Maximizing SAP in Mining and Metals Operations. Stephan Kotze SAP Mining and Metals Forum Mannheim Germany September 2012
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1 Maximizing SAP in Mining and Metals Operations Stephan Kotze SAP Mining and Metals Forum Mannheim Germany September 2012
2 Accenture literally wrote the book(s) on Lean Six Sigma, MES and is a thought leader in Operations Excellence Operational Excellence Operations & Automation Business Process Lifecycle Lean Six Sigma Best Seller What is Lean Six Sigma Best Seller Innovation in Manufacturing Industrial Process Optimization MES Guide for Executives High through Process Excellence Lean Six Sigma for Service Best Sellier Conquering Complexity Best Seller Smart Growth: Innovating to Achieve High Assessment of Control Loops A Guide to applying S95 Business Process Oriented Implementation of Standard Software Doing More with Less New Book Fast Innovation Best Seller Driving Global MOM transformation programs 2
3 Mining & Metals companies have significant opportunity to aggressively drive additional value from Operations. Traditionally SAP clients often stayed clear of using SAP in core operations. SAP for core operations considered low functional fit. Start with the basics. Market focus & positioning Distinctive capabilities More often than not = back office capabilities. Extend as you mature. Anatomy Demand for increased levels of agility drives requirement for tighter integration of Operations with Business management. Increased modernization and simplification of application landscape: SAP Industry solutions Increased application of Advanced Control and MOM* solutions Partner solutions: Mature accelerators and partner building blocks further extent SAP into core operations. * MOM = Mining/Metals Operations 3
4 Mining/Metals companies are unlikely to become High Performers. if they cannot become High Performers in Operations! Ensure predictable availability of production facilities Ensure production process stability Optimize end-to-end value chain Optimization Opportunity Immediate Opportunity (Variability Reduction) Current Plant Status Good Practices Potential 4
5 Business Capabilities naturally extend across solution boundaries in Operations and all domains need to operate in synchronisation to achieve High BI Plan & Schedule ERP Improve MOM* Execute Analyze Plant Control Monitor Collect Data Field Devices * MOM = Mining/Metals Operations 5
6 In Operations, value is enabled by Mining/Metals Operations capabilities.. and monitored/tracked/reported by ERP. Reducing process variability.. Sample Client Experience Process Variable StdDev = 0.342% StdDev = 2.43% Before After StdDev = 0.043% StdDev = 0.495% And creates a new baseline for further improvement... drives a cost reduction and productivity increase Cost Reduction ion increase A large mining company needed to increase throughput and generate a roadmap for continuous improvement. Together we: Assessed value for various customer-related elements including variability control and throughput increase Developed an implementation roadmap including project prioritization, champions, sponsors, timelines, and value capture profile Developed follow-up processes for tracking progress and generating new ideas for the pipeline Implemented Quick Hits of up to 40% reduction in variability, 4% increase in productivity, and 7% reduction in energy consumption Previous Process Variability Improved process New operating point established 6
7 Opportunity presents itself in the end-to-end integration of Operations Processes both vertically as well as horizontally. SAP SD 7 Confirmed Requested Order Processing 11 Waiver Approval SAP PP ion Order Confirmed Processing 6 ion 5 SAP QM QM Specification Specification QM Order Confirmation Specification Specification Order Confirmation Order Confirmation Confirmation Certification 8 Confirmed Master Data 9 Master Data Repository Definitions Request & Response (, Certification) MES ion Order MES Work Order ion Tracking Lots ion Order Manual Evaluation Classification Usage Decision 4 QOM 1 Internal QOM Specification Internal Request Order Confirmation 2 Specification Evaluation Evaluation Lots Samples Taken Classification Classification Movement Data Collection Non LIMS Analysis Yield Data Collection Test Scheduling Samples In Process Waiver ion Approval 3 Taken Master Data Requested Master Data Repository In Process Definitions Internal Sample Client Experience An international steel company needed to increase through yield and create a basis for continuous improvement. Together we: Created an end-to-end process blueprint covering full application portfolio. Embed control processes for tracking performance. Developed a roadmap for a transformation program (including project prioritization, champions, sponsors, timelines, and value capture profile). Implemented Integrated Operations Solution to increase # auto evaluations; optimize claims investigation; reduce # 1st intent re-classes; optimize process capability & reduce excess material. 7
8 A consistent set of standard, end-to-end Operations Capabilities exist across /Region/Plant and you should manage exceptions, and not allow it to become the rule. Sample client experience Site specific Commodity specific (20% of solution) Common (70% of solution) Business Architecture Data Architecture Application Architecture Technology Architecture 8
9 Benefits from overall process integration often outweigh best-of-breed solutions in non-distinctive capabilities High Business Research Distinctive capabilities Business Process End-to-end processes Solution accelerators Optimized solution landscape 9
10 Significant business opportunities exist to drive incremental value through extending the usage of SAP footprint... by taking and end-to-end view of Operations capabilities and application landscape across ERP and MOM. Plan & Schedule Improve Execute Analyze Monitor Collect Data SAP SD 7 Confirmed Requested Order Processing 11 Waiver Approval SAP PP ion Order Confirmed Processing 6 ion 5 SAP QM QM Specification Specification QM Order Confirmation Specification Specification Order Confirmation Order Confirmation Confirmation 10 Certification 10 8 Confirmed Master Data 9 Request & Response (, Certification) MES ion Order MES Work Order ion Tracking Lots ion Order Manual Evaluation Classification Usage Decision 4 QOM 1 Internal QOM Specification Internal Request Order Confirmation 2 Specification Evaluation Evaluation Lots Samples Taken Classification Classification Movement Data Collection Non LIMS Analysis Yield Data Collection Test Scheduling Samples In Process Waiver ion Approval 3 Taken Master Data Requested Master Data Repository In Process Definitions Site specific Commodity specific (20% of solution) Common (70% of solution) Definitions Master Data Repository Internal 10
11 Not only have we wrote the book(s) but we have significant experience in delivering results for our clients in Operations. Commercial Optimization Plant Optimization Integrated Value Chain Optimization Execution Excellence Commodity Trading & Risk (CTRM) Manufacturing Supply Chain (Planning Scheduling & Execution) Maintenance and Reliability Manufacturing Execution & Automation (Industrial Automation) Environment Health & Safety Solutions and services that bring together disperse pieces of the value chain in a collaborative environment that supports fast and proactive decision making; responding to the need of a highly dynamic and volatile market. Solutions and services to help companies managing their plants improving uptime of plant and equipment, increasing operational performance and ensuring compliance with environment, health and safety regulations. 11
12 Thank you!
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