sdm e brief information 2016
TRANSCRIPT
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.consulting .solutions .partnership
Short information
SAP Dairy Management by msg
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© msg | 2016 | SAP Dairy Management by msg 2
Welcome to msg
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Partnership SAP und msg
msg systems as long-standing & successful SAP partner
© msg | 2016 | SAP Dairy Management by msg 3
• Develop the industry standard for dairy industry
• Founded in 1980
• More than 5,500 employees
• More than 600 SAP developers
• Headquarter in Munich, Germany
• Located in 24 countries
• 727 million euros turnover in 2015
InternationaleStandorte
Ausgewählte Projektstandorte
Standorte D-A-CH
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4
msg group overview
Supported from strategic shareholdings and partners
© msg | 2016 | SAP Dairy Management by msg
A strong company
group
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Partnership msg and SAP
• Reinsurance solutionFS-RI (exclusively)
• Policy Management solution FS-PM Auto
• Product server msg.PM
• Insurance Analyzer (IA)
• Health solutionFS-PM Health
• Industrial and Specialty Lines FS-PM ISL
• SAP Dairy Management by msg
• SAP Bank Analyzer ALM
Software Partner
• Primary Insurance SolutionCO-innovation Agreement
• Incentive ManagementSolution FS-ICM
Development Partner
• SAP for Insurance
• SAP Data Warehousing
Validated ExpertisePartner
• All SAP for Insurance Products andCross-Components
• All SAP DairyManagement by msgProducts andCross-Components
• SAP NetWeaver ™ Test und QualityManagement
Consulting- andImplementation-
Partner
IndependentSoftware Vendor
• msg.XDI (eXchangeData Interface) poweredby SAP NetWeaver™
• msg.PIA PrimaryInsurance Application
• msg.LRM Life Reinsurance Module
• msg.PUMA ProfessionalUnderwriting Mgmt.Application
• msg.Reporting forReinsurance
• Cooperation since 1998 • Co-Innovation Partner Development Agreement between msg and SAP since 07/2011• VAR Partnership in different countries
SAP Dairy Management by msg
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SAP Dairy Costing
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Partnership msg and GKC
• Since 28 years dairy business consulting
• Development and implementation of the dairy specific Felix applications
• Experience in integration of the Felix Solution with SAP
• Dairy experts
• Strategic development partner from GKC
• Since 30 years sw. development
• More than 600 SAP developer
• SAP development laboratory
• Strategic development and consulting partner of SAP
SAP Dairy Plant Operations
SAP Dairy Production Planning
msg and GKC bundle their competencies for the devel opment of SAP Dairy Management by msg based on FELIX4 (predecessor)
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SAP Dairy Management by msg
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SAP Dairy Management by msg
Designed for the special requirements of the dairy industry in planning and controlling
The milk market has a very volatile behavior. Minor variations in the supply and demand lead to big alterations in the price of milk-based raw materials. This often involves changes in the production program, the product costs and profits and the distribution margins.
Tested solutions for all dairy areas have been found, from milk reception up to the finished product:
• Collection and reception of milk
• Milk processing
• Production, packing, stocking
• Cheese (hard, sliced, soft)
• Drinking milk, cream, butter
• Yoghurt, dessert, ice cream
• Powder, whey
• Ingredients
• Quark
The milk, as raw material, is the focus of attention in the procurement process, along the different processing stages up to the profit on finished product for the client:
• Raw material type (raw milk, organic milk, regional milk)
• Concentrate, filtrate
• Raw material contents (fat, protein, casein, lactose, along all levels)
• Co-product / by-product
• Semi-finished product
• Differentiated origin and prices
• Raw material evaluation
• Raw material ingredient evaluation
Flexible planning and controlling systems provide strategic meaning for the management and steering of the company. SAP Dairy Management by msg focuses on the requirements of the dairy industry and is based on long practical experience.
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SAP Dairy Management by msg
Highest level of product integration
The milk market has a very volatile behavior. Minor variations in the supply and demand lead to big alterations in the price of milk-based raw materials. This often involves changes in the production program, the product costs and profits and the distribution margins.
