CenterPoint Energy’s EWM Implementation on HANA
Miriam Montross – CenterPoint Energy Kevin Gandy – CenterPoint Energy
TOPICS OF DISCUSSION
CenterPoint Energy Background EWM Project EWM Functionality Implemented Illustrations of Enhancements Challenges at Go Live Lessons Learned Recommendations Looking Ahead Questions
CENTERPOINT ENERGY, INC. (NYSE: CNP) REGULATED ELECTRIC AND NATURAL GAS UTILITY SERVING MORE THAN 5.5 MILLION CUSTOMERS
Electric transmission & distribution: • Electric utility operation with ~2.3 million
metered customers
• ~5,000 square mile service territory in and around Houston
• 18th largest U.S. investor-owned electric utility by customer base1
• Over 81,000,000 MWh delivered in 2014
Gas operations • 10 gas distribution jurisdictions in six
states with ~3.4 million customers
• 5th largest U.S. gas distribution company by customer base1
• Recently ranked 1st among the largest Midwest region natural gas utilities in the U.S. for operational satisfaction in a 2014 Cogent energy study
• Gas distribution company and energy services company delivered ~1.1 Tcf of natural gas in 2014
Electric transmission & distribution
Natural gas distribution
Energy services
1. As of Dec. 31, 2013 per AGA and EEI
CENTERPOINT ENERGY SAP FUNCTIONALITY MAP
ESS & HR portal Health & safety
tracking
Employee qualifications
Medical surveillance
Organization management
CATS time entry SAP / intranet
Leave entitlement tracking
W4 changes on intranet
Paycheck / direct deposit
Third party remittance process
Expense reimbursement
Driver system Volunteer
system Exben
Employee data warehouse
Extended Warehouse Management
Finance / controlling / investment management (FI, CO, IM)
Customer relationship & billing (CR&B/CCS, CRM)
Material management / purchasing (MM)
Sales and distribution (SD)
Bu
sin
ess
War
eho
use
(B
W)
– P
M, P
S, M
M, F
I, C
O, C
CS,
SD
, HR
(D
ate
TBD
)
Work order mgmt Notifications Capacity planning Equipment
maintenance Maintenance
planning
Purchasing Material
requirements planning (MRP)
Inventory management
Physical inventory
Project management
General ledger Accounts payable open text - VIM
Fixed assets Consolidation Controlling -
general
Planning/budgeting Profit center accounting
Capital investment FERC /
special ledger
Internal orders
Install service New customer set up / move In
Meter reading Invoicing /
billing process Account credit management
Collections
External services management
(ESM)
Marketing, sales and service
ARO sales orders HSP parts orders
HSP sales orders
Shopping carts
Supplier registration
Sourcing Contract
management
Supplier relationship management (SRM)
E-sourcing (Sourcing and CLM)
Inbound processing
Internal process Labor
management Outbound processing
Spend performance management (SPM) Spend analysis
reporting
Online customer self-service
HR master data management
Human resources (HR)
Payroll (HR)
Work Management / Equipment Management / Project Management(PM, PS)
CENTERPOINT ENERGY SUPPLY CHAIN SYSTEMS DIAGRAM
SAP ECC SRM
SRM-MDM
catalog
Content server
(Filenet)
Supplier self-
service portal
Sourcing / CLM
Documents created in backend system (ECC)
Doc #’s passed back to SRM to update Shopping Cart
Internal catalog item searches/retrieval
RFx w/attachments passed to ESO
PO or contract created in ECC
Contractor website – CNP custom web front
end to ECC
PI
Custom solution designed by CNP for assigning work to 3rd party contractors and facilitate their ability to invoice for services
performed.
BW
SPM
EWM
Data passed to standard BW cubes for basic reporting
Sabrix tax
engine
7 Battery repair stations
CENTERPOINT ENERGY DISTRIBUTION CENTERS
HOUSTON
• Number of bins: 19,825 bins • Annual lines rcvd = 38,061 • Annual lines picked = 278,424 • Trucks receipt/ship = 75/wk • Warehouse employees = 13 • Sq ft = 50,000 • # of SKU’s = 10,900
MINNEAPOLIS
• Number of bins : 3106 • Annual lines rcvd = 45,920 • Annual lines picked = 112,262 • Trucks receipt/ship = 100/wk • Warehouse employees = 40 • Sq ft = 140,000 • # of SKU’s = 14,409
HOUSTON ELECTRIC
• Number of bins : in process • Annual lines rcvd = 58,507 • Annual lines picked = 72,526 • Trucks receipt/ship = 130/wk • Warehouse employees = 16 • Sq ft = 50,000 • # of SKU’s = 10,156
SOUTHERN GAS-HOUSTON
PROJECT BACKGROUND
• CenterPoint Energy’s Minneapolis’ Distribution Center (MNG) had an aging WM application that was fast approaching sunset status
ISSUE
• Standardize common processes and technology across distribution centers (Minnesota, Houston Electric and Southern Gas)
• Implement a core technology for all three DC’s to enable/support their business processes and would increase warehouse efficiency and accuracy
OPPORTUNITY
• Develop and implement a global EWM template for all three sites with the participation of subject matter experts from each business
OBJECTIVE
Met all core requirements needed by CenterPoint
Energy Logistics
Supported CenterPoint Energy’s technology roadmap to
replace legacy applications with core technologies
EWM <-> ECC Integration – standard SAP
Enables CenterPoint Energy to leverage their existing
SAP support team for on-going support and
development
SAP’s on-going investment in EWM
EWM capabilities
– Route Guide Engine
– Labor Management
– Radio Frequency
– Replenishment
– Wave Management
– Two-Step Picking
WHY SAP’S EWM?
