project and informed about existing problems or other current
issues. Besides to develop a greater sensitivity regarding the project, these meetings were of
high priority.
6.3 Optimized and Developed Processes
6.3.1 Define and agree on RPP projects
Triggers for the Ratio Project Planning (RPP) process are for instance ratio targets in the
Business Plan or within the Material Field Strategy, results from ratio workshops or a market
research, supplier scouting and also ideas from suppliers. Within this process, there must be
distinguished between transfer from internal to external procurement, which means to relocate
the procurement from a Bosch plant to an external supplier, and ratio with external procure-
ment. A ratio project with external procurement is a project where at an existing source of
supply a ratio potential becomes apparent. This decision needs to be made at the beginning of
the process to know with path is to chose. Besides PUR Function there are involved in this
process additionally the Controlling Department (COR Function), PUQ Function and MKT
Function. The RASIC of this process is shown in appendix 3.
In case of choosing the path transfer from internal to external procurement, the first activity is
to inform the Automotive Aftermarket Controlling Department (AA/COR) about the decision
to relocate the source of supply from a Bosch plant to a supplier by PUR Function. After-
wards AA/COR has to make an economic calculation (WIRE) to check if the made decision is
profitable or not. The WIRE must be signed by all involved departments. On basis of this cal-
culation there can be made a final decision. If the WIRE is positive the change of the source
of supply can be realized, but in case it is negative the process will be stopped by this point.
In case of a positive WIRE the process continues and the next activity is to create a project
charter by MKT Function. The project charter is a project agreement which contains for in-
stance a detailed project description, the scope of the project or the defined targets. In the next
step the project charter must be signed by the whole project team and therefore by all project
members. Then the kick-off meeting can be initiated. The project leadership as well as all
related management and organizational duties are run by MKT Function, PUR Function only
acts as subproject leader. Subsequently a supplier must be search and selected where the parts
can be relocated and purchased in future. Therefore the process S1.2 Search and select Sup-
plier will be performed. Afterwards there are several activities in parallel. On the one hand
the selected supplier needs to be released with the proceeding of the process S1.3 Release
Supplier and as well the product must be released with the process S1.4 Release Product,
both activities run by PUQ Function. In parallel PUR Function has to perform an active pro-
ject management which means for instance to create time schedules; make technical discus-
sion with the supplier and also a feasibility analysis. All this information has some influence
on the project charter. After the run of the mentioned activities, PUR Function can maintain
the supplier data by proceeding S1.5.1 Maintain Supplier Master Data and with a next step
negotiate contracts with the supplier by performing S1.5.2 Negotiate and Provide Contract.
Following this PUQ Function can run the process S1.5.3 Define and Conduct Incoming In-
spection Process to release the incoming goods of the new supplier. Finally approximately
half a year after the project start, the project can be closed by a project closure meeting and
hand over from MKT Function to the responsible buyer.
In case of choosing the path ratio with external procurement there must be distinguished fur-
thermore between a project management by PUR Function or by MKT Function. This deci-
sion will be made due to project specific and task related aspects. In case of a project man-
agement by PUR Function, the first activity is to create a Total Cost of Ownership (TCO)
comparison to make sure that the project is profitable. After the TCO decision the project
must be released together with the responsible product manager of the business unit. Further-
more the required capacity needs to be fixed and guaranteed that the project can be performed
in an efficient and cost-effective way. Subsequently a supplier has to be selected with whom
the project will be realized. This will be made by performing the process S1.2 Search and
select Supplier. PUR Function has to create a time schedule to simplify the overview of the
project and to perform an active and efficient project management. The time schedule needs
to coordinate and agree with the selected supplier. Afterwards there are several activities in
parallel. On the one hand the selected supplier needs to be released with the proceeding of the
process S1.3 Release Supplier and as well the product must be released with the process
S1.4 Release Product, both activities run by PUQ Function. In parallel PUR Function has to
perform an active project management which means for instance to create time schedules;
make technical discussion with the supplier as well as a feasibility analysis. After the run of
the mentioned activities, PUR Function can maintain the supplier data by proceeding S1.5.1
Maintain Supplier Master Data and with a next step negotiate contracts with the supplier by
performing S1.5.2 Negotiate and Provide Contract. Following this PUQ Function can run
the process S1.5.3 Define and Conduct Incoming Inspection Process to release the incom-
ing goods of the new supplier. In case of a project management by MKT Function the process
starts with the creation of a project charter. Afterwards at this particular point all activities
will be passed through like in the already mentioned procedure in case of the path transfer
from internal to external procurement.
By performing this process the output reflects the achieved ratio within a project. Furthermore
it is reached a cost-effective improvement or a rationalization of superior products and manu-
facturing processes. The goal by initiating such a process is to get products with the same or
better functionality for lower costs which lead to an overall cost saving.
6.3.2 Define purchasing targets
Every year the purchasing targets have to be defined and fixed and therefore it is a continuous
process. Trigger can be for example the yearly developed Business Plan where the overall
targets will be set and afterwards broken down to the different business sectors and depart-
ments. In this process there are involved several departments. Besides the lead buyer145 who
have to be named explicitly due to its importance in this process, there are also integrated the
145
Compared to a buyer, the lead buyer is one hierarchy level higher and therefore has more strategic duties. The
lead buyer coordinates worldwide the buyers for a specific material field, develops the strategy and is also re-
sponsible for the supplier management and ratio projects.
different Business Unit Purchasing Departments (BU/PUx)146, AA/PUx and the Board of
Management as well. Furthermore the Business Unit Controlling Department (BU/FC) is in-
volved to coordinate the defined targets with the planned targets and the operating numbers.
The respective RASIC is illustrated in appendix 4.
All employees within purchasing were informed at the beginning of each business year about
the overall targets of the respective business sector. The definition of the single purchasing
targets per department and finally per employee is developed in a bottom-up approach. There-
fore in the first activity the lead buyer makes a suggestion about the targets that can be
achieved within its business unit and material field. Due to the Material Field Strategy and the
Sourcing Meeting, every single lead buyer knows which savings and potentials can be
reached in the business year and subsequently has a direct impact on the overall targets of the
business sector. The lead buyer communicates the suggested targets to its responsible
BU/PUx. Afterwards the BU/PUx checks if the suggested targets are plausible and align them
with the business unit targets. If the targets are fine, the BU/PUx defines its own ones on basis
of the targets from the lead buyer. Whenever there is a lack in targets the result will be com-
municates to the responsible lead buyer who has to adjust them and afterwards communicate
the new ones to the responsible BU/PUx who has to check them again. Accordingly the
BU/PUx defines targets per location and coordinates them with the responsible BU/FC and
the different regions. The basis is the already fixed targets from the lead buyer. Targets can be
for instance material cost reductions (quantitative) and ppm rates (qualitative). The BU/PUx
informs its responsible AA/PUx and suggests the overall defined targets per location. In paral-
lel each responsible AA/PUx aligns the suggested targets with the CP targets, the general Au-
tomotive Aftermarket Quality Management (AA/QM) ones and with the overall AA strategy
as well. Afterwards the plausibility of the targets will be checked. If the targets are fine, the
AA/PUx informs the responsible BU/PUx and an overall agreement due to the business unit
targets needs to be done by BU/PUx. Whenever there is a lack in targets the result will be
communicated to the responsible BU/PUx who has to adjust them and afterwards communi-
cate the new ones to the respective AA/PUx who has to check and align them again. Follow-
ing this in parallel the AA/PUx consolidates and priories the defined and finally agreed tar-
gets. In the next step AA/PUx suggests the overall targets to the Board of Management. The
Board of Management reviews the targets. If the defined targets fit to the overall targets of the
Board of Management and if they are plausible and beneficial as well, they will be confirmed
146
The x within PUx means that all purchasing departments are affected by this process and therefore for in-
stance not only PUR Function, but also the PUC Function or PUQ Function.
by the Board of Management. If they targets will not be stated, the Board of Management
informs the BU/PUx who has to adjust them and has to start the process up from this point
again. Afterwards the targets are finally determined by AA/PUx as well as coordinates and
agreed by all affected and responsible departments and at last fixed per business unit and re-
gion. Within the last activity of this process the overall agreed targets will be integrated and
fixed per employee in the yearly Employee Performance Review Discussion (MAG).
The result of this process are defined, overall agreed and fixed targets within a bottom-up
approach. The targets include not only employees ones but also business unit and business
sector ones. To make sure that all defined targets align to the Business Plan, a good commu-
nication and a generally commitment with all affected departments and employees is needed.
6.3.3 Evaluate existing parts to identify potential
The initiation of this process can have several triggers. This may include for instance an ex-
pired contract, that a supplier become insolvent or that the supplier cannot fulfill or imple-
ment the AA requirements in a long term way as well as in case of product costs or price rea-
sons. Involved departments of this process are PUR Function and the Regional Purchasing
Departments (Regional PUR). Furthermore MKT Function as well as the Logistic Department
(LOG Function) is part of the process to support PUR Function by performing it. The RASIC
is shown in appendix 5.
First the buyer has to select the product range for which a benchmark should be carried out.
For example a product range can contain different light bulbs or explicit selected parts. Af-
terwards the buyer creates together with LOG Function and MKT Function a bidding tem-
plate with information provided by the SAP147 system. There will be filled in all needed in-
formation in the template for instance technical product characteristics and logistic parameters
like minimum order quantity or delivery time. The buyer has to provide this template to all
involved Regional PUR. This can be realized through the Bosch Intranet or a virtual portal
room where all affected employees have access to. Following this each Regional PUR has to
collect required data with the support of the responsible MKT and LOG Function and transfer
the data in the bidding template. Relevant data are for example the current price and supplier,
the buying quantity from the past, technical product data, market requirements, packaging
147
SAP is an Enterprise-Resource-Planning system which displays business issues to use the available resources
efficiently for the operational procedures and to optimize and control the business processes within the company.
requirements, delivery time or minimum order quantity provided by SAP and SRM148. Re-
trieved from the data collection the buyer creates the bidder documents. This includes also a
communication paper which contains relevant information for the supplier about the rules and
the procedure within the bidding process. Afterwards the buyer selects these suppliers that
