implementing sap with a lean thinking approach - european lean it summit 2012
DESCRIPTION
Klaus Petersen's presentation from the European Lean IT SUmmit: Implementing SAP with a Lean thinking approach. More lean IT presentations and videos on www.lean-it-summit.comTRANSCRIPT
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Implementing SAP with a Lean thinking approach
by Klaus Petersen
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Agenda
• Who is Solar and who am I
• Our Lean journey
• The Lean elements in a SAP environment
• Learning’s
• Questions
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
12-12-03 3
Solar in short
Solar is one of Northern Europe’s leading technical wholesalers
Listed on NASDAQ OMX Copenhagen
* € 1,532m revenue – approx. 3,600 people
Servicing customers in 9 countries from 11 central warehouses
*2011 figures
Solars business areas:
Electrical
Plumbing
Renewable Energy
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Our approach to Lean The Solar Lean Way
Lean System Lean Tools
Reduction of costs
Solved isolated by
functions
Tool-oriented
Business development
Establishment of an overall
Lean system adjusted to
the company’s needs
New management form
Spans the entire company
Cultural change
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Why are we involving in the Solar 8000
project (SAP project)
• Ensure this is a business project not an IT project –business development project
• Need to unite the Solar 8000 (SAP system) and the Lean thinking.
• Other Lean organization outside Solar are struggling with the SAP system in the daily work
• Solar 8000 will enhance the Lean awareness in Solar
• We are developing the organization in regards of process thinking
• Going for the Solar Way
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
The Lean elements in a SAP
environment
• Process thinking
• Visual management
• Monitoring
• Go live model
….and focusing on behavior and habits
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
December 3, 2012 8
Think in processes
MARKET & PRODUCT
DEPARTMENT
Kurt Storgaard
FINANCE & LOGISTICS
DEPARTMENT
Jens Andersen
Lighting
Carsten Antonisen
Storkøbenhavn &
MidtsjællandThomas Grønbech
Sales Manager
Nordvestsjælland
og Lolland Falster
Leif Madsen
Branch Director
Storkunder &
Bornholm
Søren Sørensen
Region Manager
Midtjylland
Rene Knappmann
Region Manager
Nordvestjylland
Jørgen Vester
Sales Manager
Nordjylland
Henning Horsbøl
Sales Manager
Vest-/Midtjylland
Gert Fredslund
Sales Manager
Sønderjylland
M. Th. Andersen
Branch Director
Sydøstjylland
Søren Blomster
Sales Manager
Sales Director
Industry
Kurt Storgaard
Region East
Kim Schrøder
Sales Manager
Region South
Jesper V. Jensen
Sales Manager
Region North
John Jacobsen
Sales Manager
Offshore
Kristen Guldager
Sales Manager
Energy &
Infrastructur
Kristian Pedersen
Sales Manager
Product Grp. 5
IBI/Comfort ventilation
Nicholai Linde
Market Department
Thomas Hestbæk
Product Grp. 1
Lighting
Carsten Antonisen
Product Grp. 2
Communication
Lasse Jægergaard
Product Grp. 3
Industry/PLC
Jørgen Gull
Product Grp. 4
Electric Equipment
Svend Erik Sorgenfri
Product Grp. 7
Cable/Marine/Offshore
Bent Pedersen
Logistics Department
Finn Kristensen
Salary Department
Anette Buch
Internal control
Vibeke Adsbøll
Canteen
Jytte Ørndrup
Reception
Finance
Department
Pia Ebbesen
Creditor
Department
Jette Sarnov
Debtor Department
Lone Larsen
Credit control
Ingrid B. Børnsen
Secretariat
Product Grp. 6
Security
Lasse Jægergaard
Project Department
Allan Ritter Højlund
Advertising
Poul Toftgaard
Video
Ebbe Vendelboe
Security
Finn Mortensen
Region East
Peter Ungermann
Sales Manager
Region South
Jimmy Berg
Region North
Poul Arne Kloster
Sales Manager
Product Grp. 8
HWS
Niels Løhde
Product Grp. 9
HWS
Niels Løhde
Supply / Service /
Administration
Brian Jensen
Lean & QA
Jacob N. Horn
Production
Bent Frisk
Education
Poul Erik Verner
Indfasning/Stamdata
Lars V Lauridsen
IT Department
Finn Kristensen
Accounts Department
Mads Peter Nielsen
Region East
Søren Sørensen
Region Manager
Region North
René Knappman
Region Manager
Region South
Peter Pedersen
Region manager
Division Director
Heating / Water /
Sanitation
Jimmi Berg
Sales Director
Key Account
Ib Falkenberg
Sales Director
Kjeld Gade
Storkøbenhavn
