Managing Large Global, Multi-site Manufacturing
Operations with Microsoft Dynamics® AX 2012
Customers
Microsoft Corporation
David Giambruno,
Rakesh Kumar
Revlon Inc.
Microsoft
Senior V.P. & CIO,
Global Director, Manufacturing Industry
Erwin Berends
Industry Technology Strategist,
Manufacturing Industry
Microsoft
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Challenges
Deployments
Multiple
production
processes
Architecture
Multi-company
Simply Powerful
Powerful
Agile
Mix Mode
flexibility
Multi-company
Multi-site
Simple
Two-Tier ERP
Multi-X
Subsidiaries of
global
corporations
Global, multipleplant
organizations
Connect local
manufacturing sites to
headquarters
Centralized ERP for
multiple-site manufacturing
organizations
Two-Tier ERP
Corporate HQ
Manufacturing
Site
Operational ERP
Standardize master data (PLM/PDM)
Consistency
Unit-to-unit
Manufacturing
Site
comparability
Operational ERP
Operational
Agility and innovation support
Corporate HQ
Administrative
ERP
Insight and alignment with unit
Manufacturing
Site
practices
Operational ERP
and rhythms
Business process standardization
Consolidated reporting
High adoption
Enterprise-wide visibility
Manufacturing
Site
Operational ERP
Supply Chain
Visibility
Intuitively model
your
organization
graphically
Product
Engineering
Manufacturing
Operations
Supply Chain
Planning
Sales Order
Management
Warehouse &
Distribution
Make decisions
based on facts &
comply
Benefit from
end-to-end
mixed-mode
manufacturing
Set company
policies &
collaborate with
your vendors
Gain loyalty with
better customer
services &
accuracy
End-to-end
visibility
throughout the
supply chain
Multi-X
Corporate HQ
One ERP for Multiple-Site
Operations
Manufacturing
Site
Standardize master data (PLM/PDM)
All-up visibility
Easier consolidated reporting
Manufacturing
Site
Corporate
HQ
Local monitoring
Local decision support
Local processes retained
Consistent corporate decisions
Compliance with HQ needs
Improved asset usage
Access to best practices
Core process adoption
Best practice sharing
Manufacturing Sites
Manufacturing
Site
That works for you, not against you
Applications that
are an asset
Simplicity and
agility
Complete
industryspecific solutions
Works the way you
need it to
Simple to use
Tailored to meet
your needs
Powerful
embedded
analytics and BI
Get the right data to
decision makers
Managing Large Global, Multi-site Supply
Chain Operations with Microsoft Dynamics AX
2012
Microsoft Convergence 2012
by David Giambruno
Senior Vice President and CIO
David Giambruno Revlon SVP & CIO
Revlon (REV)
•A global color cosmetics company delivering
Glamour, Excitement and Innovation through high
quality products at affordable prices.
•Our products are sold in over 100 countries across
six continents.
•Headquartered in New York with offices around the
world.
• Mr. Giambruno is responsible for driving global technology capabilities to provide competitive
advantages to the company’s business units and shareholders.
• Latest contribution to Revlon capabilities is the deployment of an internal Cloud which
supports over 500 applications, providing over 99.9999% uptime and cost savings / avoidance
of 70.4M in 2 years.
• Prior to Revlon, he was Director of Global Engineering, Security & Deployment for Pitney
Bowes, Inc. where he built global security capabilities and frameworks to managed FDIC, PCI,
HIPPA, and SOX compliance.
• Mr. Giambruno has also held diverse and global positions, including CTO of venture capital
firm, Selway Partners, Founder and CTO of leading web services companies, such as Econium,
Inc., and turn around CEO for Milestone Software Systems, where he worked on behalf of its
venture capitalists to restructure the company and energize its product portfolio. He
possesses extensive expertise in product development, product distribution, mergers and
acquisition, global network sales, technology sales and media sales, as well as raising capital.
Graduation S.U.N.Y Buffalo
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B.A. In Communications with Public Relations minor
Mr. Giambruno has been recognized by the industry:
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2012: Nominated for Innovation Award
2011: VMWorld Keynote speaker
2011: 2011: ComputerWorld 100
2011: Present to MIT on Cloud
2009: InfoWorld CTO of the year
2008: NetApp green Award
2006: Tri State Security Executive of the Year: Finalist
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Managing a turn around
Problem
Aging Infrastructure
Redundant Data Stores
Complex Applications
Organizational Readiness
Solution
Focus on Basics
Tackle Prerequisites
Infrastructure
Virtualization
Consolidate
Clean Data
Leapfrog when possible
Try and Fail Fast
Boost Skills
Socialize Internally
Manage Expectations
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Microsoft Dynamics AX as a Global Solution
Over 72% of global
manufacturing is done in
Oxford, NC
50 Entities will use Microsoft Dynamics AX 2012
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Application Portfolio Challenge:
5 years ago–how to simplify globally
540+ application with 4600 interfaces and 3400 nightly batch jobs to do what the enterprise
needs done.
Fast forward to today: Globalization of Revlon
All servers virtualized in Revlon cloud, data, and systems being centralized
For the first time, all Revlon entitles are viewed in one system.
1. One view of the world, one set of common information.
2. Making the systems work for people rather than people working for the systems.
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Step 1: Get the infrastructure out of the way.
