pepsico worldwide flavours sap mii implementationfm.sap.com/data/upload/files/sap eomf 2012... ·...

SAP ENTERPRISE OPERATIONS

MANAGEMENT FORUM


MANAGEMENT FORUM

Saravan Chellamuthu Sr. Manager - Enterprise Solutions

PepsiCo Worldwide Flavours

SAP MII IMPLEMENTATION


MANAGEMENT FORUM

Agenda

1. Business Description

2. Background

3. Solution through MII

4. MII Project Overview

3.1. Challenges

3.2. Implementation Methodology

3.3. Strategy and Phases

3.4. Solution Architecture

5. Benefits Achieved


MANAGEMENT FORUM


MANAGEMENT FORUM

PepsiCo Worldwide Flavors (PWF)

PWF is the Power House of PepsiCo that manufactures and distributes Concentrates for

Beverage

19 Locations in 12 Countries

1300+ Staff

$9BN Revenue

751 SAP users

PWF supplies 92% of PepsiCo’s Global LRB (Liquid Refreshment Beverage) market which

represents 254 billion consumer servings per year

PWF’s Supply Chain:

Sources 2000+ ingredients from 450+ suppliers,

Makes 900+ concentrates in 11 different plants,

Delivers to 600+ Bottlers across 140 countries

Innovation is driving increases in transactional and operating complexity



MANAGEMENT FORUM 1. Business Description

4

Concentrate Manufacturing

Flavour Acidulant Ingredients

Bottlers Add Sugar, Water + CO2

Retail Finished Beverage

One

Batch

of

Conc.

5 Million

8 OZ Cases

>100 Million

Consumer servings

The Beverage / Concentrate Model



5

Liquid Manufacturing

Liquid Filling

Salt Manufacturing

Salt Filling

Manufacturing Flow



Liquid Manufacturing

- Bulk Material stored in Tank

- Ingredients from IM / WM managed areas

- MII Portal used to perform GR / GI

Salts Assembly

- Packing of Salts bags to Cases

- GR through SAP RF Console

- GI through SAP MII

Liquid Filling

- Filling the Bulk Liquid to Packages

- Components to be backflushed upon GR

- Gets the same batch# as bulk

- GR through SAP RF Console

Salts Filling

- Filling of small pre-packs from large sacks

- Components to be backflushed upon GR

- Finished product is a quantity of bags in bin

- GR through SAP MII

Finished Goods Warehouse

Raw Material Warehouse / Tank Farms Raw Material Warehouse


MANAGEMENT FORUM

Agenda


2. Background



3.1. Challenges






MANAGEMENT FORUM


MANAGEMENT FORUM

PWF Embarked on a journey of transformation

2. Background

Ireland – Little Island and Carrigaline

Texas Puerto Rico Venezuela, Brazil

Mexico, and Uruguay

China, India, and

Pakistan NACO

Oracle

FORE -

CAST

MAPICS

PCS&D

MAPICS DB

COS

BOS (invoicing)

Walker AR

Oracle

MFG Pro

SUN

MAPICS XA

DRP

MAPICS DB

MAPICS

XA TRAX

Oracle,

Prevail6 Avail cAvail

FMS

GPR, GFR, and GCD OLIS

GSQA

InTouch / InBatch

DMS

Inqas Inqas Inqas Inqas

Oracle

FORE -

CAST

MAPICS

PCS&D

TRAX

DRP

InTouch / InBatch

TRAX

Inqas Production Execution to

Distribute

Hire to Retire

Accounting to Report

Decision Support

Source to Pay

Order to Cash

R&D to Launch

Demand Management to

Supply Planning

MAPICS XA

Ireland – Little

Island and

Carrigaline

Texas Puerto Rico

Venezuela, Brazil

Mexico, and

Uruguay

China, India, and

Pakistan NACO

Ireland – Little

Island and

Carrigaline

Texas Puerto Rico

Venezuela, Brazil

Mexico, and

Uruguay

China, India, and

Pakistan NACO

Oracle

FORE -

CAST

MAPICS

PCS&D

MAPICS DB

COS

BOS (invoicing)

