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Transcript of SAP Adaptive Manufacturing Summit Enabling fm.sap.com/pdf/8182/05_Shimp.pdf  Enabling...

  • SAP Adaptive Manufacturing SummitSeptember 28th, 2006, Denver, CO

    Enabling Manufacturing Excellence across Global Operations at Whirlpool Corporation with SAP

    Jim ShimpVice-President, Global Applications Development

    Whirlpool Appliances

  • Introduction to Whirlpool

    Information Systems enabling Success

    Manufacturing Systems Architecture

    Plant Maintenance & Manufacturing Back-Up Solutions with SAP xMII

    Wrap-Up and Key Takeaways

  • SAP AG 2006, Title of Presentation / Speaker Name / 3

    Whirlpool Corporation - Background

    Founded in 1911 Completed Acquisition of Maytag Corp, April 3rd, 2006

    Largest global Appliance Company

    Worlds leading manufacturer and marketer of major home appliances

    Annual sales of $20 billion US

    80,000 employees

    60+ manufacturing and technology centersworldwide

    Whirlpool, Maytag,KitchenAid, Brastemp, Bauknecht, Jenn-Air and other major brands marketed in more than 170 countries.

  • SAP AG 2006, Title of Presentation / Speaker Name / 4

    VISIONCORE

    COMPETENCIES

    CULTURE

    & VALUES

    STRATEGIESMISSION

    Defines our

    business

    scope and

    future

    state

    Everyone

    Passionately

    Creating Loyal

    Customers

    for Life

    Defines our

    focus and

    what we do

    different to

    create value

    Brand Focused

    Value Creation

    (BFVC)

    - Brand

    - TPM

    - Global

    Operating

    Platform

    Defines how we

    will create value

    by building

    unmatched

    Customer

    Loyalty

    to our brands

    Defines

    who we are

    and what we

    believe in

    Customer

    Excellence

    Innovation

    Customer

    Centered

    OPEX

    Defines the

    unique skills

    that enable

    us to build

    Customer

    Loyalty

    Great Leadership & Talent

    +

    Extraordinary Results Focus

    The Enablers To Make The Strategic Architecture A Reality

    Every

    Everywhere

    With Pride,

    Passion and

    Performance

    Home

    OPERATIONAL

    COMPETENCIES

    Total

    Cost

    Productivity

    Margin

    Realization

    Product

    Quality

    Defines the

    execution

    capability

    to create

    value from

    our strategy

    Diversity

    w/ Inclusion

    Integrity

    Respect

    Teamwork

    Spirit of

    Winning

    Whirlpools Strategic Focus

  • SAP AG 2006, Title of Presentation / Speaker Name / 5

    Current State of SAP Implementations(31 Countries - 98% of the Business)

    North America(3 countries)

    (USA, Canada, Mexico)

    Europe(22 countries)

    Asia(3 countries)

    (India, Greater China)

    Latin America(3 countries)

    (Brazil, Argentina, Chile) Future Opportunities: Factories in NAR and WER Legacy systems

    Other P&L businesses Kitchen-Aid Small Appliance Canada Parts/services Australia

    Total Business Platform

    APO, CRM, R/3, BW, etc.

    Most Business Platform

    APO, R/3, BW, etc.

    FG processing & Inventory

    Finance processes, Mexico Mfg..

    R//3, APO, CRM,BW & XMII

    FG processing, Inventory, Finance processes,

    R//3, APO, CRM,BW & XMII

    i2 & Seibel

  • SAP AG 2006, Title of Presentation / Speaker Name / 6

    Corporate Challenges

    Managing expanded Brand portfolio (Whirlpool &

    Maytag) increasing the collaboration with trade

    partners and strengthening sales channels

    Create capabilities to embed pricing and margin

    management as a core organizational strength (GPS)

    Create capabilities to better manage direct material

    costs and leverage company spend (MPV)

    Provide better informational capabilities to

    understand & reduce quality issues to improve EOP

    (TCQ)

    Improve management and decision making for

    innovation and product based capital investments (BW)

    GPS - Global Pricing System; MPV - Material Price Variance; EOP - Earned Operating Profit;

    TCQ - Total Cost of Quality

  • SAP AG 2006, Title of Presentation / Speaker Name / 7

    Manufacturing Challenges

    Continue to shift production to low cost countries &

    improve existing operations in established locations

    Increase the speed of supply chain while reducing

    working capital by increasing use of global supply base

    in all product lines

    Improve matching of supply and demand to maximize

    global leverage of capacity

    Determine how to use information to manage cost

    increases in materials, transportation, and global

    shipping container shortages

    Create metrics that show total cost of products and

    measure (TCP) Total Cost Productivity

  • Information Systems enabling Success

    Introduction to Whirlpool

    Manufacturing Systems Architecture

    Plant Maintenance & Manufacturing Back-Up Solutions with SAP xMII

    Wrap-Up and Key Takeaways

  • SAP AG 2006, Title of Presentation / Speaker Name / 9

    GIS Global MissionGIS Global MissionGIS Global MissionGIS Global Mission

    Accelerating Whirlpools Global Success Through Adoption of Information Technology!

