Lockheed Martin Spaces Systems Launches ERP on HANA. Jeff Morin Lockheed Martin Christine Fadrowski Lockheed Martin Session ID# 4473

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1 Lockheed Martin Spaces Systems Launches ERP on HANA Jeff Morin Lockheed Martin Christine Fadrowski Lockheed Martin Session ID# 4473

2 Agenda 3 Learning Points Lockheed Martin Company Info LM Space Systems Suite on HANA Project GPD Results Lessons Learned

3 3 Key Learning Points How Lockheed Martin Space Systems migrated ECC to HANA How Grouping, Pegging & Distribution (GPD) performs on HANA Lessons Leaned in migrating ECC to HANA

4 Lockheed Martin Company Overview Quick Stats Employees 125,000 employees in the United States and internationally 60,000 Scientists, Engineers and IT Professionals Operations 572 facilities in 500 cities and 50 states throughout the U.S. Internationally, business locations in 70 nations and territories Headquarters in Bethesda, MD U.S.A Financials 2015 Sales: $46.1 Billion Cash Flow from Operations: $5.1 Billion Stock Ticker Symbol LMT, on the New York Stock Exchange. Ranked 64th on the 2015 Fortune 500 list Lockheed Martin is a global security and aerospace company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Our Mission: We solve complex challenges, advance scientific discovery and deliver innovative solutions to help our customers keep people safe and provide them essential services. Our Vision: Be the global leader in supporting our customers to strengthen global security, deliver citizen services, and advance scientific discovery. Our Values: Do What's Right Respect Others Perform With Excellence

5 Lockheed Martin Company Overview Business Structure Aeronautics Information Systems & Global Solutions Missiles and Fire Control Mission Systems & Training Space Systems International

6 Our SAP Functional Baseline Mission Missiles & Space Info Sys & Aero MST MFC Space IS&GS Sys & Train Fire Ctrl Systems Global Sol Enterprise Ops Finance - Operations - - Procure / Pay Business Analytics Intelligence - HR/Learning With 120K end users and 35K professional users, SAP is widely used

7 Lockheed Martin s HANA Journey Moving from an Aging Infrastructure to Enabling Advanced Analytics & Digital Transformation HANA Side-Car Pilot and HANA Go-Live Analytics Expansion/ SoH Discovery SoH Expansion / Discovery S/4HANA S/4HANA Expansion / Optimization Analytics SoH Validations SoH Projects S/4 Beta S/4 Projects BI BI Business Case BI BI BI BI SoH SoH SoH SoH S/4 S/4 S/4 S/4 Digital Ready Process Rationalization BI SoH S/4 BW BW SoH SoH S/4 S/4

8 Drivers for SoH LM Aging hardware Constrained capacity Significant investment to build out and migrate to x86 based LM SAP architecture Key business imperatives on the horizon (e.g. F-35 full rate production) Emergence of HANA rapidly transforming SAP product roadmap. Move processing from the application side to the database side SoH Presents a Unique Opportunity to Modernize the LM SAP Landscape

9 Space Systems Project Overview Migrate the SAP ERP database from an Oracle DB to SAP HANA Upgrade ECC from EHP5 to EHP7 Suite on HANA only works with EHP7, thus the upgrade to EHP7 is mandatory Upgrade requires identification, remediation and preparation of Z custom code and otter enhancements. Upgrade from Net Weaver 7.02 to 7.4 Upgrade GPD Distribution (DIS01 > DIS01N) ERP Application (ECC 6.05) ORACLE Database ERP Application (ECC 6.07) HANA Database Content Server Database Infrastructure change and enhancement pack upgrade

10 Project Schedule Task Z Code Remediation Formal Kick Off Pass 1 Testing GPD Testing UAT Final Dry Run Go Live Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar SSC Participated in Several Customer Validations of SoH in

11 SSC SoH Test Strategy

12 ABAP PROGRAMS CHANGES REQUIRED FOR HANA Custom Code Review: 800 programs (Core programs and include programs) Used SAP Code Inspector Tool to Scan Code Initial Code Inspector identified a list of 2300 potential problems/errors List was whittled down to 90 programs with real changes required (e.g run time too long, coding issues, etc) There are some errors that the Code Inspector tool will NOT catch (e.g. "select single" without specifying full key) Tech team identified an additional 70 items to review to determine if changes are required. REPORTS Tech team executed Z-Reports, to make sure they were working and didn t have excessive run times. 189 Custom Reports tested 3 Issues found, long running (included in the list of 90)

13 SSC Cutover Timeline System Returned To Business Users at 8 am Sunday

14 SSC ERP User Interface Impacts Web dynpro theme changes What used to be Spreadsheet is now Text with Tabs Technical Upgrade, very minimal user impact

15 LM Space Systems GPD Fun Facts Running Grouping, Pegging & Distribution (GPD) Since 1999 Single Level Grouping Only (Type 1) 20 Plants No Stock Transport Orders (STO) Custom Excess, Scrap & Loss logic Total Pegging Table Size approx 2.5M records Used RDISALL (old EP4 distribution) until HANA adopted Run 5 Variants of Distribution in Production Weekly No Cross-Company Code Distribution

16 GPD Distribution Run Times Note, old distribution (DIS01) ran as 5 separate jobs. New distribution (DIS01N) runs as 1 job HANA DB improved DIS01 run time by nearly 70%!

17 GPD Pegging Run Times HANA DB improved Pegging run time by nearly 30%!

18 GPD Batch Report Run Time HANA DB improved run time of 6 key GPD batch reports by 40%!

19 GPD Results Run time significantly improved for Distribution Pegging run time reduction in line with other batch run time improvements Distribution Cost shift was minimal (smallest ever) 2 issues in after go live with distribution both related to custom LM BADI enhancement logic.

20 Lessons Learned Migration to SoH was very smooth Easier than a typical enhancement upgrade Cleanest SAP go live ever at SSC Engagement with SAP in Customer Validation (CuV) for SoH activities in was invaluable Support package 8 of Ehp 7 very stable compared to software used for CuV (sp 1 & 2) ABAP remediation for SoH was a modest effort Run time benefits in GPD primarily for distribution Business users very please with improved run time performance of reports

21 Closing Questions?

22 Follow Us Thank you for your time Follow us on

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