Background
A global leader in consumer electronics faced challenges in production planning and scheduling due to outdated legacy systems and inefficient processes. These issues led to longer lead times, suboptimal resource utilization, and lack of visibility into production operations. To overcome these challenges, the company partnered with SCM Innovators to implement SAP S/4HANA with the ePPDS (Extended Production Planning and Detailed Scheduling) module. The goal was to enhance production planning, optimize resources, and improve overall supply chain management.
Objectives
- Improve Production Scheduling: Reduce lead times and increase the efficiency of production schedules.
- Optimize Resource Utilization: Better allocate machinery and labor to improve overall productivity.
- Enhance Visibility: Provide real-time insights into production processes and inventory levels.
- Integrate Systems: Replace outdated legacy systems and integrate with key business functions like sales and procurement.
Implementation Phases
1. Preparation and Planning
- Assessment: Analyzed existing systems and processes to identify inefficiencies.
- Strategy: Developed a detailed implementation roadmap with clear objectives, timelines, and resource allocation.
- Team Formation: Established a cross-functional project team from IT, production, supply chain, and other departments.
2. Design and Configuration
- Blueprinting: Defined business requirements and aligned them with ePPDS functionalities.
- Configuration: Set up SAP S/4HANA and ePPDS, including production planning and scheduling settings.
- Integration: Integrated ePPDS with other SAP modules such as Material Management (MM), Sales and Distribution (SD), and Quality Management (QM).
3. Data Migration
- Data Cleansing: Cleaned legacy system data to ensure accuracy during migration.
- Migration: Used SAP Data Migration tools to seamlessly transfer data to the new system.
4. Testing
- Unit Testing: Tested individual ePPDS components to ensure accurate functionality.
- Integration Testing: Verified that ePPDS integrated smoothly with other SAP modules and external systems.
- User Acceptance Testing (UAT): Involved end-users in validating the system’s performance and functionality.
5. Training and Change Management
- Training: Delivered comprehensive training for production planners, schedulers, and other key staff.
- Change Management: Implemented a strategy to manage resistance and ensure smooth adoption of the new system.
6. Go-Live and Support
- Go-Live: Launched the ePPDS module in a live production environment.
- Support: Provided ongoing support to resolve any post-implementation issues and fine-tune the system.
7. Post-Implementation Review
- Performance Monitoring: Tracked system performance and key production metrics to ensure objectives were met.
- Continuous Improvement: Collected feedback from users and made iterative improvements to optimize the system.
Results
- Improved Scheduling Accuracy
The company achieved more accurate production schedules, resulting in a 20% reduction in lead times. - Enhanced Resource Utilization
Optimized planning and scheduling led to a 15% increase in overall equipment effectiveness (OEE). - Real-Time Visibility
Real-time insights into production and inventory levels improved decision-making across the organization. - System Integration
The seamless integration with other SAP modules streamlined operations and improved cross-functional coordination.
Challenges and Lessons Learned
- Data Quality Issues
Data quality from legacy systems posed initial challenges, delaying implementation. Ensuring data accuracy from the start proved essential. - Change Management
Resistance to change was mitigated through thorough end-user involvement and training, emphasizing the importance of effective change management strategies. - Testing Complexity
Comprehensive testing was critical to identifying and resolving issues before going live. Allocating sufficient time and resources to testing helped prevent post-implementation challenges.