should play an active part in the bidding process and the inquiry is transferred to the prese-
lected suppliers via SupplyOn149. If a supplier is not connected to the system150 it gets the
inquiry documents via e-mail. The entire inquiry includes but is not limited to a supplier let-
ter, bidding documentation details, part numbers and the communication paper. Subsequently
the buyer evaluates the offers with the help of the Bidders List. By utilizing this template
there can be identified potentials in an easy and valid way. This may include for instance an
attractive or better price, a qualitatively better product or logistical improvements.
The output is the identification of potentials through performing this process. Benchmarking
existing parts can lead to unexpected results and often to high savings or significant im-
provement within the product portfolio.
6.3.4 Conduct contracting
Start of the conduct contracting is the process S1.3.1 Sourcing Decision. After the selection
of a new or an existing supplier as source the contracts can be conducted. Besides PUR Func-
tion there is also involved PUQ Function in the conduct contracting process. The appropriate
RASIC is shown in appendix 6.
The first activity is to check the existing contracts. It needs to be verified which contracts al-
ready exists and which ones need to be changed or added. Afterwards the buyer has to create
a contract package that contains all necessary contracts which the supplier has to sign. This
base may include for instance a purchasing agreement, a price agreement or a logistics agree-
ment. All selected and customized contracts will be signed by the buyer and all other neces-
sary authorized signatories. Accordingly the contracts will be sent to the supplier to counter-
sign them. Single issues need to be discussed and clarified with the supplier to make sure that
every detail is committed and clear to both parties. After the signature of the supplier and the
return of the documents to Bosch, they have to be checked by the related buyer. This is very
148
SRM is a global supplier management system within the Bosch-Group that provides all needed supplier relat-
ed information like supplier master data or automatic reportings due to specific supplier procedures.
149
SupplyOn is a Bosch internal system where the suppliers are connected with. The system offers a portfolio of
solutions that enable significant efficiency improvements in inter-company business processes including pur-
chasing, sales, logistics, product development and quality management.
150
To be connected with SupplyOn a supplier needs a purchasing volume per year of more than 100,000 Euros.
important to see which changes the supplier has done and if Bosch can accept them. The buy-
er has to evaluate the requested changes and check whether they can be integrated in the con-
tracts or not. If they cannot be accepted the contracts need to be renegotiated with the suppli-
er. In case there is no problem with the requested changes, Bosch agrees to them. Furthermore
PUQ Function has to evaluate the requested changes at the Quality Assurance Agreement
(QAA) and check whether they can be integrated in the contracts or not. If they cannot be
accepted the contracts need to be renegotiated with the supplier. In case there is no problem
with the requested changes Bosch agrees to them as well. After the entire commitment of both
parties including all necessary signatures, the last activity of the process is to update the
changed or added supplier data and to archive the contracts in all relevant systems.
The result of this process is an overall agreement with the single suppliers due to contract
issues. Bosch has the target to have conducted all relevant contracts with all active suppliers.
6.3.5 Supplier enabling projects with suppliers
Trigger for the supplier enabling process could be for instance the process S1.2.5 Identify
and select potential sources. There are not involved only new suppliers but also existing ones
with for instance a new product category and/ or a new location that should be enabled. Crite-
ria for the enabling project can be for instance supplier decisions from PUR Function based
on the Comparison of Quotation, production or location shifting or in case of alternative
sourcing. Involved departments of this process are PUR Function, LOG Function and PUQ
Function. The RASIC is shown in appendix 7.
The first activity is the definition of the suppliers. PUQ and/ or LOG Function define together
with PUR Function one or more suppliers that should be enabled. There are no fixed criteria;
each business unit can select the criteria at their own discretion. The target is the seizure of 0-
failures at the start of production. Selection criteria can be for example results from supplier
visits or Lean Plant Assessments (LPA), the latest audit result, a bad quality performance or a
bad delivery performance. After the definition of the suppliers, PUR Function has to confirm
the selection and afterwards inform the suppliers about the intention concerning the project.
Depending on the enabling scope and complexity PUQ or LOG Function decide if an internal
contracting is needed. If an internal contracting is needed PUQ or LOG Function organizes a
meeting with all involved parties. Content of this meeting are the analysis of the current state,
the derived measures as well as targets, project milestones and the project organization itself.
After the argument and the commitment of all important and relevant details, the document in
which the entire information is written down needs to be signed by all involved parties and
project members depending on the enabling scope and complexity. The next activity, after the
internal contracting or if there is no necessity of an internal contracting, is the enabling itself
of the preselected suppliers with the help of the Open Point List (OPL) and the Plan-Do-
Check-Act (PDCA) template. Are all basic conditions resolved the appropriate supplier ena-
bling can start. Therefore supplier visits need to be arranged to analyze the current state at the
supplier location. Additionally a LPA has to be created and/ or an audit should be conducted.
Regarding these results an action plan is derived with the basis of an OPL and a PDCA tem-
plate. Furthermore a value stream should be created. To make sure that the project is on a suc-
cessful way and the supplier has no problem to put the measures into action, PUQ Function
has the task to monitor and support the supplier. Therefore regular meetings, workshops and
telephone conferences have to be realized; other parties can be involved if required. As a re-
sult the action plans can be realized on schedule and in a proper way. Moreover there are
benchmark visits during the project at explicit selected Bosch plants which are equipped with
a high degree of maturity concerning the Bosch Production System. If all requirements, which
are defined in the project plan, are fulfilled by the supplier the action plan can be closed. If the
defined requirements are not fulfilled the supplier needs to be escalated. In this case the pro-
cess S1.7.3 Escalation Management starts. After a successful processing of the action plan
there is an internal project closure meeting with all involved parties. Following this the sup-
plier will be invited by PUR Function to a final discussion or PUR/ PUQ Function respective-
ly PUR/ LOG Function participate at a final discussion at the supplier.
The output of the supplier enabling process is a supplier that performs better and more effi-
cient related to the high expectations and requirements of Bosch. Moreover each supplier has
improved itself for example regarding its internal processes.
6.3.6 Release series production
Trigger for this process are different initial sample inspection results from the process "S1.4.1
Initial sample inspection. Thus, there are already given a technical release for the C samples
by MKT Function. The D samples are already ordered including the needed documents and
the amount of samples by PUR Function and inspected by PUQ Function as well. Besides
PUR Function there is also involved PUQ Function in the release series production process.
The appropriate RASIC of the process can be found in appendix 8.
First PUQ Function compiles the inspection results and transmits them to PUR Function. All
related documents need to be archived in the KPRO151 system by PUQ Function. There are
three different types of results. The first one is the release. PUR Function has to inform the
supplier about the product release by sending a cover letter and the cover sheet release. Af-
terwards the cover sheet has to be archived in the KPRO system. The second one is a release
with restrictions. The supplier will be informed by PUR Function about the release with re-
strictions using a cover letter and the cover sheet release with restrictions. The restrictions
approve the delivery for a limited time or a limited quantity of a product which characteristics
do not completely comply with internal or customer product specifications. The documents
need to be archived in the KPRO system as well. Due to the release with restrictions, the
missing documents must be requested at the supplier by PUR Function. The third option is a
rejection. PUR Function has to inform the supplier about it and send beside the cover sheet
rejection also a cover letter. Further the documents need to be archived in KPRO. In case of a
rejection PUR Function has to order D samples once again. This procedure does not run un-
limited. After a specific number of orders and inspections, PUR Function decides together
with PUQ Function about a final and overall rejection. Whenever all requested documents for
the initial sample inspection are received or the new ordered samples are delivered the process
S1.4.1 Initial sample inspection starts again and hands over the result to the first activity of
the release series production process.
The outcome of this process is the release of a series product. With this final release the sup-
plier can deliver the parts continuously, oriented on the planned demand and the agreed deliv-
ery schedule.
6.3.7 Maintain supplier master data
Whenever any kind of existing master data from a supplier alter, the maintain supplier master
data process starts. It should be noted that all relevant master data were already created and
this process starts only if a change within existing data is required and not in case of a crea-
tion of new master data. Involved departments of this process are PUR Function and PUQ
Function. The RASIC is shown in appendix 9.
At the beginning the buyer classifies the change-relevant data to know in which system the
data needs to adjust and to detect which department is responsible. By means the buyer takes
151
KPRO is a module in SAP where documents can be archived and therefore a specific provider for document
storages.
responsibility for the change, the adjustment can be started immediately. However PUR Func-
tion is not in charge the buyer has to inform the responsible specialist. There are four different
types of data within purchasing that needs to take into consideration. In most cases PUR
Function is responsible concerning data changes, only in case of quality relevant data PUQ
Function is accountable. In case of general data the buyer has to change them in SAP PMD152.
General data are for example the address or contact person of the supplier. By means of com-
pany-code relevant data, which signifies for instance Value Added Tax Identification Number
or bank account details, the buyer has to modify the data in SAP PMD as well. Are there
changes due to purchasing relevant data the buyer has to adjust them in the SAP KP1153 sys-
tem. Purchasing relevant data contain international commercial terms or payment terms. Has
the buyer changed the supplier relevant data, they must be adapted in the SRM system. Pur-
chasing specific supplier data include besides the responsible buyer also general company
information and the DUNS number154. In case of supplier relevant quality data the responsible
PUQ Function has to adjust the data in the SRM system as well, but in the quality user inter-
face. This data are related for instance to audit documents, eServices or initial sample inspec-
tion reports.
The result is an updated and actual state regarding all master data within purchasing. With the
run of this process it is guaranteed that the relevant data will adjust as soon as possible inside
the respective systems to prevent the operation business due to any master data-related issues.
6.3.8 Negotiate and provide contract
There are several triggers which can initiate the negotiate and provide contract process. At
this point it needs to be clarified that by means of contract it is only spoken of a price con-
tract. Moreover the process is performed globally by the lead buyer who can delegate it local-
ly to the responsible buyer. This process is only performed by PUR Function. MKT Function
is involved by means of supporting and consulting PUR Function while performing the pro-
cess. The RASIC of the process is shown in appendix 10. The first trigger is the process
