Building the Lean Extended Enterprise through Adaptive
Supply Chain Networks
Thomas E. Shaw (GEIA)
Terence T. Burton, President
The Center for Operational Excellence, Inc.
(CEO)
March 2005
•
Agenda
• A&D Lean transformation issues
• Supplier issues
• Supply chain network management issues
• An IT architecture for supply network integration and
•
•
•
management---illustrative example
SAP Netweaver application platform
A&D Netweaver application example- Bombardier
Summary
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
2
•
A&D Lean Transformation Issues
• Low level of supplier network Lean Transformation (15%)
severely limits overall industry from gains seen at Rockwell,
Boeing IDS and Lockheed.(1)
•
Under appreciation of role of enterprise IT systems as
enabler of institutionalizing, stabilizing & sustaining gains
from process improvements (1)
•
(1) “An assessment of the Degree of Implementation of the
Lean Aerospace Principles and Practices within the US
Aerospace and Defense Industry– February 2004”
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
3
Evolution of Business Solutions
Portal Infrastructure
 User-centric collaboration
 Unification of underlying sources for
seamless navigation
 Device independent presentation
technology
PORTAL
APPLIC
ATIONS
Web Application Server
 Web services provision
 Open standards-based connectivity
through native Web technology
 Platform independent
infrastructure
Exchange Infrastructure
EXCHA
NGE
Courtesy of SAP America
 Process-centric collaboration
 Common business process semantics
for seamless integration
 Application-independent business
process collaboration
© 2004 Massachusetts Institute of Technology
web.mit.edu/lean
Tom Shaw and Greg Ferre/March 23, 2004 -
4
Two extremes in major IS
implementations
Integrated vs. Best of Breed
Integrated
Ferrari Dealership
Best of Breed
Big Al’
Al’s Auto Nirvana
2004 Ferrari Roadster
2004 Best of Breed Ferrari Roadster
385hp Engine
Tiptronic Transmission
Multi Link Transaxle
Motronic Fuel Injection
Ferrari Designed Pirelli Tires
Corvette 5.0 Liter Engine
BMW M3 Transmission
Porsche Transaxle
Maserati Fuel Injection System
Mercedes Designed Michelin Tires
(all components specifically designed
to Ferrari specifications)
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
5
Program Costs are committed
early in Life Cycle
Design
Engineering
Design
Testing
5%
3%
2%
Process
Planning
Production
5%
85%
Cost
Incurred
Cost
Committed
60%
20%
10%
5%
5%
Source: Andersen Consulting
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
6
•
A&D Industry Supplier Issues
• Limited financial and skilled human resources to react to
•
•
•
and respond to multiple customer requests for quotations
and to address scope of contract requirements (particularly
flow down requirements).
Varied contract requirements from different business areas
and programs of same company and frequently same
business area.
Limited access to Research & Development funding from
government or other customers.
Non-uniform methods of access to prime contractor or
higher tier customer technical and manufacturing data.
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
7
•
A&D Supplier Network Management Issues
• Limited number of lean functional assets, for orientation,
•
•
•
•
training and surveillance.
Lower tier (level 3 & 4) suppliers frequently provide critical
items to both higher level & primes, exposing program
critical path to supplier quality, schedule & performance.
Greater international involvement in major US platform
programs (JSF, etc) require 24/7 supplier management.
Lack of real time integration, interoperable enterprise IT
systems substantially increases risk of critical shortages.
Lack of real time process information flow unacceptable in
environment requiring real time/near real time threat
response products and systems.
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
8
Partners
The Lean Transformation
Lean
Lean Adaptive
Adaptive Enterprise
Enterprise
Sales/Purch/Eng
us
o
u
tin
n
Co
nt
e
em
v
ro
p
Im
Lean
Lean Extended
Extended Enterprise
Enterprise
Lean
Lean Enterprise
Enterprise
Plant
Lean
Lean
Manufacturing
Manufacturing
Technology Advancements
Adaptive Manufacturing
MRP2
web.mit.edu/lean
ERP, PLM,
CRM, SRM
SCM
NetWeaver ,
Adaptive SCM
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
9
•
Salient Lean Entities of Lean Transformation
• Lean transformation characteristics: those process
•
•
•
attributes that summarize the focus, priorities, and mind set
for the Lean Transformation Journey.
Lean transformation capabilities: those functional attributes
that summarize the scope, agility and output of the journey
along the transformation path.
