Best Practices for Managing a Large-Scale SAP System Consolidation Project
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Transcript of Best Practices for Managing a Large-Scale SAP System Consolidation Project
Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2014 Wellesley
Information Services. All rights reserved.
Best Practices for Managing a Large-Scale SAP System Consolidation Project
Kevin Moore Independent Consultant
1
In This Session
• Insight into the challenges, successes, tools, methods, and
lessons learned from each major phase – project prep through go-
live
• Tips for structuring business and IT teams globally and locally to
successfully complete this type of a project
• Guidelines for successfully migrating over 100 different master
and transactional data objects across functional domains from
multiple countries
2
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up
3
SAP4UCB Program
• SAP4UCB Program – Global initiative within UCB that started in
2006 to transition the company from local processes and data on
multiple SAP and non-SAP systems to global processes and
centralized master data on a single, global SAP ERP 6.0 system
• The focus of this presentation is on the SAP4UCB_NA project that
was a large and complex SAP system consolidation project for
North America that resulted in the successful migration and
integration of users, processes, and data from three separate
legacy SAP systems in three countries (U.S., Canada, and Mexico)
to a single, global SAP system
4
Global SAP4UCB Roadmap
2007 2008 2009 2010 2011 2012 2013 >>
India Nether.
France
Spain
Germany
Russia
China
Australia Belgium
Poland
Italy
Lux.
UK
USA
Canada
Mexico
Switz. Finland
Sweden New Zeal.
Japan
SAP4GTSO
2006
5
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up
6
Project Approach/Golden Rules
Global Process & Data Template
Global & Local Processes Global & Local Data Ownership
Global & Local Approvals
Pharma GxP – OQ, PQ Required Global & Local BRSs
One Chart of Accounts No Changes to Standard SAP
First Option = Configuration
Start Together & Finish Together! All 7 Sites – USA, CAN, MEX
1 UCB
Local
Global
Not Documented = Not Done
No Training = No Authorizations Intercompany Processes and Data
7
Project Scope
12 Domains
18-Months
750+ Users
120+ Biz & IT Team
100+ Data Objects
900+ Tests
650 Transports
161 RICEFs
7 Sites
USA CANADA MEXICO
3 Legacy SAP Systems
Teams on 3 Continents
1 Global SAP 6.0 System 1 Global Template
3 3PL Locations
14 Entities
45 Global BRSs 25 Local BRSs
8
Migrated Systems
SAP R/3 4.7 UCB US, Canada
Live Since 1998
SAP R/3 4.7 Generics US, Research US
Live Since 2004
SAP R/3 4.7 UCB Mexico
Live Since 2003
Global SAP
ERP 6.0
Interfaced Systems – Internal, External
SAP4UCB NA
Project
Legacy Systems
9
SAP Landscape
DEV
Test &
Train 1
Test &
Train 2
PRO
Transport Tasks
Refresh
Transports
Test & Train1 – Formal Testing and Training Test & Train2 – Informal Testing and Training
Refresh
Transports
10
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up
11
Project Schedule
2011 2010 2012
Hypercare (10 weeks)
Biz Go-Live January 1st
Prep
Legal Entity Consolidation (Legacy Systems)
Medicare Coverage Gap
Global Budgeting/ Reporting Changes
Material Re-Stamping
End-User Training
SOP Updates
Prep Key User Training
Prep
E2E/Integration Workshops & Demos
TRAIN
DR D2 D3 D1
Cutover
Data Dual Maint.
Tech Go-Live
Cutover Planning (Data + Sites)
GO-LIVE !
Blueprint Kick Off
Fit-Gap
DESIGN Early
Development
Configuration
Development
BUILD
Formal OQ, PQ, UAT, Regression
Addit.
