driving multidomain mdm simultaneously to erp harmonization

Driving Multidomain MDM simultaneously to ERP harmonization

Learn how Faurecia, a global leader in the automotive industry, delivered a multi-domain Master Data Management program across its business functions. Discover

the benefits of MDM on top of a global SAP instance and multiple corporate systems.

Jose GASCON • February 7th, 2013

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A global player in the automotive industry – February 2013 2

Agenda

q Company overview

q FCS a global SAP Program

q Starting our MDM journey

q Governance and Data Stewardship

q Status and two use cases

q Conclusion and Q&A

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Agenda







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l  84,000 employees* l  270 sites l  33 countries l  Group revenues: €16.2 billion

l  40 R&D centers l  5,000 R&D engineers and technicians l  300 patents filed in 2011 l  Annual R&D budget: €600 million

(excluding programs): 4% of sales

Faurecia a global footprint

2011 key figures

N°6 worldwide equipment supplier

18. Calsonic Kansei 17. Toyota Boshoku

14. Yazaki 13. Lear 12. TRW

10. Delphi 11. Valeo

9. ZF 8. Hyundai 7. Johnson Controls 6. 5. Aisin Seiki 4. Magna 3. Continental 2. Denso 1. Bosch

20. Autoliv 19. Cummins

15. BASF 16. Sumitomo

The world's top automotive equipment suppliers (2011 revenues €bn)

*4 BGs + HQ

16.2

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A global player in the automotive industry – February 2013 5 Source: Roland Berger analysis

#2 Worldwide #1 in Europe

2011 sales: € 1.8bn

#1 Worldwide 2011 sales: € 3.7bn

#3 Worldwide Complete Seats

2011 sales(1): € 5.0bn

#1 Worldwide Frames & Mechanisms

2011 sales: € 1.6bn

12% global market share(2)

15% global market share


28% market share in Europe

Magna

Peguform

Others

Rehau

Faurecia

Plastic Omnium

28%

Faurecia Others

Visteon

IAC

JCI

12%

15%

Faurecia

46%

7% 10%

10%

12%

15% 21%

8%

11%

13%

19%

67%

Magna

JCI

Lear

Faurecia Magna

Others

29%

19%

36% JCI 12%

Brose 6%

Others

4%

Leading market positions in our four core business lines

(1) "Complete Seats" sales include "Seat Components" sales

#1 Worldwide 2011 sales: € 5.8bn


Tenneco

Faurecia

26%

Calsonic Kansei

Others

33%

Yutaka Eberspächer Futaba

7% 7% 7% 15% 5%

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Audi A1 Audi A6 BMW 3-Series Cadillac ATS Chrysler 200

Automotive seating

Interior systems Automotive exteriors

Emissions control technologies

Working for almost all carmakers

Citroën DS5 Ford Focus Hyundai Sonata Mercedes M-Class Mini Coupé

Nissan Teana Opel Zafira Tourer Peugeot 208 Peugeot 508 Renault Latitude

Toyota Yaris VW Magotan B6 VW Passat Alltrack Volkswagen up!

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Working for almost all carmakers

Ford

Daimler

Others Hyundai

Fiat-Chrysler

BMW

Renault-Nissan

1.1 % Toyota 1.4 %

GM 16.6%

11.5%

4.7%

11.0%

8.4%

4.1%

VW Group

1.6 % Geely-Volvo

25.3 %

German automakers represent

38.8% of revenues

Premium brands represent

28.2% of revenues 8.5%

Product sales

€12.4 bn

5.8%

PSA Peugeot Citroën

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Faurecia clearly invests in worldwide ERP harmonization

FCS Project launched in April 2007, first go live in July 2008. FCS is based on SAP (FI/CO/MM/SD/PP/PS …) and fully build on FCP standards (=Faurecia Core Procedures) and FES (=Faurecia Excellence System) Objectives : o  End-to-end solution to manage manufacturing, finance & programs. o  Support the development of Finance Shared Services. o  Common IT system so we have only one system to maintain. o  Unique master data referential for all Faurecia functions

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SOUTH AMERICA ü Argentina

Brazil ü Uruguay

NORTH AMERICA ü Canada

ü United States ü Mexico

EAST EUROPEAN ü Poland

ü Czech Republic ü Romania ü Russia Slovakia

WESTERN EUROPE ü German

Luxembourg Belgium,

Netherlands ü Spain,

ü Portugal ü France,

ü UK Hungary, ü Sweden ü Italy

AFRICA & MIDDLE EAST ü South Africa

Iran Morocco Tunisia Turkey

ASIA ü China

ü South Korea ü India Japan

ü Thailand

Faurecia SAP global footprint

ü Initiated In progress 2013 In Plan

29 77169

256349

432 470 474556527 479

387300

207124 86 82

0%10%20%30%40%50%60%70%80%90%

100%

2008 2009 2010 2011 2012 2013 2014 2015 TBD

Not DoneDone

… but yet up to 6 major

legacy ERP to deal with

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How did our MDM journey start?

