Sauder Woodworking: Enhancing the lean journey with SAP MII

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Confidential // Neoris 1 Confidential // Do Not Reproduce without prior written permission from Neoris Neoris USA Sauder Woodworking: Enhancing The Lean Journey With SAP MII November 1, 2013

Transcript of Sauder Woodworking: Enhancing the lean journey with SAP MII

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Confidential // Neoris 1 Confidential // Do Not Reproduce without prior written permission from Neoris

Neoris USA

Sauder Woodworking: Enhancing The Lean Journey With SAP MII

November 1, 2013

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Index

Welcome And Introduction

Welcome And Introduction

About Neoris

SAP MII Solution Overview

Sauder Woodworking MII Implementation

Closing and Q&A

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Welcome And Introduction Presenters

Tom Taylor Director, Neoris

Peter Molina Director, Neoris

Moderator

Antonio Vera Subject Matter Expert,

Neoris

Pam Vocke Implementation Services

Manager, Sauder

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Index

About Neoris

Welcome And Introduction

About Neoris

SAP MII Solution Overview

Sauder Woodworking MII Implementation

Closing and Q&A

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Neoris - Who We Are…

Significant accomplishment of growth :

2nd in IT consulting in Latin America

Largest IT consultancy in Mexico

SAP Global Partner (only Latin America based)

2012 SAP Pinnacle award for quality

Forrester rated as “Strong Performer” in Forrester Wave for SAP Services Providers

Top 10 Best Performing IT Outsourcing Service Provider, Global Services 100

Best Nearshore Outsourcing Company from Latin America, Brown-Wilson Black Book

A Business and IT Consulting Company with a Global Footprint

Neoris Offices

Neoris Solution Centers

Nearshore Outsourcing Solution Centers: Culiacan, Monterrey, Buenos Aires, Santa Fe, São Paulo, Madrid Budapest and Manila

Market Recognition

Employees: Over 3,500

Founded: 2000

Offices: 20

Corporate Office: Miami, FL USA

Majority owned by CEMEX (NYSE: CX); Market cap of US$15 Billion

Argentina (Buenos Aires, Rosario, Santa Fe)

Brazil (Rio de Janeiro and Sao Paulo)

Chile (Santiago)

Colombia (Bogotá)

Hungary (Budapest)

Mexico (Culiacan, Monterrey and Mexico DF)

USA (Miami and Dallas-Fort Worth)

Spain (Madrid and Barcelona)

United Arab Emirates (Dubai)

Philippines (Manila)

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Further Recognition And Distinction Awards

2013 – SAP Manufacturing Mobile Innovation Challenge at SAPinsider Conference in Las Vegas

2011 – Neoris ranked #1 at the SAP MII SI Partner Landscape

2010 – SAP Strategic Reference Award for the MII project at USIMINAS (Brazil)

2010 – ASUG Impact Award for the MII project at USIMINAS (Brazil)

2008 – ASUG Impact Award for the MII project at Fosfertil (Brazil)

2008 – SAP Strategic Project for the MII project at CINTAC (Chile)

2007 – SAP Innovative Project for the SAP xMII project at Petrobras (Brazil)

2006 – SAP Strategic Reference Award for the xMII project at PEMEX (Mexico)

“Looking to use SAP MII? Consider work by Neoris to make SAP MII a reality. With a history of improving SAP implementations in South American operations, we’re impressed with the company’s ability to make SAP MII vision a reality.”

Gartner Cool Technologies for Improving Consumer

Products Value Networks

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MII - Leadership And Experience (45+ Projects Implemented!)

2006 2007 2008 2009 2010 2011 2012

Konitech acquisition in

Brazil

First MII project in LATAM

20 MII Certified Resources

SAP Preferred Partner for LME

MII Award (PEMEX)

MII Award (Petrobras)

MII Excellence Center (Brazil)

40 MII Certified Resources

1st MII 12.0 implementation

in LATAM

MII Award (Fosfertil)

MII Award (CINTAC)

75 MII Certified Resources

USIMINAS Video Wall

MII Award (USIMINAS)

MII Global Template

(Ireland/Dubai)

MII Global Template

(Ireland/USA)

MII Project (Brazil)

MII Project (Brazil)

MII Project (Brazil)

MII Project (Brazil) MII Project

(USA)

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Global Coverage And Delivery Excellence Focus

Neoris Experience

Neoris is a leader in MII implementation projects with plenty of MII experienced consultants.

Neoris established a global MII practice to support all implementations ensuring quality and best practices.

Globally, Neoris has the largest number of MII projects and credentials of any system integrator.

Neoris Methodology and Framework

Neoris methodology uses a robust framework for the integration of advanced systems which allows for reutilization of components designed specifically for each industry.