Unit, E2E Write Unit, E2E
Scripts
Write Formal Scripts
Formal Test Prep/RA TEST
Prep
JAN JUL OCT FEB MAR MAY JUN SEP NOV DEC AUG APR JUL OCT SEP NOV DEC AUG JAN FEB MAR JUN MAY
12
Project Phases
• Fit-Gap
Brief analysis and comparison of many of the primary
processes as compared with the global system prior to the
main project
Formed initial teams of NA Key Users and SAP Central Team
Leads
Demonstrated key features of the global system to the business
• Blueprint
Typical blueprint with the following exceptions:
Legal entities changed in the middle of the phase
Several developments started for known required programs
13
Blueprint/Deliverables
Blueprint Workshops
Document Updates
NA Business Review
Kernel Guardian Review
Validation Sign-off
Solutions
BRS
Global Local
BRS Catalog
Funct. Specs (FS)
FS Catalog
UDD
UDD Index
TMX
CRQ
Requests in “Business Speak”
Requests to Location Matrix
Design “SAP Speak”
RICEF List
RICEF Design Specs
Traceability Matrix
Function, SAP T-Code to Location Matrix
SAP Change Request
14
SAP Processes/Data – NA vs. Global
Global
Chart of Accounts
Material Master
Vendor Master
Customer Master
PR/PO Approvals
Treasury Management
Budgeting Processes
Supply Chain Planning Processes
North America
Local Data Views
Class 2 Substance Orders
DEA Controls
Rebates
Chargebacks
3PL Processes
A/P Payment Approvals
PI Sheet Confirmations
15
Project Phases
• Build
On-site configuration and primary development
Some off-shore resources used for development and
authorizations
Updated processes and blueprint documentation reflecting
legal entity consolidation project
CRQs – Changes created for all requests in Remedy/ITSM
Heavy unit testing prior to transport release from DEV with
the goals of:
Maximizing the quality of the solutions implemented
Minimizing the changes needed after the build phase
Minimizing the number of errors found in formal testing
17
Interfaces
SAP BI
Global
SAP
SAP HR
Hyperion
GLIMS
Chargebacks
Rebates
Grants
Banking 3PLs
EDI
Customers
Travel
ValueTrak/FFS
Vision/SFA
…
MDM
Mobile
Medicaid
GP
…
DEA Returns
Flat File
Payroll
18
Project Phases
• Testing
Process testing
Utilized local Test Coordinator to track and manage testing
activities in HP Quality Center
Built test scripts and executed dry run/informal tests prior to
formal testing
Data testing
Utilized multiple local Test Coordinators
Ran three cycles of data testing prior to the dress rehearsal
Some dress rehearsal files were re-used for cutover
Dual maintenance process activated with dress rehearsal
19
Testing Cycles
C3
OQ + PQ
GxP
C2
Unit + E2E
GxP, Non-GxP
C4
UAT
Non-GxP
DR
M + D
WP 1 – 7
D3
M + D
WP 1 – 7
D2
M
WP 1 – 4
D1
M
WP 1 – 2
667 + 42 61 + 79 60
20+ 70+ 100+ 100+
Pro
cess
, RIC
EFs
Dat
a
Primary ETL Tools: SAP BusinessObjects Data Services (BODS), Access, Excel
Primary Testing Tool: HPQC
20
Training
• Demos
• Face-to-Face
• Online Training
• Training Required at
Role level for UserID
Creation and Role
Assignments
SAY & DO
SAY
HEAR & SEE
SEE
HEAR
READ
90 %
70 %
50 %
30 %
20 %
10 %
Memory Retention After 2 Weeks
AC
TIV
E LE
AR
NIN
G
PASS
IVE
LEA
RN
ING
Source: Edgar Dale, 1969
21
Project Phases
• Cutover
Cutover Manager coordinated and planned with business and SAP teams in all 12 domains for all 7 sites the activities related to the extraction, mapping, transformation, review, approval, loading, and post-load verification of over 100 data objects
Site-specific plans were coordinated with site managers for non-SAP data-related tasks, e.g., interfaces, printers, transition activities at go-live
Dual maintenance strategy defined for each master data object
Some dress rehearsal files re-used for cutover
Delta files allowed and used for several objects
Tools – Transformations SAP BusinessObjects Data Services (BODS), Access, Excel. Loads Primarily SAP LSMW.
22
Project Phases (cont.)
• Hypercare
Ten-week time period starting with go-live day
Hypercare rooms identified for the three largest sites and
staffed with project resources
Daily meetings held to review status, issues, solutions during
the first two weeks
All issues were tracked, prioritized, and resolved by local team
for highest priority issues
Project resources sent to the front lines to assist key users and
end users during first two weeks of go-live
Nearly all project resources rolled off as planned
Hypercare phase closed as planned without extension
23
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up
24
Business Teams/Roles
No
rth
Am
eric
a Eu
rop
e
End Users
North American Key Users
Global Key User
Global Process Owner
Local Key Users
Global Management
Domains SD MDM FI CO TR WM PUR PP QM PM Planning Interco
Business Integration Manager
Site Managers
ATL, RTP, ROC, SEY, PRI,
CAN, MEX
25
Roles and Responsibilities
• Business
Organized by domain/module, e.g., SD, WM, PP, CO, etc.
