SAP - Primavera

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PRIMAVERA & SAP

A CLOSER HANDSHAKE

Denver, CO

11 April 2013

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Content

• Introduction: finally Primavera and SAP shake hands

• Corvallis & Selex-ES

• Project timeframe and evolution

• 2006 implementation

• 2008 re-engineering

• 2011 SAP MRP integration

• Follow-on

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PRIMAVERA & SAP

A CLOSER HANDSHAKE

Handshake: dovetailing Primavera and SAP

Why we are here:

o Share experiences

o Network in order to improve:

Knowledge

Business

o Swap ideas

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Company Profile

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Overview

Corvallis today

Company structure Sites

Revenues 2012 Employees 2012

62561 M€ *

12 sites in Italy

* Provisional

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Overview

Corvallis core streams

Big Data - EDM Document Handling

Regulatory Compliance Solutions Enterprise Project Portfolio & Risk Mgmt

Integrated 360°EDM TM Financial Data Reference

solutions for the Securities and Investment

management industry

Provider Data & Cost Tracking

Credit Guarantee & Risk Hub

Back-Office Process Optimizing

Outsourcing

Solvency II

Fatca

Funds Data Stream Mapping ISO20022

Digital Document OICR BI

Central Document Repository

Document Managing Workflow

Physical Storage & Handling

On-site and Cloud Solution

Web Portal

Oracle Primavera Suite

Multiple Connectors to ERP

Vertical Specialization Models

Skilled Planning Services

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Market and Services

Banks

Insurances

Industry and Services

Public Administration14%

14%19%

53%

Overview

ICT Consultancy

System Integration & Products

Application Management & Outsourcing

ICT Services

29%44%

18%9%

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ENTERPRISE PROJECT MANAGEMENT

Corvallis as Oracle Gold Partner

Corvallis distributes Oracle/Primavera products in Italy and has a dedicated

Competence Center which delivers products/consultancy services for Enterprise Project

Management.

Through its partnership network with private and public

organizations and the academic world, Corvallis offers to Project-

Based and/or Project Lead Enterprise companies vertical solutionsand specialized services which are constantly aligned to global

benchmarks of excellence and innovation.

Over the last 13 years, Corvallis has deployed P6 EPPM solutions

to over 300 customers in Italy. Its target market comprisesAerospace/Defence, Engineering, Construction and Manufacturing

industries, as well as IT Divisions of financial institutions, insurance

companies and local governments.

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Our Customer

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© Copyright Selex ES. All rights reserved

FRevenue

sRevenues 2011 17.318 € billion

Helicopters

Defensive SystemsSpece Devices EnergyTransportation

Defense Electronics Aeronautics

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Strategic presence worldwide

© Copyright Selex ES. All rights reserved

Worldwide Leader in Ground and Naval Radar sensors

Key presence in the integration of Naval and Air Defense Systems, Air Traffic Control

Systems

Worldwide presence in large systems for Homeland Protection and Defense

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SELEX ES worldwide offices and plants

© Copyright Selex ES. All rights reserved

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© Copyright Selex ES. All rights reserved

The Company

ELECTRONIC and INFORMATION TECHNOLOGIES for

DEFENCE SYSTEMS - AEROSPACE - DATA - INFRASTRUCTURES - LAND SECURITY & PROTECTION -SMART SOLUTIONS

Entrusted to deliver technology-enabled systems and solutions for a safer, smarter and more secure society

Key facts

17,900 people

Revenues in excess of 3.5 billion

Euros

Italy and UK as domestic markets

Strong footprint in

• US

• Germany

• Romania

• Brazil

• Saudia Arabia

• India

• Turkey

The Divisions

Airborne & Space SystemsLand & Naval Systems

Security & Smart Systems

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Our divisions

• Airborne radar• Sensors • Electronic warfare systems

• Avionics• Integrated mission systems

• Airborne surveillance systems• Tactical UAS• Target drones

• Simulation systems• Space sensors and equipment

• Integrated command land and naval

command and control systems• Land and naval radar

• Electro-optical sensors• Tactical communication systems and

equipment

• Battlefield protection systems and equipment

• Homeland and critical infrastructures’ protection and security architectures

• Secure communications systems

• Information technology• Information management and

automation systems • Airport systems• Air traffic and vessel management and

control systems

The Chief Operating Officer function brings together the Engineering and Production activities to serve the three

divisions by creating and exploiting technology, product and systems’ synergies.

Airborne and Space Systems

DivisionSecurity and Smart Systems

Division

Land and Naval Systems Division

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Integrating

Oracle|Primavera and SAP

in Selex ES.

A successful story

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Project timeframe

2005

P5 – SAP R/3 via SDK. Project = EPS node for maximum IPT involvement

2008

P6 – SAP BW SEM via API and Websphere. Project = Project

2010

P6 – SAP MRP

2013Improvement continues

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Interfaces developed

• Current I/Fs include:

o Resource alignment

o WBS and Planning from P6 to SAP BW and R3

o Actual units and costs from SAP BW to P6

o Operation planning from SAP MRP to P6

o Operation forecast from P6 to SAP BW

o 1st level Milestones from P6 to TERRA and BW

o Risk Register from TERRA to P6

• All interfaces are activated via IBM Websphere

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Primavera Enterprise

SAP R/3

BW

SEM

SOLUTION 2005

Primavera EnterpriseSAP R/3

BW

SEM

Terra

SOLUTION 2008

Legenda:

Via RFC

Via Websphere

Implementation updates

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Primavera EnterpriseSAP R/3

BW

SEM

Terra

SAP MRP

Implementation updates

SOLUTION 2010

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Tailoring of standardized/templated WBS