"S1.2.5 Identify and select potential sources. In this case a supplier is already chosen and a
price contract needs to be concluded. Another aspect could be that an old price contract ex-
152
SAP PMD (Productive Master Data) is a part inside the entire SAP system that is responsible for the admin-
istration of all supplier master data within Bosch.
153
SAP KP1 is a part inside the entire SAP system and has a comprehensive function of master data for the divi-
sion AA which provide all other systems with master data. It makes possible the world-wide exchange of master
data and the work on a common and consistent database.
154
DUNS numbers (Data Universal Numbering System) are unique nine-digit identification sequences with
global standard and central administration. A company can be identified worldwide explicitly by this number.
pires and it needs to be brought to a conclusion by means of a new negotiation basis. Fur-
thermore it could also be that an existing supplier gets new components which need to be
added to the existing price contract. The last trigger is a result of the yearly Strategy Meeting
and mostly contributed by MKT Function.
During the first activity of the process the target needs to be defined by the lead buyer. Each
lead buyer gets annually material field targets according to the Strategy Meeting which has to
break down to the single suppliers. In a next step the overall negotiation strategy has to be
defined. The strategy is developed together with the help of the internal master black belt and
the Spectra155 system. It contains for instance the practice and tactic due to the supplier (auc-
tion, awarding in from of packages) or the determination of general conditions. The lead buy-
er gets information from MKT Function concerning market requirements and market feed-
back. Afterwards the lead buyer has to make the preparation for the negotiation. This includes
for example to check the existing price contracts and to verify which conditions already exist.
Furthermore organizational things need to be done like the invitation of all participants for the
negotiation or the arrangement of the meeting itself. After the definition and preparation of
the negotiation strategy, it needs to put into action by the responsible lead buyer. Subsequent-
ly the new price contract needs to create which the supplier must sign. The needed infor-
mation is provided by SAP. The price contract will be signed by the lead buyer and all other
necessary authorized signatories. Following this the contract will be sent to the supplier to
countersign them. After the signature of the supplier and the return of the document to Bosch,
it has to be checked by the lead buyer. It is very important to clarify that the supplier has not
made any changes within the contract. After the entire commitment of both parties, which
includes all respective signatures, the new price contract can be updated in the SAP and SRM
systems.
The result of this process is a new negotiated and signed price contract for a limited time be-
tween Bosch and the supplier. This contract has to be concluded for instance once a year and
is detached from other contracts in the process S 1.3.2 Conduct contracting.
6.3.9 Define and conduct incoming inspection process
The incoming goods inspection essentially is processed on a pre-defined test plan and is initi-
ated and controlled by an information technology system. Even if the supported system is not
155
Spectra (Supplier Process Evaluation and Cost Transparency) is a PUR Function specific system where the
supplier processes can be evaluated as well as costs will be shown transparent.
available it should still be executed appropriately. Incoming goods inspection must be docu-
mented correspondingly in SAP. Always the local legal regulations should be complied with.
In case of delivery from external supplier generally an incoming goods inspection must be
conducted at the first Bosch collection point, independent from the warehouse location. In
special cases the incoming inspection can be conducted even directly at the source of supply
as per Bosch specifications or by a Bosch responsible person. Involved departments of this
process are PUQ and MKT Function. The respective RASIC of the process can be found in
appendix 11.
At the beginning the goods will be stored physically by LOG Function and the responsible
system (Stock Management System) indicates the partial amount and the characteristics that
need to be tested. The residual amount will be already stored and therefore locked in the sys-
tem until there will be given a release. The inspection characteristics, test equipment and
number of inspections are determined by MKT Function and PUQ Function in the scope of
the test plan. While defining the inspection requirements like limiting samples, technical
drawings, product photos as well as empirical values from tests and results from complaints
are taken into account. The technical incoming goods inspection essentially comprises the
inspection range as for instance packaging inspection like details on labels, packaging size
and physical state or product inspection as visual inspections, dimensional tests as per the
drawing or functional tests. All test results, both negative and positive ones will be document-
ed in SAP and the Stock Management System which contains especially the respective fig-
ures. The entered goods receipt quantity will be locked if the delivered goods are not in order.
It must be taken a decision if a concession is needed or not. If there is none required it can be
made directly a utility assessment. In case of a concession a different path must be taken. It is
required due to deviation of individual inspection characteristics, a concession can still be
made for accepting the delivery provided that it does not violate the legal regulations or prod-
uct liability. This path starts with the creation of a Q-Message and finishes with results of the
process S1.7.1 Manage Complaints with Suppliers. The created Q-Message will be pro-
cessed and the complaints will be managed together with the supplier by PUQ Function. Fi-
nally there will be made a decision about the utility of the goods on basis of the provided in-
formation in SAP by MKT Function together with PUQ Function. If the utility assessment is
positive, the already stored locked partial quantity will be released and can used prospec-
tively. All information is documented in SAP.
At the end of this process the incoming goods should be released and free on stock. In case of
deviation of individual inspection characteristics, a concession can still be made for accepting
the delivery, provided that it does not violate the legal regulations or product liability. The
incoming goods department must receive the concession before the goods delivery and can
release them on a basis of this as well.
6.3.10 Monitor achievement of purchasing targets
Trigger for the monitoring of achievement of purchasing targets is the process S1.1.4 Define
Purchasing targets where the overall annual targets will be defined and broken down per
purchasing department. To make sure that the targets will be achieved at the end of the busi-
ness year they have to be monitored. The defined targets are established within the Business
Plan of the AA business sector and therefore at the overall Business Plan of the whole Bosch-
Group. There are two different methods to monitor these purchasing targets. The first one is
the monthly report and the second one is the current forecast (V-Ist) which is made four times
a year. Both procedures are realized by the Purchasing Controlling Department (PUC Func-
tion). There are involved additionally other departments in this process like PUR Function,
the Purchasing Area Manager and the Board of Management. The appropriate RASIC is
shown in appendix 12.
The first activity is to gather monthly the purchasing results from the respective system which
is done by PUC Function. This is realized in form of the summary of all invoices that are post
in the current month in the respective system as well as the Material Cost Report (MCR). Out
of this the actual purchasing result is built. All data will be summarized in a report and pro-
vided worldwide to all involved buyers and purchasing managers. The data will be analyzed
in total, per business unit, separate for every region and per type of material. Thereafter PUC
Function conducts a monthly meeting to argue on discrepancies and on significant deviations
before the results will be transmitted to the CP. As may be necessary the data will be adjusted.
In the MCR system the consolidated data will be released and automatically transmitted to
CP. Accordingly the results will be sent via e-mail by PUC Function to the Purchasing Area
Manager, all purchasing department managers and all PUC Function employees as well. This
procedure should ensure that all involved persons are informed about the results. The respon-
sible business unit controller invites monthly the responsible business unit purchasing manag-
er to a jour-fix meeting. In this meeting there will be made a comparison regarding target and
performance. Possibly there will be discussed single issues that are unclear or protrude from
the results. In parallel PUC Function has to generate four times a year the V-Ist of the pur-
chasing result. Therefore the V-Ist template needs to be created through filling out the file
with data. This includes Business Plan data, data regarding type of material per business unit
or per region. Accordingly the responsible purchasing department managers of each business
unit get an e-mail from PUC Function with the created templates (V-Ist). Furthermore the e-
mail contains a fixed deadline until the documents has to be completed as well as a guideline
how the file should be filled out and which additional data is required to add. The final V-Ist
is created by the purchasing department managers of each business unit with the lead buyers
and the support of PUC Function. There needs to be considered premises like foreign ex-
change rates or raw materials which are provided by CP and results like savings from negotia-
tions from the lead buyers as well. This information can incorporate into the overall V-Ist.
Before the overall result is suggested to the Purchasing Area Manager, the purchasing de-
partment managers of each business unit come to an internal agreement with the respective
regional purchasing managers, after each region has filled in their proposal. The Purchasing
Area Manager gets the overall V-Ist from PUR Function to make a review. As may be neces-
sary there will be performed some adaptations and as a last point there is a final consultation
of PUC Function with the Purchasing Area Manager. The overall V-Ist will be released by
PUC Function within the MCR system. The result will be transferred automatically to CP.
Immediately after both methods of the monitoring of purchasing targets are performed; a
monthly jour-fix is conducted. Participants of this regular meeting are the Purchasing Area
Manager, the purchasing manager of the respective business unit and the responsible control-
ler. There will be made a monthly consultation regarding comparison of target and perfor-
mance and as appropriate measures defined to achieve the planned results. The final activity is
the presentation of the overall AA results at the Board of Management and at different man-
agement meetings like the Global Purchasing Meeting or the Leadership Meetings of the
business units by the Purchasing Area Manager.
This process is very important to monitor if the defined objectives can be reached or if any
measures needs to be adopted to accomplish them. Therefore a regular monitoring needs to be
performed by PUC Function to guarantee the achievement of the set objectives.
6.3.11 Monitor supplier performance via cockpit chart
The Cockpit Chart (CPC) provides a monthly overview of the Key Performance Indicators
(KPI) of the purchasing processes. The targets will be defined at the beginning of each year
by the head of department, broken down for every part and controlled via the respective
CPCs. PUQ Function follows up their KPIs due to this purpose. Therefore the worldwide
PUQ coordinator gets all data in form of CPCs from the involved departments or regions to
create the overall report. The actual values and targets are presented in the CPC and contain
for example the number of complaints, ppm156 rates as well as number of complaints in rela-
tion to delivery items, the 8D usage rate, number of incidents or the defect costs. This process
is only performed by PUQ Function. PUR Function is only involved in form of supporting
PUQ Function by giving information input to create the KPIs. The RASIC is illustrated in
appendix 13.
The worldwide PUQ coordinator receives monthly all necessary data. Therefore the involved
departments or regions fill out their own excel sheet which is linked directly to the overall
KPI analysis (Template Zielverfolgung). Within each excel file there will be created auto-
matically the CPC and consequently as a matter of routine reported to the coordinator. The
