Operational Performance Management - The next step

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1 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 :

2 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

3 Our vision on Performance Management Different IT for different purposes Time & budget Top management Strategic KPIs Define KPIs 0 and targets Management Operational KPIs Measure and 1 compare with targets Closed Loop Process experts 2 Analyse results and detect performance bottlenecks Define improvement actions Details, ad hoc, variance Execution 3 Execute, Improve and facilitate actual action on the floor

4 Performance Management Information Sources (1) Top management Strategic KPIs Display layer Reporting & Analytics BI / BW Management Operational KPIs Measure Process experts Analyse Operational Performance Management Execution Improve Actions ERP

5 Performance Management Information Sources (1) Top management Strategic KPIs Display layer Reporting & Analytics BI / BW Management Operational KPIs Measure Process experts Analyse Zreportxx SE16 SE16N Zreportxx RISKS Maintainability? Security? Reliability? Scalability? Dependency on few persons? (Hidden) costs? Self Operational made Operational Performance Perf. Management Mgt support Execution Improve Actions ERP

6 Performance Management Information Sources (2) Top management Strategic KPIs Display layer Reporting & Analytics BI / BW Management Operational KPIs Measure Process experts Analyse Zreportxx SE16 Operational KPI Measurement Process Analysis SE16N Improvement Action lists Zreportxx RISKS Maintainability? Security? Standard Reliability? content Scalability? Ad hoc Dependency analysis on few persons? (Hidden) costs? Self made Operational Perf. Mgt support Execution Improve Actions ERP

7 What is Every Angle? 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 )

8 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

9 EAServer: Live intelligent objects Objects and pointers Tables and indexes 9

10 Demonstration Demo 10

11 Our customers about their quantative benefits Stock level reduction 16 % Reduction 2 FTE days consulting 50% reduction data pollution Increased end user appreciation of SAP Reduction of Working Capital with 4% Big improvement of SAP data reliability Stock level reduction 8% Service level improvement 12% 20% efficiency improvement in production More than 80% of our customers report: Stock level reduction, Service level improvement and Working capital reduction

12 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

13 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

14 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

15 Every Angle bij Eriks: actuele situatie Wist u dat bij Eriks??» User accounts SAP Dialog user accounts 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) > personal angles > shared angles angles uitgevoerd (> angles per week!!)» Data extractie: 515 SAP-tabellen in 2:30 uur (ca. 30 GB) 15

16 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

17 Corporate Performance Management Process Performance Management Plan and Execute Observe and Respond focus on Budget performance LT Planning leads to hierarchical budgets Execution generates financial postings Top-down/bottom-up Focused 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 analytics Focused on process goal fulfillment Focus of 17

18 Late delivery SAP Business Process intelligence A late supplier causes a problem in the chain, resulting in an expected delay in customer delivery in another plant. SITE Dresden PO Raw materials Raw materials WO Final product TO SITE Hamburg Leaflet Box Flask WO SO Packaging Sales order Dissatisfied customer? End-to-End Supply Chain Analysis 18

19 Implementatie Every Angle Reactief Ad-hoc (eenmalig, op verzoek) Gestructureerd (werkprocedures: koppeling aan functie en proces) Zgn. Control Framework OUD Pro-actief NEW 19

20 Voorbeelden: Reactief Pro-actief Ad-hoc (eenmalig, op verzoek) Gestructureerd (werkinstructies: koppeling actie aan functie en proces) Pollution (oude open orders) Backorders (achterstand) Voorraad zonder behoefte (excess) Component-tekorten Te late klantorders zonder voorraad Spoed ATB s (met behoefte in het verleden) Kritische orders (verwachte vertraging) Planningsparameters in artikelstam Inkooporders met reschedule-in ATB s met een behoeftedatum binnen X-datum Ongealloceerde inkooporders. 20

21 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

22 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

23 ZEA03: angle (folder) tree

24 ZEA03: angle result display

25 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

26 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

27 Samenvatting % Customer service level SAP ERP data reliability User attitude towards SAP and SAP implementation quality Excess stock Stocks & supply chain costs Lead times EA live Months 27

28 What makes Every Angle unique? Business users create their own reports Many derived intelligent properties Empower business users Process Intelligence added (EA ) EA is an application ( not a toolkit ) Application EA installs and runs in 3 days Easy to implement EA has very low impact on IT Low impact on IT SAP data model reverse-engineered in EA SAP Data Model complexity reduced

