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© 2014 Intrigo Systems, Inc.
Insight Driven Outcomes
Albemarle: S&OP’s Anticipated SCM Contribution
SAP S&OP as a Catalyst for Enhanced
Demand Planning Efficiency
© 2014 Intrigo Systems, Inc. 2
Agenda: Company Overview
Company Overview
Implementation Methodology
Business Value
Q & A 6
5
4
3
2
1
Albemarle Testimonial
Introduction to S&OP
© 2014 Intrigo Systems, Inc. 3
Speaker Introduction
Jeff Boyer S&OP Solutions Architect Intrigo Systems, Inc. [email protected]
20 years of experience in Supply Chain Management
Trained SAP implementation partner for S&OP Powered by HANA
Managed the supply chain planning system portfolio for the Clorox Company
Led multiple system implementations including i2 Demand Planner, Logility, and APO
Managed a “Best-in-Class” vendor managed inventory program supporting Wal-Mart
Piloted a Collaborative Planning, Forecasting, and Replenishment (CPFR) program with Target and Wal-Mart
© 2014 Intrigo Systems, Inc. 4
About Intrigo
Enterprise on HANA
S & OP Sentiment
Track & Trace
BI
Sequencing
Innovation
DSIM
We are a solution provider of Business Applications focused on orchestrating
Customer Value Networks in the changing SAP Enterprise technology landscape.
© 2014 Intrigo Systems, Inc. 5
Intrigo’s Playing Fields
Products
Services
Predictive modeling; Sentient ; e-Serve
BW on HANA
Biz Suite / Optessa
SOP on HANA / DSIM/ APO on
HANA
Solutions
HANA/ Syclo /Integration
In-m
em
ory
com
pu
ting
BUILT ON
HANA
Orchestrating Customer
Value Networks
© 2014 Intrigo Systems, Inc. 6
Agenda: Introduction to S&OP
6
5
4
3
2
1 Company Overview
Implementation Methodology
Business Value
Q & A
Albemarle Testimonial
Introduction to S&OP
© 2014 Intrigo Systems, Inc. 7
What Problem Are We Solving?
Finance
Marketing
Sales
Operations
SCM
CRM
Supply Chain: “Where/when am I going to
source this new product”
Finance: “How’s our overall
margin impacted by our
growth in BRIC?”
Sales Mgmt: Can we
support this new
account?
GM/CXO: “How do we
make sure we don’t miss the
quarter?”
Marketing: “How will a pricing
change impact demand of my highest volume
product family?”
Problem: Can’t plan across the organization in time, don’t have the right information and can’t test assumptions.
Consequence:
Miss the quarter
Lose a high-profile customer
Lose market share
E&O
© 2014 SAP AG. All rights reserved.
© 2014 Intrigo Systems, Inc. 8
Where S&OP Fits Across Enterprise Planning
Strategic Planning
Sales Force Automation
Operational Planning
Opportunities, Promotions
Constrained Qty Plan
Short Term Plans
Scenario Plans
Constrained Revenue Margin Projections
Strategic Plans
Sales Forecast
Financial Planning
Scenario Plans
Constrained Rev & Margin Projections
Strategic
Tactical/Execution
AOP, Finance
Plan S&OP on HANA
Value:
• Make strategy actionable
• Integrate tactical planning & Execution
• Drive visibility and agility
© 2014 SAP AG. All rights reserved.
© 2014 Intrigo Systems, Inc. 9
S&OP Solution Architecture
SAP Sales and Operations Planning 3.0 Powered by SAP HANA™
Excel: Plan
Sales/ Marketing
Demand Planning
Finance
Supply Chain
Executives
Web
UI
sftp
| h
ttp
s
Ou
t-o
f-th
e-b
ox
Inte
grat
ion
Dat
a Se
rvic
e o
r H
CI
SAP HANA™
SAP Jam™
S&OP Model & Engine Attributes
Key Figures
Scenarios & Simulation
Predictive Analytics
Heuristics & Optimization
Process Workflow
Alerts
Social Collaboration
Web: Analyze
Mobile: Analyze
ERP
CRM
BPC
APO
BW
Any Other System
Files
© 2014 SAP AG. All rights reserved.
© 2014 Intrigo Systems, Inc. 10
How to Get Started
1 Phased approach
Option 1: parts of your business
BU1
Option 2: parts of your process
BU 2 & 3 BU 4-10
2 3 Quickly reconfigure the
S&OP solution Out-of-the-box S&OP
model and data integration
Reconfigure S&OP to meet your needs as requirements change • Hours to days • Driven by the business • Configuration based
ECC APO BPC
S&OP on HANA
Reduce implementation time and risk by leveraging SAP model and data integration
Achieve early wins by deploying in bite-sized chunks
Demand & Finance
Supply Net
Profit
© 2014 SAP AG. All rights reserved.