    through growing

    Our People Our Capabilities Our Platform Our Relationships

    by:

    Building capabilities to create loyal customers

    Enabling resource creation to fund growth and innovation

    Enabling Whirlpools transformation and embedment of core competencies

  • SAP AG 2006, Title of Presentation / Speaker Name / 10

    Master Data ManagementChart of AccountsBrand/Product Hierarchy

    Customer/Channel HierarchyEmployee

    Parts and MaterialsBill of Materials/Engineering Change Order

    Fro

    nt

    En

    d

    Pro

    du

    ct

    Arc

    h

    Ro

    bu

    st

    Pro

    du

    ct

    Desig

    n

    Pro

    cu

    rem

    en

    t

    GO

    P &

    Tra

    ns-

    Reg

    ion

    al S

    ou

    rcin

    g

    Glo

    bal In

    teg

    rate

    d

    Man

    ufa

    ctu

    rin

    g

    B2B

    /B2C

    /Serv

    ice

    Glo

    bal In

    teg

    rate

    d L

    og

    iscti

    s

    Global Integrated Supply Chain

    Global Integrated Product Development

    Performance Management/Business AnalyticsDimensional Reporting, GPS, MPV, TCP, TCQ

    Creating greatProducts and Services

    that create Loyal Customers

    RegionalP& L/ BS

    BFVC

    ELA andDifferentiation

    Deliverables

    Operational Transaction ProcessingSales &DistributionManufacturing and Materials Management

    FinanceHuman Resources

    Create Customer Loyalty

    Global Information Architecture

    ELA Executive Leadership Agenda, BFVC- Brand Focused Value Creation

  • SAP AG 2006, Title of Presentation / Speaker Name / 11

    StandardReporting &

    AnalysisSAP BW, SAP SEM

    StandardProduct Development Value Chain SystemsSAP SCM, CRM, PLM

    Standard BusinessSystemSAP R/3

    Sales &Distribution

    Integrated Business Information

    Manufacturing& Materials

    FinanceTreasuryHR

    CustomerRelationshipManagement

    Product Dev. andSupply ChainEffectiveness

    Internet - PortalInternet - PortalSAP NetWeaver Portal &

    SAP xMII

    ManagementReporting and

    Analysis

    Enterprise Services Architecture NetWeaver

    RegionalP&L/BS

    BFVC

    ELA andDifferentiation

    Business Application Vision

  • SAP AG 2006, Title of Presentation / Speaker Name / 12

    Adapt costs/capacity

    to business needs

    Optimize IT staff

    effectiveness

    Infrastructure Strategy and Vision

    Qualityof Service

    Business Agility

    Align IT infrastructure to fast

    changing business requirements

    Cost of OwnershipManagement of Risk

    Improve business continuity

    Reduce legacy infrastructure

    Improve availability & performance

    Enhance proactive management

    Service and customer-centric focus

    Technology:

    Networking:

    Services/Processes:

    Many components

    Point to point

    Regional

    Leveraged few

    Any to any

    Global

  • SAP AG 2006, Title of Presentation / Speaker Name / 13

    High Risk to

    the Company

    CoreProcess that creates

    differentiation that

    wins customer

    ContextAll other

    processes

    Mission CriticalProcesses that add distinct

    business value

    EnablingBasic business Processes

    Organization Vision

    New

    Value

    Dev

    elop

    men

    t

    Opt

    imize

    Sup

    port

    Delivery

    Deployment

    Reward to

    the Company

    Global Governance and Compliance

    Resource

    Creation

    Global Development

    GlobalDeployment

    GlobalSupport

    Global Governance and Compliance

  • Manufacturing Systems Architecture

    Information Systems enabling Success

    Plant Maintenance & Manufacturing Back-Up Solutions with SAP xMII

    Wrap-Up and Key Takeaways

    Introduction to Whirlpool

  • Manufacturing SystemsImproving the core of the business through the adoption of SAP into the plant floor

  • SAP AG 2006, Title of Presentation / Speaker Name / 16

    Copics

    Sirias

    CopicsSpreadsheet

    SAP

    Whirlpool Manufacturing IS Circa 2002

    2002 View

    PlantDatabase

    Process

    PLC

    User Input