As a result, the total cost of ownership (TCO) of the solutions offered by Neoris is dramatically reduced for our clients.

USA

Colombia

Chile

Argentina

Brazil

Mexico

Spain

1 Global MII Practice

5 Local MII Practices

4 Delivery Teams

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Index

SAP MII Solution Overview

Welcome And Introduction

About Neoris

SAP MII Solution Overview

Sauder Woodworking MII Implementation

Closing and Q&A

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What Is SAP MII?

MII enables adaptive manufacturing by synchronizing manufacturing operations with the enterprise to deliver “a single version of the truth” and drive manufacturing excellence.

Manufacturing Integration: a single, standards-compliant application that integrates ERP connectivity with real-time plant floor applications whether in a single plant, or across multiple plants, business units and regions.

Manufacturing Intelligence: a real-time analytics engine that aggregates and delivers a visualization of events, alerts, KPIs, and decision support through role-based dashboards.

MII

Adaptive Manufacturing

Manufacturing Operations ERP

Manufacturing Intelligence

Manufacturing Integration

Manufacturing Synchronization

Data Integration

Work Process Management

UI Simplification

Performance Management

Dashboards

Scorecards

Analytics

Lean/Six Sigma

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How Do You Exchange Plant And ERP Data?

Data errors

Repetitious, manual processes

Delayed reporting

Business process delays

Poor information visibility

Reactive performance management

Materials Maint

Production Planning

Quality Ware house

Production

Custom systems

Databases

SCADA

Legacy-System

SPS

LIMS

Excel

HMI

DCS

Historians

ERP

Plant Maint

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Typical Non-Integrated Environment Manual processes and integration

MAKE

Execution

Inspection/ Equipment Testing Weigh Scales

SCADA / DCS LIMS / MES

HMI

Plant Data Collection RFID Sensors

PLC

Mobile Device Integration Environmental

Building Mgmt

Plant Historian

Distributor / Customers

Suppliers

Contract Manufacturer

LOB

Devices

PLAN MAKE DELIVER

Global Coordination

ERP

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SAP MII

MII extracts data from ERP and provides real-time

visibility and distribution to shop floor systems of:

MII’s ability to perform transaction execution into ERP also enables automated, plant-

level creation of:

Manufacturing Integration and Intelligence

Composition Environment Data Services

Visualization / Simplification / Alerting

Business Logic Services

Quality Engine

KPIs / Metrics

PLAN MAKE DELIVER

MAKE

ERP

Inspection/

Equipment Testing

Weigh Scales

SCADA / DCS

LIMS / MES

HMI

Plant Data

Collection RFID Sensors

PLC

Mobile Device

Integration Environmental

Building Mgmt

Plant Historian

•Planned Orders

•Bills of Material

•Production/Process Orders

•Material Inventory Levels

•Inspection Lots Data

•Master Recipes

•Material Details

•Batch Details

•Resources Locations

•Functional Locations

•Maintenance Work Order

•Maint. Notification details

•Material and Order Costs

•Production Confirmations

•Process Messages

•Material Receipts

•Material Consumptions

•Material Transfers

•Inspection results recording

•Quality Notifications

•Batch Characteristic recording

•Work Orders/results

recording

•Maintenance Notifications

Delivers information and process integration

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Competitive Summaries

Competitive Products

Need data replication – creating multiple copies of the same data in their data structure

Have longer time to benefit

Utilize other technologies / products for SAP ERP integration

May lack transactional capability (often read only)

Difficulty in delivering SAP integration – few references, most with minimal implementations

SAP MII Benefits

Provides integration and intelligence in one product

Leverages existing investments - minimizes data replication

Integrates quickly to SAP Business Suite using pre-built templates

The most intimate manufacturing technology to SAP Business Suite

Applications are developed and deployed very quickly – time to benefit in weeks

Strong partner ecosystem

Global support from SAP

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User Interface Simplification Production orders, bills of materials, goods movements, etc.

Simplified user interfaces that allow shop floor workers to interact with ERP data (such as production orders, bills of materials, material details, maintenance notifications) in the context of their local work processes.

Production Confirmations

Material Receipts

Material Consumptions

Material Transfers

Inspection results recording

Quality Notifications

Work Orders/results recording

Maintenance Notifications

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Manufacturing Dashboards

Dashboard: a reporting tool that presents manufacturing key indicators on a single screen, which includes measurements, metrics, and scorecards.

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Overall Equipment Effectiveness (OEE)

OEE is a hierarchy of metrics which focuses on how effectively a manufacturing operation is utilized.

OEE - waterfall chart of performance losses for a

particular machine

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Real-Time Asset Information

Real-time information from shop floor equipments available on an MII dashboard.

