Complement Core Business Processes with Custom Applications Built on SAP HANA

Transcription

1 Complement Core Business Processes with Custom Applications Built on SAP HANA Dr. Stephan Gerali Lockheed Martin Space Systems, Software Engineer & Architect Dan Lahl SAP, VP of Product Marketing

2 How do you avoid business processes fragmentation? Segregated application environments decrease business agility Core Enterprise Applications Custom Built Applications ERP CRM SRM EDW Planning & Optimization Applications Ad-hoc Reporting Applications Predictive Applications Big Data Analytics Applications Internet of Things Applications Finance Customer Vendor Data HR Copy Finance Data Copy Sale Data Copy Economy Data Social Media Data RFID Data HR Campaign Data HR Copy Finance Copy Social Media Data HR Copy Machine Data Location Data Location Data Sales Service Data Inventory Data Copy Finance Data Copy Location Data Text Data Machine Data Many platforms Multiple data copies Segregated workloads Complex to maintain No single source of truth Limited ability to innovate 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 2

3 Use SAP HANA to develop modern applications A single in-memory platform for all applications SAP ABAP, SAP Fiori, SAP Lumira, SAP BusinessObjects BI Consumer-grade experience SQL MDX R JSON Open Connectivity Open Interface SAP HANA Platform Application Services Database Services Integration Services In-Memory OLTP & OLAP Embedded Libraries (predictive, spatial, text ) Structured Data Geospatial Data Machine Data Social Network Data Text Data Collapsed stack (application, database & integration) All Data one copy 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 3

4 Lockheed Martin Built Custom Application using the SAP HANA Platform and Predictive Analytics to Improve Supply Chain Management System with More Accurate Lead Time Forecasts Dr. Stephan Gerali Lockheed Martin 2015 Lockheed Martin Corporation. All Rights Reserved.

5 Lockheed Martin Overview Company: Headquartered in Bethesda, Md., Global Security and Aerospace Company Employees: 112,000 Domestic & International Employees Operations: 542 Facilities in 500 Cities Throughout All 50 States 70 Nations & Territories 2014 Sales: $45.6 Billion Cash Flow from Operations: $3.9 Billion Stock Ticker Symbol: LMT, New York Stock Exchange Ranked 59 th on the 2014 Fortune 500 List of Largest Industrial Corporations Aeronautics: $14.9 Billion in 2014 Sales: Tactical Aircraft, Airlift, and Aeronautical Research and Development Lines of Business Information Systems & Global Solutions (IS&GS): $7.8 Billion in 2014 Sales: C4I, Federal Services, Government & Commercial IT Solutions Missiles and Fire Control: $7.7 Billion in 2014 Sales: Terminal High Altitude Area Defense System, Joint Light Tactical Vehicle, PAC-3 Missiles Mission Systems and Training: $7.1 Billion in 2014 Sales: Naval Systems, Platform Integration, Simulation and Training and Energy Programs Lines of Business Space Systems: $8.1 Billion in 2014 Sales: Space Launch, Commercial Satellites, Government Satellites, and Strategic Missiles Lines of Business Source: ("Who We Are Lockheed Martin", 2015), ("Our Businesses Lockheed Martin", 2015) 5

6 Challenge: Predicting Lead Time Between Order & Delivery Lockheed Martin SSC Sophisticated Supply Chain: 5,200+ Suppliers (1,500+ First Tier Suppliers) 375,000 Inbound & Outbound Shipments Annually 200+ Transportation Service Providers Represents ~70% of Final Product Cost Buyers have Estimate Lead Time Between Order & Delivery > Some (But Not All) Buyers Entered Material Items & Delivery Lead Times Because Previous System was Cumbersome Inaccurate Lead Times Impact: Efficiency in Building Satellites & Space Systems when Materials are Delivered Later than Estimated Increased Storage Costs when Materials are Delivered Earlier than Estimated Increased Costs to Staff Warehouse Appropriately to Receive Deliveries, Inspect Goods & Delivery to Manufacturing Floor or Stock Room Source: ("Supply Chain Management", 2015), ("Supply Chain Threat Management", 2013), ("Second Missile Warning Satellite Achieves Key Testing Milestone At Lockheed Martin", 2010) 6