Walker AR

Oracle

MFG Pro

SUN

MAPICS XA

DRP

MAPICS DB

MAPICS

XA TRAX

Oracle,


FMS

GPR, GFR, CDD and GCD OLIS

GSQA

InTouch / InBatch

DMS

Inqas Inqas Inqas

Oracle

FORE -

CAST

MAPICS

PCS&D

High Jump

DRP

InTouch / InBatch

TRAX


Distribute

Hire to Retire


Decision Support

Source to Pay

Order to Cash

R&D to Launch


Supply Planning

Business Streams

MAPICS XA

Avail

Amex

Cognos Cognos

Vies and Intrastat

Nota

Fiscale

BU

Systems

Hyperion Hyperion Hyperion

Hyperion

Hyperion

Suite Voyager

High Jump

High Jump

Rockwell

Business Objects

XCeed

Hyperion

RFPPS

Business Objects

Cognos

BOS

CMDS

EMN S

WinLi ms

WinLi ms

WinLi ms

WinLi ms

WinLi ms

WinLi ms

Loftware

Loftware

Loftware

Maximo

PeMAC

MasterSaf

Maximo

Domus

Citibank Citibank

CitiDirect

COLME NA

Banamex

CPA

FTZ Group

Fortis

Ireland – Little Island and Carrigaline

Texas Puerto Rico Venezuela, Brazil

Mexico, and Uruguay

China, India, and

Pakistan NACO

Oracle

FORE -

CAST

MAPICS

PCS&D

MAPICS DB

COS

BOS (invoicing)

Walker AR

Oracle

MFG Pro

SUN

MAPICS XA

DRP

MAPICS DB

MAPICS

XA TRAX

Oracle,


FMS

GPR, GFR, and GCD OLIS

GSQA

InTouch / InBatch

DMS

Inqas Inqas Inqas

Oracle

FORE -

CAST

MAPICS

PCS&D

TRAX

DRP

InTouch / InBatch

TRAX


Distribute

Hire to Retire


Decision Support

Source to Pay

Order to Cash

R&D to Launch


Supply Planning

MAPICS XA

Ireland – Little

Island and

Carrigaline

Texas Puerto Rico

Venezuela, Brazil

Mexico, and

Uruguay

China, India, and

Pakistan NACO

Ireland – Little

Island and

Carrigaline

Texas Puerto Rico

Venezuela, Brazil

Mexico, and

Uruguay

China, India, and

Pakistan NACO

Oracle

FORE -

CAST

MAPICS

PCS&D

MAPICS DB

COS

BOS (invoicing)

Walker AR

Oracle

MFG Pro

SUN

MAPICS XA

DRP

MAPICS DB

MAPICS

XA TRAX

Oracle,


FMS

GPR, GFR, CDD and GCD OLIS

GSQA

InTouch / InBatch

DMS

Inqas Inqas Inqas

Oracle

FORE -

CAST

MAPICS

PCS&D

High Jump

DRP

InTouch / InBatch

TRAX


Distribute

Hire to Retire


Decision Support

Source to Pay

Order to Cash

R&D to Launch


Supply Planning

Business Streams

MAPICS XA

Avail

Amex

Cognos Cognos

Vies and Intrastat

Nota

Fiscale

BU

Systems

Hyperion Hyperion Hyperion

Hyperion

Hyperion

Suite Voyager

High Jump

High Jump

Rockwell

Business Objects

XCeed

Hyperion

RFPPS

Business Objects

Cognos

BOS

CMDS

EMN S

WinLi ms

WinLi ms

WinLi ms

WinLi ms

WinLi ms

WinLi ms

Loftware

Loftware

Loftware

Maximo

PeMAC

MasterSaf

Maximo

Domus

Citibank Citibank

CitiDirect

COLME NA

Banamex

CPA

FTZ Group

Fortis

From – Many disparate legacy systems….

Local HR

&T&A Local HR

&T&A

Local HR

&T&A Local HR

&T&A

Local HR

&T&A

To – Common Enterprise suite

SA

P R

6

Production Execution

to Distribute


Supply Planning

Hire to Retire

Source to Pay

Order to Cash

R&D to Launch

Ireland – Little

Island

& Carrigaline

Texas Puerto Rico

Venezuela,

Brazil, Mexico

& Uruguay

China, India

& Pakistan NACO

PWF SAP ECC, MII

& BW

Financial Planning

XMii linked to local MES & Labelling

Local PM Local PM Local PM Local PM Local PM

Treasury & Hyperion


Decision Support

Local HR

&T&A Local HR

&T&A

Local HR

&T&A

Local HR

&T&A

Local HR

&T&A

Local HR

&T&A

R&D Systems


MANAGEMENT FORUM 2. Background

And we had a complex MES Landscape that we would like to streamline

Level 2 – Inbatch, Intouch, RS View

Plant 1 Plant 2 Plant 3 Plant 4 Plant 5

The MES

Area

MAPICS MAPICS MAPICS

/Oracle

QAD/

Mfg Pro MAPICS

SV DB PILIS VOYA S1 CMDS DB SPC DB

Labelling:

