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Case Study: British Airways

Amethyst responsibilities:

The project: The CRISALIS Project was set-up to replace a failing cargo revenue accounting system. An invitation to tender for a replacement was issued, with a supplier selected on evaluation of the respondent's packages.
The timeline: A two-year involvement from start-up to implementation of phase I

The concept:

• replace the existing revenue accounting system with 3-tier client-server technology, incorporating a protective Data Management layer to ensure consistency and clean data feeds from operational systems.

The scope: Data Capture work-stream, Core Accounting Work-stream, Business Process Work-stream*

Client staff: 120 in Cargo Revenue Accounting + participants from British Airways IT and Cargo Operations

Development shop: Outsourced to Mercator, software house based in Dubai, UAE.

Business Process Work-stream:

Changes to business processes necesitated a Business Process Re-engineering work-stream to provide a structured approach, not only to accommodate the new technology, but to to re-align the revenue accounting activities with the updated strategy and business model.

Objectives: The objectives of the Business Process

Re-engineering work-stream were to:

• Identify process improvements and/or process re-engineering required in support of CRISALIS implementation
• Identify redundant processes
• Identify the required process flows and dependencies between revenue accounting and the other BA functions, processes and systems and advise those involved, including (where appropriate):
• Finance, including Global Accounting, and Credit Control
• Cargo Operations including the sales, reservation, booking, handling, billing finance processes performed at stations
• Further BA functions, processes and systems identified during BPR activities
• Identify resource levels and skills, with particular attention to the transition period and de-commissioning of the current system.
• Effectively agree and communicate proposed changes
• Monitor the measures set up in support of the Business Case
• Identify, set up and monitor any new measures in support of the current situation costs and expected benefits of the new revenue accounting processes.
• Integrate process change activities under the Network Conformance change programme (a BA Cargo divisional initiative)

Specific work-stream objectives were

• support the implementation of the new revenue accounting software package and accompanying technologies in the business environment
• support the total CRISALIS programme of change including resourcing and working practices
• provide a framework for managing the transition period for Emerald/ CRISALIS cut-over (old to new systems)
• to derive tangible and measurable business benefits in:
• streamlining processes
• lowering process costs
• improving cycle time
• reducing re-work and errors
• producing output better fitted for purpose
• to derive benefits in customer satisfaction and staff morale
• support the WCRS Quality Management Framework (QMF)
• management of the CRISALIS issue log to ensure effective resolution

Scope: The scope of the Business Process Re-engineering work-stream included:

• Process definition - mapping current and future processes in the following areas:
• Proration
• Stock control
• Account maintenance
• Flown data input
• Sales data input & sales return reconciliation
• Sold/flown reconciliation
• Billing including Interline
• Collection import
• Customer queries
• Interline payables
• Sales revenue reporting & accruals
• Out-Station processes
• Production and approval of new processes, SOPs and resource plans
• Release and delivery of new SOPs & training materials
• BPR Communications strategy and communication of BPR activities
• Monitoring and escalation of project issue log

Constraints: The following constraints specific to the Business Process Re-engineering work stream were identified as:

• The target date for CRISALIS implementation (1/4/99)
• Available resource levels for implementation and transition period
• The need for all new process definitions to align with:
• the BA corporate standards for BPR, roles/responsibilities and resourcing policy
• the scope of systems and technologies defined by other work-streams and projects, including:
  • PABS
  • RAPID package to be supplied by Mercator
• programmes of change for NWCC and Global Accounting

Dependencies: In order to achieve the CRISALIS planned deliverables and milestones

• Subject-matter experts (knowledgeable users!) were made available on a planned basis for:
  • process definition workshops
  • review and refinement of new process definitions
• Bench-marking visits to selected industry players were carried out: these included Emirates Airlines, American Airlines and Air Canada
• Suitable WCRS staff were available according to the plan, to serve as knowledgeable business representatives
• The Commercial Design Group (CDG), Interline User Group and New Business Steering Group had to be empowered to support the BPR activities within CRISALIS project, where they touched other parts of the Cargo division.
• There were ongoing changes in the BAWC business, staffing and organisation during the lifetime of the project

Responsibilities: The BPR work-stream was governed within the frameworks for process change within CRISALIS and within the overall Network Conformance programme.
Work was undertaken as identified by the CRISALIS project team and commissioned by the Business Process Manager.

The work-stream was supported by the CRISALIS project team.

Deliverables: The Business Process Re-engineering sub-project produced the following deliverables for the processes defined as in-scope:

• BPR High level assessment - a diagnostic stage
• BPR presentation material - for NBSG, CDG, IUG and other audiences, in order to communicate findings and recommendations
• New process vision - something to aim for
• BPR work-stream resource plan - ensuring the bodies to do the work
• BPR external / interface process catalogue - listing touch-points and hand-overs
• Process Models of the current physical processes - the 'as-is' model
• Process Models of the required processes, incorporating the new systems and technologies to be deployed in WCRS as part of CRISALIS, NWCC and other referenced initiatives - the 'to-be' model
• Detailed Process Descriptions for the required processes - the target 'what-to-do'
• Standard operating procedures (including new SOP's and amendments to existing SOP's as appropriate) and resource plans in support of new process definitions - the operational 'how-to-do'
• SOPs & training materials delivered - the educational material
• Process improvement implementation plan - the timetable
• BPR Communications strategy
• BPR communications material

These deliverables were cross referenced with the deliverables of the other sub-projects and other BA departments

Other deliverables produced by the Business Process Re-engineering work-stream in the course of its activities:

• Discussion notes
• Workshop notes
• Minutes of meetings
• Project plans
• Reporting on the project issue log

The content of the deliverables needed to complete the project implementation were reviewed at the close of the Design Phase.

Index of Case Studies

» MGM Assurance
» Thomson SHG
» First Choice
» British Airways Cargo
» Boathow

 Index of Clients

» Pensions Regulator
» MGM Assurance
» American Express
» Willis Corroon
» Automobile Association
» Thomson SHG
» Virgin Holidays
» First Choice Holidays
» British Airways
» London Electric
» Thames Water
» Fforde-Management
» Boathow
» IBM / UTELL