Operational Performance Management - The next step Measuring, analyzing and improving business processes - finally easy for SAP run businesses. Richard den Ouden Director Every Angle Software Solutions B.V. Mobiel : +31 6 511 84 134 Email : [email protected]
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Operational Performance Management - The next step
Measuring, analyzing and improving business processes -finally easy for SAP run businesses.
Richard den OudenDirector Every Angle Software Solutions B.V.Mobiel : +31 6 511 84 134Email : [email protected]
Agenda
» Wat is Every Angle?
• Positionering vanuit IT en business perspectief
• Demo
» Every Angle bij Eriks
• Historie
• Every Angle gebruik
» The Next Steps:
• Operationeel: Control framework (ZEA03)
• Management: KPI dashboard (demo Angle2SQL en SAP BO)
» Vragen & discussie
2
Our vision on Performance Management
Process experts Analyse results and detect performance bottlenecks
Define improvement actions
2
Define KPIsand targets0Top management
Strategic KPIs
Measure and compare with targets1Management
Operational KPIs
ClosedLoop
Time & budget
Different IT for different purposes
Details, ad hoc,
variance
Execution Execute, Improve andfacilitate actual action on the floor
“Every Angle can be used by the end user, so there is no need to hire expensive
consultants.”
Rob van Munster, Controller Supply Chain
“It’s the very first time I’ve seen an ICT project that was
on time, on budget and delivered more than I expected.”
Fred Holvast, Logistics Director, SC Professional 2006
"Every Angle has made a tool that is very simple to use and has an easy to
understand data model behind it."
Johan Neuteboom
“From an IT perspective I can only say that Every Angle requires almost no
maintenance.”
Jan-Willem van der Meere, IT Manager
“What it understands and this is the key between Every Angle and a lot of
competition is the cross-process supply chain elements.“
Sean Culey
Agenda
» Wat is Every Angle?
• Positionering vanuit IT en business perspectief
• Demo
» Every Angle bij Eriks
• Historie
• Every Angle gebruik
» The Next Steps:
• Operationeel: Control framework (ZEA03)
• Management: KPI dashboard (demo Angle2SQL en SAP BO)
» Vragen & discussie
13
Every Angle bij Eriks: historie
» 1996: oprichting Every Angle (voorheen LBM Software)
» 1997: ERDRIE-project bij Eriks (SAP R/3 implementatie)
• Gebruik Every Angle voor dataconversie (Eriks is eerste EA klant)
» 1998: go-live SAP bij Eriks
• Gebruik EA voor go-live support (procesbewaking)
» 1999-heden
• Uitrol van SAP (2 vestigingen => 70+ vestigingen)
• Aantal SAP-users (250 => 1000+)
• Uitrol en inbedding van Every Angle binnen Eriks
14
Every Angle bij Eriks: actuele situatie
Wist u dat bij Eriks …??
» User accounts
• 1000+ SAP Dialog user accounts
• 1000+ EA user accounts (power & viewing)
• > 100 EA users die EA intensief dagelijks gebruiken (power users)
• ??? Eriks medewerkers die info uit Every Angle gebruiken
» Angles (rapportages)
• > 12.000 personal angles
• > 4.000 shared angles
• 275.647 angles uitgevoerd (> 1.000 angles per week !!)
» Data extractie: 515 SAP-tabellen in 2:30 uur (ca. 30 GB)
15
Agenda
» Wat is Every Angle?
• Positionering vanuit IT en business perspectief
• Demo
» Every Angle bij Eriks
• Historie
• Every Angle gebruik
» The Next Steps:
• Operationeel: Control framework (ZEA03)
• Management: KPI dashboard (demo Angle2SQL en SAP BO)
» Vragen & discussie
16
CorporatePerformance Management
1717
focus on Budget performance
LT Planning leads to hierarchical budgetsExecution generates financial postings
Top-down/bottom-upFocused on Spending versus Budget
focus on Process performance
Procurement to Pay, Make to Deliver, Order to Cash, S & OP, End-to-End SC
End to end detailed process analyticsFocused on process goal fulfillment
Plan and Execute
ProcessPerformance Management
Observe and Respond
Focus of
SITE 1200 - Dresden SITE 1000 - Hamburg
SAP Business Process intelligence
18
SO
Late
deli
very
PO
Raw materials
WO
Final product
WO
Packaging Sales order
BoxLeaflet
Flask…
Raw materials
TO
Dis
satis
fied
cu
sto
mer
?