coordinator needs to check the electronically transmitted data concerning accuracy, complete-
ness and scope. If the data are complete and correct, the coordinator can directly start with the
consolidation and the release of the data. If the data are not correct or if there is something
missing the coordinator needs to consult the responsible employee who has analyzed the data.
Afterwards the data needs to be adjusted that the overall reporting can be initiated. Prior to
that the coordinator needs to consolidate and subsequently release the data. Finally the differ-
ent reportings can be created by the worldwide PUQ coordinator; one reporting for the Global
Purchasing Meeting and one for the Board of Management.
The output of this process is an overview of the supplier performance due to the defined tar-
gets. Hence there is guaranteed that the KPIs get in focus and will be monitored continuously.
6.3.12 Manage complaints with suppliers
The manage complaints process will be performed for global responsibilities and activities of
process disturbances caused by a source of supply for instance at stock reception or in produc-
tion. Process disturbance means discrepancies of goods or packaging activities which have
been caused by a supplier. A process disturbance at stock reception can be determined in two
different cases. The first case is while receiving the delivered goods at stock receipt and the
second one as result of the stock incoming goods inspection. In both cases the goods are
booked into the blocked quality stock and an objection generated. The processing of the com-
plaint is carried out upon defined responsibilities and will be forwarded by a warehouse em-
ployee to a coordinator. In this process there is involved besides PUQ Function also the Mar-
156
Ppm means parts per million and is used to identify the failure rate of a supplied good.
keting Packaging Department (MKP) and also MKT Function. The RASIC of the manage
complaints with suppliers process can be found in appendix 14.
At the beginning of the process and before the start of the first activity it must be decided if
the complaint is goods or packaging related. Whenever the complaint is goods related PUQ
Function is responsible and acts as coordinator. In contrast if the complaint is packaging re-
lated MKP Function is responsible and coordinator. The task of the coordinator is to identify
the originator of the process disruption, to take immediate measures, to claim corrective ac-
tions from the originator and to decide on the material of the faulty goods and finally close the
complaint. The type of process disruption will be documented in the complaint as well as the
failure described and documented in the Q-Report. The goods have to be marked as blocked
and be stored separately. Afterwards it needs to be decided by the respective coordinator if the
complaint is an immediate or remedy action. In case of an immediate action there can be
made directly a utility assessment. The coordinator has different possibilities while deciding
on the material for instance scrapping, repair or return delivery. All actions regarding the utili-
ty assessment have to be documented by the coordinator and their implementation has to be
tracked. Immediate actions are measures which have to be started without delay by the coor-
dinator in order to determine and block the respective quantity of faulty parts as well as to
impede the supply and delivery of the potential faulty goods. In case of remedy actions the
8D-method has to be applied as a basic principle. Found defects will be documented in SAP
as complaints and forwarded to the coordinator. The coordinator will initiate an 8D-report,
fills in the taken measures and forwards the complaint to the supplier. According to the 8D-
method the supplier has to implement measures to eliminate failures and failure sources effec-
tively. Wherever technically usable and agreed with the suppliers, all complaints will be exe-
cuted with SupplyOn. In case the portal is not available the 8D will be processed to the sup-
pliers via e-mail. Afterwards the coordinator verifies if the taken measures are adequate and
the measures make a contribution to solve the problem. In case the measures are inadequate
the case will be passed back to the supplier for rework. The processing will be done always
accordingly to the 8D method until the measures are appropriate. Finally there needs to be
made a utility assessment by the responsible coordinator as already mentioned and explained
before.
The result of this process is the definition and afterwards elimination of complaints regarding
incoming goods or packaging related problems as well as a final decision on the material.
6.3.13 Reimbursement of non-conformity costs
Trigger for the reimbursement of non-conformity costs process are failures at the goods re-
ceipt which results in rework at the warehouse. PUR and PUQ Function and also the Control-
ling, Finance and Administration Department (CFA Function) take an active part in this pro-
cess. The appropriate RASIC is shown in appendix 15.
Internal defect costs include costs resulting from non-conformities detected worldwide at
Bosch during incoming inspection and/ or manufacturing process or until transfer to a cus-
tomer. If a supplier fails to comply with Bosch delivery requirements or with separately ap-
proved special arrangements, Bosch reserves the right to undertake for example to rework the
goods. The costs incurred for this shall be charged on to the supplier. The basis for recovery
of internal defect costs and subsequently incurred costs caused by non-conforming parts pur-
chased from third parties is the contractual agreement with the supplier of the parts.
The non-conformity costs are defined and calculated as the sum of:
x Summary rework = (handling time) x (factor per hour, e.g. in Karlsruhe 37,26 per
hour)
x Summary pallet = (load units) x (factor per pallets, e.g. in Karlsruhe 22,32 per pal-
lets)
x Costs for non conformance delivery (e.g. in Karlsruhe 280)
x Cost to recharge (e.g. in Karlsruhe 20)
The first activity within this process is to analyze the internal defect costs. Every month at the
3rd working day the evaluation has to be done by PUQ Function in SAP. On the screen there
must be enter at the selection parameter the plant, the quality notification type and the quality
notification completition date. After the manual data input the transaction can be run. The
next screen displays a list of all defect costs during the selected period. Now the raw data can
be transferred from SAP into the excel file Defect Cost Analysis. The data needs to be
listed consecutively. After clicking the renew button the data will be updated and all notifica-
tions with supplier failures are automatically selected in the evaluation. Afterwards the data
needs to be checked due to plausibility by comparing Q-Reports in SAP and the data in the
excel file. It may possible that the raw data needs to be adjusted for instance if the supplier
does not accept the failure due to a reasoned objection, it would be shifted afterwards to self-
induced (Bosch). If the data is correct the next activity is to inform PUR Function via e-mail.
The e-mail contains also a link to the updated excel file. Now each buyer has to select the
own suppliers by using their purchasing group related to the actual month. In the excel file
there can be set a tick in the boxes at the end of each data set to make sure that a debit note
can be created subsequently. With the click on the button Generate Letter the debit note will
be created. This letter will be saved automatically on the desktop of the user. After printing
out the document needs to be signed by the buyer and another person from PUR Function as
well due to the two-man rule (four-eye principle). The signed document will be forwarded
from PUR Function to CFA Function. CFA Function debit the supplier at SAP and the debit
note will be sent out. Finally the receipt payments will be monitored in SAP by CFA Function
and the internal defect costs will be transferred to the warehouse cost center. The last activity
of the process it to create a monthly report of the internal defect costs which is done by PUQ
Function.
The result of this process is that non-conformity costs will be transparent and monitored. At
the end the additional costs will be claimed by Bosch from the suppliers and during the per-
formance of this process the affected suppliers are figured out as well as the scope they have
to pay.
6.3.14 Supplier development quality
Due to neither any kind of quality problems for instance complaints in the goods incoming
area or a high number of monthly ppm rates, the affected department recommends a supplier
for a quality development project. Additionally another trigger can be also the monthly TOP
Offender Meeting where all suppliers with a high number of complaints will be discussed,
pointed out regarding development potential and finally suggested for a project. For the reali-
zation of such a quality development project there is involved mainly PUQ Function but also
PUR Function. Furthermore the Central Purchasing Quality Management Department
(CP/PUQ) and MKT Function support PUQ Function by running the process. The respective
RASIC of the supplier development quality process can be found in appendix 16.
First PUQ Function selects a supplier which adapts for the implementation of a quality devel-
opment project. Afterwards PUR Function informs the supplier about the selection as well as
the realization of the project. Before the main project starts PUQ Function makes at the be-
ginning a LPA at the supplier to get a better overview of the existing quality-related poten-
tials. The LPA template has to be archived in the SRM system. In a next step PUQ Function
has to prepare several issues for the realization of the project. This includes besides the evalu-
ation of the LPA also the collection of information like existing contracts and agreements, last
audit results or the quality management system at the supplier. Moreover an internal consulta-
tion is needed as well as the project team has to be arranged. In addition the project tasks and
the project scope have to be defined and the procedure needs to be discussed within the pro-
ject team. Following this the current situation has to be analyzed. This includes for instance a
plant tour at the supplier. At a plant tour PUQ Function points out quality aspects like long
change-overs, high repairs or failures, quality gates as well as share on repairs or scrapping
rates. Afterwards a value stream analysis will be done by using the value stream mapping
which should give a good overview about the material and information flow at the suppliers
location. Certainly it needs to be selected goods that have an important and strategic character
for both parties. Consequently the results of the LPA will be verified due to the results of the
plant tour and the value stream analysis. The respective documents have to be archived in
SRM. In a next step there will be defined quality specific targets for example new ppm rates
or a maximum number of complaints per month by PUQ Function which should be achieved
with the realization of the development project and afterwards agreed with the supplier. With
the results of the analysis of the current state and in parallel to the definition and agreement of
the quality targets, there will be created an action plan by PUQ Function which includes
quality-related measures the supplier has to implement subsequently. Afterwards there is rec-
ommended to conclude an agreement with the supplier. Within the agreement there will be
made a commitment of both parties regarding the implementation of the action plan including
the measures as well as a common project procedure and aspects like capacity and resources.
The agreement must be signed by Bosch and the supplier and documented in SRM. Following
this the defined measures will be fixed in the PDCA template and finally realized by the sup-
plier. At the same time to the implementation of the mea-sures, the supplier gets the chance to
make a benchmark visit at a Bosch plant to see what can be achieved with such measures as
well as which results Bosch expects by conducting a quality development project. The suppli-
er will be monitored and coached over a period of time by means of around 3 months by regu-
lar telephone conferences or meetings. The monitoring is realized by using the PDCA tem-
plates. Whenever problems occur at the supplier PUQ Function may support and give advises.
Finally a project closure meeting will be conducted by PUQ Function to exchange experienc-
es as well as to point up if the defined targets are achieved. As a last point all documents have
to be archived in the SRM system.
By performing a quality development project Bosch has the target to improve the supplier by
means of avoiding failures through preventive actions to deliver goods in a perfect quality and
in the end to safe failure costs.
6.3.15 Perform supplier audit
The perform supplier audit process concerns external procurement and is carried out with ex-
plicit chosen suppliers. Triggers can be unplanned or planned events. With unplanned audits it
