How ATI is Consolidating Product

Development in SAP PLM 7.01June 2011 | PLM CVN

In This Session..

Business Needs and Justification

Overview of ATI and existing Process / System Landscape

Evaluating System / Process Integration

Consolidating SAP PLM – The solution

Constructing the SAP PLM capabilities Roadmap and Phases

Data Migration and BOM migration Strategy

Hidden Costs of Landscape ($$$$)

System Components

Key Learning Points

Q & A

2

Premier global provider for the design, manufacture, and sale of

commercial duty automatic transmissions and hybrid systems

On-highway — commercial trucks and buses

Off-highway — hauling and specialty vehicles

Military vehicles

Employees = 3,000+

Major locations

Indianapolis, Sao Paulo, Holland, Hungary, Tokyo, Singapore,

Beijing, Shanghi, India

250 OEM customers

1,500+ distributors and dealers worldwide

Division of GM until sold to Carlyle/Onex in August 2007

About Allison Transmission, Inc. (ATI)

3

GyanSys – Brief Overview

Global headquarters located in Indianapolis since 2005

Development center in Bangalore, India

SAP National Services Partner

Ramp-Up Partner for PPM 5.0, PLM 7.01 and SRM 7.01

Provided global implementation support to several countries within North America, Europe, Asia Pacific and South America

Focus on SAP’s new dimension products across business Suites PLM, CRM, SRM, SCM and HCM and SharePoint Integration

Leaders in PLM, PPM

Highly Cost Effective

GyanSys is an IT Services provider with focus

on

• Architecting and implementation

• Lean Sustain support

15 active clients with 6 New client additions in 2010

Named in Inc 500 for the last 2 years

Past PLM/PPM Case Study presentations

Event Topic

ASUG/Sapphire 2011 How ATI is Consolidating Product Development in SAP PLM 7.01

SAP Insider Mar 11 Integration Solution Set with PLM 7.01 along with PPM 5.0

ASUG Oct 10 Increase ROI on PS Implementation by integrating with PPM 4.5, DMS and WF

ASUG May 09 Managing Complex Projects at Allison Transmission

ASUG May 08 Managing Customer Projects at Stanley

ASUG Sep 07 xRPM Tips & Tricks

ASUG Apr 07 xRPM 4.0 Upgrade at Eli Lilly

ASUG May 06 cProjects Implementation at Computer Associates

ASUG May 05 Making Baseline and scenario planning work at Eli Lilly

ASUG Oct 04 xRPM 2.0 Implementation at Eli Lilly

ASUG Nov 03 PS In integration with IM, CO, MM and AA at AMD

Overview of the Existing SAP Landscape at ATI

Implemented FI (GL, AR, AP, SPL, FA), CO (CCA, PCA, CO-

PA, IO), SD, MM, QM, WM, PP in 2001

Rolled out single global instance

Implemented Unicode upgrade, SAP NetWeaver® Portal, SAP

NetWeaver BW, ESS/MSS, CATS, Treasury, BPC, SQN, HCM

Upgraded to SAP ECC 6.0 EhP5 in Q2 2011

Current SAP projects:

Multi-year SAP PLM/SAP Projects and Portfolio Management

(PPM) project

E-Sourcing/SAP Contract Lifecycle Management/SAP Supplier

Relationship Management (SAP SRM)

6

Overview of the Existing PDM Landscape at ATI

Sherpa PDM (1991-2001)

Evaluated iMAN/Teamcenter vs. SAP PLM in 2000/2001

Deployed and used Teamcenter (Siemens PLM) 2001-2011

UG/NX 5.x/7.x as a standard CAD tool

Various supporting systems:

Teamcenter

Lotus Notes Applications

Access Databases

Microsoft Excel Spreadsheets

Java Custom Applications

Document Management Systems

Network Shared Drives

7

Total of 22 PLM

legacy systems

Business Driven Initiative – ―The Case for Change‖

Leadership embarked on a multi-year project (FALCON)

Faster product development

More streamlined processes

Improved execution

Increase product development

Working on the ―right‖ things

Redeploy resources made available through process

improvements

The FALCON program resulted in 40+ IT charters requesting

enhancements or integration of various systems

8

Flawless Execution Aggressive Implementation Lean Processes Creative Product Solutions Outstanding Performance Nimble in the Marketplace

Future State Vision — Alternative #1 (Integration via EAI)

9

ERP

ERP

Financials

Operations

HCM

Corporate Services

SAP PLM Scenario 1

CRM SCM SRM

Teamcenter

PLM

SAP NetWeaver Business Warehouse

ERP Enterprise Resource Planning

CRM Customer Relationship Management

PLM Product Lifecycle Management

SCM Supply Chain Management

SRM Supplier Relationship Management

Future State — Alternative #2 (Consolidation via SAP PLM)