Loftware, Codesoft, Bartender

etc.; Often integrated with ERP

Online - Offline

Data Collection:

Sometimes Automatic (SCADA,

Serial); Sometimes manual

Reporting:

Some at the MES layer; Sometimes at

BI Layer; Different kinds of data –

SPC, EDT, OEE, Energy etc.

Other:

Integrated batch in CG; CMDS in

Asia; Automated Pallet LI; Pick To

Monitor in LI; SPC application


MANAGEMENT FORUM 2. Background

Issues summarized in the MES Space

• 11 Manufacturing plants with varying MES capabilities • Ranging from highly integrated to little or no integration

• Limited MES skills / resources across PWF

• No MES platform commonality with varying levels of complexity & capability • Customisation / bespoke solutions

• Hybrid systems (multi-vendor solutions)

• Inconsistent support network

• Lack of alignment with other PepsiCo Divisions

• Legacy systems

• No coherent MES strategy in place – no cross plant standards applied

• Integration largely consists of custom, plant specific solutions for: • Production Tracking

• Product Labelling

• Data Collection

• Quality Control

• Inventory Control

• Investigated both MES and SAP/MES connector technology.

• Baseline requirement is to replicate existing functionality


MANAGEMENT FORUM

Agenda


2. Background



3.1. Challenges






MANAGEMENT FORUM


MANAGEMENT FORUM 3. Solution through MII

In the pursuit to streamline the systems, we first defined the “Scope Principles”

Define the ‘ultimate goal’ for the SAP/MES project!

Identify the tasks we should we do now to:

1. Allow the business to continue as normal

2. Allow us to evolve in the MES sphere

Enable existing integration so the business can continue to perform.

SCADA, Batch Integration, Integrated Labelling etc.

Do this in an standardised way to enable future expansion

Standardised interfaces with SAP using MII

Conformance to appropriate standards (ISA 95, S88, B2MML etc.)

Standardised Core MES Database



Scope Finalization

1. Standard, generic database to enable integration.

Built in accordance with appropriate Standards, S95, S88, B2MML communication

Retrofit SCADA integration where it exists already

2. Integrated Labelling Interface

Standard output that can be used in any Labelling System (Loftware, Codesoft ,etc)

3. Inbatch Interface (Two Way Integration)

Productions Orders from SAP to Inbatch

Inventory usage from Inbatch to SAP

4. Other Misc. interfaces – Easy to Replicate with considerable business benefit

Pick To Monitor , Auto Pallet Labelling, SPC Application.

Possibly some IM functionality not readily available in SAP

5. Opportunity for Standard EDT & OEE Reporting Portal

Real-time, Dynamic and Interactive

Can be used where data is collected manually as well as automatically

6. Standard SPC Reporting

Real-time or Historical



SAP MII identified as the Integration layer that will serve the need. The Ultimate Goal

Standard Level 2 Systems

Plant 1 Plant 2 Plant 3 Plant 4 Plant 5

SAP

SAP MII – Standardised Interfacing To and From SAP

Standard FDB Core Database The MES

Area


MANAGEMENT FORUM

Agenda


2. Background



3.1. Challenges






MANAGEMENT FORUM


MANAGEMENT FORUM 4.1. Challenges

Need for a consistent standard solution. Security is very

important, Secure Network Communications (SNC) is

required

Consistency &

Security

Need for a very robust solution with high availability High

Availability

Need for a multi-language user-friendly portal for the process

rooms and filling lines

Multi-Language

User-Friendly

Portal

During the blueprint phase some requirements were not

covered by SAP; quite a challenge to draw the line

between SAP and MII Requirements

Considerable emphasis on Inventory Management (expensive

materials, complex batching process) Inventory

Management

Historical practice of modifying the ERP system to provide

additional controls for operators in the process areas Historical

Practice


MANAGEMENT FORUM 4.2. Implementation Methodology

PepsiCo Standardized Methodology of SAP Implementation

PepsiCo’s Centre of Excellence (CoE) for SAP have developed a standard SAP

Template, called PIRT (PepsiCo International Reference Template)

PIRT evolves every year with new solutions, new practices, etc.,

MES or the Integration layer was not identified before we embarked this project.

