SAP HANA Innovation Award 2017 Pitch Deck
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1 Entry Title: Customer Name: HANA Innovation Award Track Customer or Partner: SAP HANA Innovation Award 2017 Pitch Deck Einstein Akıl Üçgeni / Einstein Intelligence Triangle SAP S/4HANA 1511 Project Farma-Tek İlaç San.Tic.A.Ş, Turkey Detaysoft HANA Innovation Award Category (Digital Trailblazer, Social Hero, Process Innovator: Process Innovator Name, Title, and Company Name (Submitter): Yahya Turan, Project Manager, Detaysoft, Turkey
2 COMPANY BACKGROUND Farma-Tek is a privately owned pharmaceutical company based in Istanbul. Founded in 1991, the company originally imported and introduced medical and pharmaceutical products including hemophilia and intensive care products, as well as products containing immunoglobulins to the Turkish market. Farma-Tek has expanded its portfolio by adding a range of dermatological, cardiological, urological, and surgical products to meet market demand. In 2012, the company decided to evolve from a commercial company into an industrial company: Farma-Tek set up its own manufacturing plant in Kırklareli. Today, Farma-Tek has 215 employees in two sites. The company produces and sells an extensive range of products, including prescription drugs as well as over-the-counter products, skin care products, cosmetics and medical devices. Detaysoft, based in Istanbul, is an SAP Platinum Partner. Offering SAP business solutions in the areas of database and technology, analytics, cloud and mobile solutions, Detaysoft employs 300 staff in its offices in Istanbul and Sivas, has hundreds of partners in various industry sectors, and has successfully completed more than 600 projects.
3 It is a new manufacturing site, right? And it has just received its production licence It is a new manufacturing site, right? And it has just received its production licence SOLUTION DESCRIPTION Perfect engineering requires perfect harmonization. The Einstein Intelligence Triangle S/4 HANA 1511 project completed at Farma-Tek s manufacturing plant in Kırklareli which supports the company in achieving operational excellence. The Production Planning (PP), Warehouse Managerment (WM), Quality Management (QM), and Sales and Distribution (SD) and Plant Maintenance (PM) modules support the company in optimizing the use of its manufacturing capacities and producing the right goods in the right quantities at the right time. Designed and implemented with the help of Detaysoft, this solution went live as little as five months following the kickoff. Thanks to SAP Workforce Performance Builder, enduser training and validation was accomplished in a very short time. Farma-Tek enforces the standardization of processes, relying on integrated and reliable processes instead of personal efforts. The real-time flow of information across and beyond the company provides insights that supports the company in making well-informed decisions. Planning, inventory and production management have been brought in line with Good Manufacturing Practice (GMP). The company s financial control, cost management and cash flow have improved significantly.
4 STAKEHOLDER QUOTE Farma-Tek grows rapidly, promotes its own brands and is preferred by all of its shareholders because its brings new products into the health sector. We decided to establish our own production facilities in This was actually like moving from a small house to a skyscraper. We chose SAP S/4HANA as 10-year infrastructure investment that meets all of our functional requirements. Seyhan Yıldırım, General Manager of Farma-Tek, Turkey
5 BUSINESS CHALLENGES Farma-Tek needs to be able to monitor the shipment of raw materials from subcontractors as well as the movement and shipment of its products. This information needs to be duly communicated to the Turkish government s drug tracking tool (ITS). The materials used in pharmaceutical production at the Farma-Tek plant must be supplied by the right vendor at the right quality and at the right time. All supply chain steps need to be tracked. To ensure the availability of its pharmaceutical and medical products, Farma-Tek needs to monitor its inventories and must take a forward-thinking approach to production planning. In line with Good Manufacturing Practice (GMP), all transactions and associated records need to be logged. The system used in education and associated systems need to be validated. This implies that the best approach is to run all of the company s processes on a single system. Farma-Tek imports some of its specialty stock, exports products, and contract-manufactures goods for other companies. This means that even physical inventories reside at different locations, they must be monitored via a single system. The expiry date of stock needs to be taken into account to eliminate costly waste. GMP-based master data management should be detailed and well-controlled. All changes that may occur in a product purchase order must be monitored. In the past, there were customer satisfaction issues due to mistakes made by employees who were unfamiliar with standard operating procedures at the company. Human error in production must be reduced to zero.