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Video Wall – Supply Chain Visibility

Provide an integrated view of information from the various processes and puts together employees of various processes in a single room.

The integrated operations center has a Video Wall screen with approximately 43 feet wide by 6 feet high.

* Neoris YouTube channel: http://www.youtube.com/watch?v=xmRYPE1A_Oo

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Quality Monitoring

SPC data analysis takes advantage of the MII business logic services and associated Data Connectors. MII gathers data from existing data sources and streams the resulting query into an SPC calculation engine.

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Plant Maintenance Simplification Simplify the process and operation for users in the plant maintenance space

View and search material, equipment, work orders

Create, display, change maintenance work orders

Create notifications

Time recording

Material consumption

Work order code maintenance

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Integration With Shop-Floor Equipments Scales, barcode reader, printers, robots, etc.

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Mobile Applications

Watch Portal is a mobile application that allows the end-user to create its own dashboards, favorites list, alarm level settings and alarm information distribution lists (including SMS messages)

Accesses shop floor information in real time from any mobile device via a secure web browser connection

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Index

Sauder Woodworking MII Implementation

Welcome And Introduction

About Neoris

SAP MII Solution Overview

Sauder Woodworking MII Implementation

Closing and Q&A

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Sauder Woodworking

North America's largest maker of ready-to-assemble furniture (RTA)

Started in 1934 by Erie Sauder

Privately held, second and third generation, family-run business

Headquartered in Archbold, Ohio

$540 million in sales

Approx 2,300 employees

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Sauder’s SAP Implementations

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Sauder MII Journey

Began to investigate the SAP PP module in 2005

SAP PP module investigation put on hold

– Lean initiatives first!

Don’t automate existing processes

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Sauder MII Journey

Sauder 2006 IT Highlights - IT Success – Change is necessary!

We can’t just maintain the status quo

– We must move from the mindset of “upkeep” to “innovate”

– We must find ways to become faster and more responsive

– Our solutions must be tied to business strategies

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Sauder MII Journey

Sauder IT Key Challenges – Increase visibility on execution processes

– Improve manufacturing flow and efficiency by following a strategic direction for lean manufacturing

– Simplify work order reporting process

– Manage increased IT requests from shop floor

– Find manufacturing shop floor systems that are lean enablers

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Sauder MII Journey

Why SAP MII? – Ability to deliver a manufacturing performance application

in weeks

– Flexibility to change how shop floor operators interact with specific processes

– Built-in integration of multiple real-time shop floor and business system data sources

– Value of extending the SAP ERP application without incremental training of shop floor personnel

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Sauder MII/SAP History

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Drawer Focused Factory

2006 – Legacy Systems

Sauder’s “Pilot” Project

Pilot Project Goals

– Increased visibility

– Simplify work order reporting process

– Rapid delivery

– Ensure success

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Drawer Focused Factory

Pilot Project Scope

– Team Leader Dashboard

Provide overall view of focused factory

– Operator Dashboard

Replace IOV (Integrated Operator View)

Simplify work order reporting

– Connectivity to multiple data sources

.txt and .pdf file access

Avantis (SQL)

VPE (Oracle)

Legacy Manufacturing Systems (DB2 400)

PLC

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IOV was a VB solution provided by our APS/MES solution provider at the time.

The same application was used at all work centers

Employee and work center badges were required to complete transactions

Sixteen actions were required to report the production of one pallet of product

Too much time was being spent by operators standing at a PC entering transactions

Drawer Focused Factory

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IOV Process

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Drawer Focused Factory

Delivered implementation in 9 weeks within budget

Minimized development and testing costs with rapid delivery from implementation partner

Reduced interface and maintenance support with connectivity to multiple data sources by one application

This project provided a good example/pilot of what MII can do to accelerate the lean journey!

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OEM Focused Factory (2007) – SAP System Sauder IT staff began to develop using the MII tool.

Sauder had the opportunity for new OEM business that didn’t use standard raw materials etc., so the decision was made to implement SAP PP module for the business venture.

MII was used as the shop floor interface.

First Sauder implementation with MII connecting to SAP system. Operators posted Production Order Confirmations and Inventory Transactions.