Global Process Owner
Ensured process alignment across countries
Global Key User
Worked closely with NA team to align NA requirements with
global SAP processes and data
North American (NA) Key User
Domain lead across all NA sites
Worked closely with SAP Domain lead
Local Key User
Subject Matter Experts for a domain at site-level
26
Roles and Responsibilities (cont.)
• Business (cont.)
Site Managers
Ensured requirements across all domains utilized by the site
were identified and met in SAP
Managed availability of site business and IT resources
Business Integration Manager
Ensured integration across domains/modules in SAP along
with SAP Central Team Integration Manager
Led workshops featuring global system functionality along
with SAP Central Team Integration Manager
Supported NA Key users to stay aligned with global team
27
Asi
a
SAP IT Teams/Roles
Euro
pe
N
ort
h A
mer
ica
SAP Central Team Leads
Global SAP Kernel Guardians (Solution Architect Leads)
SAP Central Team Members
Valid. Testing
Training Auth
SAP Central Team Manager
Global IT/SAP Management
ABAP Lead
Data
SAP Integration Manager
SAP Site
Leads
Configuration Development ------------------ Global Service Owners ---------------------
Valid. Testing Leads
Auth Local
Data Lead
ABAP Lead
ABAP Local
Training Admin
Data Analysts
FI, CO, TR, SD, WM, PUR, PP, QM, PM MDM, Planning, Interco
Auth Off
shore
ABAP Off shore
SAP Program Managers
28
Roles and Responsibilities
• SAP/IT
SAP Program Managers
Selected resources for entire project team
Led weekly meetings with business site managers and NA
key users; led SAP4UCB_NA Project Steering Committee
meetings
Aligned with parallel project leads, including BI, and others
SAP Central Team Manager
Manager of SAP Team Leads
Ensured NA SAP Team deliverables were completed
SAP Central Team Leads
SAP Team Lead by domain, e.g., SD, WM, PP, CO, etc.
29
Roles and Responsibilities (cont.)
• SAP/IT (cont.)
Services – One global service owner per service. Each service
spans all domains.
Development/ABAP
Validation/Testing
Training
Authorizations
Data
Each global service owner needs a local coordinator to follow the
day-to-day activities of the service and manage the local resources
for the service
30
Tips for Team Building
• Define your team structure early in an overall governance strategy
Each team should have a team lead responsible for planning,
status updates, and deliverable completion
Each team lead from the local project team should work closely
with his/her global team counterpart
Each business lead should work closely with the SAP/IT lead
• If your project is not first in the roll-out schedule, leverage the
templates, deliverables, experience, and lessons learned from
previous rollouts
Leverage the resources from the previous rollouts on your
project, if they are willing and available
31
Tips for Team Building (cont.)
• If you define your teams in a domain approach, you will need to
add resources to cover the integration for end-to-end processes
Order-to-Cash, Procure-to-Pay, etc.
• Learn to appreciate language and cultural differences
The best ideas come from collaborating across teams globally
• Take time to show appreciation for the team
Organize team building events, sports outings, selected
downtime for team members to interact on a non-business level
• Especially for managers and team leads, seek first to understand
an issue before jumping to conclusions, and learn to master the
art of public praise and private criticism
Treat others as you want to be treated
32
Tips for Resource Selection
• Team leads should be senior resources in your industry
Select team leads with strong leadership, communication, and
people skills, not just strong SAP skills
• Interview multiple people for every role
Avoid selecting someone based only on a resume
If the interviewee gets all the answers to your questions
correct, then you haven’t asked enough critical questions.
Everyone has limits on their abilities. You should know them
before they start working for you.