29 Questions & discussion??? Hartelijk bedankt voor uw aandacht!! 29

30 BIJLAGEN 30

31 Operational Performance Management made easy 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 31

32 The results from IT management perspective Every 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 Every 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 Every 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 Every 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 High benefit Manageable Reduces risk Low TCO

33 How we differ from our competition Extractor Server SAP Data Model > tables Highly complex Data and transactions Long reaction lead-times Why can Every Angle do what the competition cannot Install and train users 3 days Ask any new question 3 minutes Get your answer 3 seconds EA Business Model 50 to 100 objects and relations Easy to understand and use Decision and status info Instant process visibility Large data volumes Flashing response times 33

34 How we differ from our competition Extractor Server SAP Data Model Embedded Intelligence EA Business Model SAP Data Model SAP Business Processes Process Improvement Properties Every Angle automatically extracts SAP data and transforms it into business content (standard content & ad hoc) 34

35 How we differ from our competition Extractor Server 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 Embedded Intelligence SAP Data Model EA Business Model SAP Data Model SAP Business Processes Process Improvement Properties Every Angle automatically extracts SAP data and transforms it into business content (standard content & ad hoc) 35

36 How we differ from our competition Extractor Server 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 SAP Data Model Embedded Intelligence EA Business Model SAP Data Model SAP Business Processes Process Improvement Properties Every Angle automatically extracts SAP data and transforms it into business content (standard content & ad hoc) 36

37 How we differ from our competition Extractor Server SAP Data Model Embedded Intelligence EA Business Model SAP Data Model SAP Business Processes Process Improvement Properties Every Angle automatically extracts SAP data and transforms it into business content (standard content & ad hoc) 37

38 Score SAP User appreciation gets a boost User appreciation of SAP versus User appreciation of SAP + Every Angle 3 months later st survey: SAP only nd survey: SAP + Every angle Overall average: from 5 to 8! 1 0 Data transparency Data reliability Analysing SAP data SAP & Organization Overall average 38

39 Some built-in Process Improvement Properties Material value Plan order, sales order, purchase order, work order, stock, Logistics behavior What is the progress status in the logistical purchase process flow? Order status purchase Order type EA Order due-date Uniform definition of the expected due-date of the object in SAP What is the progress status in the financial purchase process? % of the open quantity of the order, needed for dependent orders Invoice Receipt status Output Allocation % Material value unallocated 90 days Stock coverage date Demand stock ratio Order status sales Input allocation% What is the progress status in the order confirmation and delivery process? % of the open quantity of the feeding orders, needed for this order. What is the worst delivery reliability of all orders dependent on this one? Delivery reliability dependent orders Average historical demand per workday Delivery reliability dep. sales orders What is the worst delivery reliability of all sales orders dependent on this one? What is the order type of the single level delivering orders? What is the pinpointed reason for not meeting the order due-date (where to act)? Order type delivering orders Bottleneck type Stock run out date Stock shortage value Stock excess value Order type dependent orders Service level What is the order type of the orders that depend on this order? Will this object be delivered on time with regard to the requested delivery date? A goods flow movement is still expected for this object MRP relevant Execution status Delivery reliability Will this object be delivered on time with regard to the order due-date? Is this object closed, partially open or open? 39

40 Philips Medical Systems Improving master data quality Challenges Approach Results 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 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 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 40

41 DSM Achieving improved SCM performance and lower costs Challenges Approach Results 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. 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 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. 41

42 Eriks Better service levels and lower stocks Challenges Approach Results Customer service levels too low. Stock costs too high Unclear benefit of profit in product portfolio. SAP data not reliable enough. Insufficient management information. 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 Improve customer service level with 12% Reduce overall stock levels with 8% Same number of FTE, process more orders in 6 month time Not enough SCM visibility so detect bottlenecks on time. 42

43 Heineken Netherlands Rapid KPI prototyping Challenges Approach Results 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. 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 targetdeviations and easily slice&dice with the data. Clear KPIs overview for SCM over all Dutch breweries. Frequent refresh, no handwork, clear definitions. Quick implementation of possible changes. Happy management! 43

44 SAP R/3 to BI Rapid Prototyping Landscape Presentation Services Analysis and Access Services BI OLAP interface Data Warehouse Cubes Universe Rapid Prototyping Lane Master data Online Data Store DD2PD Dynamic Data Store BO Data Services ETL Services Persistent Staging Area DB Engine Server Client API XML File BAPI Non SAP R/3 Non SAP 44

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