integrating jde and cloud-based mro application...extensive erp integration and migration...
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INTEGRATING JDE AND CLOUD-BASED MRO APPLICATIONCHALLENGES & OPPORTUNITIES
JUNE 20 , 2017
SID ARYA (DELOITTE) ALAN CONDON (CANFOR)
@SidArya1, @DeloitteOracle
Sid has over 19 years of consulting experience that includes ERP assessments, business process redesign, net new implementations, upgrades of ERP Applications, transition planning and project management.
He has over 18 years’ experience implementing various releases of Oracle JD Edwards EnterpriseOnesoftware for companies of all sizes in countries such as India, Singapore, Malaysia, Thailand, Philippines, Australia, New Zealand, USA and Canada.
Sid AryaSenior Manager
Project Management Team MemberProject EDGE Role:
Alan CondonIntegration Manager
Integrations ManagerProject EDGE Role:
INTRODUCTION
Alan is Manager of Integration for Canadian Forest Products Corporate IT and has extensive ERP integration and migration experience.
During his 35 year technology career, Alan has gained expertise across various industries and has been focused on manufacturing and process control automation, A2A interoperability, B2B connectivity, interface standardization, and integration integrity and governance.
OBJECTIVES
• Examine Canfor’s Integration Architecture and Interconnect scenarios background
• Discuss the opportunities for companies similar to Canfor to integrate with cloud products and the choice of expanding the footprint.
• Functional and technical challenges in integrating JDE On-Premise with Cloud based products
ABOUT CANFOR
ONE OF THE WORLD’S LARGEST PRODUCERS OF SUSTAINABLE LUMBER, PULP, PAPER, AND ASSOCIATED PRODUCTS.
CANFOR – LUMBER OPERATIONS
▪ Lumber capacity: 6 billion board feet
▪ 13 mills - British Columbia
▪ 1 mill - Alberta
▪ 12 mills - U.S.▪ 1 - North Carolina▪ 3 - South Carolina ▪ 3 - Georgia▪ 3 - Alabama▪ 1 - Mississippi▪ 1 - Arkansas
▪ 5 Wood Prod Plants - U.S. ▪ 1 Re-manufacturing Plant - SC▪ 2 Laminating Plants - AR, GA▪ 2 Chip Mills - TX , LA
▪ 6500 employees
CANFOR – PULP AND PAPER OPERATIONS
Canfor Pulp is one of North America’s largest producers of bioenergy▪ 1 plant in Alberta
▪ 18MW Canfor Green Energy biomass cogeneration facility in Grande Prairie provides renewable heat and electricity for the Grande Prairie sawmill and sells renewable electricity to the Alberta grid
▪ 3 industrial grade fuel pellet plants in British Columbia
▪ Market pulp capacity: 1.3 million tons
▪ Kraft paper capacity: 140,000 tons
▪ 4 Pulp Mills
▪ 1 Kraft Paper Mill (integrated)
CANFOR – GREEN ENERGY PLANTS
RENEWABLE. SUSTAINABLE. RESPONSIBLE.
• Use 100% of our wood fibre to create useful products
• Residuals from our lumber operations
• Source of fibre for pulp mills and fuel for heat in our sawmills
• Turned into green fuel source pellets for export to Europe and Asia
• 80 million trees planted in 2016 on our tenures
PROJECT EDGE
ENTERPRISE DESIGN FOR GLOBAL EXCELLENCE
CANFOR – PROJECT EDGE
In January 2012, Canfor undertook an initiative to replace it’s legacy business system with:Oracle JD Edwards Enterprise One 9.1 (Tools 9.1.4)Oracle Transportation Management 6.3.2Oracle’s Demantra 7.3.1.4, Custom .NET modulesOracle Business Intelligence 11.1.1.6.8.
The combined solution of Oracle’s JDE E1 & OTM was based on a business need for:• Greater logistics and transportation planning capabilities• Improved inventory planning and management• Financial net revenue projections and integration with their existing financial history
• On June 30 2014, Phase 1 of the EDGE program was implemented for in Canfor Canadian lumber operations• On Sep 28 2015, Phase 2 was delivered on time / on budget and was focused on the lumber operations in
the Carolinas (US)• On Feb 6 2017, Phase 3 went live for Canfor’s acquisitions in the US central region and has put the entire
lumber operation of Canfor onto a single integrated platform
Canfor partnered with Deloitte to implement the Oracle applications (JDE, OTM, Demantra, OBIA) and provide consultative services for Business Integration of Operations.
