Domino Sugar streamlinesproduction recording using MII

Mike OlsonDirector – Enterprise Architecture

American Sugar Refining, Inc.

Company Overview

Only sugar supplier with national brandsDistribution channels includeIngredients, Food Service and GrocerycustomersProduces more than 1500 SKUs of bothbranded and private label productsFirst Sugar Cane Company to producecertified organic sugarProduces a full line of rice products,including half of all the rice consumed inSouth Florida

Consumer Goods

Florida Crystals Corporation and the Sugar Cane Growers Cooperative have created the first fully integratedsugar cane company in North America, taking products from field to shelf. The addition of the Domino , C&H ,and Redpath brands has created a North American distribution capability.

Farms 245,000 acres in SouthFloridaOperates 2500 pieces of farmequipmentCrop is harvested betweenOctober and AprilUses rice for crop rotationOperates three sugar mills and arice millMills process >1MM tons of rawsugar annually

Farming

Operates refineries in New York,Baltimore, South Florida, NewOrleans, San Francisco,Toronto, and MexicoOperates a 130 Megawattcogeneration plantProduces more than 3,000,000tons of refined sugar annually

Refining

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Strategy

The strategy of growth through acquisition has consistently increased theoperating complexity and the need for innovative solutions that support thebusiness requirements.

1995 1998

• FCC selects andimplements SAP

• Begins verticalintegrationstrategy –consumerproducts

• FCC and SCGacquire JackFrost (RSI)

• American SugarRefining (ASR) isacquired by RSI

• Domino Foods salesand marketingcooperative is launchedwith its own SAPsystem

• Agile and adaptivesystems infrastructure isadopted and developed

• Assets are optimizedacross the combinedenterprise

• All SAP systems areupgraded to the sameversion

• C&H acquiredestablishing nationalfootprint

• American SweetenerCorp acquired fromChr Hansen

2001 2005

• Sugar Stix acquisitionenhances tabletopproduct line & capacity

• Acquisition of IngenioSan Nicolas providescapacity anddistribution capabilitiesin Mexico

• Optimization ofproduction &distribution assets &related businessprocesses are plannedin conjunction with acontinuousimprovementinitiattive.

• Redpath Sugar isacquired by ASRproviding NorthAmerican footprint

• Acquisition did notcome with anytechnologyapplications

• Required to get offof Seller’stechnology within 90days

• Leveragingtechnology carve-out from pastacquisition

Complexity

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2006 2008

Project Overview

“We need better reporting for packaging performance,especially in terms of how we did compared to the plan”

– Sr. VP of Operations

Current Process

This was our existing Scheduling Process…

Current Process

This was our existing Reporting Process• Manually Key Results into Custom SQL DB via .Net ASP Pages• Export Data to Excel One Plant per Workbook, one Sheet per Day• 4MB+ Exported File Per Plant

Pain Points – Two Related Requirements

Improve Packaging Efficiency Reporting• The current system has the following weaknesses:

1) No way to see plan verses actual performance2) Accuracy of actual running time verses downtime3) Limited reporting and analysis capabilities in the excel

process

Improve Metrics Reporting:• Additionally, there is a need to improve the metrics reporting process.

1) Create a central repository for metrics data2) Capture the data as close to the source as possible (at

least daily)3) Automate the calculations and reporting for

presentation

Packaging Efficiency Requirements

Accounting

Purchasing

People ChangeManagement

Time toImplement

OtherConsiderations

System Requirements• Put the schedule into SAP - SKUs by line

by shift with QTY to produce – Need forPack Efficiencies and Digital Packaging

• Record production with start and endtime, packaging downtime, non-packaging downtime and reason codes.Scrap in the near future with digitalpackaging.

• Replace existing schedule Process withSAP

• Replace existing packaging efficiencyreports

• Generate new Reports / Analytical Tools• Don’t break the cost/plant profitability

reporting

New Process: Schedule via SAP PP and Confirm w MIISingle source of master data (line names,product names, work center hirearchy)Eliminate duplicate entry of productionSchedule visible to everyone, all the timeSimplified schedule view and entrythrough MIIBaseline to compare planned vs. actualNew BI reporting with OEE, select timerange, etc.Ad Hoc Analytical capabilities through newBusiness Objects WebintelligenceFuture integration with weekly, monthlyand long term planning

System Requirements

Put the schedule into SAP - SKUs by line by shift withQTY to produce – Need for Pack Efficiencies and DigitalPackagingRecord production with start and end time, packagingdowntime, non-packaging downtime and reason codes.Scrap in the near future with digital packaging.Replace existing schedule Process with SAPReplace existing packaging efficiency reportsGenerate new Reports / Analytical ToolsDon’t break the cost/plant profitability reporting

Project Overview

Switched from repetitive to discrete manufacturing to:• Eliminate off line scheduling process• Leverage more standard functionality for performance reporting• Facilitate shift reporting in the future (EHP3)• Prepare for Sales & Operations Planning in 2010

Partnered with Acsis, Inc.• Needed to simplify recording process• Quick project turnaround needed• Completed in approximately 8 weeks

Implementation Approach

Utilize MII:• Simplify production recording vs. CO11n• Provide ability to record shift and validate against SAP shift

config• Custom BAPIs to extract schedule and hierarchy data so

displayed in useful format for the operators and to support BWreporting requirements

• Data posted using standard order confirmation BAPIUse SAP Business Objects for Reporting

• BW Extractions Hourly based on Standard Cubes• BW and Business Objects Web Intelligence Reporting

New Process – Scheduling Step 1

Create production orderTCode: COO1

New Process – Scheduling Step 2

Dispatch Production Orders TCode: CM25

New Process Step 3: Communicate the Schedule

New Process Step 4: Packaging and Reporting Results

Demonstration of MII Production Schedule and Recording

New Packaging Efficiency Reporting from SAP BI

Benefits

Single View of the ScheduleAccountability for tracking All Time (8 hrs per shift)Reduced Data Entry on the Packaging SideOverall Equipment Effectiveness Metrics (OEE)Conformance to PlanOverage Tracking

Next Steps

Roll out to additional refineries locationsIntegrate with automated manufacturing linesIntegrate additional shop floor systems to SAP

Questions?