Process Improvement and Error Reduction in Material Master Creation Talayeh Poursaid Bussard ABB Switzerland Ltd.

Transcription

1 Process Improvement and Error Reduction in Material Master Creation Talayeh Poursaid Bussard ABB Switzerland Ltd.

2 Abstract ABB Switzerland will talk about process improvement and error reduction in the material master creation process, the procurement process and creation of purchase requisitions as a result of implementing the Winshuttle product suite to automate functionality across the ERP system (SAP). ABB Switzerland will introduce their Material Ordering Tool which will be used to request creation of new materials using an Excel Form as the user interface.

3 Process Improvement and Error Reduction in Material Master Creation Using Winshuttle Agenda Company Presentation: ABB Group, Global divisons and industries Introducing the Problem Why Winshuttle Proposed Solution & On-going Implementation Interacting with Winshuttle and process improvement Introducing the new MOT (Material Ordering Tool)

4 Talayeh Poursaid Bussard Electrical Engineer with a Master degree in Industrial Engineering Project Manager for Large and Global Projects with full responsibility for electrification of Mineral, Mining, Cement & Industrial projects. 9 years in ABB Business Unit Industrial Solutions for Mineral and Mining projects. Got familiar with Winshuttle while doing master thesis establishing a cockpit for project management. Later on become project leader for ABB internal project for New Master Material and process improvement, in which Winshuttle used to automatically upload data to SAP for material requisition.

5 ABB Group ABB global leader in power and automation technologies Leading market positions in main businesses ~150,000 employees $ 42 billion In revenue (2013) Present in +100 countries Formed in 1988 merger of Swiss (BBC, 1891) and Swedish (ASEA, 1883) engineering companies

6 Global Divisions How ABB is organized Five global divisions Revenues 2013 Power Products 3% $11 billion Power Systems 7% $8.4 billion Discrete Automation and Motion 5% $9.9 billion Low voltage Products 16% $7.7 billion Process Automation 4% $8.5 billion

7 Process Automation Division Serving a full range of processes... Cement Food and Beverage Life Sciences Marine and Cranes Metals Mining Oil, Gas and Petrochemical Printing Pulp and Paper Specialty Chemicals Turbocharging Additional industries via channel partners and other ABB businesses Developing Markets Business Unit Industrial Solutions

8 Industrial Solutions ex: Mining Business Process plant & infrastructure for full plant electrification Power factor correction system MV switchgears Over head lines HV switchgears Power transformer Drive transformer Distribution transformer Motor control center Control system LV VSD MV VSD MV motors Valves Containerized electrical room LV motor

9 Background - Materials in Minerals and Mining Unit As a solution provider to variety of industries, our unit is dealing with a lot of equipment in a large range like complete cabling and installation material for different industries and solutions. We are a provider of materials which are not produced by ourselves, but purchased from different ABBs around the world and other 3rd party suppliers. Therefore a material is rarely a unique product. It is normally an engineered and customized material fit for purpose.

10 Introducing the Problem Situation as the project starts: If we are looking at the material master in our division (ATB) we have the following situation: Total Materials in SAP - 80,500 Total Materials in Use - 25,500 Transformers 2030 Cables 3975 Circuit Breakers 1716 Shrink Pipes 65 Motors 4897

11 Introducing the Problem For each Circuit Breaker a new material record is created in SAP The specification of the material is stored in the desription of the material and also in the sales text and purchase text of the material master The new material will be assigned to the sales order item 3BHD003964R1630 Nr. of phases 3 Power ratings 20 MVA Voltages 20 kv Cooling AN 3BHD003964R1631 Nr. of phases 3 Power ratings 25 MVA Voltages 30 kv Cooling AN. 3BHD003964R1632 Nr. of phases 1 Power ratings 15 MVA Voltages 25 kv Cooling AN

12 Introducing the Problem

13 Introducing the Problem Project Handeling Department BANF Department Job Card - searching for materials - maintaining of materials - creation of new material - creation of new sales order items Material Request Process

14 Introducing the Problem Purchase Department Sales/Shipping Department Delivery Conversion to Purchase order Material Request Process