is about for instance current quality or logistic problems at the supplier. However planned
audits occur after consultation with the functional departments, in case of new and potential
suppliers or from system queries if minimum requirements are not fulfilled. The objective of
audits is the regular assessment, maintenance and sustained further development of the AA
management system. The evaluation base consists of requirements from the ISO 9001157, in-
ternal rules, specific customer or legal requirements as well as the process performance from
customer or user perspective. The supplier audit process is performed by PUQ Function, sup-
port by PUR and MKT Function. The RASIC is illustrated in appendix 17.
The annual audit planning is prepared at the end of each year as well as coordinated and ap-
proved by PUQ Function. The globally planned supplier audits are recorded and monitored in
a centrally available Audit planning file and provided to all involved employees. The audit
program includes the planning and organization of periodically performed audits according to
internal directives and customer requirements, and also plans capacity for event-driven audits.
The program is to be produced on the basis of an annual plan and extended during the course
of the year if necessary. The annual planning is based on an organizational charts as well as
specific requirements. The audit program includes also defining the goals, the processes that
has to be audited (scope of audit), the type of audit and standards that has to be applied, the
unit that has to be audited as well as the appointment of the audit team and the fixing of
schedules. After consultation with the audit team, the auditor who acts as coordinator and is
member of PUQ Function releases the audit program. The released audit program needs to be
archived in the IQ Basis system158 by the auditor. Afterwards the audit preparation starts by
planning the audit activities on basis of the audit program. The degree of detail in the sched-
ule of a particular audit (audit plan) depends on the scope of the audit and the complexity of
the processes to be audited. Divergent audit goals, process complexity, plant size, number of
157
ISO 9001 is a quality management norm that describes for which requirements the management system of a
company must be adequate to correspond to a certain standard with the realization of the quality management.
158
IQ Basis is a Bosch specific system where all audits will be preceded, archived and also all needed infor-
mation provided for the audit.
outsourced processes, composition of the audit team, language used during the audit, foreign
language quality management documentations and normal local working hours must be taken
into account. The auditor coordinates travel planning, delegates tasks within the audit team
and prepares the detailed audit plan which includes for instance audit criteria, agenda, audit
location and duration or required documents. If required co-auditors with specialist
knowledge of products or processes can be called in to assist the auditor. The scheduling of
the planned supplier audits is made by the responsible and special trained auditor. In the next
step the auditor sends the invitation to the affected supplier as well as to all persons involved.
In the course of the audit, the auditor assesses the relevant requirements and records the find-
ings and observations in the audit report. An audit involves also checking and handling the
Bosch specific document Supplier audit questionnaire N93A12, which deals with environ-
mental requirements and the prohibition of harmful substances. Following completion of the
audit, the auditor produces an audit report and specifies a deadline by which the action plan
has to be presented by the supplier. Then the audit report has to be committed and distributed.
Consequently the audit tracking phase commences. In the final presentation and concluding
discussions, the auditor informs the management of the audited company of any discrepancies
found and the extent to which corrective action and possibly a re-audit may be required. The
audit cover sheet signed by the supplier as well as the audit report is distributed to all persons
involved by PUQ Function. Following this the auditor archives the audit reports in the IQ
Basis system and PUR Function in the SRM system. Whenever the audit team decides that a
re-audit is needed and in justified cases PUQ Function can arrange and conduct re-audits at
any time. The management system of suppliers is assessed on the basis of standard Bosch
questionnaires filed centrally in the audit database. Therefore a new appointment with the
supplier will be initiated by PUR Function to discuss reasons with the supplier for the pre-
audit as well as the implementation and further procedure. If no re-audit is required PUQ
Function has to send the request for a provision of an action plan to the supplier. The respon-
sible person of the audited organization or the manager of the audited unit announces
measures like planning, realization and effectiveness according to default in the audit report in
time to the auditor. Moreover the audited organization is responsible for the punctual creation
and implementation of the action plan. To determine the basic cause of major non-
conformities, the minimum requirement in all areas is the use of the "5xWhy" method. Based
on the determined major non-conformity, all necessary corrective and preventive measures
are to be specified. If the action plan is on schedule, complete and plausible the supplier will
be informed about the current state by PUR Function. Whenever the action plan is inadequate,
a new request will be send to the supplier by the auditor to rework on the action plan and the
measures as well. The auditor is responsible for ensuring the return of the signed cover sheet
and the action plan in due time by the supplier. The action plans submitted are to be checked
for plausibility and completeness. If the auditor does not accept the action presented, the sup-
plier is requested to correct the action plan and submit it to the auditor in due course. Addi-
tionally the auditor is responsible for the monitoring and documentation of the individual ac-
tions taken by the supplier. Whenever the action plan is accepted by the auditor and processed
successfully by the supplier, the auditing offer can be closed by PUQ Function and the final
results distributed to all concerned departments. Finally PUQ Function archives the results in
IQ Basis and in parallel PUR Function informs the supplier about the closure.
At Bosch audits are used by means of regularly assessing the effectiveness of the management
system and processes regarding the fulfillment of specified internal and external requirements
and stipulations. Audits are designed to deal with continuous and sustained improvement of
the quality management system, the recognition of risks and the identification of waste re-
garding external organizations.
6.3.16 Supplier development project with suppliers
In contrast to the supplier development quality process, this process has a holistic view and is
not only effective by means of quality issues but also regarding cost and logistic aspects.
Therefore due to any kind of problems like supplier performance or delivery fulfillment, the
affected department recommends a supplier for whom the supplier development project pro-
cess will be initiated. The suggested suppliers should mainly be part of the upper third of the
supplier's pyramid and in general willing to change processes in the own company. The over-
all process owner is PUQ Function but to run the process in an efficient way there are needed
some more departments like PUR Function. By means of supporting and consulting there are
incorporated MKT Function, LOG Function as well as CP/PUQ. To have a better understand
of the process, the corresponding RASIC is shown in appendix 18.
The first activity of the process is to check the supplier status. This means that PUR Function
has to verify with the help of the SRM system whether the supplier is adapted for such a pro-
ject and if there are still other business units that have already initiated a supplier develop-
ment project with the same supplier. In the next step the project needs to be confirmed by
PUQ Function to make sure that the selected supplier is adapted for such a project. Moreover
PUQ Function has to check if there was performed recently, which means for a period of
around two years from the date, a development project with the submitted supplier. After the
selection PUR Function informs the supplier about the realization of the development project
and the supplier will be invited to a launch seminar. The realization of the seminar is conduct-
ed by PUQ Function together with the Supply Chain Academy of Bosch. With this launch
seminar the supplier acquires trainings to be well prepared for a successful realization of the
development project and additionally gets information about the further procedure. The pro-
ject starts by preparing several things for the realization of the project. This includes besides
the evaluation of the LPA, the collection of information and an internal consultation. In addi-
tion the project team, the tasks and the scope have to be defined in detail and the further pro-
cedure needs to be discussed within the project team. The next activity within the process is to
cope with the contracting aspect. Within the contracting there will be made a commitment of
both parties regarding a common project procedure as well as issues like capacity and re-
sources, but also fixed the sharing of the accruing costs and the expected benefits. The con-
tracting must be signed by Bosch and the supplier and accordingly documented in SRM by
PUQ Function. After that there will be initiated a kick-off meeting where the real develop-
ment project starts at the supplier. Following this PUQ Function makes a LPA at the supplier
to identify problem-related improvement potentials. The LPA template needs to be archived
afterwards in the SRM system. Subsequently the current state must be analyzed. Therefore
PUQ Function makes a plant tour at the supplier to point out obvious and hidden waste re-
garding problem-related issues like for instance double handling, non-essential waiting times,
inventory or overproduction. Furthermore a value stream analysis has to be done to give a
good overview about the material and information flow by using the method of the value
stream mapping. It needs to be selected goods that have an important and strategic character
for both parties. The results of the LPA will be verified due to the results of the plant tour and
the value stream analysis. Moreover the business process will be analyzed to receive indica-
tions for potential and achievable changes, the results are consolidated in a report. All respec-
tive documents have to be archived in SRM. As a next step the target state needs to be defined
by using the obtained analysis results. The concept has to be developed after the entire analy-
sis. Hence it should be demonstrated how an efficient, poor in waste and lean supply chain
and a process-oriented management system may look like. This forms the basis for the further
cooperation of both parties. It is important that the new concept can be realized within a few
months and whenever needed, it must be divided into several smaller projects to be able to
guarantee the crucial priority for single leading points. Within the developed concept and the
results from the analysis there must be also created an action plan which includes problem-
related measures the supplier has to implement and handle on time. The measures are fixed in
the PDCA template and needs to be documented in SRM. Afterwards the supplier will be
monitored and coached over a longer period of time by means of around 3 months by PUQ
Function. The monitoring can be realized by using the PDCA templates which has to be doc-
umented finally in SRM. Whenever problems occur at the supplier PUQ Function may sup-
port and gives advises. In parallel to the implementation of the measures and the monitoring,
the supplier gets the chance to make a benchmark visit at a Bosch plant to see what can be
achieved with such measures as well as which results Bosch expects by conducting a devel-
opment project. Finally a project closure meeting will be conducted by PUQ Function to ex-
change experiences as well as to point up if the defined targets are achieved. As a last point all
documents, the substantial impacts as well as the most essential results achieved have to be
archived in the SRM system.
By realizing a development project, Bosch has the target to improve the supplier by means of
the holistic supply chain in a direction of a lean enterprise with a focus of processes, the man-
agement system, costs, quality or logistic aspects. Furthermore the supplier will be developed
particularly regarding problem-related issues to increase the entire competitiveness.
7 Conclusion and Future Prospects 71
7 Conclusion and Future Prospects
To be able to work performance-oriented as well as to achieve the ambitious targets of the

