Tennant’s implementation of a Global PLM Strategyfm.sap.com/data/UPLOAD/files/Tennants...

26 June 2013

Tennant’s implementation of a

Global PLM Strategy

SAP Manufacturing Industry CVN Forum

Learning Points

1. Introduction

2. Why Tennant selected SAP PLM for their global PLM strategy

3. PLM Solution – as deployed in 2008 - 2010 and under

continuous improvement

4. Review benefits achieved since the PLM implementation

5. Lessons Learned (Culture Change Management)

6. Next Steps

Tennant Mission / Vision

• Mission: Provide superior cleaning solutions that increase

customer productivity and improve health and safety

• Vision: Help customers create a cleaner, safer world

• Founded in 1870 by George H. Tennant

• Manufacturing operations in Minnesota, Michigan, the

Netherlands, United Kingdom, China, and Brazil

• Engineering functions in US, the Netherlands, United Kingdom,

and Brazil

• Global sales and service network

• Revenue: $740 Million USD (2012)

• Employees: ~2,500 worldwide

• Operates on a single, global SAP Instance, ECC 6.0, EHP 5

Production Planning, Inventory/Warehouse Management,

Sales/Distribution, Logistics, Finance, Human Resources/Payroll, Quality

Management, Transportation, CRM, etc.

Tennant Product Lines

Peter Loring,

Engineering Manager, Engineering Services

• Joined Tennant in 2002

• Original position was Principal Engineer, New Product

Development

• Twenty years of experience in the discreet

manufacturing industry

• 10 years of SAP experience as a user

• Implemented DSC’s, ECTR, CAD Product Data

Management, Integrating SolidWorks to SAP

• Leader of PLM – Global Power User Group

Learning Points

1. Introduction






6. Next Steps

Business Drivers: Why SAP PLM?

There are many components to SAP PLM (2008 Solution Map shown below)

Mid-2008: Tennant chose to focus on the issues surrounding a difficult

and unsustainable Engineering Change Order process.

SAP solutions for the following process issues were considered:


Prior ECO process was a home-grown system that worked sufficiently for a

company that consisted of two locations in the US Process relied on “tribal knowledge” and “business heroes” to push changes through the system

Success was based on regional effort and diligence, with inconsistent methods and results

Design Engineering was required to “own” each change through the whole process This placed a significant drain on Design resources needed to focus on product issues and development

Translating this culture to new acquisitions or wide-spread regions was largely

unsuccessful and not sustainable for long-term corporate growth


Prior ECO process utilized the SAP Change Master, but was otherwise run off-

line from the main SAP system Process consisted of a Microsoft Excel spreadsheet with extensive programming that drove

workflow via Outlook email

Multiple non-SAP tracking systems were required to manage the ECO process

Process steps and signoff requirements were not standardized

Lack of security in protecting change order history further undermined trust in the data

A manual Change Order audit by a central “Engineering Records” team was required to ensure

the results were at least somewhat consistent. This manual audit process consistently yielded a greater than 60% first pass non-conformance due to the

un-structured nature of the system

Interviews of Users showed that it took approximately two years to become proficient in the process


2008 ECO User Survey results

Qualitative analysis

Benchmark snapshot

Results after multiple

process improvements


Continuous Improvement of a non-

PLM based ECO / PRO Process

2005: Global Process Team Formed

• Initial development of global ECO process

2006-2007: Global Process Launched

• Process was global, but roles,

responsibilities and accountability missing

so not adopted by all sites.

• Limited tools for reporting.

2008: ECO Kaizen Events

• ECO Phase 6 & 7 Kaizen (April 2008)

• ECO Phase 1-4 Kaizen (August 2008)

• Progress made in improvements in ECO

data entry spreadsheet and routing for

material setup have reduced effort but

provide minimal improvements in accuracy

or knowledge-based decision making.

Radical Change – Adoption of a full-

function SAP PLM system

2008 – 2010:

• Tennant has grown to the point where an

over-arching PLM system is necessary to

provide the base for growth of the company.

• Tennant’s home-grown data and change

management processes must be replaced

by standardized, industry best-practice

methods that leverage our investment in

SAP.

• Current economics dictate that we can no

longer sustain the inefficiencies of the

current processes.

• Tennant’s recent upgrade to ECC6 and

SAP’s latest developments in SAP have now

set the stage for this capability.

