headline verdana bold - nzsug events... · 2018-03-27 · •introduction of mrp ‘live’...

Headline Verdana BoldSAP S/4 HANA MigrationNew Zealand Case Study of a migration from R3 to S/4HANA 1610

March 2018 – Andrew Mills

© 2018. For information, contact Deloitte Touche Tohmatsu Limited.2

S/4 HANA Migration - Agenda

• Tenon Clearwood Limited Partnership overview

• Business drivers

• Approach

• Solution Features

• Dual cloud adoption and desktop integration

• Customisations

• UI5 and Fiori

• Business benefits


The Tenon Clearwood Business

• NZ’s largest producer of defect-free, appearance-grade radiata pine products

• NZ’s Largest pruned log sawmill, with capacity to process 400,000 tonnes p.a of radiata pruned butt logs.

• Pine Lumber, Pine Boards, Pine Mouldings

• All manufacturing at advanced Taupo Clearwood site

• 70% of sales are exported to USA, Europe, Asia and Australasia


S/4 Migration Business Drivers

• Old R3 system implemented in 1999 (Fletcher Challenge Forests) out of support

• Change from a public listed company to now a Limited Partnership

• Development over recent years had ceased, while Company changes took effect, this providing opportunity for process improvement

• Some financial process challenges:

Financial visibility, close

&

Reporting challenges

SAP

R3

SMARTSTREAM

GL, AR AP,

Fixed Assets,

Banking

Accounting InterfacePP

SD

MM

PM


Migration Approach

• Re-implementation to S/4 HANA 1610 was the right fit for Tenon, in order to meet the requirement of retaining essential industry specific customisations.

• Advantages included:

• Remove old customisations where no longer required

• Remove unnecessary legacy data (allowing for part implementation of a best practice design)

• New SAP FI/CO solution could be implemented in an unconstrained fashion alongside a modified and improved logistics solution design


Delivery Plan Overview

• 4 month core re-implementation plan

• On time, on budget achieved by:

• Senior management buy-in

• Dedicated internal SME resources

• Key dependencies addressed early during project preparation phase

−Redundant customisations identified and existing customisations challenged with S/4 capabilities

−COA, Cost Centre and Profit Centre structures defined

−Material numbering, org structure agreed

−Functional location structure re-design completed

−Scope defined clearly based on a completed solution gap analysis

Month 2

June

Month 3

July

Month 4

August

Month 5

September

Month 1

May

Month 6

October

Month 7

November

Month 8

December

Final

Preparation

Go-Live &

Support

Realisation

Business

Blueprint

Project

Preparation3a Build 3b Test

Data Build Data Load 1 Data Load 2 Prod Data Load

Training Dev & Plan Training

Change Impacts Change Plan Change Management & Communications


Dual Cloud Adoption

• Remote desktop cloud solution already in place – iTCo Solutions Limited

• SAP Cloud solution provider, AWS, chosen to gain IAAS benefits

• S/4 HANA provisioning on AWS required detailed planning to enable connectivity and integration with the Tenon Network via iTCo cloud


Migration of current customisations

• Tenon used SAP to support manufacturing processes but not full BOM and Route functionality (master data maintenance overhead)

• Key customisations supporting semi-finished and finished goods material movements had to be retained for process efficiency and ensure adherence to industry specific compliance

• These were migrated to S/4 attached via transports and remediated:

• To replace redundant call transactions and BDC’s with BAPI’s

• To replace code that was reading redundant R3 tables


User Interface approach & Architecture

• Limited adoption of new UI5 and Fiori interfaces

• Reduced change management and project risk

• Use focussed on handheld devices on the manufacturing floor

• Old devices replaced with new technology along with new site-wide wireless and a standard SAP mobile device integration architecture


Handheld UI – Home page tiles


Handheld UI – Good Picking


Handheld UI – Display Tally


Handheld UI – Bulk Goods Issue


Handheld UI – Stocktake


Handheld UI – Providing WiFi across the site


Business Benefits Delivered

• Manufacturing Operations

• Introduction of MRP ‘live’ functionality

• Implementation of material ledger and where possible, process alignment to best practice

• Re write of handheld functionality with SAP UI5 on the manufacturing floor

• Plant maintenance rotable item tracking introduced replacing manual process

• Repetitive manufacturing enhanced with simplified product costing

• Financials

• Improved intercompany processes (returned to SAP standard where possible)

• Fixed Assets integrated to purchasing and plant maintenance using CAPEX and OPEX internal order processing with settlement

• Introduction of workflow for fixed asset procurement approvals

• Replaced some custom reports with SAP standard operational reporting

• COPA product profitability reporting implemented with enhanced S/4 COGS breakdown of product costs

• Infrastructure

• Full cloud enabled application suite with SAP S/4HANA IAAS

Questions

?

headline verdana bold - nzsug events... · 2018-03-27 · •introduction of mrp ‘live’...

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