7 Supply Chain Management Process 1. Run MRP to Generate Planned Order 2. Convert Planned Order to PR 3. Release / Approval PR 6. Supplier Manufacturing 7. Source Inspection 8. Deliver Part / Material MRP Input: Program / Production Need Dates Planner / PR Release Lead Time SCA / Buyer Lead Time Supplier Lead Time Good Receipt Lead Time PR = Purchase Requisition PO = Purchase Order 4. Convert PR to PO 5. Negotiate & Place PO with Supplier 9. Receive Part / Material at Dock 10. Inspect Part / Material 11. Place Part / Material on Floor or to Stock 7

8 Use Predictive Analysis to Improve Lead Time Accuracy Predictive Insight Combinations part * family * lead time X 45 years of historic data x 375,000 of inbound / outbound shipments SAP HANA and R gives Lockheed Martin access to statistical packages (such as Cumulative Density Function and Probability Density Function) and the power to run very quickly. Dr. Stephan Gerali 8

9 read read Custom Application Using SAP HANA Architecture View ABAP Program Calc Engine Scheduled Job write 6 ABAP Accelerator 55 4 Read Lead Times 5 write R Stored Procedure SAP Data Services Database Database Database R Runtime Real-Time Replication SAP ERP with SAP LT SAP HANA 3 Statistical Processing R Server 1. Purchase Reqs are Entered into SAP ERP Daily 2. Transactions are Replicated in Real-Time into SAP HANA using SAP SLT Replication Server 3. Predictive Models are Processed via SAP HANA Predictive Analytics Engine & R Server Against Real- Time Transaction Data & Historic Procurement Data 4. Results are Returned from R to SAP HANA 5. Recommended Lead Times Based on Predictive Analytics are Delivered in Real-Time to New Web- Based Application via the SAP ABAP Accelerator 6. Buyers use New Web-Based Application to Accept (or Change) Recommended Lead-Times 9

10 Lead Time Maintenance Mockup Supplier Lead Time Maintenance Tool Supplier Lead Time Maintenance Tool Update Recommended Planned Delivery Time Plant Part Number Part Number Desc Current Planned Delivery Time 80% Probability LT Avg LT Mid LT Mode LT Purchasing Group Purchasing Group Desc MRP Controller MRP Desc DEN ABCDEFG00001 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00002 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00003 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00004 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00005 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00006 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00007 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00008 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00009 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00010 Bolt Pattern J Sys Pwr AV2 PROJ I DEN ABCDEFG00011 Bolt Pattern J Sys Pwr AV2 PROJ I Clear LT Save LT 10

11 Benefits from Solution 25% Improvement in Material Lead Time 80% Reduction in SCA/Buyer Lead Time Maintenance Effort 80% Accuracy in Recommended Lead Times for Part Near Real-Time Report of Recommended Optimal Material Master Lead Times with Direct Auto Update of ERP Source: ("Fifth Lockheed Martin MUOS Secure Communications Satellite Completes Assembly, Enters System Test", 2014) 11

12 References Who We Are Lockheed Martin. (2015, January 1). Retrieved March 3, 2015, from Our Businesses Lockheed Martin. (2015, January 1). Retrieved March 3, 2015, from Supply Chain Management. (2015, February 27). Retrieved March 3, 2015, from Supply Chain Threat Management. (2013, January 1). Retrieved March 3, 2015, from Conference-2014.pdf Second Missile Warning Satellite Achieves Key Testing Milestone At Lockheed Martin. (2010, February 16). Retrieved April 8, 2015, from Fifth Lockheed Martin MUOS Secure Communications Satellite Completes Assembly, Enters System Test. (2014, January 13). Retrieved April 8, 2015, from 12

13