Board of Management, efficient and lean business processes are an unbeatable success factor.
Hence, for purchasing in the AA business sector the decision of a change become apparent as
necessary and important and was at last mastered successfully. The expected results, targets
and expectations that were set in this project could be already fulfilled by means of maximize
economic advantages and a more efficient work from now on. Moreover by the decision to
embrace this change, the business sector could handle with the new requirements and devel-
opments as well as to strengthen its position on the highly competitive market and is also able
to deal with the competitive pressure in future. Therefore in the centre of the present master
thesis was the development of the PU-Reference Model for the worldwide purchasing pro-
cesses in the AA business sector of the Robert Bosch GmbH. To guarantee a qualitative anal-
ysis and modeling result current BPM methods and approaches were identified and applied
which have been contributed to reach the targets of the present work and the project as well.
A central target of the reference model was a clear and simplified documentation of the
worldwide purchasing processes for Trade Goods. In comparison to a merely verbal descrip-
tion in forms of manuals, a graphical representation of a process is substantially more precise,
understandable and clearer. The new designed process map creates an overview of all pur-
chasing processes in a level concept and by modeling of the single purchasing processes in
BPMN, complicated processes became clear. A uniform and simpler documentation with a
process flowchart, the RASIC and a short description of the most important activities creates
a better process understanding for the employees, in particular for new ones. Another benefit
was the worldwide harmonization and the lean thinking of the purchasing processes for Trade
Goods. Furthermore additionally purchased companies were integrated with the whole reor-
ganization of the purchasing process map and lastly the processes were provided to them. In
addition, at the beginning the employees were incorporated in the project by which the ac-
ceptance was given from the start on and will raise by suitable trainings in phase 3. The re-
spective specialist knowledge as well as the ideas and suggestions of the employees were cru-
cial for the identification of weak spots, optimization potential and also for the creation of the
new processes. The new developed processes could be released by a regular consultation with
the management and afterwards was handed over to the Quality Management and Methods
Department (QMM). QMM prepared the processes according to the system for the implemen-
tation phase. The active integration of the management made clear additionally the strategic