Carsten Knudsen
Sales Manager
Østjylland
Poul M. Bertelsen
Sales Manager
Fyn
Peter Larsen
Sales Manager
Ventilation
Kent Bøje Jensen
Sales Manager
SALES & MARKETING
DEPARTMENT
Søren Larsen
Management BoardSøren Larsen, CED
Jens Andersen, Finance
Kurt Storgaard, Market
Communication
Bent Ole Jonsen
Business
Development
Jan Rohde Laursen
Cable
Allan Kirkestrup
Human Resources
Britt Andersen
Vedligehold
Lars V Kristensen
Supplier Solars Customers Solar
April 12, 20117
Process model for Solar
Main support processes
Receive to Ship Goods receipt Stock optimization Pick/Pack Goods issueTransportation and
freight
Core processes
Hire to Retire
Financial & Analytics Financial master
dataAccounting Period closing Yearly closing
Financial and
legal reportingFixed assests
Product Life Cycle
PricingProfit analysis
(margin protection)Catalogues Campaigns Phase out
Phase in &
maintenance
Order to Cash
Order processing Delivery Billing
Accounts
receivable &
Charge back
Returns & claimsSales related
master data
Procure to PayPurchasing related
master dataSourcing Invoice verification Accounts payable Claims and returns
HR related
master dataPersonnel
Administration
Organizational
ManagementE-recruiting
Main Process relations
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
9
Main Support Processes
Receive to Ship Goods Receipt Stock
Optimization Pick/Pack Goods Issue
Transportation
and Freight
Main Processes
Product Life Cycle
Pricing
Profit Analysis
(margin
protection)
Catalogues Campaigns Phase Out Phase in &
maintenance
Order to Cash
Order
Processing Delivery Billing
Accounts
Receivable &
Charge back
Returns &
Claims Sales Related
Master Data
Procure to Pay Purchasing
Related Master
Data
Sourcing Invoice
Verification
Accounts
Payable
Claims and
Returns
Main Process relations
Version 2.0 – 03.11.2011
Personnel
Administration
Organizational
Management E-recruiting
HR Related
Master Data Hire to Retire
Accounting
& Financial
close
Asset
Management
Financial
Performance
Treasury
Management
Financial
Master Data Financial & Analytics
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Sub Process Variants (52)
Order to Cash
Order
Processing Delivery Billing
Accounts
Receivable &
Charge back
Returns &
Claims Sales Related
Master Data
020 010 Sales Quotation.
020 020 Using 3rd Party.
020 030 Sale from Stock CW.
020 040 Sales from Stock Drive In.
020 050 Sales Of Buy To Items.
020 070 Sales Order Inbound Via EDI.
020 071 Sales Order Inbound Via Weblink.
020 080 Cash Order Flow Drive In.
020 090 Rush Order Flow Drive In.
020 140 Sales order inbound via Hand scan (Solar Self service).
020 150 Consignment Fill-Up (Default).
020 160 Consignment Issue.
020 170 Consignment Pick Up.
020 180 Consignment Return.
020 190 Sales Order Processing - Using Red Material.
030 010 Delivery Processing CW.
030 020 Delivery Processing DI.
040 010 Billing creation.
040 050 Billing Block.
040 060 Cash Invoice.
060 010 Return Orders – Central Warehouse (Green materials)
060 020 Return Orders – Drive-In (un-restricted sales stock)
060 030 Return Orders – Vendor (from customer directly)
060 040 Return orders - Unknown Material (complaint)
060 050 Return Orders – Vendor (from CW)
060 060 Returnable Packaging.
060 070 Sales Activity Complaints Processing.
060 080 Sales Activity Complaint Processing - Free of Charge.
060 090 Sales Activity Complaint Processing - In customer Care.
060 100 Sales Activity Complaint Processing - Return Stock.
060 110 Sales Activity Complaint Processing - Credit Memo.
060 120 Sales Activity Complaint Processing - Debit Memo.
060 130 Return Order - Follow Up.
010 010 Creation of Customer Master Data.
010 020 Maintenance of Customer Master Data.
010 030 Create, maintain - Customer EDI Master Data.
010 050 Create/Maintain Customer Agreement.
010 060 Credit Limit Check.
010 070 DnB Credit Management.
010 080 Chargeback Agreement – Create/maintain.
010 090 Rebate Agreement – Create/maintain.
050 010 Incoming Payments.
050 020 Sales Period Closing.
050 030 Account Statement.
050 040 Dunning.
050 050 Dispute Management.
050 060 Interest Note.
050 090 Profitability Analysis.
050 100 Chargeback Workbench.
050 110 Rebate Workbench.
050 120 Debit Memo - Course / Services.
050 130 Credit Memo - Rebate / Compensation.