Lean transformation actions: those management attributes
and actions which result in an industry leading position by
institutionalizing Lean Principles & Practices.
Lean transformation enablers: those integrated attributes
which sustain and promote the company’s Lean initiatives.
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
10
The principles remain the
same… but extended
Wright Flyer
FALCON 2000
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
11
The Lean Transformation-Characteristics
Plant
Sales/Purch/Eng
Partners
Lean
Lean Adaptive
Adaptive Enterprise
Enterprise
us
o
u
tin
n
Co
Real
Real Time
Time Decision
Decision Focus
Focus
Decision
Modelling
Decision Modelling and
and Simulation
Simulation
Adaptive
Adaptive Supply
Supply Chain
Chain
Decision
System
Decision System Metrics
Metrics and
and KPI’s
KPI’s
nt
e
em
v
ro
p
Im
Lean
Lean Extended
Extended Enterprise
Enterprise
Supply
Supply Chain
Chain Interoperability
Interoperability
Lean
Lean Network
Network Events
Events
Integrated
Integrated Value
Value Stream
Stream Analysis
Analysis
Coordinated
Coordinated ERP
ERP Interfaces
Interfaces
Network
Network KPI’s
KPI’s
Lean
Lean Enterprise
Enterprise
Integrated
Integrated Operations
Operations Focus
Focus
Six
Sigma
Six Sigma Events
Events
Multi
Multi Process
Process Value
Value Stream
Stream Analysis
Analysis
ERP
ERP
Enterprise
Enterprise KPI’s
KPI’s
Lean
Lean Manufacturing
Manufacturing
Operational
Operational Focus
Focus
Kaizan
Kaizan Events
Events
Single
Single Process
Process Value
Value Stream
Stream
MRP2
MRP2
Manufacturing
Manufacturing KPI’s
KPI’s
Technology Advancements
Adaptive Manufacturing
MRP2
web.mit.edu/lean
ERP, PLM,
CRM, SRM
SCM
NetWeaver ,
Adaptive SCM
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
12
The Lean Transformation - Capabilities
Plant
Sales/Purch/Eng
Partners
Lean
Lean Adaptive
Adaptive Enterprise
Enterprise
us
o
u
tin
n
Co
nt
e
em
v
ro
p
Im
High
High Quality
Quality Alternate
Alternate Sources
Sources
Broad
Range
of
Products
Broad Range of Products and
and Service
Service
Highly
Highly Agile
Agile and
and Efficient
Efficient Network
Network Management
Management
Product
Product Offerings
Offerings Value
Value Optimized
Optimized Rapid
Rapid and
and
Predictable
Response
to
New
Orders
Predictable Response to New Orders
Lean
Lean Extended
Extended Enterprise
Enterprise
Network
Network Products
Products High
High Quality
Quality
Network
Network Products/Service
Products/Service Value
Value Optimized
Optimized
Predictable
Predictable Response
Response to
to New
New Orders
Orders
Broad
Broad Range
Range of
of Products
Products and
and Service
Service
Consistent
Consistent and
and Repeatable
Repeatable Order
Order Performance
Performance
Lean
Lean Enterprise
Enterprise
Engineer-to-order
Engineer-to-order Product
Product Quality
Quality
Engineered
product
Engineered product value
value optimized
optimized
Rapid
Rapid response
response for
for new
new products
products
Lean
Lean Manufacturing
Manufacturing
Repetitive
Repetitive Product
Product High
High Quality
Quality
Manufacturing
Manufacturing Cost
Cost Optimized
Optimized
Rapid
Rapid Response
Response for
for "Standard“
"Standard“ Products
Products
Recognized
Recognized Industry
Industry Reputation
Reputation
Technology Advancements
Adaptive Manufacturing
MRP2
web.mit.edu/lean
ERP, PLM,
CRM, SRM
SCM
NetWeaver ,
Adaptive SCM
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
13
The Lean Transformation - Actions
Partners
Lean
Lean Adaptive
Adaptive Enterprise
Enterprise
Plant
Sales/Purch/Eng
us
o
u
tin
n
Co
nt
e
em
v
ro
p
Im
Coordinate
Coordinate Collaborative
Collaborative Adaptive
Adaptive Vision
Vision and
and Objectives
Objectives
Require
Network
Lean
Assessment
(Internal/External)
Require Network Lean Assessment (Internal/External)
Establish
Establish Network
Network Lean
Lean Requirements
Requirements Capability