Ask why they are available and why they want to work with you
• If selected resources aren’t effective, replace them as soon as
possible
33
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up
34
Cutover Planning
Master Data
+ Dynamic
Data
Atlanta, GA
Seymour, IN
Princeton, NJ
Rochester, NY
Raleigh, NC
Toronto, CA
Mexico City, MX
35
Cutover Data
Materials (MDM)
15 Views
Customer
G/L
14 CoCodes
Vendor
Cost Center
Assets
Inventory Bins
Tran
spo
rts/
Tech
Go
-Liv
e
WBS
PUR
SD
Open PO
Open SO
B/S
MFG
Act Type
Open Process Orders
Open A/P
Open A/R
Bank
Bu
sin
ess
Go
-Liv
e
QM I/O
Profit Center
Examples, More Objects Apply
Planning
I/C
WM
PM
CO
Business GO-LIVE TECH GO-LIVE
Primary Load Tool: SAP LSMW, Cutover Tracking Tool: Excel
36
Material Master Dependencies
BOM
Recipe
Inventory
QIR
PIR
Source List
Pricing
CMIR
Batch
Prod Vers
Open Purchase Orders
Open Sales Orders
Mtl Det
Open Process Orders
Bu
sin
ess
Go
-Liv
e
Examples, More Objects Apply
Tran
spo
rts/
Tech
Go
-Liv
e
Material Master
(MDM)
15 Views
Multiple MFG and 3PL
Locations
AMPL
Insp Plan
Business GO-LIVE TECH GO-LIVE
37
Tips for Data Migration
• Identify all objects in scope by system and domain early; especially note objects with major dependencies, e.g., material master
Clean legacy data on source systems. It’s never too early to start!
Decide how much data to migrate, e.g., how many years – 2, 5, 10
• Select the data migration tool(s) early
• Select experienced, data-centric resources
Note that process-oriented resources are not always the best resources for data migration. Ask for references and call them!
• What will you do with your legacy system?
Consider keeping the legacy system alive for several years to minimize the amount of historical data to migrate
38
Tips for Data Migration (cont.)
• Test many combinations of the data across many processes
Test multiple material types, customer account groups, vendor
account groups, sales order types, etc.
Test end-to-end processes: Order-to-Cash, including SD
documents, FI/CO postings, output documents, and reporting.
Then compare the results to spot any gaps or issues.
• Test with multiple currencies and review postings
Easy to invert the conversion factors
100 USD = 135 EUR or
135 USD = 100 EUR?
• Test with multiple units of measure
1 EA could be a single unit in a box, one box in a case, etc.
39
Cutover Data Approval Process
Pre-Load Approval
Global SAP
LOAD
Dual Maint
Map
Transform
Create Load Files
Pre-Load Approval
Extracts USA, CAN Branded
Extracts US Generics
Extracts MEX Pre-Load
Approval
Local Data Owners
NA Key User
(All)
Validation
Post-Load Signoff
IT
IT
Local Data Owners
(Non-GxP)
IT
Global Extracts
Pre-Load Approval
Pre-Load Approval
Post-Load Signoff
Post-Load Signoff
Post-Load Signoff
* For GxP Objects, Validation + IT +
NA Key User
Pre-Load Approval
Biz QA (GxP Only)
GxP = BOMs, Recipes, Prod Vers, Batches, QM
Local Data Owners
GxP*
Legacy Systems
40
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up
41
Challenges
Time Impact
No
. of
Do
mai
ns/
Site
s Im
pac
ted
LOW HIGH
Material Re-Stamping
Approvals
Authorizations
Training Delivery
Parallel Projects Company Code Consolidation During Blueprint
Documentation
Communications / Time Zones
Process Testing
Data Testing Duration
Resource Availability
LOW
HIGH
42
Challenges (cont.)
• Company code consolidation during blueprint
Blueprint was started in July, but in September it was decided that the legal entity structure for the US was changing in two legacy SAP systems at the end of the year
Good news – Fewer entities to manage the following year
Bad news – Processes, documentation, etc., required updates and many key resources from the business and IT were needed for 3-4 months
• Data testing duration
Resource challenges as well as late decision on tools to use
Data from three legacy systems migrating to a fourth live system
In the end, it took longer, but the data was tested with three test load cycles plus a dress rehearsal prior to cutover
43
Challenges (cont.)
• Resource availability
Most business resources continued in their daily jobs. Only a
few business resources were allocated 100% to the project.
• Approvals
All changes required local and global approval from business
and IT. The global team was mostly in Europe, and due to some
time zone challenges, multiple sites, other global SAP projects,
and support, additional time was required to get final approvals.
