Management of the purchasing process for prototypes integrated in Agile PLM
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1 Management of the purchasing process for prototypes integrated in Agile Berlin, 9th of May 2012 Bruno Zappacosta, Hydro Building Systems Rudolf Knobloch, x Solution
2 Purchasing process integrated in Abstract Hydro Building Systems uses Oracle Agile EDM (Agile e6) to manage product and process data for the development and production process in different multinational business units in a common -System. The number of newly developed products is high, which results in huge number of RFP s in the early development phase. To support the Purchasing Process, the Agile e6 functionality was enhanced with Purchasing Process Enhancement (PPE) module. PPE is fully integrated in the -based release process. RFP s are generated by PPE based on supplier-, item- and document-data managed in and sent to the supplier including all relevant manufacturing documents. Using the common -Database guarantees the validity of the product-data and documents sent to the suppliers and provides reliable data to compare the supplier-price. PPE supports individual processes for different item-types as well as different languages for the RFP-letters. The presentation gives an overview about the -Application at Hydro- Building Systems, the use-cases, functionality and the implementation process of the PPE-module in a multinational company. Confidential x Solution GmbH 2
3 Purchasing process integrated in Agenda Presentation Hydro Building Systems & x Solution at Hydro Building Systems Motivation to integrate the purchasing process Use cases Implementation and features Conclusion Q&A Confidential x Solution GmbH 3
4 Something about Hydro Building Systems Offices: The HBS business sector has around 3,000 employees at some 30 locations, distributed on 22 worldwide countries. Confidential x Solution GmbH 4
5 Something about Hydro Building Systems Customers: Partners: more than 5000 worldwide customers hundreds of Architects, Project Offices, etc. Confidential x Solution GmbH 5
6 Something about Hydro Building Systems Experience: Hydro Building Systems develops and sells aluminum-based building systems destined for more than 100 countries. The major part of the sector's activities is focused on the European markets. However, we have high growth ambitions outside Europe as well. We combine the positive effects of being one of the largest systems houses with a strictly local approach in each market. This is why each of our local companies selects their own brand portfolio and adapts products and services to suit their customers' needs and requirements. Confidential x Solution GmbH 6
7 Something about Hydro Building Systems Services & Solutions: Hydro's Building Systems brands Alumafel, Domal, Technal and Wicona - cover the range of system products, focusing on windows, doors, curtain walls, shutters facades and conservatories. Our logistics set-up is aimed at supplying customers in accordance with their general needs and types of jobs they handle. And with our project support, we enable them to develop energy-efficient buildings and cost-effective solutions. Confidential x Solution GmbH 7
8 Something about Hydro Building Systems Our Project Competence Centre helps prescriptors with technical aspects as well as consultancy to strict legal construction conditions. Factors include energy-saving and safety technology, for example. Each property, each construction project has its own particularities and represents a completely new challenge for architects and planners. Confidential x Solution GmbH 8
9 Some realizations of one of our Brands WICONA ist eine Marke von Hydro Confidential x Solution GmbH 9
10 Ericusspitze, Hamburg Seat of the news magazine Der Spiegel Double facade in unitised construction WICONA ist eine Marke von Hydro
11 WICONA ist eine Marke von Hydro Ericusspitze, Hamburg Seat of the news magazine Der Spiegel Double facade in unitised construction
12 Tower 185, Frankfurt Germany s most modern highrise building Unitised facade WICONA ist eine Marke von Hydro
13 WICTEC 50EL Unitized curtain wall WICONA ist eine Marke von Hydro
14 Staatsbibliothek, Berlin New Building section Unitised facade WICONA ist eine Marke von Hydro
15 adidas, Herzogenaurach Head office and development centre Special windows with all-glass surface WICONA ist eine Marke von Hydro Confidential x Solution GmbH 15
16 Monte Rosa Hut Nearly energy autarc building in m altitude Windows and curtain wall in passive house / Minergie P quality WICONA ist eine Marke von Hydro Confidential x Solution GmbH 16
17 WICLINE window system in Minergy P quality WICONA ist eine Marke von Hydro Confidential x Solution GmbH 17
18 Bharati research station of the Indian polar research institute Antarctic Curtain wall and fire protection windows Set-up in antarctic summer January April 2012 WICONA ist eine Marke von Hydro Confidential x Solution GmbH 18
19 Sign Düsseldorf Unitised overlaid facade WICONA ist eine Marke von Hydro Confidential x Solution GmbH 19
20 The Cube, Birmingham / UK Apartments and offices Structural glazing facade / Unitised facade WICONA ist eine Marke von Hydro Confidential x Solution GmbH 20
21 WICTEC 50 Structural curtain wall WICONA ist eine Marke von Hydro Confidential x Solution GmbH 21