Capability
Select
Primary
and
Alternate
Select Primary and Alternate Network
Network Entities
Entities
Implement
Implement Collaborative
Collaborative Adaptive
Adaptive System
System
Architecture
Architecture and
and Systems
Systems
Lean
Lean Extended
Extended Enterprise
Enterprise
Collaborative
Collaborative Strategic
Strategic Vision
Vision and
and Objectives
Objectives
Conduct/Lead
Conduct/Lead Unbiased
Unbiased Collaborative
Collaborative Asessment
Asessment (Internal/External)
(Internal/External)
Perform
Perform Network
Network Gap
Gap Analysis
Analysis
Select
Select Network
Network Constituency
Constituency
Conduct
Conduct Collaborative
Collaborative Education
Education and
and Training
Training
Prioritize
Prioritize Lean
Lean ActionsImplement
ActionsImplement Collaborative
Collaborative IT
IT Systems
Systems Architecture
Architecture
Lean
Lean Enterprise
Enterprise
Formulate
Formulate Strategic
Strategic Vision
Vision and
and Objectives
Objectives
Conduct
Unbiased
Assessment
Conduct Unbiased Assessment (Internal/External)
(Internal/External)
Perform
Perform Gap
Gap Analysis
Analysis
Conduct
Lean
Education/Training
Conduct Lean Education/Training
Prioritize
Prioritize Lean
Lean Actions
Actions
Implement
ERP
Implement ERP System
System Backbone
Backbone
Lean
Lean Manufacturing
Manufacturing
Develop
Develop Operations
Operations Vision
Vision and
and Objectives
Objectives
Conduct
Unbiased
Assessment
Conduct Unbiased Assessment (Internal/External)
(Internal/External)
Perform
Perform Gap
Gap Analysis
Analysis
Conduct
Lean
Education/Training
Conduct Lean Education/Training
Prioritize
Prioritize Lean
Lean Actions
Actions
Embed
Lean
in
Manufacturing
Embed Lean in Manufacturing Systems
Systems
Technology Advancements
Adaptive Manufacturing
MRP2
web.mit.edu/lean
ERP, PLM,
CRM, SRM
SCM
NetWeaver ,
Adaptive SCM
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
14
The Lean Transformation - Enablers
Plant
Sales/Purch/Eng
Partners
Lean
Lean Adaptive
Adaptive Enterprise
Enterprise
us
o
u
tin
n
Co
Validated
Validated Lean
Lean Network
Network Entity
Entity
Network
Node
IT
Network Node IT Proficiency
Proficiency
Agile
Agile and
and Qualified
Qualified Network
Network Entities
Entities
Broad
Capacity
Range
of
Network
Entities
Broad Capacity Range of Network Entities (Flexible
(Flexible Outsourcing)
Outsourcing)
Collaborative
Collaborative and
and Adaptive
Adaptive IT
IT Architecture
Architecture and
and Systems
Systems
nt
e
em
v
ro
p
Im
Lean
Lean Extended
Extended Enterprise
Enterprise
Lean
Lean Qualified
Qualified and
and Validated
Validated
Network
Network Staffs
Staffs
Network
Network Node
Node Interface
Interface Value
Value Stream
Stream Analysis
Analysis
Collaborative
Collaborative IT
IT System
System Architecture
Architecture and
and Systems
Systems
Lean
Lean Enterprise
Enterprise
Lean
Lean Educated
Educated and
and Trained
Trained Staff
Staff
Enterprise
Processes
Value
Enterprise Processes Value Stream
Stream Analyses
Analyses
Kaizen
Kaizen and
and Six
Six Sigma
Sigma Mindset
Mindset
IT
IT System
System Architecture
Architecture and
and Systems
Systems
Lean
Lean Manufacturing
Manufacturing
Lean
Lean Educated
Educated and
and Trained
Trained Staff
Staff
(Green
and
Black
(Green and Black Belts)
Belts)
Process
Process Value
Value Stream
Stream Analyses
Analyses
Kaizen
Kaizen Mindset
Mindset
IT
IT Technology
Technology Framework
Framework
and
and Systems
Systems
Technology Advancements
Adaptive Manufacturing
MRP2
web.mit.edu/lean
ERP, PLM,
CRM, SRM
SCM
NetWeaver ,
Adaptive SCM
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
15
•
Integrated business layer, ERP, factory & supply
chain
• Engineering & Manufacturing must be able to detect a
•
•
change in part performance &/or availability & promulgate a
response throughout the supply chain—must have visibility
into every engineering & manufacturing process.