15 Business Problems - Summary New Material was created for every different characteristic value. There was no easy Search on the materials to look up data Manual changes/ creation of data no consistency Additional Data was entered in Long Text of Material which is hard to look up

16 Why was Winshuttle Chosen First approach: To use Winshuttle to upload the short & long text in Material Master creation (MM02) and create new materials (MM01) Change only the long text using Winshuttle Add other information like tag number of equipment. Tool to help in Logistic/Purchasing/Shipping departments for automating daily routine works adding short text in the equipment receipt, adding more info in the packing list. download project equipment list and packing information for further use in project and reports. To download financing data of projects and follow-up of project with graph and etc. in excel. What was purchased: 1 STUDIO, 10 RUNNERS Winshuttle s ability for uploading and downloading data to SAP.

17 Proposed Solution, Process Improvement Scenario ATB Scenario ATB new creation of the master data - material master - class and characteristics - configuration profil Project A Project A Project A Project A creation of new material and specification of the material master Project Project A Project A Project A creation of the new sales order line item with the new material master creation and specification of the new sales order line item with the existing material master

18 Proposed Solution, Process Improvement 1. Creation of one material master record for the whole product group 3. Assignment of the class to the material master record in the Classification view 2. Creation of one class master with the relevant characteristics and values for the whole product group Must be done once for each product (e.g. transformer or motor or cable...)

19 Proposed Solution, Process Improvement Project Handeling Department BANF Department - creation of new sales items - and specification of the new items F2 Job Card Material Request Process

20 Proposed Solution, Process Improvement BANF Department Purchase Department Shipping Department Delivery Conversion to Purchase order Material Request Process

21 Automation By Winshuttle BANF Department - creation of new sales items - and specification of the new items F4 WinShuttle Material Request Process

22 Pro / Cons No unique key for material master Adaption of the existing print outs Creation of master data once No time delay between the processes and departments Support of value lists Definition of the characteristics which should be printed out in the relevant scripts Object search for sales orders or purchase orders with a specific configuration (CL30N)

23 Process Optimization As-start situation: Total Materials in SAP - 80,500 Total Materials in Use - 25,500 Transformers 2030 Cables 3975 Circuit Breakers 1716 Shrink Pipes 65 Motors 4897 New approach : Automation department: 5 Master Material Drive department: 13 Master Material Plant engineering department: 12 Master Material

24 New approach Enables to have purchase orders in 4 different languages without knowing the language itself. All characteristics and technical information of a material including Costume Tariff codes flow through ERP. Reducing significantly the amount of Master Material in use. Reduce the time spent for purchase requisition from average half a day to maximum 5 minutes due to Winsuttle automatic uploading.

25 Process Optimization Master Material numbering is not just a sequence numbering, but a meaningfull combination of technical and logistic approach. Old Version: 3BHDxxxxxxRxxxx NewVerision: 3BHDnnnnxxWmmmm nnnn: Category of equipment xx: sequential numbering W: Winshuttle Process Mmmm: first 4 number of HS code Examples: Category 2000 : Drive applications: 3BHD200001W8504 Converter 3BHD200002W8504 Transformer Category 6000: Installation materials: 3BHD600003W7419 Cable Accessories Brass 3BHD600004W3926 Cable Accessories Polyamid

26 Introduction to Material Ordering Tool Material Ordering Tool «MOT Tool» The general purpose of the MOT project is to have a comfortable tool for ordering material and services. The increasing number of Master Material in ATB had the consequence to create a completely new structure of ordering these materials. Before implementation of MOT there was a Jobcard for ordering materials. The new MOT tool is based on this Jobcards but with new and more functions as well as more details.

27 MOT Tool

28 MOT Tool

29 MOT Tool

30 MOT Tool

31 Other Areas who use Winshuttle & where is it used Purchasing Requisition Department: VA02 : Automatically upload the characteristic of equipment in Master Material. VA02: Upload a long series of master material in a very short and efficient time for example when ordering spare parts. MM02: For changing/adding long texts in master material. Project Management Department Down load data from Z series SAP transaction (Zmm050, ZSD050, ZCO901 & ZCO026 into an access database to have overall control on project in terms of important KPIs, finance, schedule and equipment list/shipping list and project progress report for client use.

32 Questions