EDGE PROJECT PHASE HISTORY
The Project EDGE solution is being deployed in phases:1. Canadian Lumber Operations using EBS (w/o JDE Financials)
2. US – Canfor Southern Pine East
using JDE Financials
3. US – Canfor Southern Pine West
using JDE Financials
4. A. EBS Financials
replacement
B. Pulp and Paper1
2
3
4
EDGE INTEGRATION TOPOLOGY
webMethodsMiddleware
A2AJDE
OTM
webMethodsMiddleware
B2B
Vendor
Customer
FTP, AS2
FTP, AS2
VAN
Data Gathering System
Demantra - Forecasting
EBSE-Business
Suite
.Net Applications
JDE Business Services
ALegacy App with
Source
Push data
EDGEBridge
XR
EF, M
irro
r,St
agin
g Ta
ble
sEDGEmx
Agent
webMethodsMiddleware
A2A
Legacy App No Source Code
Full DB Access, SP
B
Legacy App No Source Code
Read Only DB Access
C
Web Services(SOAP)
DCloud App
webMethodsMiddleware
A2A
Phase 1Phase 2Phase 3
EDGE – LEGACY APPLICATIONSApplication Interface Type Purpose System Type Final Disposition
MP2 GLPO-InAB-Vend
MRO system On-Premises Retained – Integrated with JDE
EAM GLPO-InAB-Vend
MRO System Cloud Retained – Integrated with JDE
Lumber Track PO-Out Forest Industry Manufacturing ERP – JV owned Cloud Transmit JDE PO to Remote FTP
Kronos GLAP
Payroll system On-Premises Retained – Integrated with JDE
FPS GLAPSOAB-VendAB-Cust
Fiber Procurement/Tract Management system On-Premises Retained – Integrated with JDE
iNSELS AR, TransportOTM
Fleet Management, Backhaul Invoices, Residual Management, Trailer Inventory
On-Premises Retained – Integrated with JDE
Hand Held Scanners
INV,TransportOTM
Physical Inventory CountShipment UPI Management
On-PremisesOn-Premises
Retained – Integrated with JDERetained – Integrated with OTM
DGS INV Manufacturing Line Data Gathering System On-Premises Retained – Direct integration to JDE DB
ADP Manual Payroll system Cloud Retained – No integration to JDE –Upload with spreadsheet
.NET Apps JDE Business Services
Production Planning Tool, Demand Planning, Price Quotes, Available for Sale, Fulfillment
On-Premises Retained – Direct integration to JDE DB and JDE Business Services
LEGACY INTEGRATION DIAGRAM - 1
LEGACY INTEGRATION DIAGRAM - 2
ARCHITECTURE
EDGEBRIDGE & CLOUD INTERFACE
EDGEBRIDGE
EDGE – CLOUD APPLICATION INTERFACE
NEW OBJECTS – CLOUD INTEGRATION
Interface Purpose Type of Data
1 PO Receipts to JDE Send PO Receipts to JDE and dynamically build PO’s in JDE for subsequent invoice matching, AP payment to vendor, recording to GL.
Transactional Data
2 Inventory Moves to JDE Send GL account and value information to record movement of MRO assets between GL accounts for valuation of non-stock inventory.
Transactional Data
3 EAM Supplier Maintenance Insert and Update Suppliers in EAM from JDE Vendor records in JDE Address Book to enforce JDE Vendor System of Record role. EAM Supplier data maintenance was restricted to allow changes to non-JDE maintained fields.
Master Data
EAM Cloud Object Purpose Type of Data
1 PO Receipts Custom Grids (2) • Custom Grids designed in EAM instance to stage all internal data from Cloud datasets to support JDE required data for PO Receipts. 1 for Parts, 1 for Services.
• Used EAM web services toolkit objects for custom grid to retrieve unprocessed records from EAM cloud with webMethods scheduled service
• Retrieved data records are written to EDGEBridge staging tables• EDGEBridge accounting interfaces to JDE are used to move data to JDE
Transactional Data
2 Inventory Moves Custom Grid • Custom Grid designed in EAM instance to stage all internal data from Cloud datasets to support JDE required data. Used EAM web services toolkit objects for custom grid to retrieve unprocessed records from EAM cloud with webMethods scheduled service
• Retrieved data records are written to EDGEBridge staging tables• EDGEBridge accounting interfaces to JDE are used to move data to JDE
Transactional Data
JDE DATA EMBEDDING – EAM CLOUD DB
• JDE Master Data is embedded in the EAM Cloud DB to associate JDE values to EAM entities. This technique eliminated the use of Cross Reference lookups to determine what value JDE uses for an internal EAM value.