• Radical Change is only way to make this

work


Part

Search

Material Tracker

Project

Documents

NPD

Project

Financials

PDL Databases Drawing Locator

Task

Tracker

ECO Application

PRO Application

Customized

Processes

Outlook

Notifications

Repetitive

Data Input

Parts

Tracker

Process gaps and manual systems = Barriers to Innovation

SAP ERP

CAD

&

Analysis

PDM

Time

Control

Database

Parts

Tracker Parts

Tracker Parts

Tracker


Time

Control

Database

Drawing

Locator

Part

Search Material

Tracker

Project

Documents

NPD Project

Financials

PDL

Databases

Drawing

Locator Task

Tracker

ECO

Application

PRO

Application

Customized

Processes

Outlook

Notifications

Repetitive

Data Input

Phased Approach Solution Phase 2 Phase 1

Parts Tracker Parts Tracker

Parts Tracker Parts Tracker

SAP ERP

CAD

&

Analysis

PDM


SAP ERP

CAD

&

Analysis

SAP PLM

- Industry Best Practices

- “One Source of True Data”

- Standardized, Global Processes

- Workflow Control Documents

- “Focused” Engineering Site

Systematic, seamless data management = Rekindled environment for

Innovation


SAP PLM was chosen in order to leverage the core SAP

infrastructure in place at Tennant

LeverX chosen as the development partner due to extensive

experience in PLM and discreet manufacturing processes

Promote within Tennant industry best practice and eliminate

existing custom and manual off-line processes

Drive consistency throughout the organization

Create “one source of truth” for results of change processing

Provide a change management solution that is scalable as the

business grows and can be readily adopted by acquisitions

Instill in Tennant a new “process oriented” culture

Build on the SAP PLM Roadmap and long-term strategy

Learning Points

1. Introduction






6. Next Steps

PLM Solution: Product Change Order

In Scope (Design and Operations driven changes / introductions)

Development of Engineering Plant in SAP

Development of new enterprise-wide, Global Roles & Responsibilities

for Material Master and Change Order processing and management

Development of a transfer process of data from Engineering Plant to

Operations Plant

Development of Plant-level Org structure: Job position mapping to

Global Roles matrix (RACI)

Development of Workflow notifications for Change Order processing

Development of Workflow utility and revised data tables for New

Material Setup (elimination of copy templates)

Development of issue escalation maps

Development of Data Cubes in Business Warehouse

Development of performance metrics reports


Situation assessment process (Eight 12 Weeks)

Listening sessions with key business subject matter experts at

multiple locations

Review of current-state business processes and tools

Identification of pain points among User Community

Identification of existing process gaps and inconsistencies

between locations

Analysis of non-value-added activity (Time Spent) :

Data re-keying and auditing process deliverables from those involved in

processing the change

Time spent by ECO Stakeholders trying to track down ECO’s they care about

Cleaning up loose ends after ECO’s were supposedly complete

“Chaser” ECO’s through the process to correct previous ECO’s

Training new Users to become competent in the tribal community knowledge

of their local processing instructions

Payback was projected to be less than 2 years. The summation of these inefficiencies as a percentage of User time was then equated to

FTE’s that could be re-directed


Solution development: Corporate structuring and workflow (24 weeks)

Decided to replace excel spreadsheet and email distribution with SAP

Workflow and Notifications to drive consistency

Developed a RACI matrix to identify and catalogue process tasks and

resource Roles required to execute Workflow Tasks

Developed a sequence of ECR ECM PCM notifications to manage

the change process through measurable stages

Identified and resolved process gaps and circular activities that

presented roadblocks to Workflow Task sequencing

Globalization and standardization of singular workflows based on

Change Reason Codes

Required significant change management from culture of ‘local heroes’ to

standardized processes / Workflow and pre-determined Task required deliverables

Required ‘Understanding of and Buy-In’ of process by Managers who did not

necessarily know how their teams previously executed Change Orders

Assembled a PLM Global Power User Group (GPUG) to resolve the cultural conflict

between ‘Lean Process vs. Rigor and Completeness’

This issue remains the biggest hurdle, even today (see Lessons Learned)

PLM GPUG


Adobe Smart Form

Populates SAP

ECR Notification

ECR Notification becomes

linked to and populates the

ECM Notification

ECM Notification becomes

linked to and populates the

PCM Notification

In non-design change

situations, an ECR can be

linked directly to a PCM

Design activity in the

Engineering Plant environment

Execution at the

individual Plant level


Rationale for Engineering Plant:

Segregates new product development activities from normal

operations functions

Simplifies the lifecycle status management of materials by

secluding development materials from Operations

Allows engineers to quickly create new prototype parts, many

of which will never be used in operations

Facilitates the purchase of prototype parts from vendors or

internal operations plants for NPD activities

Enables engineers to use standard costing functionality to

monitor new product cost targets

Eliminates the use of Excel tracking spreadsheets for building

and managing BOMs for new products


Workflow Task RACI – driving alignment and consistency

The RACI also serves as the Workflow Task Editor that is loaded into the SAP logic tables


Typical ECR Notification Data loaded in automatically from Adobe ECR form


Typical ECM Notification Data loaded in automatically from ECR notification


Typical PCM Notification Data loaded in automatically from ECM or ECR notification


Typical Task progression tracking and traceability:

Task notes used to record User’s action details

Task start & finish times

Task Role Assignment


Notification Document flow charts the linkages from beginning to end

Notification linking can be accomplished in multiple ways as needed: One-to-One

One-to-Many

Many-to-One

Many-to-Many

At Tennant, ECM’s manage the global design process, while PCM’s are unique to each

Production Plant as the execution vehicle for that Production Plant This provides for micro-control of the Plant-level execution strategy while allowing each

plant to execute independently on their own schedule

ECR ECM

PCM

Learning Points

1. Introduction






6. Next Steps

PLM Solution: Benefits Achieved

Implementing this first phase of PLM process and methodology:

Pulled all change order-related activities and documentation into SAP

as the driver and repository for ‘consistent results’ and ‘one source of

truth’ globally.

Provided a methodology for creating clean and accurate data when

extending Design Materials into the Production Plants

Implementation deadlines provided a ‘burning-platform’ to force

various partner Roles to resolve circular issues and process gaps

Using the process system to drive Task ownership, repeatability, and

accountability with full audit capability

New process is ISO certified and much easier to maintain certification

than the previous system.

Process is transparent and aids in quantifying bottleneck resources

Development and Implementation highlighted need for Governance

Pioneered a path for Tennant to implement other process-driven SAP

Line of Business Solutions

CRM SCM EH&S SPRC PLM 7.0x

PLM Solution: Benefits Achieved

BW reporting and analytics show trend-lines: Activities and Efficiencies

PLM Current State: 3 Years Later

• Capability Maturity Model Index is 5, Optimizing

• Reason Codes are increasing for selective tasks

• Performance metrics are changing with understanding

– Ratio of accepted ECRs to rejected ECRs

– Mean time to complete ECM and PCM

– Mean time to complete material change

– Quantity of materials changing reflects effort not ECM/PCM

– Need to know details of each ECM/PCM to understand why it moves

quickly or slowly through the process

• Culture trusts the process, struggles with priorities

– PLM is no longer blamed for speed of process

Learning Points

1. Introduction






6. Next Steps

PLM Solution: Lessons Learned

Implementing this first phase of PLM process and methodology:

1. Know your audience = Organizational readiness for change

2. Aggressive timelines seem doable, but can undermine execution and

acceptance if culture change management / training is rushed

3. Never underestimate the cost and time required for adequate User

and Manager training

4. Subject Matter Experts are fine; an empowered Global Power User

Group of key influencers is better!

a) Acknowledge that no system exists that will satisfy everyone

b) Role of GPUG is to represent the User Community and ensure silos don’t

get in the way of a successful development and deployment

c) Process rigor and data completeness are always acknowledged, but

seldom embraced by those required to deliver; the GPUG owns this issue

d) The GPUG can also be used to leverage resources for creating training

materials and testing them on their departmental teams

e) The GPUG must develop the metrics for base-lining the current system

as well as the metrics to show what the new process system delivers

f) There will be two waves of culture change management: initial at start

and second at launch. The second one is the hard one.

PLM GPUG

PLM Solution: Lessons Learned

“Best Practice” Product Change processes are critical to market success

– “Tribal Experts” approach:

Appears to be “Easy” and conducive to localized practices preferred by “tribal heroes”

However, it is not scalable

Does not induce data accuracy nor provide traceability

Is not repeatable when tribal experts leave or are unavailable

Does not support continuous process improvement

Limits the ability to track business metrics

Increases costs to support Audits and Compliance

– “Automated Process” approach (rigorous, global process ):

Resolves issues listed above

Provides for analysis of processing bottlenecks that could not be determined

previously

At first appears to be more complex and time consuming

Introducing PLM today is analogous to introducing 3D CAD in the 1980’s

Many people did not foresee the value of extensive CAD models and the power of down-

stream re-utilization of that data

Learning Points

1. Introduction






6. Next Steps

PLM Solution: Next Steps

2012 - 2013:

1. Continuous improvement of current process, tools, and analytics

2. Continuous development and deployment of improved training tools

3. Further refinement of the process to support New Product Launches

4. Work with IT and LeverX to define how to migrate current solutions

to the PLM 7.0x platform

a) Need to retain the RACI methodology to prescribe workflows while

upgrading to the Engineering Change Record process

b) Supplement RACI workflows with flexible ad-hoc workflow actions

c) Introduce BOM redlining and EBOM/MBOM management tools

d) Introduce Product Visualization

e) Introduce Product Structure Management for Variant Configuration

starting in the pre-design phase

f) Continue to build the system to integrate directly with other LoB

solutions including GTS, SPRC, EH&S, SCM, etc.

5. Roadmap deployment as budgets and resource levels permit

Questions?

Peter Loring|Manager, Engineering Services / PLM

[email protected]

T: 763 540 1495|M: 763 238 6622|www.tennantco.com

Tennant Company |Creating a cleaner, safer, healthier world.

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