Flexible planning and controlling systems provide strategic meaning for the management and steering of the company. SAP Dairy Management by msg focuses on the requirements of the dairy industry and is based on long practical experience.
• Seamless integration within SAP landscapes
• Highest level of product qualification, tested to meet stringent SAP product standards:− Usability – harmonized look-and-feel− Application and interface integration− Functional correctness – proven with SAP technology
• Long term solution with additional business value− Complements Customer’s SAP investments− Aligned with future SAP direction and roadmap
• Same support and maintenance applies:− No maintenance risk – SAP responsible for
customer support, service packs and upgrades− No finger pointing – Single point of contact: SAP
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SAP Dairy Management by msg
Supports cost-reduction and efficiency improvement: Small numbers, big effects
*) Saving potential will depend on the production program, the technical equipment and any measures that have been already taken.
How much is the benefit of a reduction of 0.2% in raw material costs and material costs?... and the benefit of an efficiency increase of cost-pushing processes by 2% per year?
Losses and disturbances are transparent immediately,implement measures
Transparent costs, results potentials and targets
Increase efficiency, prevent losses, through more accurate planning
SAP DairyPlant Operations
SAP DairyProduction Planning
• Flexible production- andraw material planning
• in all production areas
Daily-department-controlling• Raw material, ingredients,• Material, services
• Dairy process costs• Contribution margins• Raw material utilization
SAP Dairy Management by msg supports: the identification of potential improvementsand the implementation of measures to make use of them
SAP Dairy Costing
Dairy Factory1 billion kg
raw material
~ 1 – 2 Mio. $/Year*
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Participate in future innovations in SAP ERP and SAP Business Suite
SAP Dairy Management by msg
Functional Overview
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Participate in future innovations in SAP Dairy Management by msg
• Activity-based costing and statement of financial performance
• Consistent quantity statements in line with value calculations
• Logistics cost calculations
• Sales and contribution margin statement
• Monthly / yearly financial forecast
• Actual / target costs
• Financial forecast simulation
4
5
SA
P E
RP
SAP Dairy Management by msg
DairyPlant
Operations
DairyCosting
Dairy Raw Milk
Procurement
Dairy ProductionPlanning
ProcurementProduction Planning & Execution
MaterialsManagement
QualityManagement
Enterprise Asset
Management
Project Systems
…
Controlling
1 2 3
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5
3
• Rolling planning of several weeks
• Daily planning
• Production order scheduling
• Raw material planning
1
• Raw material receipt
• Raw material balance
• Yield
• Performance
• Personnel efficiency
2
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Production Planning
SAP Dairy Management by msg
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ERP-IntegrationAll necessary data, such as current customer orders, special sales offers, historical sales, inventory and production data is provided by the SAP-ERP-System. This will serve as planning proposal for the production planner. After releasing the plan, all relevant data will be transferred to the ERP-System.
Raw materials with their ingredients in focusDairy Production Planning is specially adapted for milk-based raw materials, semi-finished products, co-products and dairy products with their respective nutritional content (fat, protein, casein, lactose, minerals, etc.)
Immediate and independent planning updateChanges in planning are flexibly updated immediately.Dairy is fully integrated with SAP-ERP. However, planning takes place without instantaneous effect in the SAP-ERP-System.
Integrated planning of raw materials with their ing redientsRaw material needs, surpluses, purchases and sales at factory level are centralized at company level for a global material requirement planning. The planer has therefore a comprehensive real-time overview of the impact on raw materials, capacities, etc. Milk requirements and milk receipts are the basis to create a milk-balance-sheet that will help plan the coming purchase and sales quantities.
Flexible planning periodsPlanning periods are flexible and are available in rolling months, weeks or days.
Dairy Planning targets a series of positive business effects. These are not only cost-saving effects but also general improvements in the production processes.