A late supplier causes a problem in the chain,
resulting in an expected delay in customer delivery in another plant.
End-to-End Supply Chain Analysis
Implementatie Every Angle
19
Ad-hoc (eenmalig, op verzoek)
Gestructureerd(werkprocedures: koppeling aan functie en proces)Zgn. “Control Framework”
Reactief
Pro-actief
OUD
NEW
Voorbeelden:
20
Ad-hoc (eenmalig, op verzoek)
Gestructureerd(werkinstructies: koppeling „actie‟ aanfunctie en proces)
Reactief Pollution (oude open orders)Backorders (achterstand)Voorraad zonder behoefte (excess)Component-tekortenTe late klantorders zonder voorraadSpoed ATB‟s (met behoefte in het verleden)…
Pro-actief Kritische orders (verwachte vertraging)Planningsparameters in artikelstamInkooporders met reschedule-inATB‟s met een behoeftedatum binnen X-datumOngealloceerde inkooporders….
Every Angle gebruik in de praktijk
Every Angle gebruik bij veel klanten:
» Vaak ad-hoc
» Blijft „hangen‟ bij enthousiaste key-users
» Niet geïntegreerd in management rapportage (of handmatig …)
» Beperkte operationele inbedding (integratie met werkprocessen)=
=> samengevat:
Every Angle is vaak het “best bewaarde geheim” binnen een
organisatie
Key question:
Hoe zorgen dat Every Angle ook echt wordt „ingebed‟ in organisatie
en processen, zodat de toegevoegde waarde verder toeneemt?
21
Uitdaging 1: inbedding in operatie
Vraag:
» Hoe zorgen dat alle operationele eindgebruikers makkelijk de
actielijsten kunnen opvolgen?
Oplossing:
» Bestaand: viewing users in Every Angle (i.c.m. company wide license)
» Nieuw: ZEA03 transactie
• Geen installatie van EAClient software
• Geen EA user acccount nodig
• Direct doorklikken naar SAP transactie voor de „actie‟
• Ondersteuning van ALV-Grid functionaliteit
• NB: alleen viewing functionaliteit (geen angles maken)
22
ZEA03: angle (folder) tree
ZEA03: angle result display
Uitdaging 2: inbedding in management
Vraag:
Hoe zorgen dat het management ook inzicht heeft in (en stuurt op)
operationele performance zoals door Every Angle wordt „berekend‟
(incl. koppeling naar „actielijsten‟ => zgn. „alignment‟)
Oplossing:
» Bestaand: handmatige export van angles naar MS Excel/Access
» Nieuw: Dashboard Engine om automatisch Every Angle content te
kunnen hergebruiken in management rapportages en BI-omgevingen
(SAP BW/BO, MS RS, QlikView, …)
• Angle2CSV
• Angle2SQL
NB. Automatiseren en hergebruik van Every Angle content/logica !!
25
Agenda
» Wat is Every Angle?
• Positionering vanuit IT en business perspectief
• Demo
» Every Angle bij Eriks
• Historie
• Every Angle gebruik
» The Next Steps:
• Operationeel: Control framework (ZEA03)
• Management: KPI dashboard (demo Angle2SQL en SAP BO)
» Vragen & discussie
26
Samenvatting
27
Excess stock
EA live 1
Customer service level
SAP ERP data reliability
User attitude towards SAPand SAP implementation quality
User appreciation of SAP + Every Angle 3 months later
Datatransparency
Sco
re
Datareliability
Analysing SAP data
SAP &Organization
Overallaverage
7
6
5
4
3
2
1
0
88 8 8 8
5
6
4
6
5
Overall average: from 5 to 8!
1st survey: SAP only
2nd survey:SAP + Every angle
Some built-in Process Improvement Properties
MRPrelevant
A goods flow movement isstill expected for this object Execution
status
Is this object closed,partially open or open?
Deliveryreliability
Will this object be deliveredon time with regard to theorder due-date?
Servicelevel
Will this object be deliveredon time with regard to therequested delivery date?
Order typeEA
Plan order, sales order, purchase order, work order, stock, …
Orderdue-date
Uniform definition ofthe expected due-dateof the object in SAP
Order statussales
What is the progress status in the order confirmation anddelivery process?