A first MDM Project was initiated in 2010 based on SAP MDM. This initiative did not succeed due to: o  Poor workflow capabilities or depending on 3rd party systems o  Lack of flexibility in data model evolution

March 2011, we launched a MDM market assessment May 2011, decision is made to launch an RFQ July 2011, three editors are short listed September, a POC is submitted and final decision made for CGI (fka Logica) as integrator and EBX from Orchestra Networks as MDM software

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Objectives and Foundations

Develop a dedicated enterprise MDM solution

Define & support, with workflow, data management processes

Interface master data referential with key applications

Create a "data stewardship" organization to take care of data quality

Create a single “point of truth” 1

Share up-to-date Master Data across operational and decisional applications 2

Put in place Master Data Governance processes 3

Replace CMMS (sure, we also have a legacy Master Data system) 4

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Multi-domain needs and too many teams

Corporate Models Legacy ERP FCS

CMMS Suppliers PP

Suppliers NPP

Customers

Organization

Customer Supplier

Programs

Chart of Accounts

Banks

Program

Cost Centers

Vehicle

Brand Engine

Suppliers PP

Customers

Chart of Accounts

Banks

Program

Cost Centers

Vehicle

Brand Engine Central Team Local Plant

Corporate

Data Steward Team Legend:

Material Material

Mixed Plant/Shared

Reporting Organization

Customer Programs

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Initial scope = 4 data models

Customer

Organization

Suppliers

Programs

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We need to be flexible and adapt quicker

Sales

Purchasing

Finance

Sales

Purchasing

Finance

Sales

Purchasing

Finance

First let’s cover as much as possible but just doing the

minimum transformation

We can then start reengineering of processes

and increase efficiency

Kaizen

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MDM Organization & Governance

Reporting Unit

Legal entity

Country

Region

Sub Division

Division

Business GroupExpertise Categ.

Area of expertise

Stewardship Team

Process / Workflow Data Update

XPPS

QAD

Etc.

Data entry for master data consuming applications

Data access to authorized persons

PLM

FCS

Métis History log Traceability

Roles & Authorizations

X Reference Monitoring

GPS

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Data Governance

Doing an MDM Project is launching a continuous improvement process

Data Governance defines: o  Roadmap for data usage and quality improvement o  Data management rules and procedures o  People (and their organization) in charge and their roles o  Data Access Rights

Data Governance objectives: o  Control data acquisition, quality and validation o  Monitors the over all data management process performance

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Data Stewards = Data Quality + Continuous Improvement

EMEA Asia America

l  Simplify access rights l  Process control alignment l  Takes care of to data quality l  Supports master data update around the globe: 1 team “follow-the-sun” and “follow-the-calendar” l  Lead continuous process improvement tracked thru KPI

S1 2012 S2 2012 2013

Problem solving, A3, QRCI, PDCA, …

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Planning

03/12 04 /12 05 /12 06 /12 07 /12 08 /12 09 /12 10/12 11/12 12/12 01/13 02/13 03/13 04/13 05/13

Phase 1: Supplier, Customer, Program

Validate

Set-up

April 9th

Validate

Validate Test

Validate

Test

Program

Marketing May 15th

Supplier Pilot Design / Configure

Customer Design / Configure

July 18th

May

Supplier v1.1

Validate

Configure

Program v1.1 Validate

Configure

Dec11th Pilot validation

(solution readiness)

NPP Data readiness

Data Migration Tool Preparation

NPP Supplier Roll-out

March Supplier Data Migration

Key-User Training Roll-out

preparation GPS

Cut-over Data load

Tests

Finance Roll-out Plan and

preparation Key-User Training Key-User

Training

Phase 2 : Organization Design / Configure

Test Validate

OCM February Train

Dec11th

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Data Warehouse

MDM to manage corporate Supplier database

Core Master Data Functions

Import Export

Data Quality

Faurecia Middleware

Requester Approvers

Creation & update workflow GPS

FCS

Data Stewards

Legacy ERPs

PSS

QSS

MPM

SVM

Data Quality

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Corporate MDM with multiple SAP instances

BI & Reporting Tools

Step1 – before physical split Step 2 – after physical split

Part + BOM

PDM

Part + BOM

PDM

Prod FC1

Prod FC1

EMEA

Prod FC3

Asia

Prod FC2

America

BI & Reporting Tools

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Wrap-up

R Workflow definition and maintenance flexibility

R Data Model easy to evolve

R Cornerstone to support corporate projects

R Reduce errors due to wrong data (payment terms, …)

R A tool for process improvement and governance

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A global player in the automotive industry – February 2013 27 27 A global player in the automotive industry – June 2012

27 A global player in the automotive industry – April 2012

driving multidomain mdm simultaneously to erp harmonization

Technology

global player

automotive industry

global leader

global sap program q

global sap instance

global market share2

sales faurecia

data stewardship q status