Mon Tue Wed Thu Fri Sat Sun
Short term planning W25
W24
W23
W26
Milk reception
Dairy Production Planning focuses on the specific requirements of the different planning areas of the dairy industry. It considers the particularities of:• Planning of cheese• Planning of fresh products• Planning of dry products (powder)• Planning of whey products• Reception and utilization of milk raw materials• Planning across various factories
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SAP Dairy Management by msg
*MES: Manufacturing Execution System
Plant Operations
ERP-IntegrationAll Master Data such as materials, BOM are integrated from ERP system. In addition Dairy Plant Operations can integrate SAP MM movements of materials as well as provide dairy specific material movements (e.g. ingredients) back to SAP MM - following the philosophy to unburden ERP from dairy industry specific issues.
Raw material- and material controllingshows losses and efficiency reserves, initiated and supported by measures to enhance the cost.Continuous raw material and ingredients settlement from reception to the finished product divided in:• Raw material types (conventional, organic, regional)• Ingredients (fat, protein, casein, lactose, mineral etc.)
For all dairy departments, cheese factories, ingredients, ice cream etc. there exist proven methods:• Raw material-/ingredients balance, utilization and exploitation• Department target-actual-comparison (exploitation, KPI’s, losses)• Batch (for raw material, SF- and co-products) and Production
quantity controlling
Facility performance controlling determines efficiency reserves and provides starting points for improvements in the production and logistics. For processes (start up, production, switching, cleaning, picking and packing, loading of goods, etc.) targets are determined and compared to the actual-times. For the evaluation and analysis of the departments are available:• OEE, facility- and work performance rates• Failure times, target-actual-comparison, KPI’s
Key Performance Indicators (KPI’s) Dairy Plant Operations provides relevant indicators to improve operational efficiency.
The high costs of raw materials (milk-based or not), processes and facilities require an effective daily controlling on raw material procurement, production up to warehouse management in the production departments.
Dairy Plant Operations supports the daily controlling and batch controlling in terms of milk raw materials, direct materials, facilities and services. It is prepared for the adoption of relevant data from the MES*.
Dairy Plant Operations allows controlling calculations at department level, factory level or even for a group of factories either individually or as a total and it is able to perform it on a daily, weekly or monthly basis. The calculations can be carried out several times.
SAP Dairy Plant Operations enables a comprehensive and period based management of ingredients with functional integration to SAP MM.
Actual vs. target at company level
Milk reception Milk utilization Actual vs. target at dept. level
Production line performanceMilk balance
Key Performance Indicators
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SAP Dairy Management by msg
Costing
Contribution margin statement by customer / productFor each customer-product item a progressive full cost P&L statement with distinct contribution margin levels is created. In each case, (raw material) price, utilization, quantity and process variances as well as plan and target variances to actual results are reported.
Calculation periods, simulationWith each calculation run, quantities, processes, costs, cost rates and CM’s are determined anew with complete cost allocation.• Plan results (month, year, simulation)• Target vs. actual results (month)
Primary costs and quantity calculationRaw material, ingredients, material, personnel, energy, maintenance, depreciations etc. are carried over cost centers, semi-finished products, inventory, finished products and are revealed at the level of customer / product.
ERP integrationSAP Dairy Costing is integrated with SAP modules FI, CO-OM, CO-PA, MM and SD. Results are distinctively transferred back to CO-OM, CO-PA and MM.
Dairy costing was developed as a separate settlement area but also fully integrated solution for SAP ERP systems. Specially designed for the dairy industry in order to quickly provide correct and accurate information.
Raw material, material and process quantity calcula tion Dairy Costing includes drill-down functionalities for finished, semi-finished and by-product quantities in terms of raw material, ingredient and material composition as well as process quantities and resources consumed (staff, electricity, steam, etc.). Volume-, batch-, daily variable and fixed costs are differentiated.
Activity-based costingServices rendered by cost centers can be assigned exactly to different processes (start up, switching, cleaning, daily closing etc.). Process cost rates are generated automatically in each calculation run, so that all cost center costs are always fully allocated.
Activity-based costing for logistics and salesLogistic, sales and administrative services, such as order processing, transportation, etc. can be charged according to the method of activity-based costing or traditional cost center accounting into the contribution margin statement by customer / product.
