in collaboration with

Transforming the Business andIT in Gas Turbine ManufacturingSiemens Power Generation optimizes its global supplychain processes and SAP system supported by Capgemini

One special feature wasdefining key figures for

measuring implementationprogress and process

accuracy. Key figures forimplementation progress are

vital to running the operationalprocesses accurately.

The SituationTurbine blades—supported by complex,global supply chains—are the mostsuccess-critical components in gas turbinemanufacturing at Siemens PowerGeneration. One blade requires up toseven steps in the supply chain, with amixture of in-house and externalproduction in North America and Europe.Its high intrinsic value and longproduction time put the supply chainmanagement focus on continuallyreducing lead times and inventories.

In addition to an optimally configuredglobal supplier network, a preciselyplanned and operated supply chainoffering end-to-end process transparencyin real-time is a prerequisite for effectiveperformance. With this in mind, SiemensPower Generation, supported byCapgemini, has designed and implementeda global business transformation programmaking optimal use of SAP.

The SolutionJoint teams, covering order and supplymanagement, production and controllingat Siemens, were formed, augmented byIT resources from Siemens and consultantsfrom Capgemini. Project teams

in Berlin, Orlando, and Hamilton(Canada) ensured global process andsystem harmonization between Europeand North America. They developed atarget process model based on analysis atall three locations, comprising six end-to-end main processes with clearly definedsub-processes and activities:

• Forecast-to-supply chain planning• Order-to-cash• Purchase-to-pay • Production-to-cost settlement• Master data maintenance• Supply chain reporting.

The ResultThe optimized and harmonized businessprocesses and SAP support led to precisesupply chain planning and processing,with end-to-end, real-time transparency ingas turbine manufacturing at SiemensPower Generation. Increased processaccuracy and speed optimize supply chainperformance and provide a competitiveedge in the global gas turbinebusiness.

How Siemens Power Generationand Capgemini Worked TogetherCollaboration from all team membersacross both sides of the Atlantic and fromthe two partners was seamless andintimate. Siemens Power Generationbrought deep business acumen;Capgemini added process expertise,program management methods and SAPexpertise. This facilitated innovation andindustrialization as watchwords to steerprogress.

End-to-end process chains with specificSAP functionalitiesA standard global process was definedacross departmental boundaries tooptimize medium and long-term planningof requirements and capacity. The SAPlong-term planning function supports thisprocess in conjunction with a speciallydeveloped capacity planning tool. It isnow possible to compare global suppliercapacity and simulate various businessscenarios. Standard global rules have alsobeen defined for using the planning runfor Material Requirements Planning(MRP). This option for dual sourcing inmaterial planning can eliminatebottlenecks by using alternative supplychains, without major manual input.

An e-business controller completes theSAP-based process and acceleratesprocessing for “simple” orders—those thatdon’t require complex checks are sentdirectly to production. In a complexsupply chain, it is important to track theturbine blades through all stages andintervene where necessary. This is madepossible by linking the Siemens supplierportal with the new SAP-supportedstandard system for serial-numbertracking. When suppliers forward parts tothe next stage in the chain, they mustenter all the status and quality data for aparticular serial number in the portal.Siemens buyers can view this informationimmediately in SAP, giving completetransparency of the status of parts in thesupply chain.

The complex bill-of-material structure forgas turbine production makes accuratemaster data maintenance a prerequisite tohandle day-to-day business efficiently. Aglobal, standard master data maintenanceprocess with clear roles and responsibilitiesmakes this possible. Specialist reportsmonitor the status of master datamaintenance; missing or incorrect entries incritical fields are continually checked usingalarm functions.

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Manufacturing the way we do it

Copyright ©2008 Capgemini. No part of this document may be modified, deleted or expanded by any process or means

without prior written permission from Capgemini.

In collaboration with

Siemens, headquartered in Berlin andMunich, is one of the world's largestelectrical engineering and electronicscompanies. Siemens provides innovativetechnologies and comprehensive know-how

to benefit customers in 190 countries. Founded more than 150 years ago, thecompany is active in the areas ofInformation and Communications,Automation and Control, Power,Transportation, Medical and Lighting.For more information about Siemens PowerGeneration, please visit:http://www.powergeneration.siemens.com/home

Capgemini, one of theworld’s foremost providers of

consulting, technology and outsourcingservices, enables its clients to transformand perform through technologies.

Capgemini provides its clients with insightsand capabilities that boost their freedom toachieve superior results through a uniqueway of working - the Collaborative BusinessExperience® - and through a global

delivery model called Rightshore®, whichaims to offer the right resources in the rightlocation at competitive cost. Present in 36countries, Capgemini reported 2007 globalrevenues of EUR 8.7 billion and employsover 83,000 people worldwide.

More information about our services, offices and research is available atwww.capgemini.com

About Capgemini and the Collaborative Business Experience®

Monitoring the transformation process One special feature was defining keyfigures for measuring implementationprogress and process accuracy. Key figuresfor implementation progress are vital torunning the operational processesaccurately. Examples include “the numberof completely maintained materialmasters” and “the number of materials thatare e-business capable.”

Key figures for process accuracy provide aclear picture of how employees use thenew processes. It is possible to measurethe quality of an MRP Controller’soperational planning, for example, usingthe key figure, “development of particularexception messages.” Ongoingtarget/actual comparisons are alsopossible, since time-based goals aredefined for all key figures. These keyfigures are directly influenced by how thenew solutions are used and provideevidence of the ramp-up success. Keyfigure measurements are included inweekly top management reports—moreevidence that the project will producelong-term benefits.

Capgemini GermanyManufacturing, Retail & DistributionConsulting & Technology ServicesSupply ChainLogistics & FulfilmentBusiness Intelligence

Approved by:Christoph Wollny, Head of Products, PB,Siemens Power Generation

Dr. Gunnar Ebner, VP, Head of MRD,Capgemini Deutschland

A standard information system controlsthe complex procedure across individualoperational processes worldwide. Its key-figure tree comprises three levels, fromheader-level key figures (like costs anddelivery reliability) to individual drivers atthe operational level (such as materialprice variances and rework expenses).InfoCubes in SAP Business InformationWarehouse enables these key figures to becollected and analyzed rapidly andflexibly.

Employee and supplier skilldevelopmentEven the best functions bear results only ifbusiness procedures are synchronized withnew processes. It was therefore importantto introduce an intensive skill-development program for employees anddefine clear employee roles across theprocess chain, with correspondingfunction descriptions. These includedMaster Scheduler, MRP Controller andStrategic Buyer. A multiphase trainingprogram familiarized suppliers with thenew processes. The training courses areavailable on a specially developed intranetto support self learning.