22 SKY Munich Seat of TV chain SKY Windows, doors and curtain walls WICONA ist eine Marke von Hydro Confidential x Solution GmbH 22
23 WICTEC Curtain wall with integrated WICLINE window WICONA ist eine Marke von Hydro Confidential x Solution GmbH 23
24 KfW Bank, Frankfurt Awarded The best highrise building in the world 2011 Double facade in unitised construction WICONA ist eine Marke von Hydro Confidential x Solution GmbH 24
25 Company Facts x Solution GmbH Founded: Offices: Customers: Experience: Services: 2005, 14 empl., 2012 ~ 55 empl. Dresden (headquarters), Sexau (CAE Consult), Viernheim, Three Rivers (USA) 300+ customers The team has more than 25 years experience in the area of integration development and is at the forefront of the development and deployment of multi-functional CAD, and ERP integrations. We specialize in providing process consultancy and implementation services to the industry. Solutions: We offer integrations between leading ERP-, -, CAD-, DMU-, data exchange and Office-applications. Confidential x Solution GmbH 25
26 Purchasing process integrated in The Hydro Building Systems CAD- Project Da Vinci Project started in 2004, with main scope of Document Management, to cope with heterogeneous local databases to store 2D drawings and 3D models of all technical departments of all European HBS units Adoption of Lifecycle/Approval Management from 2006, to close the gaps related to fragmented approval/revision process in the different HBS Brands and sites. Gradual involvement of all Business Development departments among the years: R&D, Technical Department, Purchasing, Marketing, Quality : Introduction of interfaces to ERP system and to Customer Software Continuous improvements through the years intensifying the controls in the workflow, segregating the competencies of involved departments Confidential x Solution GmbH 26
27 Purchasing process integrated in The Hydro Building Systems CAD- Project process in HBS gradually moved from a CAD-based scope, to a more distributed process that involves all departments Main challenges of the Da Vinci Project: commitment by the Management fragmented on more sites, underestimation about importance of the process, Change Management (difficult to move to one Common Process all the HBS Brands), difficulties to balance the flexibility of the process against consistent controls in the workflow Agile gradually became the core of the all business development processes in HBS, from the drafting/brainstorming of new products to the launch of the market up to the ERP system- Now Agile became the only master source for any process in Hydro Building Systems: technical development, storage and classification, documentation (paper workshop manuals, e- catalogues, internet portals), customer software, technical info and article-codes source for ERP system Confidential x Solution GmbH 27
28 Purchasing process integrated in Motivation to integrate the purchasing process The HBS Business Development requires an early involvement of Marketing and Purchasing since the earlier stages of product development, that includes: Marketing specifications of the product according to the geographical demands, customer needs, marketing trend, etc. Marketing evaluation of estimated sales volumes per Brand/Region Supplier evaluation by Procurement department that passes through digital and effective product prototyping Parallel control of multiple purchasing process, either due to the huge number of products and also due to the multiple enquiries to different suppliers for the same product Multilingual management of enquiries/letters/requests to suppliers Repeatable and predefined sequence of tasks for each purchasing process, even if departments are located in different sites, to manage a common solution. Control of delivered documents: only approved documents can be exchanged Trace of sent communications, even if automatically delivered by the system Statistics of pending processes/expired tasks To do lists for each user according to the role and ongoing project, to clearly drive the users to proceed in the workflow on a daily base Confidential x Solution GmbH 28
29 Purchasing process integrated in How PPE is integrated into the item workflow: ERP System SAP Trigger to SAP interface Approval by Marketing 130 Technically Approved Parallel Approval by Eng. and Purch. 235 Commercialized Approval by Engineer 120 In Work 110 In Work PPE Process
30 Solution: The Purchase Process Enhancement (PPE) bundles Engineering and Purchase data with Workflow-Components Process-Header Specific Process Attributes (Technical, Marketing,..) used in the RFP Team ( Involved internal persons ) Workflow based on Task s ( Procurement task list ) Documents Multilingual Letters Mailing Purchasing process integrated in Confidential x Solution GmbH 30
31 Purchasing process integrated in Use case : Send RFP s to suppliers and compare offers (Hydro) Launch several RFP s for an item Clone Processes with common attributes Confidential x Solution GmbH 31
32 Purchasing process integrated in Use case 1: Send RFP s to suppliers and compare offers (Hydro) Manage various attributes Map them to letters Confidential x Solution GmbH 32
33 Purchasing process integrated in Use case 1: Send RFP s to suppliers and compare offers (Hydro) Many different workflows for different item-types and countries All workflows have several tasks Confidential x Solution GmbH 33