ERP

ERP

Financials

Operations

HCM

Corporate Services

ERP Enterprise Resource Planning

CRM Customer Relationship Management

PLM Product Lifecycle Management

SCM Supply Chain Management

SRM Supplier Relationship Management

SAP PLM Scenario 2

CRM SCM SRM

PLM

SAP NetWeaver Business Warehouse

Must weigh the value of SAP integration via EAI

versus the impact of implementing SAP PLM

Value Proposition — ―The Decision‖

SAP PLM: The next step in realization of FALCON

Reduce time-to-market

Improve access to data

Facilitate internal and external design collaboration

Optimize processes (e.g., Releases, BOMs, Procurement)

Provide timely access to data and reports

11

Business Process Consolidation in SAP PLM 7.01

12

Current

Future

Business Process Teamcenter SAP Other/Manual

Design Collaboration

Innovation Management (Experimental, Advanced)

Product Data Management (PDM)

Document Management

Portfolio Management

Project and Resource Management

Bill of Material Management

Change/Release Management

Product Cost Management

Product Visualization

Business Needs and Goals — ―Setting Expectations‖

Reduce cost and time-to-market

Enablement of concurrent New Product Development (NPD)

Improve access, visibility to enterprise data

Down-Stream (e.g. Purchasing, Manufacturing)

Upstream (e.g. Engineering, Experimental)

Facilitate cross-functional, enterprise-wide design collaboration

Portfolio planning, classification, and reuse

Achieve process optimization

Integrate, manage, and optimize E-BOM, M-BOM, and S-BOM

Provide timely access to critical development data and reports

Plan for every part, real-time metrics, resource management

13

The Roadmap Capabilities Construction Process

14

The Roadmap Capabilities Process — Details

Conducted 34 workshops and involved 59 process leaders

Covered all functions of the business of ATI

Identified 71 opportunities related to business

Scored each opportunity on a scale of 1 to 10 in categories of

Criticality, Alignment to Best Practices, and Complexity

Scores were weighted and top opportunities selected

Top 40 NPD opportunities mapped by process area

Aligned each opportunity to SAP PLM solution map to assess

fitness

15

Top Opportunities Mapped by Process Area

16

Portfolio, Process & Project Management

Innovate Experiment Produce Improve

3

710

Product Data Management

Request Design Review Approve Change

FVPVDVCVPOC

1

Continual Improvement

52

6

8

13

14

124

9 11

Opportunity Description

1. There is no single system for capturing engineering change management process (OS/LN/Teamcenter)

2. Multiple sources of Product Data (LN, SharePoint, Tc) result in confusion regarding data source

3. There is concurrency of the SAP PLM processes based on the interaction of people but is not system supported

4. Process of creating/revising production BOMs in SAP is manual

5. Classification for material master does not exist in SAP causing users to create same parts again in SAP

6. PFEP process lacks definition across all functional areas (PE, ME, and PUR)

7. Production Release can take an extended length of time for New/Major BOMs

8. Due to proliferation of systems, impact of changes are not accurately realized (lack of where-used capability)

9. Program schedule information is not integrated into the ProcessClear Application

10. Build event coordination between HDW, ECH, and ISAAC is not system integrated

11. Manual data entry creates bottleneck for master data entry

12. Data inconsistency between UG NX/Teamcenter and SAP (e.g., Part Description field)

13. Tracking of part costs for each phase and documentation of changes is not managed in a centralized system

14. Portfolio level cross functional (PE, ME, and PUR) resource management is not currently available

SAP PLM Solution Map: All Issues

17

37

9

101

568

13

14

12

4 16

15

19 22

25

27

1721

24

20

33

28

29

30

31

32

37

39

41

40

38

18

34

3623

11

2

26

35

46

42

434445

4748

49

50

5152

53

56

55

57

58

59

60

6162

63

64

65

66

67

68

69

70

7154

Source: SAP

SAP PLM Capabilities Roadmap — Option 1

18

Teamcenter

Where-Used (BCV)

DMS (Str)

ECM (T/C)

Plotting

Phase 1

ECH/ISAAC I/F

TLDS I/F

Various I/F

Sep ‘10 – May ‘11

Auto Release

Redlining

PPAP(Vendor

App)

Classification/VC

Phase 2

Portfolio

Management

OS’s / Workflow

POCE –Time/StatusIntegration

Jun ‘11 – Feb ‘12

Other Demand (PPAP&ME)