Cost center
Processes
Cost rate
RawMaterialMaterial
SF
Material
SF FP
PrimaryMain cost center
SalesRevenuevar HK / WELogisticsDB IFix HK DB IIDistributionDB IIIAdministrationDB IV
Customer / Product
Secondary
Auxiliary cost centerPrimary
SecondarySecondary
Primary
Secondary
Cost rate
Processes Processes
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SAP Dairy Management by msg
Benefits
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SAP Dairy Management by msg
DairyPlant
Operations
DairyCosting
Dairy Raw Milk
Procurement
Dairy ProductionPlanning
1 2 3
• Planned quantity calculation,cost accounting & profitability analysis
• Simulation planning accounting with overall result effects
• Raw material cost and raw material utilization accounting
• Product optimization by accurate costs for small batches
• Data base / Repository for product value analysis
• Customer / Product result assessment
• Process optimization by awareness of process costs
• Increase of cost-efficiency by adherence of the specifications for plan / target
• Dairy-specific variance analysis
3
• Cross-Plant Planning of raw material receipt and usage
• Raw Material Balancing Improvement of raw material utilization
• Lot Size Planning scrap reduction to start-up & shut-down
• Tranquillization of the production processes
• Transparency for the people being involved in the processes
1
• Improve company loss factor (raw materials)
• Improve material efficiency vs. net target consumption
• Improve milk input and the yield
• Control small batches for raw material, semi-finished products, finished products and by-products
• Increase equipment efficiency(OEE)
• Increase Labor efficiency and rate performance
• Profitability Analysis Capture raw material costs and expenses
2
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SAP Dairy Industry Roadmap
DAIRY Costing
DAIRY Operations
DAIRY Planning
DAIRY Sales Planning
DAIRY Production Planning
DAIRY Raw Material Planning
DAIRY Raw Material Controlling
DAIRY Performance Controlling
DAIRY Statement of fin. performance
DAIRY Activity based Costing
Continuous Improvements(Planning, Operations, Costing)
S/4HANA (edition)
Fiori UI Cloud
Mobile Internet of Things
Transportation Integration (enablement of SAP TM)
Plant Maintenance Integration(enablement of SAP PM / EAM)
Milk Settlement & Payment (enhanced pricing conditions )
Milk Collection (enhancement for Farmer & Truck batches)
Farmer Portal(incl. receipt, QM, payment, … information)
APO enablement(Planned Order Synchronization)
Material Ledger enablement(via production orders)
Affinage Operation(cheese ripening operations)
Affinage Planning (cheese ripening planning / analytics)
Catch Weight Mgmt. enablement(parallel UoM in Material Movements )
Simple Finance(sFIN add-on enablement )
Continuous Improvements(Planning, Operations, Costing)
Solution Today Planned Innovations
Dairy Managementby msg 3.0
Future Direction
Dairy Managementby msg 4.0
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Proposed next steps
• Conduct case study / proof-of-concept for SAP Dairy Management by msg
• Fit Gap Analysis
• Value / ROI-Assessment
• Definition of the next innovation steps for SAP Dairy Management by msg
Vision: Create an International Dairy Standard based on
• 25 years business experience in Dairy Industry by msg and SAP
• International Business Requirements of international leading dairy companies (i.e. Emmi, DMK, etc.)
SAP Dairy Management by msg
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The Dairy Industry Ecosystem
From Cow to Consumer
Buy Make Sell
Research & Development
Enterprise Asset Management
Quality Sustainability
Financials Controlling HR …
Sourcing Track & Trace Transport StoreChannel /
Retail
3rd. Party LogisticsCo Manufacturing
Supplier Colla-borate Colla-borate
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The Dairy Industry Ecosystem
Dairy Specific Requirements
Buy Make Sell
Research & Development
Enterprise Asset Management
Quality Sustainability
Financials Controlling HR …
Sourcing Track & Trace Transport StoreChannel /
Retail
3rd. Party LogisticsCo Manufacturing
Supplier Colla-borate Colla-borate
BatchTraceability
Shelf life Catch Weight VendormanagedInventory
Returns &Complaints
Raw MaterialEfficiency
DairyProductionPlanning
Raw milk procurement& settlement
Decrease of finishedproduct waste (due to
short BBD)Asset
Maintenance
RecipeManagement
InventoryBalancing
CheeseRipening
CommodityPricing
EquipmentEfficiency
LaborEfficiency
C02
Footprint
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SAP Dairy Management by msg
Integration overview
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• SAP Dairy Management by msg supports several SAP ERP integration scenarios and makes use, in its complete scope, of the master data available in the core SAP ERP module.