DOI 10.1007/978-3-658-04648-4, Springer Fachmedien Wiesbaden 2014
72 Conclusion and Future Prospects
significance of the project. The whole management was informed any time about the current
status of the project, related problems as well as the further course of action by continuous
meetings.
Beside the documentation and the harmonization of the worldwide purchasing processes the
reference model acts also as process optimization. Within interviews and group discussions
there were argued and analyzed the procedure of the current processes, identified weak spots
as well as developed, optimized and modeled the new processes. For instance in the discus-
sion about the process "S1.7.2 Reimbursement of Non-Conformity Costs" it became clear that
not all AA locations know and perform actively this process and that there is also no control
about the receipts of payment of the demanded costs from the suppliers. Hence, this point had
to be fixed explicitly and discussed together with CFA Function. Furthermore it was pressed
as a whole by the purchasing managers that the activity perform project management has to
be integrated in the process "S1.1.2 Define and agree on RPP projects". The added activity
was needed because in the past an active project management was not or only parsley con-
ducted by the buyers. Nevertheless this aspect is of essential meaning for a project success
which was indentified more clearly by the fact that information as for example schedules or a
feasibility analysis is integrated in a corporate project charter and therefore cannot taken into
consideration.
As the handling of the 16 purchasing processes took up a lot of time, it was not possible to
play an active part in the implementation phase due to the given processing time of the master
thesis. The implementation of the processes will be realized in phase 3 of the internal project
planning and starts in September 2013 by employees of PUQ and QMM. Primary a process
champion was defined per department by the respective heads of department which was
trained first and operates in future as a process expert. A continuous improvement of the pro-
cesses as well as a better agreement within purchasing should be allowed by the introduction
of process champions. Afterwards the other employees were trained and in parallel the al-
ready modeled purchasing processes in inubit Suite were linked with the Intranet, embedded,
provided to all employees with the relevant documents and templates and finally rolled out in
the operational business.
The additional phase of the process controlling serves for the supervision of the implemented
purchasing processes and therefore should not be disregarded prospectively. The results of the
process controlling have again a direct influence on the strategic process management. By the
need to be able to react flexible to the changed strategy of the process management and to
7 Conclusion and Future Prospects 73
improve constantly the purchasing processes, there is required a regular maintenance and ad-
aptation of the processes. This should be realized in future by the process champions as well
as the employees of all affected and involved departments under inclusion of inubit Suite. The
revised processes will be made available after the validation by the Purchasing Area Manager
to the employees through the in-house Intranet.
Finally it can be said that the development of the PU-Reference Model was essential to defy
the future challenges and has already turned out as a success. The obsolete, extensive and
complicated manuals could be removed by the development of the new processes. The new
processes became leaner and were designed easier, however without losing important infor-
mation. In addition weak spots could be eliminated which were identified within the old pro-
cesses and together with the employees there were designed clear, understandable and easy
process flows. Therefore the fundament of the project success was laid with which the given
targets can be achieved. The competitive and ambitious targets of the Robert Bosch GmbH
can be reached in future by a continuous maintenance and advancement of all reference mod-
els and not only the PU-Reference Model as well as the introduction of process champions
and the integration of all involved employees. Further the company will withstand the com-
petitive pressure and match the new challenges. Indeed on a long-term view, Bosch must crit-
ically deal with the aspects of the continuous improvement of the processes, the comprehen-
sive process controlling and the fulfillment of the business targets as well as to keep the focus
on the constantly changing competitive conditions and requirements. By the optimization and
development of the purchasing processes it was also improved automatically the Supply
Chain of the company and therefore it was increased the added value. This positive benefit
was realized by the close link of business processes with the Supply Chain and furthermore
must remain prospectively in the focus of the company. A continuous improvement and adap-
tation of the Supply Chain to new circumstances is one of the most important success factors
to be able to perform successfully on the market, to handle the hard competition as well as to
maximize the competitive advantages in future.
Index to Appendixes 75
Index to Appendixes
Appendix 1: AA Business Process Map .................................................................................. 76