PROJECT TIMELINE
2012 • Bids/Evaluation of WM Best of Breeds
• EWM software selected
2013
• Bids/Evaluation for Integration Partner
• Logistar/EY selected as partner
• Q4 – Blueprint Phase Begins
2014 • Blueprint phase completed in April
• Realization phase begins in June
2015
• Realization phase continues (slight pause due to internal budget issues)
• Migrated to HANA data base in project landscape
• Migration from project landscape to production landscape
2016 • Delayed EWM implementation to February to synchronize with move to new Golden Valley Facility
PROJECT METHODOLOGY
CenterPoint Energy has a long-standing tradition of co-implementing SAP functionality with their consulting partners.
The end goal is for the CenterPoint Energy SAP Support Team to be able to provide product support for the company after the product has been implemented.
CenterPoint followed this methodology with our partnered consultants through blueprint, EWM configuration, development, testing, training, and technical environment cutover to production.
BLUE PRINT PHASE
•Usage of story cards
•Whiteboard flow charts
•Focus on how it “needs to be done”
Interactive workshop sessions
•Consulting team prototyped processes in a sandbox system.
Rapid Prototyping •Show and Tell
•Consulting team demo’d prototypes to CNP team to validate design based on workshop sessions
Playback Sessions
•Consulting team developed the Business Process Design Documents to be used during Realization Phase
Develop BPDD •Consulting team developed list of customizations that would be required based on workshop sessions
Develop RICEF List
•A session was held with SAP MaxAttention group to review proposed list of customizations and confirm they were valid and necessary.
MaxAttention Review
Pros : Very interactive and fast paced. Participation from both CenterPoint Energy business and Technology Operations team members
REALIZATION PHASE
Pros : High quality of delivery and knowledge transfer.
Cons : Can take longer so it is important to be mindful of milestone dates
Consultants configured in Sandbox
to document configuration guides
for each process.
Interactive KT sessions led by consultant
team to review config for each process
CNP team replicates configuration in
sandbox and dev environments. This
allows multiple people to do hands-on
config
All config and development is tested
in multiple environments
User validation of system conducted in
Minnesota.
Confirmation nothing was missed in design.
Also gets SME’s in system prior to final
UAT
EWD 810 (coding) EWD 820 (config) EWD 850 (transactional) EWD 830 (transactional)
EWQ 901(transactional) EWQ 900(transactional)
EWM Hana landscape ECC project landscape ECC prod landscape
EWP 900
Development
QA (production size)
Production
Sandbox
PRE 810 (coding) PRE 820 (config) PRE 830 (transactional) PRE 840 (transactional)
DV3 810 (coding) DV3 820 (config) DV3 830 (transactional)
Development
DV9 810 (coding) DV9 820 (config) DV9 830 (transactional)
Development
MA6 900 (transactional)
(Production size)
PRM 900 (transactional)
(Production size)
PRD 900
Production
Sandbox non-Hana
SCD 810 (coding) SCD 820 (config) SCD 850 (transactional) SCD 830 (transactional)
EWQ 901(transactional)
SCS 810 (coding) SCS 820 (config) SCS 830 (transactional) SCS 840 (transactional)
Development
QA (production size)
EWM landscape
Converted to Hana
SYSTEM LANDSCAPE
KEY FUNCTIONALITY IMPLEMENTED
Inbound processing
• Receiving
• Vendor PO receiving
• Auto receipt into hold bins for 311 moves from tech
• Customer returns receiving
• Plant/sloc returned to EWM plant/sloc
• Quality inspection
• System-guided putaway
Internal processing
• Cycle counting/physical inventory
• Automatic replenishment
• Labor management enabled for all internal processes
Outbound processing
• Order processing
• Standard customer orders
• Emergency part pickups
• Stock transfer orders
• Return to vendor
• Subcontracting
• Wave management
• Multiple order/batch picking
• Multi-zone picking
• Enhanced two step picking process
• Labor management
• Shipping
• Parcel carrier integration via XPS
PROJECT ACCOMPLISHMENTS
High Level of Integration between Applications/Devices
• Replication of master data from ECC to EWM
• Two way interfaces for transactions between ECC and EWM
• Security roles/authorizations
• RF real time integration to application
• XPS integration to scales
Ease of Use
• Customizations were made to the RF to streamline activities
• Custom solution was developed for consolidated picks of materials
• Custom programs developed to streamline master data activities for mass creations
• All physical moves can be scanned which fosters efficiency and accuracy and eliminates key strokes
Facilitated Standardized Processes for Logistics
• Customizations were made in EWM/RF to facilitate goods receipt by PO number
• Custom program developed to close STO items to avoid backorders so MRP could re-plan
• Customizations were developed to support work order reservations
Receiving users receive by PO. If there is no Inbound delivery in EWM they are unable to proceed. If there are multiple inbound delivery per PO they will all be taken into account but the user does not need to know about them.