• The dynamic integration with the SAP ERP module takes place depending on the chosen scenarios and on its functional particularities.
• The integration parameters are determined without requiring a high workload regarding setting adjustment.
• The booking data is executed in both directions though job planning and so, offers highest flexibility.
• The integration guarantees full flexibility in the mapping of all structures of the dairy industry in SAP Dairy and the subsequent further processing in SAP ERP.
MM PP-PI
SAP Dairy Modul IIPlant operations
(Raw materials, lines, energy)
SAP MM• Article master data• Stocks• Consumptions, etc.
SAP PP-PI • Bill of Materials• Process order• etc.
SAP SD• Client master data• Conditions• Orders
SAP FI/CO• Account master data• Cost centers• Costs
SAP Dairy Modul IProduction planning and raw material
planning
SAP Dairy Modul IIIProcess costing and activity costing
SAP APO SAP ML
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SAP Dairy Management by msg
Integration into SAP Dairy Management by msg
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SAP Material Management• Material master data• Bill of materials
• Production version• Goods movements
SAP Production / ProcessWork center / Work plan• Resources, Recipes• Production orders
• Process orders
• Confirmations
SAP Logistics• Deliveries
• Promotions
• Sales orders• Conditions
SAP Controlling• Cost center master data• Master data for internal orders
• Overhead cost planning• Plan Vs. Actual postings
• Currencies
SAP Results- and Market segment calculation• Characteristics,
• Value fields
• Characteristic derivation• Profitability analysis
transfer structure• Plan/Actual postings
• Conditions
SAP Company structure• Company code• Controlling area data
• Results data• Units
DAIRYPlant
Operations
DAIRY Costing
DAIRY Planning
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SAP Dairy Management by msg
Integration from SAP Dairy Management by msg
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• Control data allow a flexible adaptation based on the customer’ situation, without neglecting the special requirements of the dairy industry.
• The control takes place in existing parameters, which represent control parameters in the corresponding modules. For example: the “Material type” in Material Management.
SAP Controlling• Plan Vs. Actual postings• Fixed and variable costs• Allocations for plan/actual data
SAP Results and Market segment calculation• Plan Vs. Actual postings
Customer/Product• Production costs• Marketing and
sales costs
SAP Material Management• Material price, future• Movements of goods
SAP Production / Process• Plan orders
SAP Logistics• Standard orders• Raw material sales
SAP Purchasing• Purchase requisition• Raw material requirements• Material requirements• Intercompany balancing
DAIRYPlant
Operations
DAIRY Costing
DAIRY Planning
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SAP Dairy Management by msg
Integrated Architecture (ERP Add-On)
SAP ERP
SAP Dairy Management by msg
SAP Dairy – Integration Layer
SAP Dairy – Integrated Data Model
SAP Dairy – Business Logic
SAP Dairy – UI (Web Dynpro ABAP)
AdapterMM
AdapterPP-PI
AdapterSD
SAPMM
SAPPP-PI
SAPSD
SAP Dairy – Data
Functional model where data from different sources are integrated (e.g. „material“ with attribute „planned sales volume“)
Aggregated, redundant data from SAP ERP or SAP Dairy, e.g. historical sales per calendar week
SAP Dairy - specific data, e.g. planned sales volume
SD-specific data, e.g. sales documents
MM-specific data, e.g. information on material
Cubes Daten
1
2 3
4 5
1
2
3
4
5
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.consulting .solutions .partnership
msg systems ag Robert-Buerkle-Str. 1 85737 Ismaning/MunichGermany
Phone: +49 89 96101-0Fax: +49 89 [email protected]
www.msg-systems.com