This project used the PIRT Deployment Methodologies used for SAP Projects.

Development Methodology

Mini-Blueprint & Prototyping Development with Single Global Blueprint with Production

box per plant

Proof of Concept validation

Blueprint Phase – Detailed Specifications & Screens developed in HTML

Realisation Phase – Phased Delivery of functionality (Unit test as delivered!)

Test Phase & Operate Phase – Initial Project team testing, then End User testing

Go-Live (Waved approach and Staggered go-live)


MANAGEMENT FORUM 4.2. Implementation Methodology

Dedicated SAP MII Team

Roles included:

SAP MII Lead – PWF Business Analyst Expert

SAP MII Technical PM

SAP MII Developers

DBA / Basis SME

Super Users

Co-Located with the SAP Implementation Team (A Must)

Aligned with Overall SAP Schedule and Reported into Overall Manufacturing Lead

Highlights:

Unlike SAP, MII wasn’t a out of the box solution and has to be implemented per site

Site specific hardware procurements had to be planned

Getting a MII resource has taken much longer than anticipated and project timeline

had to be adjusted

The main SAP project utilized most of the controls and change management

resources, quite a challenge to pull them in

Quite amount of time spend to distinguish the scope of SAP and MII


MANAGEMENT FORUM 4.3. Strategy and Phases

Discovery 1

Blueprint 2

Test and Operate 4

Go Live !

Realization 3

05/11 10/11 08/11 04/11 01/10


MANAGEMENT FORUM 4.4. Solution Architecture

SAP MII

SAP

Standard Interface regardless

of Level 2 Systems

Batch System

Liquid

Manufacturing

SCADA System

Liquid/Salts

Filling

Batch I/F

SCADA I/F

LABEL I/F

Labelling System

Labelling

System

LEVEL 4

LEVEL 3

LEVEL 2

Other I/F

Automated

Pallet Processing

SAP MII

Central

Local

FDB – Factory Database

Standard Core Database for

all MII Implementations

(MSSQL)

Manufacturing Reporing

Other

Auto Systems

Examples Site

Specific

Single Site Architecture View



Multi Site Architecture View

Pla

nt

SAP MII n SAP MII 3 SAP MII 2

Plant n

SAP ERP

Production

Planning

Quality

Management

Plant

Maintenance

Materials

Management

Cork

(Ireland)

Arlington

(USA) China

SAP

Enterprise

Portal

SAP MII 1

En

terp

rise


MANAGEMENT FORUM

Cork - Little

Island

Cork - Carrigaline

Cidra Colonia

Guangzhou

Arlington

Atlacomulco

Central SAP

Infrastructure

Plants Corporate

RFCs

BAPIs IDOCs



MANAGEMENT FORUM

SAP & MII – Combined Approach

SAP

Raw

Materials

W/H

SAP MII Raw

Material

Staging

Raw

Material

Returns

Process

Areas

Finished

Goods W/H

and

Shipping

Focus of SAP:

Controls Inventory within the Materials

Warehouses

Manages the staging of Raw Material for a

Process Order (Including Batch Determination

and Directed Work)

Manages the Final Product for Shipping or

Finished Good Storage

Focus of MII:

Controls Inventory movements from the Staging to the

Process Area and from the Process Area to the Returns

location.

Displays Process Order and BOM data to the Operator

Creates the Goods Issue to SAP for Raw Material (Dependant

on Material type)

Creates the Goods Receipt to SAP (Dependant on Process)

MES (Future)

Focus of MES (Manufacturing Execution System - Future Project):

MES will provide enhanced Shop floor functionality (More detailed than MII)

MII will supplement MES functionality (SAP Integration)



MANAGEMENT FORUM

Key Architectural Decisions

Local Site level Implementation of MII (Production Environment at Each Plant)

