how, why, and in what way kimberly-clark health care deployed …fm.sap.com/data/upload/files/how...
Post on 03-May-2018
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1
HOW, WHY, AND IN WHAT WAY
KIMBERLY-CLARK HEALTH CARE
DEPLOYED SAP EWM
KYLE SORENSEN
SENIOR DIRECTOR, SAP SOLUTIONS
2
AGENDA
Who is KC Health Care
Vision
System Selection
Why EWM
Project Details
Implementation Partner
EWM Functionality
Timeline
Benefits
Lessons Learned
Questions
6
LONG TERM VISION
Acquisitions Tripled size of business in last 7 years
Doubled number of facilities
Contract Manufacturing (Onshore and Offshore)
Moved into highly regulated market (Class 2 Medical
Devices)
Strategy is to continue growth through acquisitions
Lean and 6σ introduced to plants.
7
SELECTING THE SYSTEM
Strategic
EWM vs. Red Prairie
Interoperability ERP Quality
Scalability Expansion
Minimal Customization
8
WHY EWM?
1. Paper based tracking of materials led to errors and lost paper
2. Want visibility to inbound receipts from vendors
3. Time wasted finding an empty bin for putaway
4. Time wasted finding the bin that contained the materials to pick
5. Cycle counting was a challenge
6. Regulatory requirements
7. Better Enterprise Wide Vision
8. Full Product Traceability throughout the Supply Chain – Inbound
and Outbound
9. Designed for Scalability of Operations
10. Component of KC Health Care’s Global Strategy for the future
9
CREATING THE PROJECT
2 Tier Structure
Steering Committee – Senior Leadership
Design Review Committee – Key Functional Managers
Cross functional
Broad Experience
10
CREATING THE PROJECT
Steering Committee - Responsibilities
Approve Project Key Strategy
Validate Requirements
Prioritize for Corporate Funding
11
CREATING THE PROJECT
Design Review Committee - Responsibilities
Requirements Definition
Charter / Scope
Consultant Selection
12
CREATING THE PROJECT
Project Manager - Responsibilities
Coordinate DRC Activities
Project Plan (High Level - Timing / Resource Allocation)
Business Case and Project NPV
13
PROJECT GOALS
Headcount Reduction: WH / DC / Quality
Increased Throughput
Inventory Reduction
Foundational Project for future acquisitions and future system
expansions (PLM, QM, etc.)
14
PROJECT SCOPE
Implement EWM at a Health Care location which contained
80% of all Health Care processes to establish template
Use template approach to complete 18 EWM rollouts in 3
years!
EWM would manage vendor receipts, production staging,
production confirmation, stock transfer orders, customer
sales orders and physical inventory
EWM project scope expanded to included:
• Activation of batch management on selected materials
• Standardize labels
• Implement wireless devices
• Activate gATP
• ARIBA ASN for top customers
16
Requirement Solution
Receive vendor purchase orders and inbound STOs Inbound Delivery Receipts (PRDI)
Efficient putaway and picking
Process Oriented Storage Control
Production confirmation receipts & component
backflushing
Inbound Delivery (PRDI)
Outbound Delivery (PRDO)
Push product to other sites instead of responding to an
STO
Direct Outbound Delivery
Efficient material movements Handling Units
Picking for multiple customer orders Outbound Delivery (PRDO)
Wave
EWM FUNCTIONALITY
17
Requirement Solution
Automated replenishment Fixed Bin Replenishment
Order Based Replenishment
Visibility to quality Inspection Document
Centralized location for reporting EWM Warehouse Monitor
Ease of use of physical inventory Physical Inventory Document
Better management of inbound and outbound trailers Future Yard Management
Implementation
ARIBA ASN with vendors Future Implementation with ASNs
(PRDI)
EWM FUNCTIONALITY
19
REALIZED BENEFITS OF EWM
Standardized warehouse structure increased efficiency of putaway
and picking tasks
Visibility to the exact location of inventory
Direct Outbound Delivery functionality in EWM allowed us to free 8
hours of resource time
MB56 – Batch Where Used List
20
LESSONS LEARNED
Allocate enough time in project timeline for testing and training
Treat system cutovers as dress rehearsals!
Face-to-face testing cycle allowed testing cycle to stay on-track
Include COE/SME/KUT resources as part of testing phases
Background knowledge of CIF was key
Don’t forget about security!
21
LESSONS LEARNED
Design Review Committee paid Dividends
Prototype Roadshows were big Success
Validated Design Provided added Input
Change Management Organization Buy In
Set Realistic Milestones and Hit Them
22
LESSONS LEARNED
Don’t be afraid to over communicate!!
Ensure project team includes a representative from all system touch points
ECC MM
EWM Material Master
PP
OD
OT
APO
gATP
PI
BI
Legacy Systems
Prioritize nice to haves vs. must need to keep the business running
23
WHAT’S NEXT
Roll Out to remaining Health Care facilities
Data Link to KC Health Care’s Customer Portal
Lot Number
License Plate/Handling Unit
EWM projects KC North America and BRIC sectors
24
QUESTIONS
Thank You
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