Evergreen Solar. Warehouse Management Lessons Learned at. Jody Derick. Orlando, Florida May 15-18, Orange County Convention Center

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1 Orange County Convention Center Orlando, Florida May 15-18, 2011 Warehouse Management Lessons Learned at Evergreen Solar ] Jody Derick

2 [ Learning Points A summary of where we were successful and where we experienced challenges Set-up and software required for effectively integrating barcode devices with WM using ITS Mobile Master data considerations for ensuring accurate data processing in WM after the implementation Cycle count issues for bins with multiple quants Integration with IM and WM 2

3 [ Evergreen Solar, Inc. Founded in 1994, develops, manufactures and markets String Ribbon TM solar power products using its proprietary, low-cost wafer technology Evergreen Solar s products provide reliable and environmentally clean electric power for residential and commercial applications globally The company s patented wafer manufacturing technology uses significantly less polysilicon than conventional processes

4 [ Evergreen Solar, Inc. (cont d) Wafers Cells Panels Pallet 210W Panels Pallet 205W Panels Pallet 200W Panels

5 [ Evergreen Solar, Inc. (cont d) The 450,000 square foot facility in Devens, MA came on-line July 2008 and is closing May This includes the 80,000 square foot warehouse. Manufacturing in Midland, MI and Wuhan, China Headquarters in Marlborough, MA

6 [ Evergreen Solar, Inc. (cont d) mysap Business Suite implemented in September 2005 FI, CO, MM (IM, PU), PP, and SD Implemented in 12 weeks by Yash Technologies (previously Genesis Corporate Solutions) SAP now includes PM, Assets, COPA, Material Ledger, Supplier Workplace MII (Manufacturing Integration and Intelligence) to connect MES to SAP Warehouse Management Upgraded to ECC 6.0 in August 2008 Hosted environment with an external helpdesk for ongoing support Total users = 241

7 [ WM Implementation Consulting Partner Yash Technologies Consultant: Jim McCarthy Project Schedule: April 5 July 12, 2010 Project Team: Warehouse Manager, Materials Manager, WM Consultant, SAP Analyst, Plant Controller, Warehouse Leads Overall, very successful project Challenges: ITS Mobile / Bar code device Cycle counting inventory Integration with IM and WM

8 [ WM Implementation cont d Goals Improved data accuracy and transactional efficiencies Eliminate Shipping errors Efficiencies of using bar code scanners instead of keyboard Added functionality FIFO issuing Space management

9 [ WM Implementation cont d Plant 1100 Devens Storage Location RMW Raw Material FGW Finished Goods Warehouse DVN Devens Warehouse Storage Types RM Raw Materials CS Condition Storage FG Finished Goods lll llll lllllllllllllllll llll lll llll lllllllllllllllll llll lll llll lllllllllllllllll llll SPW Spare Parts SR Stock Room Spares STG Inbound Staging lll llll lllllllllllllllll llll MRB Non Conformance

10 [ Summary of Success and Challenges Success Project team was a great combination of skills All processes in the warehouse were examined and standardized 6 months later supported a 40% increase in manufacturing with the same staff level Warehouse Monitor kept everything in control

11 [ Summary of Success and Challenges cont d Goals Improved data accuracy and transactional efficiencies Eliminate Shipping errors Efficiencies of using bar code scanners instead of keyboard Added functionality FIFO issuing Space management Plus Improved traceability More material movements in the warehouse with same staff

12 [ Summary of Success and Challenges cont d Challenges Bar code devices weren t ready at go-live Delivered later than expected Difficulty getting the devices operational Master data adjustments Errors during cycle counting that locked bins Making sure that IM and WM were in sync

13 [ ITS Mobile and Bar Code Device HTML Templates Programs Screens Services Wireless Network Pocket Browser software

14 [ ITS Mobile and Bar Code Device cont d Transaction: SE80 Check test service ITSMOBILE01 for device examples

15 [ ITS Mobile and Bar Code Device cont d Regenerate and Publish Services for ITS Mobile Reference: SAP Note Regenerate using SIAC_REGENERATE_TEMPLATES program Republish using SIAC_PUBLISH_ALL_INTERNAL program.

16 [ ITS Mobile and Bar Code Device cont d

17 [ Master Data Plant Storage Location RMW Raw Material Warehouse Storage Types RM Raw Materials lll llll lllllllllllllllll llll 1100 Devens FGW Finished Goods DVN Devens Warehouse CS Condition Storage FG Finished Goods lll llll lllllllllllllllll llll lll llll lllllllllllllllll llll SPW Spare Parts SR Stock Room Spares STG Inbound Staging lll llll lllllllllllllllll llll MRB Non Conformance

18 [ Cycle Count Issue Problem: When cycle counting by quant there were times when the count stopped suddenly PI document cleared, but bin remained locked No movements allowed for the bin SAP Note Program to clear locked bins Tables updated: LINV and LQUA We added LAGP-SKZSI Root cause: Looked at processing on device Looked at network Cycle counting by material with multiple quants in a bin

19 [ IM vs WM We didn t understand the flow from IM to WM until mapping processes Custom transactions developed to create a TO for component issue while walking the manufacturing floor Challenge: keep in sync and troubleshoot issues IM WM Visual Kanban Repetitive component backflush Transfer to floor storage location Matl Doc TR TO

20 [ Key Learnings Lack of expertise in ITS Mobile and device set-up cost us weeks of operational time, as well as testing and training, with the bar code devices WM adds a level of complexity Would we implement WM if we had a do over? In Devens YES Will we expand WM to our smaller warehouses? China and Midland NO Currently storage locations = bins Adding process complexity do not justify benefit

21 [ Questions

22 [ Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education in this area of focus, visit ] SESSION CODE: 1113

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