34 Purchasing process integrated in Use case 2: Provide documents to suppliers (D4S Project Heidenhain ) Supply documents per ORDER Currently no process specific attributes Simple processes Validity-conflict checking for doc s ( Dokument Gültigkeit ) More file types Confidential x Solution GmbH 34
35 Purchasing process integrated in Use case 2: Provide documents to suppliers (D4S Project Heidenhain ) Request for documents triggered by ERP (Phase II) Support of MULTIPLE-Item process (Phase II) Provide files via a portal (SECUFEX) instead of sending mails (Phase II) Confidential x Solution GmbH 35
36 Purchasing process integrated in PPE is based on standard and module specific entities Item (s) Project Organisation (Supplier) / Person Document (s) Process Team Roles Task Task Templates Mail (server / client) Letters Letter Templates Keywords PPE Confidential x Solution GmbH 36
37 The Process header Process owner and lifecycle/status Transitions of Doc s and Items can trigger the process-status Project the item is related to Affected item Supplier Purchasing process integrated in You can navigate with hyperlinks to all linked objects Confidential x Solution GmbH 37
38 Purchasing process integrated in The General tab provides general process attributes To whom external mails will be sent (and the language) A function to assign a default team The file types to be attached to the mail The Template task list used for the process Confidential x Solution GmbH 38
39 Purchasing process integrated in Tab Technical, Marketing, Sales forecast, Purchasing and Quality are used to Define attributes for the RFP-letter (quantities, colors..) Store values returned from the supplier (prices, tool cost, ) Store comments from team-members like samples validated Attributes-values mapped as keywords Confidential x Solution GmbH 39
40 Purchasing process integrated in Tab Involved internal persons (TEAM) Defines responsibilities for tasks Responsibilities based on ROLES linked to the project Default team assignment based on prioritized rules e.g. Same team within a project Same team for each version of an item Confidential x Solution GmbH 40
41 Purchasing process integrated in Tab Procurement task list Defines tasks to be executed The list is selected from predefined processes (Template task list) Task list can be modified by process owner When a Tasks is started, the Acting user will be informed via mail Due date calculated based on standard duration Keywords in letter templates replaced by the current values Nota for free text Server-side or client-side mail Task to be confirmed by Acting user Confidential x Solution GmbH 41
42 Purchasing process integrated in Tab Documents exchanged Based on general criteria documents for the item are automatically linked to the process Two BOM levels for the item are checked for relevant documents Files with the extension defined on General are attached to external mails. Attachment can be controlled on document level Confidential x Solution GmbH 42
43 Tab Letters Purchasing process integrated in Letters sent are stored in and linked to the process Task-specific Letter-Template with required language is instantiated Keywords like <KyCpyNameSnd> are replaced with process specific values Confidential x Solution GmbH 43
44 Purchasing process integrated in Process Monitoring For PPE user a Monitoring list shows up on login Filters like I have to start, I have to confirm are available Confirmation and starting of task from the monitoring list possible Hyperlinks from Task to Process or Item are provided Confidential x Solution GmbH 44
45 Purchasing process integrated in More Monitoring options What is status of the my purchase process? By Supplier Purchaser View By Project Project Manager View Confidential x Solution GmbH 45
46 Conclusion Success of the tool: Indeed PPE is a key solution in HBS, adopted as common solution in a transversal way in all HBS units It required a lot of efforts and commitment by Top Management to push the adoption of the solution in all HBS units Lessons learnt: Fully automated document delivery via has been perceived as too dangerous: no control on delivery (e.g. in case of server problems or delivery issues, no trace is available) HBS decided to give the option to use client-based or server-side mailing to allow the sender a final check before sending and to receive delivery notifications in case of failures Language-specific characters could create some troubles if Mail- Servers / charactersets are not configured properly and latest Oracle patches are not installed. Example: Confidential x Solution GmbH 46
47 Conclusion Lessons learnt: Using PPE uncovers defects in the common data-base, e.g. Supplier data Multilingual item names Invalid documents Migrate users from using localized, Mail&Excel based methodologies to the use of standardized purchase-processes is a bigger challenge compared to the technical issues of the PPEimplementation. Benefits Improved data quality Reliable and harmonized processes Improved synchronization of item/document changes with purchasing-department Confidential x Solution GmbH 47
48 Purchasing process integrated in Thank You Very Much for Your Time! Confidential x Solution GmbH 48
49 Purchasing process integrated in Q&A For more questions please contact Confidential x Solution GmbH 49
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