IT users have multiple systems & information needs to be
reconciled among them for real time decision making—a la
“dashboard type” displays.
Suppliers, particularly tier 3 & 4 must have consistent
product interfaces to avoid multiple systems support &
minimize transaction errors.
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
16
•
Integrated business layer (continued)….
• Current solution from SAP includes the Netweaver
integration platform which provides the ability to connect
applications & leverage standards such as XML & web
server. The core of Netweaver is SAP Xi (exchange
infrastructure) which contains the standard mapping to data
between the automation layer (MES) & ERP layer.
•
Key layer: automation layer—Lighthouse, among others.
•
Key standards: B:95, B2MML, XML.
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
17
The principles remain the same… but extended
Customer Requirements
 Adaptability
 Flexibility
 Heterogeneity




User empowerment
Collaboration
Value chain integration
Reduced integration costs
Enterprise
Enterprise Services
Services Architecture:
Architecture:
SAP
SAP NetWeaver
NetWeaver
Solutions:
Solutions:
mySAP
mySAP Business
Business Suite,
Suite,
SAP
SAP xApps
xApps ,,
SAP
SAP R/3
R/3 Enterprise
Enterprise
 Web services
 Open standards
Application
Application Platform
Platform Suite:
Suite:
(.Net, J2EE)
mySAP
mySAP Technology
Technology
 Knowledge
Solution:
Solution:
 Business Process Reengineering
 Scalability
3-Tier
3-Tier Client/Server:
Client/Server:
 Reduced HW & Network costs
mySAP.com
mySAP.com
 Multi-Channel Access
 Portals
 Exchange
R/3
R/3 Basis
Basis
Solution:
Solution:
Mainframe
integration
Mainframe Arch:
Arch:
 Packaged
ABAP
ABAP
apps
Solution:
Solution:
 Reduced
R/2
R/2
development
costs
 Mainframe
 File system
‘70
web.mit.edu/lean
‘80





PC-based UI
Client/Server
UNIX/Windows
Relational Database
TCP/IP Networks
‘90
Mgmt
Infrastructures
R/3
R/3
 Real-time
Mgmt
 Master Data
‘99
 Web AS
 Internet
Technology
© 2004Advancements
Massachusetts Institute of Technology
‘03
Tom Shaw and Greg Ferre/March 23, 2004 -
18
SAP NetWeaver™
Turning the Enterprise Services
Architecture Vision Into Reality
SAP NetWeaver™
•
PEOPLE INTEGRATION
Portal
…
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
Life Cycle Mgmt
Composite Application Framework
Multi channel access
The open
integration and
application
platform for
TCO reduction
•
•
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
web.mit.edu/lean
•
Integrate people,
information and
processes…
Enterprise-scale Java
and ABAP application
platform
.NET and WebSphere
interoperability and
extensibility
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
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SAP NetWeaver™
Access through any device
•SAP Mobile
SAP NetWeaver™
Infrastructure
• Enables mobile apps to
PEOPLE INTEGRATION
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
web.mit.edu/lean
Life Cycle Mgmt
Composite Application Framework
Multi channel access
•
•
•
•
run disconnected or
connected
Built for handheld
devices (Pocket PC,
EPOC, Linux…)
Browser or native frontend
Multiple-backend
connectivity.
Various mobile business
applications available
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
20
SAP NetWeaver™
A Market Leading Portal Offering
SAP NetWeaver™
•SAP Enterprise Portal
PEOPLE INTEGRATION
•
•
Portal
Collaboration
•
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
Life Cycle Mgmt
Composite Application Framework
Multi channel access
•
•
Platform independence
Any source/audience,
role-based
Team collaboration (both realtime & asynchronous)
Authoring, Versioning,
Indexing, Searching, … for
unstructured information
1700 installations
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
21
SAP NetWeaver™
A Way to Meet Business Intelligence Needs
SAP NetWeaver™
•SAP Business
PEOPLE INTEGRATION
Intelligence
• End-to-end solution for
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
Life Cycle Mgmt
Composite Application Framework
Multi channel access
•
•
•
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
web.mit.edu/lean
•
•
enterprise-wide BI
Business content for
rapid
deployment
Fully integrated with
portal
Open architecture
(Crystal, Ascential)
6410 installations
95% extract non-SAP data
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
22
SAP NetWeaver™
Unique Master Data Management Capabilities
SAP NetWeaver™
•SAP Master Data
PEOPLE INTEGRATION
Mgmt
• Information integrity
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
web.mit.edu/lean
Life Cycle Mgmt
Composite Application Framework
Multi channel access
•
•
across the business
network
Services and support to
consolidate content,
harmonize and centrally
manage master data, e.g.
