Broad SAP Project
Approach & Functionality Implemented
06/23/06
Agenda
• Project Goals
• Project Scope and Approach
• Timeline
• Functionality
– Master Data Management
– Planning
– Procurement
– Inventory Management
– Cost Tracking
– Production
– Quality Management
Project Goals
•
Enable the Broad to be the lowest cost provider of genomic sequencing
data.
– Improve Production cost tracking
– Implement product costing (cost per read)
– Simplify Purchasing and Financials, including the addition of ECAT
purchasing
– Simplify batch creation and inventory management processes
– Improve “ease of use” for highly repetitive transactions
•
Enhance operational performance
– Improve shop floor tracking of batch numbers to enable timely
troubleshooting
– Improve quality management by tying inspections results to materials and
batches produced
•
Fully integrate with the MIT SAP system, to reduce long term IT costs
– Eliminate a grant funded legacy system (OPM), & multiple system
interfaces
– Eliminate the dual User licenses and system maintenance contracts
– Provide a scalable platform, that supports the addition of new/more complex
business processes
Project Scope
•
Replace Oracle OPM with SAP functionality in the following areas
– Master Data Management
– Planning
– Procurement
– Inventory Management
– Cost Tracking
– Production
– Quality Management
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Provide specific functional enhancements to improve ease of use &
increase efficiency
– Including direct use of MIT SAP Purchasing & Financials
Out of scope items – clearly defined and agreed upon
Project Approach
• Team expectations clearly defined
• Team members educated on basic project truths
– Scope, Schedule, Budget (resources)
• Measurable acceptance criteria for project success
• Collaborative effort between Broad and IS&T
– Co-team leaders – established a cohesive team
– Broad business and IS&T members “paired”
– Active sponsorship and steering committee
• Business Power Users dedicated to the project
– You are empowered. Make the decisions!
– Deal with tough or controversial issues up front – don’t wait!
– Involve everyone, at every step
• Extensive planning and scoping analysis conducted prior to
project kick-off (2 month effort)
• Project scope under change control at the onset
Project Timeline
Nov
• Project Prep
• Plan
• Resources
• Infrastructure
• Blueprint
• Flows
• Policy & Process
• Spec’s
• Walkthrough
• Realization
• Config (DEV & TST)
• Playbacks
• FRICE
• Integrated Test 1
• UAT (IT2 & Regression)
• Final Prep
• Build (PS1)
• User Training
• Convert
• Go Live & Support
• Week 1 Support
Dec
Jan
Feb
Mar
Apr
May
Jun
SAP Functionality Implemented
Overview Broad Flow
Print/Display
Reports
Set up
Master Data
• Materials
• BOM/Recipe
• Costs
• Info Record
Input a
Forecast
Run MRP
Print/Display
Reports
Release Req’s
Create PO’s
Print/Display
Reports
Pay Invoices
Print/Display
Reports
Receive PO’s
Inventory
Movements
Goods Issue
Project
Expensed
Material
Create a
Process Order
Mini-Mart
Expensed
Material
Create & use
an Inspection
Lot
Pass data
to/from
SQUID
Misc Goods
Receipt
Backflush
(fixing as
necessary)
Purchase
Expensed
Material
Set up Quality
Master Data
• Groups
• MIC’s
• Insp. Plans
• SPC param
Print/Display
Reports &
SPC
Print
Checks
SAP
SAP Modules at Broad
• SAP Modules include
– Materials Management (MM)
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Master data (material, vendor, purchasing information record),
Purchasing
Material Requirements Planning (MRP)
Inventory management (goods issue, goods receipts, goods transfer,
physical inventory)
• Batch management
– Quality Management (QM)
• Inspection plans / Master Inspection Characteristics, Inspection lots,
Inspection Results Recording and Statistical Process Control
– Quality inspection stock
– Production Planning (PP)
• Process orders and master recipes including Bill of Materials
– Financial and Controlling (FI/CO)
• Product Costing
– Cross-Application Components
• Document Management
• Workflow
Broad is an SAP Plant
• SAP defines a plant as a location that holds stock
(inventory), contains service or maintenance facilities
and or manufactures products
• Each plant within SAP can have many unique
features
– Factory calendar – identifies working days
– Storage locations – location where stock is physically kept in
a plant
– Master data - materials, work centers, bills or material,
recipes, batch
– Planning requirements – reorder point, forecast based
– Quality mgt – inspection plans/master inspection
characteristics
Master Data Management
• Plant Calendar specific for broad
• Organizational Structure (Plant, Purchasing group, etc.)
• Material Master (Part Numbers)
– Re-Order Points
– Lead time
– Standard cost
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Bills Of Material (BOM’s)
Master Inspection Characteristics (MIC’s)
Inspection Plans
Recipes
Reason Codes
Purchasing Info Records
Purchasing Source Lists
Release/Approval Levels (Req. & PO)
Planning
• Forecasting
• Long Term Planning (LTP)
• Materials Requirement Planning (MRP)
– Finished and Semi-finished (Make)
– Raw materials/Components (Buy)
– Bulk materials (Buy)
• Cash Flow Analysis
• Actuals vs Budget Comparisons
Procurement
• MRP generated Purchase Requisitions
• Directly created Purchase Requisitions
– In SAP
– Via SAP Web
• Purchase Requisition approval workflow
• Purchase Order creation using Req info & master data
• Electronic document management for both Requisitions and PO’s
(RFQ, Quotes, Spec’s, etc)
• Purchase Order approval workflow
• Automatic Purchase Order print/fax
• Single screen for Expensed material Receiving
• Custom “Confirmation” transaction for Inventory
• Quality Hold on Invoice payment until after approval (where desired)
• Automated 3 way match for Invoice payment
Inventory Management
• Goods receipts
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Purchase Orders/Production Orders
Cost Centers
Projects/Internal Orders
Mini-Marts/Groups (WBS cost objects)
• Goods Issues
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Production Orders (including Backflush)
Cost Centers
Projects/Internal Orders
Mini-Marts/Groups (WBS cost objects)
Goods movements within Stockroom
Cycle Counting & Physical Inventory
Restricted and Un-restricted stock
Connected/Synchronized Unit and $$$
Production
• Process orders
– Capturing costs
– Goods Issue and/or Back Flush
• Automated batch assignment
• Debugging via Lot Genealogy (from Supplier
to finished product)
• Yield tracking
• Integration to Quality results tracking
• MRP Planning capability
Quality Management
• Automated Batch # assignment
• Lot Genealogy from Supplier to End Product
– Feeds to Broad Data Warehouse (SQUID) reporting
• Invoice payment hold until Quality approval on Receipts
(where desired)
• Pre-defined Master Inspection Characteristics’ and
Inspection Plans
– Consistency
– Ease of maintenance
• On Line Usage Decisions
– Inventory Units and $$$ moves to correct bucket automatically
• Results tracking and Alerts
• Statistical Process Control (SPC) charts
Cost Tracking
• Monthly Updated Standard Cost tied to each material
• Material $$$ tracked to individual WBS cost objects,
internal orders (projects).
– Based on Standard cost X Unit Qty
– For PO’s, Goods Issues, Returns, etc
– Single transaction moves $$$ and Units
• Variance accounts to isolate particular activities
– Reason codes to provide granularity
• Expanded reporting (Inventory $$$, PPV, etc)
• Ability to track actual cost expended against a preestablished budget
• Capability to plan and track Labor costs as well, though
this is not being used by the Broad