InvoiceReceipt status
What is the progress status in the financial purchase process?
Order statuspurchase
What is the progress statusin the logistical purchaseprocess flow?
What is the “worst” delivery reliability of all orders dependent on this one?
Delivery reliabilitydependent orders
OutputAllocation %
% of the open quantity of the order, needed for dependent orders
Order typedelivering orders
What is the order type of the single level delivering orders?
Order typedependent orders
What is the order type of the orders that depend on this order?
Delivery reliabilitydep. sales orders
What is the “worst” delivery reliability of all sales orders dependent on this one?
Inputallocation%
% of the open quantity of the feeding orders, needed for this order.
Bottlenecktype
What is the pinpointed reason for not meeting the order due-date (where to act)?
Material value
Logisticsbehavior
Stock run out date
Average historical demand per workday
Demand stock ratio
Material valueunallocated 90 days
Stock shortage value
Stock excess value
Stock coverage date
39
Philips Medical Systems
40
• Easy to use “angles” to improve the master data quality decentrally by data owners - every day!
• Clearly defined tasks & MD quality targets for every employee
• Significantly improved quality and reliability of master data
• Much better structured MD responsibilities
• Much better understanding of MD exception rules
• Rapid installation of Every Angle within 2 working days
• Identify product master data from two key plants
• Conduct 30 min interviews with employees using Every Angle interactively „on The Beamer‟
• Filter materials under responsibility of each person
• Filter master data fields under responsibility of this person
• Discuss and enter “checking rules” for identified data fields
• Create ready-to-use report highlighting all MD exceptions relevant to the person for daily usage
• Deliver management measurements for overall MD quality
• Complex manufacturing environment with complex bills of materials and high number of SKUs
• Insufficient quality of product master data
• Need to perform better in internal audits
Challenges Approach Results
Improving master data quality
DSM
41
• Lower stock levels 16%
• Reduction of costs: 2 FTE plus 100 days consulting per year.
• Improved workload management warehouses
• Lower transportation costs.
• More reliable data in SAP.
• Better management of batches, less age rejections.
• Make customer order flow more transparent with Every Angle, including all the different blocks in the chain to better predict transport requirements.
• Make batch aging more visible with Every Angle, implement controls to improve management.
• Clean transaction by removing old orders.
• Implement controls with Every Angle so every MRP controller is better equipped to manage order data quality.
• Improvement of planning visibility
• Management of batch-aging / delivering difficult an time consuming.
• Transport planning very lumpy, unclear future view because of many order blocks.
• Stock levels too high, still essential materials missing at key moments.
• Too much unreliable data in SAP system.
Challenges Approach Results
Achieving improved SCM performance and lower costs
Eriks
42
• Improve customer service level with 12%
• Reduce overall stock levels with 8%
• Same number of FTE, process more orders in 6 month time
• Make customer order flow more transparent with Every Angle, including all the different blocks in the chain to better predict transport requirements.
• Make batch aging more visible with Every Angle, implement controls to improve management.
• Clean transaction by removing old orders.
• Implement controls with Every Angle so every MRP controller is better equipped to manage order data quality.
• Improvement of planning visibility
• Customer service levels too low.
• Stock costs too high
• Unclear benefit of profit in product portfolio.
• SAP data not reliable enough.
• Insufficient management information.
• Not enough SCM visibility so detect bottlenecks on time.
Challenges Approach Results
Better service levels and lower stocks
Heineken Netherlands
43
• Clear KPIs overview for SCM over all Dutch breweries.
• Frequent refresh, no handwork, clear definitions.
• Quick implementation of possible changes.
• Happy management!
• Bring all data sources together in one EADashboard Engine.
• Use the Every Angle system to deal with complex SAP data.
• Let well-educated business users define KPIs and maintain changes and extensions.
• IT employees take care of environment, stability and security, not business interpretations.
• The EADashboard engine automatically refreshes all KPIs on a web page. Management can clearly see target-deviations and easily slice&dice with the data.
• Different data sources (SAP, SQL, MES, etc) to build up the KPI overview.
• Unclear definitions of KPI.
• Laborious job, sensitive to errors by handwork to measure and present the KPIs,
• KPIs only updated once a Month.
• Different presentation formats for different KPIs, not one clear overview.