Business Process Management & SAP ERP Roll-out Governance

Henk Kiewiet, Executive Director IT

Koblenz, 29.11.2011

File: TEN_BPM_ERP_291111_V3

Topics

Overview Tenneco locations / SAP Systems

BP Selection & Optimization Approach / Tools Used

ERP Global Template roll-out strategy

Project Team Organization & Global Business Process Governance

Benefits and Challenges Pilot Roll-out’s

3

2010 Revenues – $5,937MM

48%NorthAmerica

41%Europe,S. America& India

11%AsiaPacific

2010 2009

Emission Control / Ride Control 64 / 36 63 / 37

Original Equipment / Aftermarket 80 / 20 78 / 22

Global Supplier –Emission and Ride Control Systems

Approximately 22,000 employees serving customers globally from more than

80 manufacturing facilities and 14 engineering and technical centers

SAP Instances & ERP Roll-Out Template

SAP ECC 6.0 / EHP 4

Functional scope:

- FI Financial Accounting

- CO Controlling

- AM Fixed Assets Mgmt.

- MM Material Mgmt.

- PP Production Planning

- SD Sales & Distribution

- WM Warehouse

- PM Plant Maintenance

- (QM) Quality Management

ERP USAHR USA

HR USA ERP EU +

“International”

Global PLM

Global SRM

Why create a SAP Roll-out Template ?

• Business Process Standardization to:

– Improve processes in emerging markets and reduce SOX compliance related issues

– Opportunity to lean-out business processes.

– Bench mark key processes across locations.

– Be able to transfer production and personnel across locations.

– Share support services across locations.

• Enables “Acceleration” of SAP implementations (support BRICT markets and replace obsolete legacy systems).

• Reduces Implementation Costs.

• Provides ability to effectively handle “unplanned” implementations (e.g. acquisitions).

Process Standardization - Example Work List

7

Example Template Content

Standardized

Business-

Processes & re-usable

SAP Design

Tools Deployed:

Business Process modeling (ARIS)

SAP Roll-Out (Solution-Manager)

8

Strategy of Template Roll-out Releases

Implementation (design phase)

Template Release Version # 3.0,

including improved processes

out of 2010 template roll-outs

Template Release Version # 4.x.

= Mandatory Standardized Processes included in template

= Processes to be standardized in future template releases

= Local Specifics (e.g. Golden Tax China)

Implementation Team Pilot Project

Template Team

2011 roll-outs (Brazil, China etc…)

SAP Template Process

Subject Matter Experts

SAP Implementation

Team (Fit-Gap Phase)SAP Implementation

Team (Fit-Gap Phase)SAP Implementation

Teams (Fit-Gap Phase)

Business Process Owner Plant ManagementFacilitate

Gap Closure

Global IT Steering Comm.

SBU Management

BP Governance Model & Champions

Process Champion(Corporate VP Level)

SA-BC

EDI

Implementation / Roll-Out Team

Steering Committee

Project Champions, CIO, GM, etc. …..

IT Project Manager

Business Project ManagerTraining & OCM

MM

Regional IT Analyst

(or external consultant)

Local Super User

Mentor (central IT)

FI, ….Etc.

IT SAP Analyst

(or external consultant)

Local Super User

Mentor (central IT)

SD

IT SAP Analyst

(or external consultant)

Local Super User

Mentor (central IT)

ABAP

Infrastructure