EWM Event SKF. Ronald Appeltants, SAP Belgium Jonas Knutsson, SAP Nordics November 2017 PUBLIC

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1 EWM Event SKF Ronald Appeltants, SAP Belgium Jonas Knutsson, SAP Nordics November 2017

2 Agenda Who is SKF Project Approach Business and IT Requirements System landscape and Key Processes Key Takeaways 2

3 SKF

4 About SKF Products SKF technology platforms: Bearings Seals Mechatronics Lubrication 4

5 About SKF Some Quick Facts General Facts Year established: 1907 The SKF business is organized into three business areas: Industrial Market, Automotive Market and Specialty Business. Financial Facts Turnover 2016: SEK 72.8 billion (~7,7 billion Euro) 5

6 About SKF Locations Where you can find SKF: - Headquarter in Gothenburg - Main Production Site in Schweinfurt - Main Distribution Centre in Tongeren - Other locations are e.g. Poland, Spain, USA 6

7 Project Approach

8 SKF UNITE program Background: A global program to enable SKF business objectives Scope: All key business processes Sales & Service, Demand Chain and Logistics, Finance, Purchasing, Manufacturing & Maintenance Who are effected: More or less everyone within SKF in one way or the other Implementation Target: Replace existing mainframe in Europe Go Live January SAP Modules 231 processes System Integrator SKF themselves since restart 2015 UNITE partners SAP Digital Business Services Infosys/Lodestone & IBM & DXC SAP/ Role Strategic Advice/Architecture Delivery selected areas Delivery Team UNITE 300+ employees and consultants SAP Team 50+ Consultants/Prod. Dev. Solution Management SAP Cloud solutions > 1700 users One cut over 4 different sites 120 interfaces 3 legal units in 2 countries 8

9 Business and IT Requirements

10 Business Requirements EWM to replace 5 other WMS System stability 24/7 without interruption BI with HANA live Gain transparency in the Production Complete RF support Reduce Stock on PSA and Buffers Get transparancy on internal truck movements 10

11 Geograpical Scope - SKF Site Map Gothenburg 1. A-Factory - UNITE Project 2. HK3 Headquarter 3. CE Central Warehouse (Outbound) 1 4. D-Factory Production EF Pallet Pool 6. Solution-Factory 7. E-Factory Production 8. R-Factory Production Nordern Lagret Raw Materials 10. MH Marieholm Warehouse 11

12 SAP Extended Warehouse Management Product portfolio CROSS CORE PROCESSES SUPPORTING AREAS EWM 5.0 EWM 5.1 EWM 7.0 EWM 7.01 EWM 7.02 EWM 9.0 EWM 9.1 EWM 9.2 EWM 9.3 EWM 9.4 Inbound Processing ASN data receiving, validation Transportation unit mgmt. Goods receipt Putaway bin determination Internal routing Deconsolidation Putaway Returns / reverse logistics Goods receipt optimization Advanced returns mgmt. Receipt from production FIORI Apps Returns Clerk Transportation cross docking Pick from goods receipt/ push deployment Yard management Warehouse Monitor RF / RFID enablement Quality inspection Import / export integration EH&S integration esoa enablement Migration tools Pick by Voice Labor Demand Planning Storage & Operations Rearrangement Slotting Inventory counts / record accuracy Replenishment Freight order management Scrapping Kit-to stock Warehouse Billing Transit warehousing Labor management Opportunistic cross docking Merchandise distr. X-docking Stock-specific unit of measure TCO / TCI reduction Packaging specification Batch management Serial numbers Catch weight Material Flow System Warehouse cockpit Dock Appointment Scheduling Integration with SAP TM via ERP Direct TM EWM Integration Outbound Processing Order deployment Route determination Transportation unit management and Shipping cockpit Wave management and Work assignment Picking bin determination Warehouse order creation Picking, packing, staging Loading & goods issue Kit-to-order Direct outbound delivery Production supply Production staging and consumption Task interleaving Execution constraint mgmt. Semi-system-guided work Crystal reports FIORI Apps for Lean Warehouse Clerk Graphical warehouse layout Transp. integration (LES) Claims & Returns Multiple EAN Cartonization Rapid deployment package KPIs, Performance dashboard Retail enhancements Batch on Plant level Direct PLC Communication 12

13 System Landscape

14 Current System Landscape 14

15 Future System Landscape 15

16 Key Processes

17 Logistics Inbound Processes Outbound Processes Manufacturing

18 Production integration Channel Mapping Heat Treatment Face Grinding Assembly Packing 18

19 Routing to next PSA / auto confirmation Stage Produce Store Produce Store Stage Produce Move Produce Store Standard production process - The semi finished product is stored Process in a production channel - The semi finish is directly moved towards the next production step (manually or via conveyor) Based on the work center the next PSA is determined. (custom table and BADI put-strat) 19

20 Staging Cockpit Two-Step-Staging via Warehouse Monitor - Requirement to perform a two step staging - From a warehouse - Towards a buffer in the production facility - From the Buffer towards the PSA Warehouse Secondary Staging Buffer Primary Staging Produce - Transparency on the stock situation in the warehouse, in the buffers and the PSA itself in order to manage the plant-internal transports 20

21 Multi HU Move Multi HU Move - Truck driver is going on a given schedule to multiple storage locations either warehouses or manufacturing facilities in order to supply the factory or store semifinished goods - New RF transaction is giving the truck driver the possibility to pick up multiple HUs and drop multiple HUs 21

22 Design to Innovate Leonardo The process that led to the simplification project: Video: 22

23 Production Simplification: SAP Cloud Platform for ios 23

24 Next Step 2 SAP MES <> EWM Integration Cell 1 Cell 2 Cell 3 D301_01_122 D301_02_123 D302_01_122 D302_02_123 D303_02_121 OUTLET Bins WDWCFGI / D450 (HU) DDWC_IP_PSA (HU) DDWC_OP_PSA (HU) D301_01_120 D301_02_121 D302_01_120 D302_02_121 D303_01_120 INLET Bins World Class Channels fully automated via robotic cells Automated Guided Vehicles (AGV) integration with SAP EWM for material movements 27

25 Key Takeaways

26 Key Takeways - Training of ~ people amongst production and warehouse - Program management of Warehouse restructuring, Production restructuring and the UNITE Project was sometimes not streamlined - Stock migration during cut over (stock accuracy was not given) - Change management (new devices, processes etc.) - SKF is developing user friendly apps for production operator and forklift driver - A tighter SAP MES <> EWM Integration to realize SKF s industry 4.0 vision - EWM is the leading system for stocks on the shop floor 29

27 Questions?