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

� World’s 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.


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

Whirlpool’s Strategic Focus


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


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


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


GIS Global MissionGIS Global MissionGIS Global MissionGIS Global Mission

Accelerating Whirlpool’s 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 Whirlpool’s transformation and embedment of core competencies


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


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 - Portal SAP NetWeaver Portal & SAP xMII

ManagementReporting and

Analysis

Enterprise Services Architecture … NetWeaver

RegionalP&L/BS

BFVC

ELA andDifferentiation

Business Application Vision


• 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


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


Copics

Sirias

CopicsSpreadsheet

SAP

Whirlpool Manufacturing IS – Circa 2002

2002 View

PlantDatabase

Process

PLC

User Input

(Manual)

Metrics

Excel

Data Integrity?

Visualization: SAP xMII

Legacy Databases

WMCS

Sirias

PATSMaximo

SAP

Notes:Mail

User Transactions

User

Reporting

• Manual Evaluation

• New Opportunities

•Messaging


Whirlpool Manufacturing IS - 2006

Mexico & LAR* 2006

PlantDatabase

SAP DatabasesBW & R/3

SAP PP

SAP QM

SAP IMSAP PM

SAP FI

Notes:Mail

User Transactions

User Analytics (VC)

•New Opportunities

•Messaging

Plant Data

Data Exchange

Metrics•Web Based Metrics

•Transaction driven data

•Real time MFG reporting

SAP xMIIworkflow

XIworkflow

Plant Applications SAP NetWeaver & SAP xMII

• Automated Processes

• PLC

Visualization: SAP xMII

* LAR- Latin America; VC – Visual Composer


Manufacturing Systems

� Created a standard global R/3 Manufacturing template

driving multiple concurrent SAP implementations

� Sweden, Mexico, completed in parallel two teams

� New Mexican plants implemented with SAP systems

� Latin America plant & business systems all SAP

� Completing China and Mexico plant 2 in parallel

� Connected shop floor devices to SAP ERP using SAP xMII

and SAP NetWeaver web-services calling RFCs

� Control plant user experience in SAP ERP with SAP xMII

and Web-Dynpro application solutions

� Automated Production receipts for WIP & FG using shop

floor devices to improve LAR SAP solution


Manufacturing Metrics with SAP xMII

First Pass Yield - Data collected real-time at various points in the assembly process.

Downtime tracking -

Captured by category and used for OEE calculation


Real-Time Manufacturing Dashboards – SAP xMIIAssembly Line Schedules, Quality and OEE

Production Rates & Quality Measurement – Collected from PLC on the shop Floor on a 30 Second interval. Ability to click on image and drill down

OEE – Efficiency for each machine with the ability to drill down to the details for each machine.


Real-time Quality Data Delivered with SAP xMII

SPC Chart – Real-time data collected - Engineers use these control charts to

understand if process changes and improvement efforts are actually leading to improved control of process (I.e. reducing or eliminating error/deviation in the process)

Plant Maintenance and Manufacturing Back-Up Solutions with SAP xMII






Plant Maintenance: Extending SAP ERP into the Plant Floor with SAP xMII

� Gain Control of user experience to

increase adoption of the solution.

� Web based interaction calling SAP

ERP through RFC, BAPIs, or function

module calls.

� Created new functionality not in

standard SAP ERP using standard SAP

function modules calls.

� Can integrate other shop floor data

sources in the design of the screens.


PM - Selecting SAP Inventory

Search for Material : List Display by

Number or Description

Result Screen - Displays information

from Material Master in addition to the current balance. This use of the xMII tools provides a more controlled user experience in a web browser instead of having people log into SAP and need to go to multiple screens for the same information.


PM - Add Material to Work Order

Material Added to Shopping Cart: One function button allows

the material to be added to shopping cart. The material needs to be charged to a cost center or a Work Order.

Creating a Workorder : If

maintenance doesn’t have a Workorder or Cost Center can create by selecting a button. Enter Equipment, short description, or detailed description. Work order created in SAP

Push Button


PM - SAP Work Order View

View Workorder : SAP display of workorder created through the SAP xMII interface !

Add to Cart : Once a WO exists

the material can be add to a shopping cart for that WO.


PM - Checkout with Material

SAP View of Workorder : In the SAP

order the material is correctly allocated to the workorder and will be settled appropriately with FI/ CO when the workorder is settled and closed.

Shopping Cart Checkout:The material is allocated to the workorder at checkout of the shopping cart

SAP xMII Back-up Solution

Using SAP xMII to ensure 100% system availability to plants


Plant to SAP ERP - Backup Solution with SAP xMII

Administration & Startup : The backup

solution uses a standalone database along with SAP xMII to perform and capture transactions data. Once SAP ERP is up and running SAP xMII performs all transactions based on the database entries.


