measuring, analyzing and improving business processes ... · operational performance management -...

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

3

Performance Management Information Sources (1)

ManagementOperational KPIs

Measure

Process experts

Analyse

Execution

Improve Actions

Top managementStrategic KPIs

BI / BW

ERP

Operational Performance Management

Reporting & AnalyticsDisplay layer

Operational Performance ManagementOperational Performance Management



Measure

Process experts

Analyse

Execution

Improve Actions


SE16NSE16

Zreportxx

Zreportxx

‘Self made’ Operational Perf. Mgt support

RISKSMaintainability?

Security?

Reliability?

Scalability?

Dependency on

few persons?

(Hidden) costs?

BI / BW

ERP

Display layer Reporting & Analytics

SE16NSE16

Zreportxx

Zreportxx

‘Self made’ Operational Perf. Mgt support

RISKSMaintainability?

Security?

Reliability?

Scalability?

Dependency on

few persons?

(Hidden) costs?

BI / BW



Measure

Process experts

Analyse

Execution

Improve Actions


ERP

Reporting & AnalyticsDisplay layer

Improvement Action lists

Operational KPI Measurement

Process Analysis

Standardcontent

Ad hocanalysis

D:/Every Angle/AngleToSqlServer/AngleToSQL.accdb

../../../../Program Files/EASuite/EAClient.exe

Out of the box SAP-add on

• For operations control & order management

• SAP AG certified (since 2001)

• Complementary to R/3 (SAP ERP), BW (SAP BI) and APO (SAP SCM)

Purely based on SAP ERP (R/3 & ECC) system

• Primary focus on business processes

◦ Core is SAP MM, SD, PP, PM/SM

◦ Context information from SAP PS, WM, QM, HR and FICO

• Includes all customizing settings (plants, document types, etc.)

Usage

• Backorder management (late and critical orders)

• Bottleneck analysis (effect-cause-effect relations)

• Stock analysis (excess and shortage)

• Data quality (master data and order pollution)

Results

• Live within 48 hours (plug & play)

• Fast results (Data quality➚, Service level➚, working capital➘)

What is Every Angle?

Architecture

Characteristics of Every Angle architecture

» EAXtractor: data extraction using SAP Certified Function Module.

» EAServer: Built-in business process logic and SAP ERP knowledge.

» EAClient: Thin-client desktop Windows application

» EA DLL: integration with BI tools (e.g. SAP BO) and SAP GUI

99

Tables and indexes

Objects and pointers

EAServer: Live intelligent objects

10

Demonstration

Demo

Our customers about their quantative benefits

Stock level reduction 16 %Reduction 2 FTE + 100 days consulting50% reduction data pollutionIncreased end user appreciation of SAP

Reduction of Working Capital with 4%Big improvement of SAP data reliability

More than 80% of our customers report: Stock level reduction,Service level improvement and Working capital reduction

Stock level reduction 8%Service level improvement 12%

20% efficiency improvement in production

Our customers about their qualitative benefits

“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



• Demo


• Historie


» The Next Steps:




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



• Demo


• Historie


» The Next Steps:




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



• Demo


• Historie


» The Next Steps:




26

Samenvatting

27

Excess stock

EA live 1

Customer service level

SAP ERP data reliability

User attitude towards SAPand SAP implementation quality

Stocks & supply chain costs

Lead times

2 3 4 5 6 Months

%

What makes Every Angle unique?

ApplicationEA is an application ( not a toolkit )

Easy to implementEA installs and runs in 3 days

Process Intelligence

added (EA©)Many derived intelligent properties

Low impact on ITEA has very low impact on IT

SAP Data Model

complexity reducedSAP data model reverse-engineered in EA

Empower

business usersBusiness users create their own reports

29

Questions & discussion

Hartelijk bedankt voor uw aandacht !!

? ? ?

30

BIJLAGEN

Operational Performance Management made easy

31

The Challenge To fill the information need in a rapidly changing environment

• Information needs change fast

• IT has to facilitate the business support IT to be more agile than the business

Operational Performance Management, agile and closed loop

• Standard, SAP certified solution for Operational Performance Management

in Supply Chain, Financials & Controlling and Human Resources

• Business users create reports and analytics; requesting little support from IT

• Operational in less than 3 days, business questions in 3 minutes; answers in 3 secs

• Built-in knowledge : SAP data-model and business process logic

The Results Improved business performance

• Better insight in the business processes ‘remove the smoke’

• Better customer service levels

• Lower stock levels, lower correction costs, less consultancy costs

• Less data pollution

• Happier SAP users, with a better understanding of the business processes

The results from IT management perspective

ManageableEvery Angle is a standard solution

• Replaces many reports and reporting tools that are out of the control scope

• Centralized, thorough security and authorization system

• Central application and user management

Low TCOEvery Angle is a low Total Cost, fast and easy solution

• Implemented in just 3 days

• Average cost hardware 10k. Average cost consulting & training 5-20k

Reduces riskEvery Angle is a proven and SAP® certified solution

• Certified by SAP and recognized by Gartner

• Proven, robust technology, in use in many industries and countries

High benefitEvery Angle is always a big success for IT and business

• Business users have superb functionality, fast and easy to use

• IT focus = management / Business focus = (especially ad-hoc ) report building

• Proven business benefits are huge: better customer service at lower costs

SAP Data Model EA Business Model

How we differ from our competition

33

> 22.000 tables

Highly complex

Data and transactions

Long reaction lead-times

50 to 100 objects and relations

Easy to understand and use

Decision and status info

Instant process visibility

Large data volumes

Flashing response times

Ask any new question 3 minutes3

Get your answer 3 seconds3

Install and train users 3 days3

ServerExtractor

Why can Every Angle do

what the competition cannot

http://www.sap.com/index.epx

Process

Improvement

Properties

SAP

Business

Processes

SAP

Data

Model

Embedded Intelligence

Every Angle automatically extracts SAP data

and transforms it into business content (standard content & ad hoc)



34

ServerExtractor


Process

Improvement

Properties

SAP

Business

Processes

SAP

Data

Model






35

ServerExtractor

Automated multi-level relations (read-in) in complex SAP data structure

Automated multi-language lookup values, descriptions and help texts

The four famous pain-in-the-neck SAP-topics via simple pick&choose

Long texts

Partner roles

Order statuses

Classification characteristics


Process

Improvement

Properties

SAP

Business

Processes

SAP

Data

Model






36

ServerExtractor

Bottleneck analysis in Supply chains

Stock analytics

Payment status & reasons in accounts receivable & payable

G/L analytics, (in)direct relations to business partners

HRM analytics over time slices and organisation structures


Process

Improvement

Properties

SAP

Business

Processes

SAP

Data

Model






37

ServerExtractor


SAP User appreciation gets a boost

38

User appreciation of SAP

versus

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.


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.


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.


Rapid KPI prototyping

SAP R/3 to BI Rapid Prototyping Landscape

44

R/3Non

SAP

ETL Services

Presentation Services

Analysis and Access Services

Universe

Dynamic

Data

Store

ClientDB Engine

BO

Data

Services

Non

SAP

Rapid Prototyping Lane

Server

BI

Data Warehouse

Persistent

Staging Area

OLAP interface

Cubes

BAPIXML FileAPI

Master

data Online

Data

StoreDD2PD



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