High-Level Resource Planning/Forecast

High-Level Financial Planning / Forecast

Portfolio Dashboards / Analytics

PFEP – Part Approval

Phase 3

Collaboration -External

Product Costing

Program Cost

MGMT

April ‘12 – Dec ‘12

AR Replacement

GRC

ISAAC

Integration

PLM Planning Charters/IM

ECH Integration

POCE –ProcessClear Integration

VAS Localization

Phase 4

PDC Localization

Service Management

Jan ‘13 – Sept ‘13

Phase 5

PLM History

BPC Integration

Oct ‘13 – Jun ‘14

DUET Enterprise

PDM

PPM

Localization

Key

SAP PLM Capabilities Roadmap — Option 2

19

Phase 1

Sep ‘10 – Jul ‘11

Phase 2

Aug ‘11 – Apr ‘12

Phase 3

May ‘12 – Jan ‘13

Teamcenter

Where-Used (BCV)

DMS (Structure)

ECM

Plotting

Auto Release

Redlining

Portfolio Management

OS’s/ Workflow

POCE –Time/Status Integration

Other Demand (PPAP&ME)

SharePoint

Integration

High-Level Resource

Planning/Forecast

PPAP (Vendor

App)

VC

Classification

PFEP – Part Approval

Duet® Enterprise

Collaboration -External

Product Costing

High-Level Financial Planning

/ Forecast

Portfolio Dashboards

/Analytics

Program Cost

MGMT

AR Replacement

ISAAC Integration

PLM Planning Charters/IM

POCE –ProcessClear Integration

VAS/PDC Localization

Service Management

BPC Integration

PDM

PPM

Localization

Key

Part Capacity Planning (SCM)

SAP PLM Roadmap Options — Schedule/Alternatives

20

Option 2 Selected

Larger Phase 1 scope

Realizes more business benefits

earlier

Compresses overall SAP PLM

Journey by over 1 year

Better aligned with other critical

SAP-related initiatives

Riskier

More business and IT resources

required

Data Migration Strategy — Unstructured Documents

Decision/strategy had to be made for storing documents in SAP

Document Management System (DMS) vs. Microsoft SharePoint

Duet® Enterprise included in the Capabilities Roadmap (new

product from SAP/Microsoft)

Inter-dependencies between SAP PLM project and the

information management (SharePoint) projects

Data security and regulatory compliance is paramount

Decision: PPM to replace SharePoint for all program documents

22

BOM Migration Strategy

Migrate eBOM from Teamcenter to SAP PLM

Map Attributes (Tc to SAP PLM)

Consolidate and Cleanse Data

Migrate All ―Released‖ Revisions

History

Utilize GSS (Guided Structure Synchronization)

A New Feature offered in PLM 7.01 EhP5

Sync‘s eBOM to mBOM

Enhanced and Optimized Release

Engineered into SAP PLM

23

Beware: Hidden Costs of Landscape ($ - $$$$$)

Solution Components Cost ($ - $$$$)

SAP Licenses (Professional Users) $$$$

CAD Integration Middleware $$$$

T-REX $$

Content Server and High Availability Storage $$$$

Visualization Ready Conversion Server $$$

Large Format Print/Plot Server $$

WAN Optimization and Cache Servers $$$

$ Adequately budget hardware, software and vendor services

System Components – PLM 7.01

Runs on SAP ECC 6.0 EhP5

SAP GUI Client (NWBC)

CAD Integration Middleware (DSC)

Engineering Control Center (ECTR)

Visualization and Redline, Mark-up Tool (Tc Viewer)

Content Server

Cache Server (WAN Optimization)

Conversion Server (DSC)

Visualization Content Generation

T-REX and Indexing Server

Large Format Printing/Plotting Server (SEAL)

25

Project Delivery – Lessons Learned

Adoption of delivery methodology (ASAP, PMBOK, CMMI,

ITIL) with sufficient maturity level is essential

Switched to ASAP after Blueprint

Observe all nine of the Project Management knowledge areas

(Time, Cost, Scope, Quality, Resource, Communication, Risk,

Acquisition Management, and Integration)

Strong Executive Sponsorship is critical

Complete and sign off on all key project deliverables

Ensure that business process leaders are fully engaged in OCM,

training, and UAT

26

Key Learning Points (1 of 2)

SAP PLM is a partnership between IT and functional teams

Strong representation from both is essential

SAP PLM is a process, not a solution

SAP PLM 7.01 EhP5 is an IT framework for a solution

Organizations must have processes defined before a solution can be

considered

Launching an SAP PLM project will take a ―perfect storm‖

because of complexity, cost, and impact on the business

It took ATI many years of assessments and evaluations to get here

Be sure to budget for those hidden costs!

27

Key Learning Points (cont.)

You must define success factors, agree on business needs/wants

Get executive buy-in from the top-down

You need an SAP PLM ―evangelist‖

Closely evaluate the SAP ramp-up program before considering

a newer version of the tool

Know what you are getting into

Configure vs. customize. Use out-of-box functionality to

promote business change.

Avoid building historical process ‗just because‘

Do not underestimate OCM and data migration

Start early, especially data cleansing / mapping

28

Questions?

Thank you for participating

Tom Martin PLM Practice Manager

Tom.Martin@gyansys.com

949-307-3052