© 2014 Intrigo Systems, Inc. 11
Agenda: Implementation Methodology
6
5
4
3
Company Overview
Implementation Methodology
Business Value
Q & A
Albemarle Testimonial
Introduction to S&OP 2
1
© 2014 Intrigo Systems, Inc. 12
S&OP With Intrigo
Experience: Intrigo has been through multiple S&OP implementations and development cycles with the individuals at SAP who are available to help support our projects.
Expertise: We have consultants with the required skill sets (DSOD/HCI; S&OP Data Model Configuration; SAP ECC, BW) who have worked on multiple S&OP implementations.
Industry Knowledge: We have collaborated with S&OP Product Management on accelerators for Process Manufacturing (Oil and Gas, Pharma, Dairy), High Tech and Automotive.
Scoping: We can quickly vet design decisions with product team when useful. We can rapidly escalate issues when necessary and get results.
© 2014 Intrigo Systems, Inc. 13
What We Have Learned
Our experience has driven Intrigo to leverage
implementation methodologies that
increase the speed-to-value
© 2014 Intrigo Systems, Inc. 14
Scope Right for Speed-to-Value
Intrigo uses an Agile Methodology for Speed-to-Value
The implementation cycle is divided into four Sprints
The primary output of Sprint 0 during the first week is the Configuration Backlog
This backlog will be used to determine the scope and duration of each subsequent sprints
Progress is measured and tracked by utilizing the Configuration Backlog and Burn-Down Chart Intrigo proprietary tools and templates are leveraged to accelerate the timeline as much as possible
© 2014 Intrigo Systems, Inc. 15
Scope Right for Execution
Story ID Category Scope Item LOE Points Baseline Backlog Count Hours Per Ttl Hours Benchmark Hrs Blended Rate Total Cost Scope Item Count
1 Analytics Analytics 3 12 12 1 12 -$ Analytics 12
2 Data Model Time Profile and Calendar 5 2 2 4 8 Planning Views 10
3 Data Model Model Activation 8 2 2 8 16 Estimated Hrs Blended Rate Estimated Cost Users 20
4 Data Model Master Data Configuration 8 2 2 8 16 -$ Key Figures 54
5 Data Model Data Model Design 13 4 4 40 160
6 Integration Data Loads 13 4 4 40 160
7 Integration Data Integration (HCI) 13 4 4 40 160
8 Key Figures Editable (Forecasts) 3 5 5 1 5
9 Key figures Stored (Actuals) 5 8 8 4 32
10 Key Figures Attribute Transformations 8 2 2 8 16
11 Key Figures Alerts 8 5 5 8 40
12 Key Figures Calculated Key Figures 8 5 5 8 40
13 Key Figures Snapshots 8 24 24 8 192
14 Key Figures Time Reference Key Figures (Lcode) 13 5 5 40 200
15 Planning Operators Statistical Forecasting 13 2 2 40 80
16 Planning Operators Supply Planning 20 2 2 80 160
17 Planning Operators Optimizer 40 0 0 160 0
18 Planning Views Standard Planning View Templates 3 8 8 1 8
19 Planning Views Customized Planning View Templates 13 2 2 40 80
20 Process Model Process template 3 2 2 1 2
21 User Setup Visibility Filters 5 10 10 4 40
22 User Setup Users 3 20 20 1 20
23 User Setup Roles 3 5 5 1 5
24 User Setup Jam Configuration 13 1 1 40 40
25 Validation Validate Sizing Requirements 5 2 2 4 8
0
50
100
150
200
250
0
5
10
15
20
25
30
Key Figure Contribution to Effort
Backlog Count Ttl Hours
Key Concepts: Lock in the go-live date! Prioritize requirements for value Assess the level of effort Drive to deliver the greatest value
© 2014 Intrigo Systems, Inc. 16
Overall Timeline
Sprint 0 Sprint 1 Sprint 2 Sprint 3 Sprint 4
The target is to complete implementing Sprints 0 through 4 within 13 to 16 weeks; however, this is dependent upon the final scope. Scope guidelines for a 13-16 week project are as follows:
o Five Step Process o 54 Key Figures o 10 Planning Views o 20 Users
Final scope and duration of implementation will be determined during Sprint 0
Four-week production support period begins at the completion of Sprint 4
Backlog Stored Key
Figures Calculated Key
Figures Time Reference
Key Figures Final Prep
Target: 13 – 16 Weeks
Daily Scrum Meetings
Test and validate early and often
© 2014 Intrigo Systems, Inc. 17
• Frequency - Daily
• When - Start of each day
• Agenda
• Work completed
• Work in process
• Road Blocks
Scrum
• Frequency – Weekly
• When – End of each week
• Agenda
• Progress to date
• Open issues
Project Status • Frequency – Four
scheduled
• When – End of each Sprint
• Agenda
• Review progress
• Approve upcoming scope and timing
Sprint Review
Project Meeting Cadence
Project Team Stakeholders Steering Committee
© 2014 Intrigo Systems, Inc. 18
Project Team Training One week of training during first week of
implementation project (Sprint 0) Courses are targeted for specific user segments within
the project team Outcome: Project Team understands functionality and
can speak to business requirements within context of the application
End User Training Train the trainer approach Training materials such as business process procedures
are developed throughout the lifecycle of the project Outcome: Project Team is fully enabled to rollout the
solution to their end user community Knowledge Transfer
IT Support and Business Super Users will be provided with a detailed design document and training on the specifics of their implementation
Outcome: Project Team is enabled to support their end user community and sustain the application over time
Training Approach
© 2014 Intrigo Systems, Inc. 19
Agenda: Business Value
6
5
4
Company Overview
Implementation Methodology
Business Value
Q & A
Albemarle Testimonial
Introduction to S&OP
3
2
1
© 2014 Intrigo Systems, Inc. 20
Typical Project Objectives
Deeper Integration: Creating and developing a fully integrated Sales and Operations Planning Process. Providing executive analytical reporting with drill down capability to see detailed levels such as business unit, product line or product family, geographical region, market segment, distribution channel or Industry, country, product type, and material number.