product data, customer
data
MDM supports an
incremental approach to a
cohesive Master Data
Management
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
23
SAP NetWeaver™
High Performance and Flexibility in
Business Process Integration
SAP NetWeaver™
PEOPLE INTEGRATION
•SAP Exchange
Portal
Infrastructure
• For both internal and
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION PLATFORM
J2EE
Life Cycle Mgmt
Composite Application Framework
Multi channel access
•
•
external process
integration
(with SAP and non-SAP)
Prepackaged
collaboration knowledge
Ecosystem of non-SAP
collaboration content
ABAP
DB and OS Abstraction
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
24
SAP NetWeaver™
Protecting Investments and Enterprise-Scale Java
SAP NetWeaver™
•SAP Web Application
PEOPLE INTEGRATION
Server
• J2EE compliant Java and
Portal
Collaboration
•
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION PLATFORM
J2EE
ABAP
Life Cycle Mgmt
Composite Application Framework
Multi channel access
•
•
•
•
•
ABAP side by side
Zero footprint UI
(Browser)
Model-driven UI, patterns
Highly scalable and
reliable, advanced
caching
OS and DB independent
Native Web services
1500+ installations
DB and OS Abstraction
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
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SAP’s Business Technology
Platform Map
Web
Browser
Presentation
Communication
Environment
MS Windows
.Net
J2EE
ABAP Objects
Java
C / C++
IBM DB2 UDB for
UNIX & Windows
OS/390 and z/OS
iSeries
Informix
Microsoft
SQL-Server
Architecture/
System
web.mit.edu/lean
Linux
Intel /
zSeries
Oracle
Windows
Unix
Operating
System
Mobile Devices
Web Services
(UDDI / HTTP / XML / SOAP)
Programming
Languages
Database
Java
Compaq
Tru64
Unix
IBM
AIX
HP
UX
FSC
Reliant
Unix
SUN
Solaris
Alpha
pSeries
PA
MIPS
SPARC
SAP DB
Midrange Mainframe
Microsoft
Windows
IBM
OS/400
IBM
OS/390 /
z/OS
Intel
iSeries
zSeries
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
26
Bombardier Aerospace
•
A&D Netweaver Platform Example-Bombardier
Aerospace
• 11.4B sales of CRJ700 & CRJ800 regional jet aircraft &
•
related equipment; 24,000 employees
Strategic Focus—Supplier management process
•
•
•
•
•
web.mit.edu/lean
Order placement & management
Order status & corrective action
Quality Performance
All electronic
Real time decisions
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
27
Bombardier Aerospace
•
Supplier management Infrastructure based on
Portals
•
Signify corporate commitment to leverage & focus
information technology investment
•
Enhance collaboration with external portals
•
Access decision support information
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
28
Bombardier Aerospace
•
Bombardier approach to building electronic
supplier management functionality
• Pilot vendor portal—as proposed supplier management
•
•
•
infrastructure
Netweaver as integration platform; implemented in three
and one half months from design to use by suppliers—all
electronic
PO’s approved electronically on back-end systems, held in
electronic PDF format in Documentum archive, accessible
to all users
BAPI and SAP web application server (SAP AS) connect the
systems that underpin procurement, acknowledgement,
shipping & auditing
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
29
•
Summary
• IT technology innovative architectures & emerging data
•
•
•
capture standards provides the basis for fully integrated,
adaptable supply chain infrastructures, scalable to
companies of all sizes.
Currently, SAP’s Enterprise Services Architecture, which
includes Netweaver as the key application platform provides
a robust solution to supply chain data integration problems.
Serious supplier issues such as the wide range & variation
in flow down requirements, non-uniform order entry, status,
quality & corrective action procedures & templates exist;
AIA Supplier Management Council pushing hard to achieve
improved level of standardization.
Progress is being made but serious gaps still exist on what
the industry can achieve via Lean transformation vs. current
status
web.mit.edu/lean
© 2004 Massachusetts Institute of Technology Tom Shaw and Greg Ferre/March 23, 2004 -
30