SAP PLM Journey for a Beverage Equipment Manufacturer

The Zircoo team assisted the customer with a phased approach to SAP PLM.

SAP PLM Journey For A Manufacturer Of Dispensed Beverage Equipment

Customer:

A leading manufacturer of dispensed beverage equipment.

Challenge:

The client encountered internal challenges stemming from product design alterations, customer-requested enhancements, and an arduous process for conceptualizing and designing new products.

Solution:

The SAP PLM initiative commenced in 2009 with the adoption of the SAP ERP platform, primarily chosen due to SAP’s provision of a robust and seamlessly integrated PLM module.

Products and Services

    • SAP Product Lifecycle Management (SAP PLM)
    • SAP Portfolio and Project Management (SAP PPM)
    • SAP Document Management System (SAP DMC)

Project Scope:

Phase #1: Initial DMS Single Source, Document Change Process, Visual Enterprise

The initial phase of the SAP PLM implementation focused on activating SAP CAD Integration and SAP Visual Enterprise, laying the groundwork for a robust PLM framework. This phase encompassed the migration of over 500,000 CAD files from PDMWorks and various network drives into the SAP DMS environment. It enabled comprehensive versioning, revisions, and history tracking, ensuring full linkage between documentation and SAP master data.

Phase #2: Project Management 1 — Migration to SAP PPM, Retirement of Old PM Software

Phase 2 concentrated on implementing the SAP PPM module to enhance visibility and control over project resources. The PPM solution facilitated project creation, resource assignment, time tracking, and reporting, with 120 projects established in PPM. A KPI dashboard was developed to provide management visibility into key milestones, project status, and assigned hours across all initiatives.

Phase #3: Expand DMS, Initial ECM Process & Basic Workflow via IPS

Phase 3 prioritized Engineering Change Management and involved an upgrade to the core SAP platform. The implementation of the Integrated Process Solution (IPS) add-on enabled departmental control over product development and modification workflows. Engineering gained the ability to create new workflows, enhancing change notice database and Master Data Management processes. An email-enabled approval workflow streamlined the approval process for changes.

Phase #4: Expand Portfolio & Project Management

This ongoing phase emphasizes expanded PPM capabilities to enhance project resource management, cost management, reporting, and workflow. Executive dashboards and reporting standards were improved based on PPM usage from phase 2, resulting in an updated dashboard with 250 columns of project data. Easy Document Management for project documents was implemented, achieving a Single Source of Truth within the SAP ecosystem. Zircoo IPS facilitated workflow implementation for PPM Project Phase approval.

Benefits of SAP PLM Journey

The client engaged Zircoo to spearhead their SAP PLM initiative, drawn to Zircoo’s expertise in SAP PLM, PPM/NPDI, and Engineering Change Management. Zircoo’s unique blend of strong technical acumen, deep understanding of business processes and manufacturing, and adherence to industry best practices were pivotal in ensuring a successful implementation. The initial assessment approach (SAR) provided a clear roadmap to achieving a Single Source of Truth, fostering alignment among stakeholders and team members and driving collective efforts towards a common objective. Through this project, twelve initial data silos were targeted, and fourteen were successfully consolidated.

Clear benefits from each core area of the project include:

1. Enhanced Discipline in Product Development Approach and Support:
– The implementation facilitated a more structured and disciplined approach to product development and support processes, promoting efficiency and consistency.

2. Automation of Manual Tasks, Elimination of Redundant Data Silos, and Reduction of Non-Value-Added Work:
– Manual tasks were automated, redundant data silos were eliminated, and non-value-added work was reduced, leading to streamlined operations and improved resource utilization.

3. Improved Management Visibility:
– The project resulted in enhanced management visibility into key processes and metrics, empowering decision-makers with actionable insights and facilitating informed strategic decisions.

Key Project Directions:

The SAP TM implementation project encompassed the following key directions:

1. SAP Collaboration Portal:
– Facilitating interaction between customers and carriers, enabling contracting and bidding processes, and offering quick bidding (SPOT) capabilities for unscheduled shipments.

2. Planning and Optimization of Trunk Delivery:
– Optimizing transportation of goods over long distances, such as to and between distribution centers, and providing comprehensive transportation services.

3. Transportation and Shipment Control:
– Leveraging the SAP Event Management solution to monitor process steps (events) within the transportation and shipment lifecycle.

4. Dropshipping Optimization and Planning:
– Streamlining direct delivery of goods from distribution centers to final destinations, a complex scenario in SAP TM. Integration with third-party services ensures consideration of road restrictions and optimizes route planning.

SAP PLM Journey

Improved turnaround time in Engineering Services by 35%, reduced minor request turn time by 71%, setup time in SAP to first sale reduced by 71%, and more hours available for priorities. Automated processes saved costs and reduced manual entry.

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