Stronger Forecasting: Comparing and simulating demand and sales data against financial guidance for multiple business scenarios (i.e. budget versus forecast and budget versus committed revenue).
Improved Collaboration: Enabling collaboration between cross functional teams to successfully manage the S&OP process.
Increased Automation: Eliminating the need for manual updates of Sales Quantity Forecast, Actual Sales Quantity history and statistical forecast related data.
Smoother Information Transfer: Sourcing the existing transaction and master data from SAP ECC and integrating the output generated by the solution back to SAP ECC to drive MRP and production planning.
© 2014 Intrigo Systems, Inc. 21
Benefits Sought
Single “Source-of-the-truth”: This reduces the amount of time spent reconciling numbers
Familiarity with Tool: Planners continue to use Microsoft Excel, a tool they are familiar with, while benefiting from standardized templates that focus their efforts and are available online and offline.
Efficiency: The ability to quantify the impact of a change in demand in a particular product chain and its subsequent impacts on related product chains in a single view.
Reduced Manual Work: This reduces the risk of manual errors, improves planned performance and increases planning efficiency.
Visibility: There is an overall improvement in visibility to planning information.
© 2014 Intrigo Systems, Inc. 22
6
5
Agenda: Albemarle Testimonial
4
Company Overview
Implementation Methodology
Business Value
Q & A
Albemarle Testimonial
Introduction to S&OP
3
2
1
© 2014 Intrigo Systems, Inc. 23
Speaker Introduction
Satish C Nutakki Director, Solutions Architecture Albemarle [email protected]
20+ years of experience in IT management, IT technical, business process and functions
Effectively delivers seamless systems and support for diverse range of operations across North America, EMEA, APAC and Latin America
Known for exceptional technical proficiency, astute understanding of business process operations, and performance drivers across technology and management lines
MBA in International Business & Systems Design from University of Tasmania
BS in Mathematics, Statistics and Economics from Bangalore University
© 2014 Intrigo Systems, Inc. 24
About Albemarle – Business Segments
Catalyst Solutions Revenue: $1.2 Billion
Heavy Oil Upgrading Clean Fuels Technologies Performance Catalyst
Solutions Antioxidants
Performance Chemicals Revenue: $1.5 Billion
Fire Safety Solutions
Fine Chemistry Services
Specialty Chemicals
2013 Revenues: $1.2 B
2013 Segment Income: $251 M
2013 Revenues: $1.5 B
2013 Segment Income: $280 M
© 2014 Intrigo Systems, Inc. 25
About Albemarle – Catalyst Solutions
© 2014 Intrigo Systems, Inc. 26
About Albemarle – Performance Chemicals
© 2014 Intrigo Systems, Inc. 27
Diversified End-Markets
© 2014 Intrigo Systems, Inc. 28
Global Footprint is a Competitive Advantage
© 2014 Intrigo Systems, Inc. 29
Strategic Goals
One Albemarle
Standardized business processes globally across Albemarle
Supply Chain Transformation
Improved working capital efficiency
Rationalize inventory across business units
Responsive supply chain: Ability to commit to customers on a “real-time” basis
The Supply Chain Transformation Project includes rolling out SAP S&OP on HANA to 8 Business Units within the Catalyst GBU
S&OP on HANA
Develop and implement a strong, structured and sustainable S&OP process across global business units to achieve sustaining inventory reductions in working capital
Thank You!
For additional information, please contact us at [email protected] or visit us at www.intrigosys.com.
Follow us on Twitter: @IntrigoSys
© 2014 Intrigo Systems, Inc.