• The JDE G/L account number for each transaction is generated through a rule based generation matrix based on transaction scenario using embedded data in the 4 EAM tables shown under the General Ledger ID label below:
• Native JDE values are used for the key values in the EAM Supplier, Terms of payment, Unit of Measure, and Tax Code tables since these keys are user-definable in EAM.
JDE TO LEGACY - VENDOR MASTER
F0101Z2
F0401Z1
F0111Z1
F0115Z1
R5604Z1F5501Z1
EDGE_Stage_apmaster
Custom Batch to extract information from Address Book JDE Interoperability tables
Extraction of Address Book,Vendor Master records to JDE ZTables for onward transmissionto Cloud based EAM (MRO)application
webMethods
LEGACY SYSTEMS TO JDE - GL
EDGE_Stage_GL F0911Z1R09110Z
F0911
All feeder systems (Payroll, Stats, InventoryTransactions from EAM, etc.) transmitting GLJournal Entries needed to conform to theEDGEBridge standard GL Format
JDE General Ledger
webMethodsEDGE_Stage_GL F0911Z1R09110Z
LEGACY SYSTEMS TO JDE - AP
EDGE_Stage_AP
F0411Z1
R04110ZA
F0411
F0911Z1
F0911
JDE General Ledger
All feeder systems (Payroll Garnishments, LogProcurement vouchers, OTM vouchers, etc.) neededto conform to the EDGEBridge standard AP Format
webMethods
JDE Accounts Payable
EDGE_Stage_AP
F0411Z1
R04110ZA
F0911Z1
F0411
EDGE_Stage_AP
F0411Z1
R04110ZA
F0911Z1
EAM CLOUD TO JDE PROCUREMENT
F4301Z1
F4311Z1
F47071
F47072
EDGE_Stage_MP2Receipts
R5500002 – A custom batch reused from Phase 1 used to call several other batch programs in a sequence
R4311Z1I
R47071
F4301
F4311
F4311
F43121
PO Header & Detail
PO Detail & Receiver
For each receipt completed in EAM system - there is aPO and a receipt created in JDE Z tables
webMethods
CHALLENGES & OPPORTUNITIES
PROJECT EDGE
CHALLENGES
Challenges faced by the Solution and Integration Teams:
• Canfor did not own the source code for some of the legacy applications
• A re-write of the applications or a request to customize them was not feasible.
▪ Almost certainly would not fit into the project schedule
▪ Also, did not meet the long term application replacement/consolidation initiatives
• Had to test for every possible scenario
• Never integrated with a Cloud product before as all previous applications were on-premise
▪ Lack of expertise in this modality
▪ Web Services operate very differently than data table to data table interfaces
• From a technical standpoint, there were unique challenges in reaching and connecting the Cloud based application
▪ EAM web services toolkit was never utilized before
• The terminology was different than previous interfaces which added another layer of difficulty
▪ Technical jargon and application references
WHAT WORKED WELL?
Items that helped implementation for Solution and Integration Teams:
• The PMO team did great at Collaborating and Managing multiple resources across various time zones• Geographic spread of the team
• Different cultures, styles of working
• Shared IT resources - mitigation
• EAM consultant & Deloitte provided in-depth knowledge of Cloud based EAM architecture and On-Prem JDE z tables• Analyst and Programmer resources worked well all the phases – agile approach
• Continuity of resources
• Leveraged the stability of the existing interfaces to accounting to lessen our risk and meet the project timeline
• Proven functionality, not available in JDE or OTM, was retained through the interface of legacy apps.
• Proactive error reporting through WebMethods• Integrity and notification of errors – to guarantee proper integration between systems
ABOUT DELOITTE JDE PRACTICE
THE LARGEST GLOBAL JDE IMPLEMENTER
Canadian and global leader in the number of certified JDE consultants through Oracle’s Specialization program
Oracle Diamond level status formally recognizes Deloitte member firms’ breadth and depth of services across the entire stack of Oracle Applications, Oracle Fusion Middleware and Oracle servers and storage.
More Oracle awards of than any other Implementation partner
28
Deloitte employs more JDE practitioners than any of its competitors – employees not contractors
More JD Edwards experience leading complex global implementations than any other JD Edwards Partner
Extensive JD Edwards experience in manufacturing and distribution industries
More than 70 JDE implementations completed in Canada
JD Edwards Centres of Excellence on 5 continents
Q & A
THANK YOUDELOITTE & CANFOR