ENHANCEMENT FOR INBOUND PROCESS ALLOW RECEIPT BY PURCHASE ORDER
ENHANCEMENT AUTOMATING REPACKING TO CARTHU FOR PUTAWAY
Custom development was made on the RF to repack the Dummy HU into a “cart” HU. This allows the receivers to add multiple PO received onto a single CartHU until full. When the CARTHU is “closed” standard putaway warehouse tasks are created and material is put-away by HU to the appropriate bin location.
ENHANCEMENT FOR OUTBOUND PROCESS AUTOMATES CREATION OF TU AND LOADING OF HU(S) ONTO TU
An enhancement was made to create the TU by scanning the pre-printed TU label and then load Pick Hu's onto the TU. Materials will remain “staged” on the TU until carrier arrives. NOTE: Both the Pick HU and the TU have barcoded tags for logistics to scan.
ENHANCEMENT TO PGI THE TU
Multiple HU’s can be assigned to a single TU. When the carrier arrives and picks up the materials, logistics will scan the TU label. A single button is pushed on the handheld and all HU’s/materials will be PGI’d against the EWM delivery and the appropriate goods movement is posted in ECC.
CHALLENGES AT GO LIVE
Move to new facility in addition to software
implementation
•Reduced amount of time available for training
•Everything was new and different
•Floor layout of bins
•Software
•New RF devices
System Performance Issues
•Network bandwidth issues at the new facility
•RF latency issues
•Screen size on the actual handheld was problematic
•Database stability
•Load balancing across the servers had not been set up
Security Roles/Authorizations
•Communication settings between ECC and EWM as a “trusted system” were a bit troublesome
•The integration between ECC and EWM used different movement types that needed to be added to the Logistics role in ECC .
•Fire fighter roles needed to be set up correctly to talk between systems
Shipping Issues
•XPS development lagged behind causing issues at shipping station
LESSONS LEARNED
• Resource commitment and flexibility during the implementation
• Teams ability to identify and resolve issues quickly
• Level of communication and visibility into progress made and upcoming milestones
• Well defined requirements
• Project was managed within the approved EC budget
• The project was able to manage to and deliver the baseline scope
• Integration partner’s knowledge base and expertise in support of the project
What went well?
LESSONS LEARNED
• Post go live issues and defects
• Plan additional time/effort for defect mitigation post go live
• Hyper care time line
• Should have planned for four vs. two weeks of hyper care support
• Hand held device and printer config issues
• Coordination of security roles testing
• Environment migration
• Make sure corrective actions are documented in lower level environments to ensure they are completed as migration occurs.
• Vendor cutover and go live support overruns due to incomplete development (RF/XPS)
• Clarity on who will oversee and perform master data conversions
• Training/testing timeline
What could have gone better ?
RECOMMENDATIONS
• Make sure you have someone with strong ECC business and system knowledge to pair with the EWM resources
• Have a resource that can focus on the master data components for both ECC and EWM
• Have a resource that can focus on the RF and printer elements of the project
Project resources
• Make sure to include integration with production like batch job variants and scheduling and XPS
• UAT should be more encompassing and threaded to ensure transactions post correctly between ECC and EWM
• Provide adequate time for end user training
• Properly plan for security roles testing per SAP security guidelines. Formalize role testing and ensure that’s it’s a part of UAT.
Testing
• Look for opportunities to streamline transactions and/or processes
• Automate transactional and master data activities
• Conduct knowledge transfer and training of system to both clients and internal SAP Support Team
Continuing Improvements
• Review the blueprint document to ensure documented processes and still valid for Southern Gas and Houston Electric DC’s
• Update blueprint with any changes needed in preparation for the subsequent implementations
Subsequent Implementations
LOOKING AHEAD