Plant to SAP ERP - Backup Solution with SAP xMII

Goods Receipt: The backup

solution goods receipt allows for actual production to be received with a relationship to SAP data objects. The data will be re-synced when the system is restored and the backup solution is turn off.

Goods Movements:This screen allows for all other SAP movement types during backup operations


Plant to SAP ERP - Bin Stock Overview

Stock Bin Overview : This is a view of the materials in the Warehouse management bin stock showing information necessary to fill in information to use the goods movement screen for WM movements.


Plant to SAP ERP - Production Operations

Interactive Workcenter Schedule: Production Schedule updated every 30 minutes.

Double Clicking on a production order provide the confirmation screen to enter new production.


� Manufacturing Performance applications delivered with SAP xMII across North America in weeks

� Create better adoption of the solution, driving both easy of use and benefits by getting real time information to SAP.

� Flexibility to change the way shop floor technicians interact with SAP processes.

� Integration of multiple shop floor real time data sources in the design of the applications.

� Quality improvements recognized immediately through reduced defects and rework

� Create new functionality not in standard SAP using standard SAPfunction modules calls

� Plant to plant comparisons via SAP xMII available for managementin consistent format

� Value of SAP’s ERP extended with SAP xMII without incremental training of plant floor personnel

Value from the SAP ERP and SAP xMII Solution for Manufacturing

Whirlpool has already seen significant ROI with SAP xMII in the first two years, and continues generating new benefits.


Future Development Focus

Completed understanding of SAP tools

– Web application designer (BW)

– SAP xMII

– SAP NetWeaver – XI, Portal, Web-Dynpro and Java

development

– Visual Composer (BW)

� Outlining the basis for Dashboards using these

technology tools

� Need to investigate new Netweaver Workflow elements

to provide better automation & alerting

� Must complete the deployment of solutions to all

manufacturing locations to achieve LAR capabilities of

end to end integration with SAP component applications

(APO,ERP,CRM,BW)


SAP Deployment Status at Whirlpool – A Snapshot

Future Deployments within Whirlpool

� Supply Chain – Execution Systems (Manufacturing and Materials Management)– NAR – Horizon/Zeus completed in 2005. Remaining Mexico plants will

be converted in 2006. US Plants will be converted 2007-2008.

– WER – Norrkoeping completed in 2005. Torento will be converted in 2006. remaining plants will be converted 2007-2008.

– Asia – Shunde will be converted in 2006.

� Supply Chain – Planning Systems– NAR – Demand Planning, Inventory Planning, Distribution and

Deployment Planning will be migrated in the future.

� CTO-Product Development/Design– Parts Master and BOM Master will be converted 2006-2008 once BPM

is launched.

– Collaboration and Document Management will be converted 2006-2008 once BPM is launched.

– Vendor master and Global procurement will be implemented in 2006-2007.

– Quality Management will be converted 2006-2008 once BPM is launched.

� Other P&L Businesses– Pan-Asia (India/China) will be merged in 2006.

– Kitchen Aid SABU might be planned for 2007.

– Kitchen Aid Europe will be converted in 2006.

– Canada Parts/Services might be planned for 2007.

– Europe Financial Suite will be converted in 2006.

– Australia, Venezuela, Colombia, Morocco, South Africa ???


Display of SAP xMII screens on Blackberry: Production Dashboard

� Provide Visualization of current operating status of Production lines

� Provide visualization of quality performance of line defects

� Display integration created very quickly from existing SAP xMII screens, but had to make some enhancements for control of thumb wheel up & down and select functions


Display of SAP xMII screens on Blackberry: Press Room View

� Visualization of data collected

from the PLCs regarding press

room operations

� Use of color attributes to

indicate status up or down

� Can select details to see actual

counts by part number being

produced


Display of SAP xMII screens on Blackberry: Detailed Display view

� Tabular display of data based

on selecting detailed data

� Data is updated every 30

seconds from PLC to shopfloor

data base

� Could do a dynamic read but

buffer in plant database to

create the historic view




Plant Maintenance Example & Manufacturing Back-Up Solution



Wrap-up & Review

� SAP Netweaver and SAP xMII provide the means to

impact the entire business including manufacturing

when properly understood by an organization

� Flexibility to change the way shop floor technicians

interact with the ERP system (SAP) improving

operations and corporate functions through integration

� Create new functionality not in standard SAP ERP by

using standard SAP function modules calls with XI &

SAP xMII.

� Can integrate other shop floor real time data sources

in the design of the solutions for manufacturing.

� SAP NetWeaver and SAP xMII incorporate web

standards facilitating our move to SOA through creation

of enterprise services


Key Takeaways

SAP can enable tremendous productivity gains within

a plant & corporation, but is a major investment:

� Organization Capabilities to Drive Success

� Change management & Education

� Technology Understanding

� Business Process Re-Engineering

� Commitment to Partner with SAP

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


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SAP Adaptive Manufacturing Summit 2006

Colorado Convention Center

Denver, Colorado

September 27-28, 2006

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