Molding and Edgebanding Focused Factories (2008 and 2009) – Legacy System Internal Sauder Resources responsible for MII development

Moved into rapid development processes, reusable components and standard designs emphasized

Final Assembly Focused Factory (2010) – SAP System Sauder implemented SCM 7.01 (PPDS, SNP, SCN)

Focused Factory Implementations

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MII Upgrade Project

2010 – MII Upgrade (11.5 > 12.1)

Began our partnership with Neoris

Two Neoris FTEs on-site for four weeks

SAP MII best practices were followed

Over 900 MII files were reviewed

Approximately 350 files required modification

Five main MII applications for different shop floor areas were converted

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MII Upgrade Project

Shop Floor users were heavily involved in testing

Area Leaders/Group Leaders were trained as front-line support on the shop floor

Neoris provided on-site training related to MII 12.1 after go-live to Sauder development resources

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MII Upgrade Project

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Sauder MII Landscape

Three tiers (All virtual machines)

– DEV

– QAS

– Two PRD servers

Manual load balancing

Shop floor PCs have a primary shortcut to one of the PRD servers and a backup shortcut to the other PRD server

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Factory database: SQL database which replicates selected SAP data to improve performance

Production order and Material Master changes are pushed to the SQL database

MII accesses SQL for most-needed information instead of constantly requesting data from SAP

Sauder MII Landscape

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2012 – SAP System

Ten-month project duration

All previous MII solutions were replaced with a single solution for all shop floor processes

Neoris partnership: 2 FTEs from Neoris as part of project

On site and remote support

Provided best practices

Provided shop floor operators with the information they need to do their jobs

What production order should I be working on?

What information do I need to complete the order?

SAP Manufacturing Project

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Change Status/Crew Size/Shift

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Confirm Good/Reject Quantities

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Display Preparation Documents

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Display Transaction History

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Order Operation Dependencies

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Reprint Load Tag or Load Label

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Confirm Standard Load Quantity

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Verify Components / Goods Issue

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Sauder’s Journey Continues

Recently delivered MII Transactional Marquees to shopfloor

– Provides information for the current order and current shift

– Based on transactions posted by the MII shop floor user interface

– Consistent format for all shop floor areas

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MII Transactional Marquee

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Sauder’s Journey Continues

Beginning to look into mobile capabilities

– Operator real time scrap reporting on our lamination lines

Large lines, location of PCs not sufficient

– Ability to provide mobile devices to transact inventory transactions wherever needed

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Financial and Strategic Benefits

Improved execution processes on the factory shop floor

Improved and streamlined connectivity using one application to integrate multiple data sources

Achieved fast adoption and improved ease of use of new manufacturing dashboards

Complemented the lean journey at Sauder

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Operational Benefits

SAP MII is enabling throughput to be increased, while operator interaction (non-value-added activities) has been reduced by 85%

SAP MII has greatly streamlined the work order reporting process

Manufacturing dashboards have been simplified, providing a common and consistent solution

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Operational Benefits

Dramatic reduction for the need for training shop-floor operators as the enterprise application landscape evolved

SAP MII has given Sauder increased visibility into production line processes on the factory floor

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Index

Closing and Q&A

Welcome And Introduction

About Neoris

SAP MII Solution Overview

Sauder Woodworking MII Implementation

Closing and Q&A

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On-Line References

Neoris' Corporate Video: http://www.youtube.com/watch?v=misxKCHFcq4

Neoris’ MII Whitepaper: http://www.neoris.com/files/neoris_mii_onepager_en.pdf

Neoris' 3D Digital Factory at SAPPHIRE 2012: http://www.youtube.com/watch?v=nM6HqctxV84

Neoris' Video Wall at SAPPHIRE 2009: http://www.youtube.com/watch?v=k9NJ7c71nls

Neoris' Video Wall at SAPPHIRE 2010: http://www.youtube.com/watch?v=Rz0cN5TJozc

Neoris' Video Wall (English Subtitles): http://www.youtube.com/watch?v=hWAEjIQaYJQ

Usiminas Steel - Video Wall: http://www.youtube.com/watch?v=xmRYPE1A_Oo

Neoris Article: “SAP MII - Visibility in Practice”: http://www.neoris.com/files/SAP_MII_Whitepaper_EN.pdf

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Could MII Be Viable For Your Organization?

OPTION 1: Discovery Call (1 hour, No charge for professional time)

A Neoris Manufacturing specialist will:

Listen to your key issues and how they affect manufacturing, scheduling and your supply chain

Introduce SAP MII and discuss case histories of how other companies have driven business process improvements, both locally and globally

Discuss how SAP MII may be used in your organization’s quest for the Perfect Plant

Lay the groundwork for a discovery workshop that will fully define an initial business benefit case

OPTION 2: A Discovery Workshop (1 to 2 days, No charge for professional time)

A typical Discovery Workshop covers:

SAP MII overview with usage examples and references

A visit to the plant floor to understand the current issue

Key issue discussion with stakeholders to identify potential KPIs and SAP ‘touch points’

Review of the KPI’s value, financial impact and time-to-benefit

Scoping of a statement of work

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Q & A

Peter Molina Director Tel: (305) 728-6045 Cell: (847) 942-9226 [email protected]

Tom Taylor Director Tel: (305) 728-6126 Cell: (908) 578-4560 [email protected]