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WBS definition, P6/SAP WP Alignment

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Activity Definition, Duration Estimating, Sequencing

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Cost Estimating, Cost Budgeting

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GUI Websphere,

P6 <-> BWSEM interface execution

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BWSEM copybook to add invoices and revenues

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Access to TERRA

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TERRA

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FUSARO PLANT (NAPLES)RADAR SYSTEM PRODUCTION

• Air Traffic Control

• Ground Defense

• Naval Defense

• Homeland Protection

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Time and Cost control

Responsible: – Operation Planning

Description: - Delivery Milestones agreed with BU are

updated on the basis of MRP output and actual data collected in SAP R/3

MRP

MRP «Grado di Copertura*»

Responsible:– Operation Planning

Description: – On the basis of «Independent

needs» identified by MRP and «Grado di Copertura*»

Schedule and Cost update for each WP

INCOME STATEMENT

FINALIZATION AND APPROVAL

Income Statement and Milestone Plan updating

Operation – Planning and Controlling process

Preliminary Design(Phase 3A)

Detailed Design(Phase 3B)

System Integration(Phase 4)

System Qualification (Phase 5)

Production (Phase6)

Support(Phase 7)

Responsible: – Finance/Admin dept.

Description:- Income statement update- Updated Milestone Plan

* Grado di Copertura (degree of coverage): tailor-made sw developed in order to normalize data for schedule alignment

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Designing and developing an integration software forproduction management in order to better plan,monitor and control operations from a programmaticand economic perspective

Primavera and SAP MRP integration

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SELEX-SI managing model

Business Unit 1

Business Unit n

• Cost• Revenue• Invoice Mlst• Cash is Mlst

Function 1 Production

Internal Order (IO):• Part number• Due date• Cost• Non-STD Activity

Functions operate as “internal suppliers” with their own income statement at zero margin

Product order management

• Cost = Revenue• Invoice Mlst =

Internal Order Mlst

Cost transferred equal to internal order

milestone cost

«Order» management

IO Mile

sto

nes

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Managing model in SELEX-SI

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Initial scenario

Business Unit 1

Business Unit n

«Order» Management

Function 1 Production

Internal Milestones

Production order management

PRIMAVERASAP BO

SAP BW/SEM

SAP MRP : standard production*EXCEL: Income statement and MlstMS PROJECT: not std activities

Invoice Mlst

Internal Mlst delivery

* Standard production means the manufacturing of goods already where both a BOM and work cycle are already in place.

IO

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Initial scenario

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Initial scenario – weaknesses

«PRODUCTION» PROGRAM MANAGER

INTERNAL

MILESTONE

SAP MRP

EXCEL

MS PROJECT

Non-standard activitiesPrototype activities

Resource ManagementRisk Management

Priority ManagementBaseline Management

Results AnalysesEAC

Milestones Management

Non-integrated planningBaseline Management

PRODUCTION

PLANNING

INVOICE STATEMENT

& MILESTONES

NOT STANDARD

ACTIVITIES

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Initial requests

• Identify an integrated solution • Use tools already in place at company level :

• PRIMAVERA• SAP BO• SAP BW/SEM• SAP MRP

• Obtain a unique SW environment for activity management• Identify the most suitable EAC estimation for each order, for the

entire production portfolio • Obtain P&L analysis• Manage Milestone relationship between Sales Order and

Operations Business Units• Issue income statements order by order

Detailed specifications have been identified through on-going client / supplier collaboration

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What feeds into PRIMAVERA?

SAP MRP

Production cycle (assembly/test) by Competence CentreLead time for material supplyingLabor Cost and Material CostActivities and Material SchedulingActual cost by Cost Nature and CC

PRIMAVERAPROGRAM MANAGER

Non-STD activity planning:• Product industrialization• Facility realization• Layout realization• PrototypesSAP R/3

INTERNAL MILESTONE

The milestone value representing duties among Operations and other BUs

COST INVOICE

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SAP MRP PRIMAVERA

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SAP MRP PRIMAVERA

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SAP MRP PRIMAVERA

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SAP R/3 INTERNAL

MILESTONEPRIMAVERA

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What feeds out of PRIMAVERA?

PRIMAVERA

PLANNING BASED ON:• PRIORITY• RESOURCES• EQUIPMENTS• RISK

MILESTONE SCHEDULING

INCOME STATEMENT

ORDER BY ORDER

STD AND NON-STD ACTIVITY INTEGRATED PLANNING

Not only MRP!!!

COST AND WORKLOAD

DISTRIBUTION

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MILESTONE SCHEDULING

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INCOME STATEMENT ORDER BY

ORDER

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COST AND WORKLOAD

DISTRIBUTION

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Initial scenario

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Current scenario

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ADAVANTAGES

• Reliable estimates of EAC order by order.

• Criticalities can be highlighted straightaway

• Unique and integrated planning of activities and milestones

• Baseline freezing and time/cost variation analysis order by order, production order, activities, milestones

• More effective and efficient resource and equipment management

• Time-distributed workload by Competence Centre

• WIP analysis

Less effort spent on data processing allows end-users to focus on analyzing criticalities.

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FEEDBACK

• The integrated tool is used by all staff involved in planning and managing milestones

• Income statements elaborated via PRIMAVERA are used by Finance departments as an official document

• This implementation project is currently under review to become a corporate level standard

• All process improvements take into account possible integration with PRIMAVERA, our control and planning tool.

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WORK IN PROGRESS

BU Milestone

Function Milestone

• R/3• BW/SEM• BO

INTERNAL ORDER

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Giusy Mainardi

[email protected]. Ph: +393400031836

Simone Oliva

[email protected]. Ph: +393485230506

T H A N K

Y O U !