Bypass SAP XI Layer for messages between SAP and MII

Use of RFCs / BAPIs vs. Enterprise Services

Use of a Supplementary MS SQL database to support MII functionality

Decision not to use SAP Portal and rather use MII portal

Use Internet Explorer on Radio Frequency Devices

Centrally managed configuration

Scheduled IDOC and BAPIs for Master Data

User Exit (RICEF) to trigger IDOC of Process Orders on Add/Change/Delete

Use of Net Weaver Development Infrastructure for User Access Control (Roles) and

change control

Use of SNC for Data Security

MS Clustering for High Availability



MANAGEMENT FORUM

MII Transaction Points


Raw

Material

WareHouse

Staging

Returns

Conc

Tank

Finished

Goods

WareHouse

or

Shipping

Container

Point of Use

Process

Room

Staging

Returns

Liquids

Point of Use

Filling

Machine

Staging

Salts

Returns

Point of Use

Salts Filling

Point of Use

Salts

Assembly

Staging Returns

Bulk

Storage Palletising

Palletising



Integrated Labeling Solution Labeling Interface:

SAP Master Data

Operator Friendly Interface

Standardized Labeling



Back-End Data Integration – In Batch Batch Execution

In Batch Interface:

Orders Direct from SAP

Material Usage direct to SAP

Goods Receipts



Back-End Data Integration – Auto-Palletizer

Palletizer Line Interface:

Manage Palletizer

Palletizer Master Data Maintained on SAP MII


MANAGEMENT FORUM

Material Staging Process Flow with SAP ECC & MII



MANAGEMENT FORUM

Product Labeling Process Flow with SAP ECC, MII, SCADA and Labeling System



MANAGEMENT FORUM

MII – User Interface – Desktop Version



MANAGEMENT FORUM

MII – User Interface – Mobile Version (with Internet Explorer)



MANAGEMENT FORUM

MII – User Interface – Desktop Version – Product Labeling Interface



MANAGEMENT FORUM

MII – User Interface – Desktop Version - Reporting



MANAGEMENT FORUM

Agenda


2. Background



3.1. Challenges






MANAGEMENT FORUM


MANAGEMENT FORUM 5. Benefits Achieved

MII

Reporting

MII Inventory Control Material

Staging

Production Execution

InBatch

Int.

Auto

Pack

Count

Auto

Pallet

Mgmt. Tanker

Offload

Labelling

Interface

Process Order Int. SFC / SPC Int.

Business Layer

Technical Layer

Inventory Control

- Standardized interface through Portal and RF

- Provides a mechanism for implementing controls

- Manages accuracy and controls in the inventory process with staging.

InBatch Interface

- Enables Automatic Posting of Process Orders from SAP to InBatch and reporting back the usage and Yield

- Decreased human errors

Automated Pack Count

- Enabled different methods to capture yield at ease

- Enabled automation and mobile scanners

Automated Pallet Management

- Provides integration that facilitates the management and control of pallets through wrapping, labeling and receipting.

- Interface techniques can be applied to future implementations.

Product Labeling Interface

- Standardized, Configurable Interface of SAP data to Labeling Systems.

- Works with all Enterprise Labeling Systems (e.g. Loft ware, Codesoft, Bartender)

- Mechanism for SCADA integration on automated filling lines.

Tanker Offload Validation

- Ensures the correct bulk raw material is offloaded to the correct storage location or skid.

- Can be integrated with automation or used independently.

Reporting and Data Collection

- Real time reporting portal for filling lines

- Enables to capture variances, downtime, efficiency, OEE, SPC


MANAGEMENT FORUM

Benefits Achieved

Adopted a standard practice between different systems for controlling inventory in the process

areas.

Drives a common approach to material management and traceability.

Provides a standardized way of integrating with SAP and other systems.

Helped to reach a common, user friendly portal for process operators.

Minimizes the risk of human error.

Facility to implement key controls.

Implemented utilizing ISA referenced standards (S95, S88)

Provides a industry recognized method of interfacing business data to the Manufacturing layer.

Facilitates future upgrades and maintenance and Provides a roadmap for further integration

Helped creating a common procedure to carry out goods receipt from Liquid Filling and Salts

Assembly.

RF device used to trigger good receipt. Real time transaction, real time data.

Triggers printing of pallet label where applicable.

Adopted a standard practice for interfacing label data from ERP

Eliminates the need for double entry

Provides a foundation for standardizing product labels across PWF

Helped creating a standard mechanism for providing data to peripheral databases

Helped achieving integrated Active Ingredients calculations and KPI using SAP & MII.


pepsico worldwide flavours sap mii implementationfm.sap.com/data/upload/files/sap eomf 2012... ·...

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