Version 2.0 – 07.11.2011
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Visual management
visualize activities
Formulate
problem
Seek root cause
Study
countermeasures
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Visuality
•x
Milestone KPIIssues/
ProblemsActivities
Project
phasePlanning Change Management Week 41
Change
Management
Communication
Training
Survey
30cm 30cm20cm 30cm 60cm 30cm
Other
HE
HI
HE
LI
LE
LILE
HI
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Visual management
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Monitoring -like hatches in a water pipe
• Visualize the status of critical points, handovers and
backlogs in our systems.
• Un-hiding problems to improve our performance and
create stable processes.
• Embed good problem solving behavior.
• Input to the go-live model – tickets in Tivoli or
SharePoint.
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Flow of data and information
–monitoring
Prio/ID Description Who is measuring Last updated Content OK Status Value Goal Root cause Corrective action Responsible Deadline
Monitoring point:
Monitoring point:
KPI:
KPI:
Process monitoring board - [Process name]
Swimlanes + definitions Standard for board layout Agenda and rules Parking lot
KPI’s/
monitoring points
Printed lists from
the daily monitoring
of activities
EXCEL DATABASE Data
from
SAP
Department meetings before 11 o’clock (problem solving
and corrective actions)
Process boards – meetings at 11.30 to 12.30
Communication about corrective actions
Problem solving board
Board standard Instructions problem solving Parking lot
5 x WHYFishbone
Measurements
Machines/IT Manpower
Methods
Materials
Goal/problem
Management
• Why no. 1
• Why no. 2
• Why no. 3
• Why no. 4
We sign the standards,
but we do not follow them
Employees do not see the
Benefits of “standard work”
Employees have not
been properly introduced to
Standard work
Standards are not updated
Delivery to customers
is prioritized over
updating standards
Training in the company is
not done according to the standards
Standards are
not detailed enough
Standards are made in
Quality Department,
Not by process experts
Manager is measured on timely
delivery to customers.
We sign the standards,
but we do not follow them
Employees do not see the
Benefits of “standard work”
Employees have not
been properly introduced to
Standard work
Standards are not updated
Delivery to customers
is prioritized over
updating standards
Training in the company is
not done according to the standards
Standards are
not detailed enough
Standards are made in
Quality Department,
Not by process experts
Manager is measured on timely
delivery to customers.
High priority
A report with all
monitoring points
KPI’s/
monitoring points
Printed lists from
the daily monitoring
of activities
Branch meetings in the morning
(problem solving and corrective actions)
Tickets
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Sample of monitoring board
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Layout of boards – MT level
Prio/ID Description Who is measuring Last updated Content OK Status Value Goal Root cause Corrective action Responsible Deadline
Monitoring point:
Monitoring point:
KPI:
KPI:
Process monitoring board - [Process name]
Swimlanes + definitions Standard for board layout Agenda and rules Parking lot
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
T-cards
Number of deviations found
T-cards are used to keep track of activities in departments or branches T-cards has two sides – green and red: Task done or task not done. The task is written on the card, the SOPs from the training material are covering the steps to take. The signal is clear – to everyone – if the task is done or not. The manager is key to making the system work, he/she have to address if the tasks or not done. Process: 1. Every morning the manager turns all cards into red. 2. During the day or at the end of the day the person assigned to the task, completes the task and turns the
card to green. 3. Usually the result of the task is a list of unsolved issues. It is then the persons task to solve the issues
before the day is over. The list is printed and put on the lean board. 4. Last man/woman (or the manager) controls that all tasks are in green – otherwise action must be taken. 5. Next day, errors and causes for errors on the lists are discussed at the board meeting.
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Go Live Model Support the Solar8000 End-users on problems on execution of their work
relating to:
– SAP IT related problems
– SAP skills
– Processes
– SOP’s
– Defects
– Technical and Master Data issues
– …
• Ensure efficient communication about Errors / Incidents / Solutions?
• Stabile information flow between End-user, Super User, LPL’s, Core,
PMO, etc…?
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Daily Team Update Meetings are
supported by visual management at the lean boards.
Monitoring
Dashboard
T-Cards for daily monitoring of activities
Track your
teams
activities
Inform your
team via the
incident
updates (*)
(*) These
documents are
shared during the
SU Update meeting DAY VS. WEEK
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Meeting structure per process
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
Learnings
• Even if people say they think in processes they still have a long
way to go –it is a mind-set thing
• Be patience when trying to change habits and behaviour
• Leaders and managers must GO SEE, -and support and
understand the process model
• Involve HR –it is about people in change -change management
• Focus on the vital few even if you have many projects
• Make sure everyone knows the priorities
• Have discipline – stick to the plan and the priorities
• Don’t make it a IT project –it is business development
Copyright © Institut Lean France 2012
22 & 23 November, 2012 Paris, France
More Lean IT presentations and videos on www.lean-it-summit.com