sap utilities sca
TRANSCRIPT
![Page 1: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/1.jpg)
© 2008 Eventure Events. All rights reserved.
Supply Chain AnalyticsUsing Business Intelligence
Elaina Ball – Director, Supply Chain
Ralph Shay - Enterprise Application DeliveryCPS Energy
![Page 2: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/2.jpg)
• Business perspective– CPS Energy
– Supply Chain at CPS Energy
• IT perspective– SAP solutions at CPS Energy
– Supply Chain Analytics project
• Results and lessons learned
• Q & A
Presentation Outline
![Page 3: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/3.jpg)
• Nation’s largest municipally owned energy company (electric & gas)
• Assets approaching $9 billion• 680,000 electric customers• 319,000 gas customers• Highest financial ratings of any U.S.
electric system• Customers’ combined energy bills
rank among the lowest of the nation’s 20 largest cities
Company Profile
![Page 4: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/4.jpg)
• #1 in Customer Satisfaction– Provide reliable, low cost,
environmentally responsible energy to our customers
• Great place to work– Customer Commitment
– Performance
– Safety
– Respect
– Teamwork
– Trust
Vision
![Page 5: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/5.jpg)
• Business Objectives - support corporate objectives by striving for– Demand forecast accuracy– Perfect order fulfillment– Minimized costs
• Organizational Alignment– Organization based on customer fulfillment streams
(Materials, Contracts, Fleet)
• Performance Metrics– Transform supply chain operational transaction data
into performance metrics to identify improvement opportunities and track performance trends.
Supply Chain Strategy
![Page 6: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/6.jpg)
Business Objective: Reliability
Supply Chain enablement through:– Perfect order fulfillment through demand
forecast accuracy
– Services and materials available when needed, as specified
Seeking perfection in delivery is how we support reliability.
Business Perspective,Supply Chain alignment
![Page 7: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/7.jpg)
Business Objective: Low cost energy
Supply Chain Enablement through:– Reduced cost of supply
– Lower internal operating costs
– Strategic sourcing and spend management
Seeking lower cost of supply is how we support low cost energy for customers.
Business Perspective,Supply Chain Alignment
![Page 8: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/8.jpg)
Business Objective: Environmental responsibility
Supply Chain Enablement through:– Elimination of waste in business processes– Reduction of excess inventory– Reduction of errors
Seeking waste reduction is how we support environmental responsibility.
Business Perspective,Supply Chain Alignment
![Page 9: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/9.jpg)
Business Perspective,Supply Chain Context
How accurate is the plan compared to actual?How long does it take to process purchasing
documents?
What is the fill rate?
What opportunity exists for reducing inventory valuation while improving availability?
![Page 10: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/10.jpg)
1. Purchasing document cycle time
2. Inventory replenishment cycle time
3. Supply chain cycle time
4. Line count fill rate
5. Inventory accuracy
6. Inventory transfers between storage locations
7. Inventory usage
8. Inventory rationalization
Business Perspective,Supply Chain Scorecard
![Page 11: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/11.jpg)
9. Inventory consumption forecast vs. actual inventory consumption
10.Schedule forecast vs. actual start/complete
11.Volume of supply chain transactions
Business Perspective,Supply Chain Scorecard (cont’d)
![Page 12: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/12.jpg)
• SAP R/3 4.6c implemented late 2001
• Supply Chain use of SAP ERP primarily transactional with limited use of LIS
• SRM, SCM not implemented at this time
• BW 3.5 in place when Supply Chain presented need for analytics
• Commitment to upgrade to ECC 6.0 and BI 7.0 made after Supply Chain analytics project was launched
IT Perspective,Information Technology Context
![Page 13: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/13.jpg)
• Establish formal software development project
• Follow disciplines of PMO and SDLC
• During planning phase, prototype scorecard reports using data extracted from SAP R/3 tables
• Use prototypes to engage stakeholders and improve design through active use
• Prototyped reports serve as BI frontend design targets
IT Perspective,Project approach
![Page 14: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/14.jpg)
IT Perspective,Prototype example
![Page 15: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/15.jpg)
IT Perspective,Prototype example
![Page 16: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/16.jpg)
• Sapient Consulting engaged to provide professional services for BI 7.0 upgrade and Supply Chain Analytics development
• Consultants assigned to the engagement had extensive experience with:– Project management
– Utilities clients
– Supply Chain clients
– SAP BW and BI 7.0
IT Perspective,Professional services
![Page 17: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/17.jpg)
• Organize project execution phase into iterations to deliver “quick wins”
• Iteration 1 scoped to deliver scorecard reporting related to cycle time– Purchase Order Cycle Time
– Inventory Replenishment cycle time
– Supply Chain Cycle time
IT Perspective,Consultant’s recommendations
![Page 18: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/18.jpg)
IT Perspective,Consultant’s recommendations
![Page 19: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/19.jpg)
IT Perspective,Consultant’s recommendations
![Page 20: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/20.jpg)
IT Perspective,Consultant’s recommendations
Multiprovider for summary information
![Page 21: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/21.jpg)
IT Perspective,Consultant’s recommendations
Multiprovider from DSOs for jump queries
![Page 22: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/22.jpg)
IT Perspective,Sample results
![Page 23: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/23.jpg)
IT Perspective,Sample results
![Page 24: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/24.jpg)
IT Perspective,Sample results
![Page 25: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/25.jpg)
• Iteration 1 delivered January 2008– Purchasing document cycle time reporting
• Iteration 2 delivered July 2008– Demand forecast accuracy reporting
• Information delivered used to support continuous process improvement and operational efficiencies in the supply chain
Results,Project deliverables
![Page 26: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/26.jpg)
Example-Material Lead Time
![Page 27: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/27.jpg)
Business Explorer Sample Output. ..
![Page 28: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/28.jpg)
• Prototypes used to drive early business results– Identified excess inventory to drive decisions for
inventory reduction in excess of $5MM
– Identified opportunities for improved contract management to drive down inventory replenishment cycle time and reduce stock outs
– Prototypes of demand accuracy results supported cross-functional dialogue seeking improvement
• Process and transaction system “anomalies” exposed during data analysis and reconciliation
Results,Project “side benefits”
![Page 29: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/29.jpg)
• Knowledge transfer from consultants strengthened in-house BI team skills
• Supply Chain Information Team participation created foundational skills and knowledge for future extension of supply chain analytics in BI environment
• Experience with iteration 1 and iteration 2 project plans, budgets and results will serve to improve future BI project plans and cost estimates
Results,Project “side benefits”
![Page 30: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/30.jpg)
• Prototyping reports using data extracted from SAP tables helped stakeholders define reporting data sources and uses
• Professional services from an experienced consulting firm benefited both business and IT stakeholders
• Combining technical upgrades with a development project added complexities requiring a “program” approach to project management
Lessons Learned
![Page 31: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/31.jpg)
• BI projects are not simply about reporting– Security model
– Process chain reliability
– Information distribution choices
– End user training needs and considerations
• Development iterations deliver value earlier and allow the application of lessons learned to improve subsequent iterations
Lessons Learned
![Page 32: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/32.jpg)
Recap,Q & A
• Business perspective– CPS Energy
– Supply Chain at CPS Energy
• IT perspective– SAP solutions at CPS Energy
– Supply Chain Analytics project
• Results and lessons learned
• Q & A
![Page 33: Sap Utilities Sca](https://reader036.vdocuments.mx/reader036/viewer/2022081418/557cd3c7d8b42a5a6b8b46b9/html5/thumbnails/33.jpg)
© 2008 Eventure Events. All rights reserved.
Elaina Ball
Ralph ShayCPS Energy