Internal Cloud Running 531 applications, 99.99996 uptime
Reduced infrastructure investment requirements to focus on portfolio. Applications on Cloud make
15,000 automated changes a months, 14,000 transactions a second, and 17-30 TB a week in
change.
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Step 2: standardize on a platform to achieve development Agility and Cost
Avoidance, focus on data quality
Application
Deployment
Any
Device
Workflow
Exception
Management
Applications
Transactional Data
Master Data
Common Cloud infrastructure
Highly agile and secure environment to develop on real: data, systems and test. Make all
systems available for master data and integration. Supports “co-existence” of systems.
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Step 3: Simplify Application Portfolio, eliminate redundant technology
stacks, long steady work
Microsoft® SharePoint®
Global
Forecasting
Global
BI
Financial
Modeling
Business
Intelligence
Budgeting
Global ERP: Microsoft Dynamics
Reporting (Microsoft Excel ®, Microsoft Access®, others)
ERP 1
AR
ERP 2
ERP 3
ERP 4
ERP 5-21
11 instances
Ops to Fin
Mapping
Global Sales
Financial
Reporting
Consumption
SKU
Global
UltiPro
WM
Global
Demand
Planning
Global HR
Platform
BIZTALK Data Bus: Global EDI +
1.
2.
3.
4.
5.
Reduce application portfolio by 86% globally.
Common “pane of glass” to make decisions
Leverage common data for Analytics
Remove “Big Data” barriers to entry
Use information as a competitive weapon
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Step 4: Leapfrog through technology innovation. Enabling Information
Anywhere…. In context and actionable
Mobile Business Intelligence: Using Revlon Master Data for ERP project along the way…
Real-time data being pushed to any device: Demonstrating ability to create real-time business dashboards and
deliver regardless of platform / location. Integrated into our Directory for security and authentication. Using
Revlon’s 2 PB of data….
Challenges and decision making: study options in detail and work through
pros and cons of each approach.
Big Bang
Replacement
Outside
IN
Risk: Business
resources. Complexity
of Change, Lack of
Documentation.
Cost..
Inside
OUT
Best of Breed: Replace large systems one at
a time.
Risk: Business Resources, Costs,
Complexity and lack of documentation.
Make changes around “big” systems to reduce complexity. Replace once
critical “density “ achieved. Deploy missing capabilities and address
“physics” issues. Called “Progressive Refinement”, using our investment
cycle to change what and how we do things.
Risk: Longer time frame (maybe)
Problems have been treated as overly complex.
Break down work into consumable sizes and simplifying issues.
Enables transformation.
Bottom up approach.
Results along the way “fuzzy goals”
Trust but Verify Method: avoid self selection bias,;past success is not a
guarantee of current success
• Proof of Concepts (Good enough)
• Risk Management: Address end of life, transition risk, and cultural changes
due to application capability frame of reference change for users.
• Global Master Data Management: Ability to move data in and provide
coexistence (write back).
• Deployment Strategy: Run 2 horses
• Hub functional replacement (Direct Procurement)
• Spoke system replacement (United Kingdom BPCS)
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Proof of Concepts: obtain business (and employee) buy in
by performing quick, but extremely relevant work highlighting the benefits
Proof of Concept (PoC) studies were conducted showcasing end-to-end business processes
using Revlon data with multi-lingual capability under a single global instance
• Built on Revlon servers using Revlon data including items, Bill of Materials, Routes, Work Centers,
etc.
• PoC Scenarios covered functionality across product management, planning, production,
purchasing, sales and financials
• International analysis conducted on LATAM (Mexico), EMEA (S. Africa, United Kingdom) and
APAC (Australia)
Product Management
• Item management
• Formula Management
• Product Costing
Production
• FG production orders
• Bulk production orders
• Product Traceability
Planning
• Master Planning
• Capacity Planning
• Action/Future Messages
Purchasing
• Vendor Management
• Purchase Orders
• Purchase Requisitions
Sales
• Customer Management
• Sales Orders
• Trade Agreements
Financials
• Basic GL/AP/AR
• Fixed Assets
• Intercompany
Data Quality: Global Master Data Management followed by Data
Warehouses for transactional data
Global Master Data Management framework has been developed for:
• Entity Management
• Chart of Account Management
• Financial Dimensions
• Currencies
• Customer Management
• Vendor Management
• Product Management
• Product Dimensions
• Product Categories
• UPC Codes
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Application Consolidation Deployment Strategy
• Two swim lanes
• Hub functional replacement (Direct Procurement)
• Spoke system replacement (United Kingdom BPCS)
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Current Progress
• Hub functional replacement
• Analysis, design, development completed
• Deployment is under progress
• Spoke system replacement
• Analysis, design, development completed
• Deployment is under progress
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Proof of Concept Presentation
Globalization
Speed
Automation
Multi-Company
Formula Management
Product Planning
Multi-Language
Product Costing
Capacity Planning
Role Centers
Variance Analysis
Procurement
Global Financials
Traceability
Sales Reports
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http://www.microsoft.com/en-us/dynamics/erp-ax-overview.aspx
http://www.microsoft.com/en-us/dynamics/erp-ax-manufacturing.aspx