6 HUMAN EMPOWERMENT Farma-Tek continually supplies high-quality medication and pharmaceutical products to the marketplace, thus contributing to the health and well-being of citizens. Operational excellence at Farma-Tek increases employee satisfaction and productivity. S/4HANA helps new hires quickly adapt to standard operating procedures, making them feel more confident. For new employees, proper training largely eliminates operational errors, thus preventing costly write-offs and waste. Approval processes have been simplified and accelerated, thanks to fast follow-up via SAP Fiori for mobile workflows. S/4HANA supports financials and budget planning in quickly establishing reliable 6-month and 12-months plans. Improved health and well-being of citizens through high-quality medication Greater employee satisfaction and productivity due to operational excellence Faster cash flow and efficient financial management and control
7 BUSINESS AND SOCIAL VALUE With robust production and stock management support, customer order management is based on to-the-point information. The customer order fulfillment process has been accelerated significantly. Thanks to efficient inventory control, there is no overstocking or understocking: Stocks in the warehouse are checked and replenished on a daily basis in line with customer demand. The average stock turnaround time has been reduced from 8 days to 3 days. Operating capital calculations account for payment and settlement information. Production cost calculation is highly accurate, based on material usage tracking. The First Expired First Out (FEFO) methodology significantly reduces the waste of costly specialty stock. On average, customer order fulfillment has been shortened from 8 days to 3 Capital tied up in stock has been reduced by 40% FEFO reduces waste of stock by 60%
8 BUSINESS AND SOCIAL VALUE Order HQ Real-Time Stock Analysis and MRP The planning of a selected material in a selected location Increased efficiency of production process First Expired First Out (FEFO) for all locations Led to reduced waste Optimized common use of materials Main Contractor Stock Subcontractor Main Contractor Order Farma-Tek Stock Kırklareli Plant Subcontractor Stock Subcontractor Stock SAP S/4 HANA 1511 MRP Order Farma-Tek Stock
9 TECHNICAL IMPACT SAP S/4HANA significantly speeds up processes at Farma-Tek. Users experience faster transactions. The production of pharmaceutical products is efficiently tracked via barcodes. The Production Planning (PP), Warehouse Managerment (WM), Quality Management (QM), and Sales and Distribution (SD) modules communicate with ITS, Turkey s government drug tracking tool. Weighing stations at the Kırklareli manufacturing plant are also integrated with S/4HANA. Paper forms have largely been eliminated. All reporting is performed via SAP S/4HANA. Real-time insight and online control of production has made manufacturing processes leaner and more responsive to changing needs and has delivered significant quality improvements. Production capacity utilization increased from 90% to 98% Procurement costs decreased by 20% due to alternative suppliers Improved production planning has reduced labor costs by 10% Operational capital has been reduced by 15%
10 SAP SOLUTIONS AND TECHNOLOGIES USED SAP HANA and other SAP technologies used: SD, WM, MM, PP, QM, PM, CO, FI, AA, HR, ESS & MSS, E-invoice, E-ledger, Fiori Integrations: Weighing integration (online MES system), ITS (government drug traceability tool) integration (online) Tools: Test document and trainer document for SAP Workforce Performance Builder Methodology: ASAP SAP project methodology Validation documentation: Officially URS, OQ, PQ, IQ, authorization matrix and training documents were prepared
11 ARCHITECTURE DIAGRAM Reports Analysis SAP HANA Third-party relational database
12 ARCHITECTURE DIAGRAM Personnel Attendance Control System ITS integration (Goverment drug tracebility tool) Real Time Weighing integration SAP Fiori Apps S/4HANA Enterprise Management S/4HANA Implementation
13 Web site
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