Session 4808 Using APICS Body of Knowledge to Prepare for APO Stephen Desirey, CFPIM DuPont Company...
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Transcript of Session 4808 Using APICS Body of Knowledge to Prepare for APO Stephen Desirey, CFPIM DuPont Company...
Session 4808
Using APICS Body of Knowledge to Prepare for APO
Stephen Desirey, CFPIMDuPont Company
Session Code: 4808
Session 4808
ERP Is Only An IT Project
Headlines we want to avoid
Integration Testing Starts With Go-Live
Data Accuracy Measured At 45%
Do It Yourself Software
30 Day Install Without Changing Work Practices
Vendor Implemented ERP
Session 4808
Preparation:
APICS Body of Knowledge
Detailed Scheduling
and Planning
Basics ofSupply ChainManagement
Execution and Control of Operations
Master Planning of Resources
StrategicManagementof Resources
Session 4808
Traditional supply side thinking
These are questions of priority and capacity
What do we already
have?What must
we get?What are we going to make?
What does it take
to make it?
DataAccuracy
DataAccuracy
Session 4808
But first, demand side thinking
These are questions to justify the business purpose
Will we make money on this sale?
Where will we deliver
this?
Why are we selling
this?
Why will they
buy this?
DataAccuracy
DataAccuracy
Session 4808
Sounds simple
Logistics SupportAnalysis
Pump/Motor RunTime
Work OrderSystem
Catalog
Accounts Payable
DisbursementsSecurity
Real Property
DOE FIMS
DOE DISCAS
Purchasing
General Ledger
Bench StockControl
Bar Coding
Fixed Assets
Inventory ControlSystem
Off-site VendorCustody
PayrollPersonnel
PaperRecords
JournalEntry
RequestPaper
Paperreceivers
PaperInvoices
Paperpartsorder
PaperPurchaseRequisition
Legacy System
Legend
Centra EDM/PDM
EngineeringChange Control
Log
PaperECP
PaperContract
MRP Models
batch file
batch filebatch file
batch file
PaperStocklevel
decision
Training
Paperchecks
Artemis ProjectFund Accounting
PrimaveraSchedules
Papermilestonedefnitions
HumanGlue
SuppliersCustomers &Consumers
Sell, Buy, Make,and Deliver
Integration of systems becomes the critical operating task
Session 4808
Managing Process
Sales and OperationsPlanning
Business Strategy
SupplyChain
Define Offering
Define Marketand End Uses
EstablishValue Pricing
AccountsReceivables
Demand Planning
Order Entry
New ProductDevelopment
CompetitiveKnowledge
DemandChain
SupplyChain
© S.T. Desirey 2002
MasterScheduling
ProcessImprovement
Logisticsand Delivery
CapacityPlanning
Productionand Toll Mfg
MaintenancePlanning
MaterialsPlanning
DetailedScheduling
BusinessStrategy
BusinessPlanning
FinancialPlanning
Session 4808
Managing Process in APO
Sales and OperationsPlanning
Business Strategy
SupplyChain
Define Offering
Define Marketand End Uses
EstablishValue Pricing
AccountsReceivables
Demand Planning
Order Entry
New ProductDevelopment
CompetitiveKnowledge
DemandChain
SupplyChain
© S.T. Desirey 2002
MasterScheduling
ProcessImprovement
Logisticsand Delivery
CapacityPlanning
Productionand Toll Mfg
MaintenancePlanning
MaterialsPlanning
DetailedScheduling
BusinessStrategy
BusinessPlanning
FinancialPlanning
Session 4808
Process Data Management Technology
Sales and OperationsPlanning
Business Strategy
SupplyChain
Define Offering
Define Marketand End Uses
EstablishValue Pricing
AccountsReceivables
Demand Planning
Order Entry
New ProductDevelopment
CompetitiveKnowledge
DemandChain
SupplyChain
MasterScheduling
ProcessImprovement
Logisticsand Delivery
CapacityPlanning
Productionand Toll Mfg
MaintenancePlanning
MaterialsPlanning
DetailedScheduling
BusinessStrategy
BusinessPlanning
FinancialPlanning
Managing Process
Data Accuracyand Completeness
for Recipes, BOMs, andPlanning Parameters
Keystone
BW
R/3
Transaction Process
Session 4808
Single most important lesson
APO (or other APS tool) will reveal the faults and gaps in the demand and supply chain management processes more than will be uncovered in the transaction (R/3) process.
Sales and OperationsPlanning
Business Strategy
SupplyChain
Define Offering
Define Marketand End Uses
EstablishValue Pricing
AccountsReceivables
Demand Planning
Order Entry
New ProductDevelopment
CompetitiveKnowledge
DemandChain
SupplyChain
MasterScheduling
ProcessImprovement
Logisticsand Delivery
CapacityPlanning
Productionand Toll Mfg
MaintenancePlanning
MaterialsPlanning
DetailedScheduling
BusinessStrategy
BusinessPlanning
FinancialPlanning
Managing Process
Process Data Management Technology
R/3
Transaction Process
Sales and OperationsPlanning
Business Strategy
SupplyChain
Define Offering
Define Marketand End Uses
EstablishValue Pricing
AccountsReceivables
Demand Planning
Order Entry
New ProductDevelopment
CompetitiveKnowledge
DemandChain
SupplyChain
MasterScheduling
ProcessImprovement
Logisticsand Delivery
CapacityPlanning
Productionand Toll Mfg
MaintenancePlanning
MaterialsPlanning
DetailedScheduling
BusinessStrategy
BusinessPlanning
FinancialPlanning
Managing Process
Data Accuracyand Completeness
for Recipes, BOMs, andPlanning Parameters
BW
This brings on excitingopportunities for game changing improvements.
Session 4808
Master data accuracy
• Material number (local or global?)• Location of plants and storage locations• Recipes• Resources (including personnel staffing)• Customer names and locations• Bills of material• Demonstrated capacity• Required capacity• Lead times• Service levels required• Others
Requires 98% or better accuracy
Yes, inventoriesmust be accurate
to 95%
Session 4808
10 APO Critical Success Factors
1. Identify the gaps between that future state and where you are today– Specify local, country, regional, and global business
changes 2. Quantify the business opportunities possible with this
integrated design3. Move this concept to the specific ownership of the senior
leadership– Involve them in a measurable way to validate vision and
ownership4. Develop scope of the project, “what is in and what is out”5. Establish project team, sponsors, business process owners
Session 4808
10 APO Critical Success Factors(continued)
6. Recognize that planners generally prefer their current system, APO is not a replacement for the current legacy systems…it brings on a new more robust approach
7. Recognize that APO requires master data at the beginning of realization not at the end as does R/3
8. Identify what is required for views, planning, and transactions– Identify the new behaviors and roles for the future state
9. Finalize the project plan (timeline) and commitment of total resources
10. Execute to WIN for the bottom line results…“failure is not an option”…. recognize that this is more than an IT project…it is your business modernization
Session 4808
APO integrated community
liveCache
APO
Optimizer
Core R/3
BusinessWarehouse
APO
R
Sales
Mfg
CustService
Distribution
Customer