Appendix 2: PU-Reference Model ........................................................................................... 77
Appendix 3: RASIC of the define and agree on RPP projects process .................................... 78
Appendix 4: RASIC of the define PUR targets process........................................................... 79
Appendix 5: RASIC of the identification of potentials process ............................................... 80
Appendix 6: RASIC of the conduct contracting process ......................................................... 81
Appendix 7: RASIC of the supplier enabling process ............................................................. 82
Appendix 8: RASIC of the release series production process ................................................. 83
Appendix 9: RASIC of the maintain supplier master data process .......................................... 84
Appendix 10: RASIC of the negotiate and provide contract process ...................................... 85
Appendix 11: RASIC of the incoming inspection process ...................................................... 86
Appendix 12: RASIC of the monitor achievement of PUR targets process ............................ 87
Appendix 13: RASIC of the monitor supplier performance process ....................................... 88
Appendix 14: RASIC of the manage complaints with suppliers process ................................ 89
Appendix 15: RASIC of the non-conformity costs process ..................................................... 90
Appendix 16: RASIC of the supplier development quality process ........................................ 91
Appendix 17: RASIC of the supplier audit process ................................................................. 92
Appendix 18: RASIC of the SD projects with suppliers process ............................................. 93

76
M1 Develop M2 Deploy M3 Develop M4 Ensure M5 Perform

Business Strategy and Control Division Corporate Corporate
Strategic Governance Communication
Objectives
Market Portfolio of
Needs C1 Manage Portfolio und Create Competitive Product Market Offer
Customer /
Production Deliverable
C2 Source Material and Manufacture Products
Order, EZRS Products
Supply
Appendix 1: AA Business Process Map
Customer Customer
Needs / C3 Generate Customer Loyalty and Sell Product Loyalty /
Demand Order/Payment
Customer
Delivered
Product Order / C4 Source and Deliver Products Product
Forecast
Customer Solved Problem

Problem/Ser- C5 Provide Service Products Delivered
vice Request Service
S1 Provide S2 Provide S3 Provide S4 Provide

Purchasing Finance & Controlling Quality Communication
Services Services Services Services
S5 Provide S6 Provide S7 Provide

S8 Provide
Human Resource IT Solutions and HSE
Infrastructure
Services deliver Support Services
Appendixes
Appendixes 77
Appendix 2: PU-Reference Model
S1 Provide
Purchasing
Services
S1.1 Material Field S1.2 Search and S1.3 Release S1.4 Release
Strategy and Planning Select Supplier Supplier Product
S1.1.1 Global sourcing S1.2.1 Evaluate existing S1.4.1 Initial sample

S1.3.1 Sourcing decision
strategy for material field parts to identify potential inspection (ISIR)
S1.2.2 Identify necessity

S1.1.2 Define and agree of new S1.3.2 Conduct S1.4.2 Release series
on RPP projects suppliers/technologies for Contracting production
new parts
S1.2.3 Analyze market /

S1.1.3 Define and S1.3.3 Supplier Enabling
technologies and search
maintain supplier pyramid Projects with Suppliers
potential
S.1.1.4 Define S1.2.4 Ensure required

S1.3.4 Supplier and plant
Purchasing capacity at suppliers
approval
targets (ramp-up)
S1.2.5 Identify and select

potential sources (incl.
RFQ)
S1.5 Make S1.7 Manage S1.8 Appraise Supplier/

S1.6 Monitor & Report
Supplier Available Non Conformity Supplier
Performance
for Operations Cases with Source Development
S1.6.1 Monitor S1.7.1 Manage

S1.5.1 Maintain Supplier S1.8.1 Perform
Achievement of Complaints with
Master Data Supplier Audit
Purchasing Targets Suppliers
S1.8.2 Supplier
S1.5.2 Negotiate and S1.6.2 Monitor Supplier S1.7.2 Reimbursement
Development Project with
Provide Contract Performance of Non-Conformity Costs
Suppliers
S1.5.3 Define and

S1.6.3 Supplier S1.7.3 Escalation
Conduct Incoming
Assessment (ISA) Management
Inspection Process
S1.6.4
S1.7.4 Supplier
Crisis and Risk
development quality
Management
78 Appendixes
Appendix 3: RASIC of the define and agree on RPP projects process

Appendixes 79
Appendix 4: RASIC of the define PUR targets process

80 Appendixes
Appendix 5: RASIC of the identification of potentials process

Appendixes 81
Appendix 6: RASIC of the conduct contracting process

82 Appendixes
Appendix 7: RASIC of the supplier enabling process

Appendixes 83
Appendix 8: RASIC of the release series production process

84 Appendixes
Appendix 9: RASIC of the maintain supplier master data process

Appendixes 85
Appendix 10: RASIC of the negotiate and provide contract process

86 Appendixes
Appendix 11: RASIC of the incoming inspection process

Appendixes 87
Appendix 12: RASIC of the monitor achievement of PUR targets process

88 Appendixes
Appendix 13: RASIC of the monitor supplier performance process

Appendixes 89
Appendix 14: RASIC of the manage complaints with suppliers process

90 Appendixes
Appendix 15: RASIC of the non-conformity costs process

Appendixes 91
Appendix 16: RASIC of the supplier development quality process

92 Appendixes
Appendix 17: RASIC of the supplier audit process

Appendixes 93
Appendix 18: RASIC of the SD projects with suppliers process

References 95
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BestMasters

Springer awards BestMasters to the best application-oriented masters theses,

Forewords by Prof. Dr.-Ing. Jrgen Gottschalck

ISBN 978-3-658-04647-7 ISBN 978-3-658-04648-4 (eBook)

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie;

Library of Congress Control Number: 2013956639

Printed on acid-free paper

Springer Gabler is a brand of Springer DE.

The present work connects in an exemplary manner methodical approaches to a practical

Prof. Dr.-Ing. Jrgen Gottschalck

Dipl.Ing. Jochen Polke

List of Figures ........................................................................................................................XV

2 Company Profile ............................................................................................................... 6

3 Theoretical Backgrounds ............................................................................................... 10

4 Approach of the survey and modeling of processes ..................................................... 19

4.1.3.2 Determination of Rules for the Modeling Purpose ......................................... 25

5 Process Modeling with BPMN ....................................................................................... 35

6 The Project BPM@AA ............................................................................................... 44

6.3.7 Maintain supplier master data ............................................................................ 55

7 Conclusion and Future Prospects .................................................................................. 71

Index to Appendixes ............................................................................................................... 75

Figure 1: Structure of the thesis ................................................................................................. 4

AA/COR Automotive Aftermarket Controlling Department

AA/PU Automotive Aftermarket Purchasing

AA/PUC Automotive Aftermarket Purchasing Controlling

AA/PUR Automotive Aftermarket Purchasing of Trade Goods

AA/PUQ Automotive Aftermarket Purchasing Quality Management

AA/QM Automotive Aftermarket Quality Management

BMO Benchmark and Organization Department

BPM Business Process Management

BPMI Business Process Management Initiative

BPMN Business Process Modeling Notation

BU/FC Business Unit Controlling Department

BU/PU Business Unit Purchasing Department

CFA Function Controlling, Finance and Administration Department

COR Function Controlling Department

CPC Cockpit Chart

CP/PUQ Central Purchasing Quality Management Department

KPI Key Performance Indicators

LOG Function Logistic Department

LPA Lean Plant Assessment

MAG Employee Performance Review Discussion

MCR Material Cost Report

MKP Function Marketing Packaging Department

MKT Function Marketing Department

OMG Object Management Group

OPL Open Point List

PUC Function Purchasing Controlling Department

PUQ Function Purchasing Quality Management Department

PUR Function Purchasing Department

QAA Quality Assurance Agreement

QMM Quality Management and Methods Department

Regional PUR Regional Purchasing Department

RPP Ratio Project Planning

TCO Total Cost of Ownership

V-Ist Current forecast

WIRE Economic calculation

1.2 Goals and Limitations

1.3 Structure and Contents

Figure 1: Structure of the thesis

2.1 Robert Bosch GmbH

2.2 Business Sector Automotive Aftermarket

Figure 2: All divisions in the Automotive Technology Business Sector

2.3 Organization Structure of AA/PU