The fastest approvals occurred when meetings were
scheduled to review and update documents together verbally
and directly vs. the approach of sending numerous emails to
each other with questions, issues, and requests for feedback
and updates
44
Successes SU
CC
ESS
LEV
EL
Cutover Planning & Execution
Business Continuity
Hypercare
Data & Process Alignment Global/Local
E2E/Integration Workshops
SAP Configuration/ Development
GOOD
GREAT
Warehouse RF
Leadership
Blueprint Workshops
EDI Senior Resources
Business Effort
Process Test Execution
I/C Processes
Fit-Gap
45
Successes (cont.)
• Business continuity
Business continued due to significantly tested data and
processes prior to go-live, as well as detailed cutover planning
and execution
• Cutover
Detailed planning started 2-3 months prior to the start of
cutover
All objects planned with business and IT by domain and object,
and especially noting dependencies by object and high-priority
objects, e.g., material master, batch master, inventory, etc.
• Hypercare
Close support for users for ten weeks after go-live
Locating selected team resources on the front line
46
Successes (cont.)
• Business effort
Strong support from senior management globally and locally
Competent and experienced key business users in every domain
• Data and process alignment – Global/local
All changes reviewed and approved globally by Global Business Process Owner and Global Solution Architect
Local changes allowed for legal, tax, and compliance reasons
• Fit-Gap
Started with a fit-gap project with selected senior resources in each domain prior to the full project
Provided key users with an early view of the global SAP system prior to formal blueprinting
47
Successes (cont.)
• Leadership
Senior Management – Sets the appropriate strategy,
governance, team structure, budget, etc., prior to the project
starting. During the project, guides the team and removes
obstacles to keep the project on track.
Project/Program Management must set clear expectations and
hold people accountable during each phase
Stops people from wasting time on low ROI activities
• People
Get the right people and you’ll get the best results
Best Resources + Effective Leaders = Success!
48
Successes (cont.)
• Preparation
Tasks and deliverables must have owners and due dates before
a phase starts. The rules for completing a task or deliverable
must be clear.
Tip – At least one week before a phase starts, review the
schedule and deliverable template(s) in detail with the team.
Start with realistic examples by filling in key sections of a
deliverable and review together so everyone knows what the
final product should look like and what success looks like.
• Communication/clarity
A focused 30-60 minute meeting with the right people will
replace numerous emails and hours of work and re-work
49
Successes (cont.)
• Location
It is necessary to centralize some tasks globally, but it is also
wise to locate SAP resources near business teams for efficient
collaboration, requirements analysis, testing, and training
• Data/information
Clean legacy system data, define clear data mapping rules, and
build user-friendly processes, procedures, and reports to
provide the information needed in a timely manner
• Planning
For the cutover plan, create the plan a few months prior to the
technical go-live for all data objects and site-related tasks
Fine-tune the cutover plan over time to produce the most
efficient and effective cutover/go-live possible
50
What We’ll Cover
• Global SAP4UCB roadmap
• Project approach/golden rules
• Project schedule and project phase highlights
• Project teams – Business and IT
• Cutover/go-live
• Lessons learned
• Wrap-up
51
Where to Find More Information
• Jim Collins, “Good to Great,” (Jim Collins’ blog, October 2001).
www.jimcollins.com/article_topics/articles/good-to-great.html
• “Jim Collins: How to manage through chaos” (Fortune, September
2011).
http://management.fortune.cnn.com/2011/09/30/jim-collins-
great-by-choice-exclusive-excerpt/
• Edgar Dale
http://en.wikipedia.org/wiki/Edgar_Dale
• Jayesh Wala, “Lessons Learned from Geese for Team Building”
(SlideShare, December 2008).
www.slideshare.net/jbwala/lessonsfrom-geese-for-team-
building-presentation
52
7 Key Points to Take Home
• Backfill business and SAP/IT resources in the day-to-day jobs so
they have time to work on the project full-time
• Build teams with senior resources and ensure team leads have
leadership and communication skills, not just strong SAP skills
• Minimize parallel projects and major initiatives
• Dedicate strong resources to data migration and remember that
strong SAP process skills may not lead to strong data skills
• Don’t underestimate material master and other key object
dependencies – Identify all objects in scope early in the project
• Start with a Fit-Gap Project to identify the scope of the project and
to get early buy-in
• Select and retain the best resources!
53
Your Turn!
How to contact me:
Kevin Moore [email protected]
www.linkedin.com/pub/kevin-moore/63/79/53a
Please remember to complete your session evaluation
54
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