With SAP R/3 on the way to an industrial park

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R/2-R/3-Migration

as part of the transformation of

a homogeneous single company site

to an industrial business park

Jakob Wöllenweber Akzo Nobel Faser AG Oberbruch

Dr. Reinhardt Koch Gesellschaft für Rationalisierung Aachen

Presentation given at the international SAP-R/2-congress at Strasbourg (April 16-19 1997)

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R/2-R/3-Migration as part of the transformation of a homogeneous single company site to an industrial business park

Problems, experiences and successes of organizational andIT-specific kind

Starting point: Homogeneous company site witha couple of different centrally controlled plants with

similar organizational structures and IT-systems

Goal: Industrial park with AKZO NOBEL subsidiaries, non consolidated as well as not

affiliated companies with diverse own IT-systems

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Content:

Introduction: The Company and the products

The starting position

The process of transforming to an industrial park

The implementation by SAP R/3

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Introduction: The Company and the products

AKZO NOBEL Arnheim

ChemicalsCoatings

Pharma

Fibers

Business Units Textile Industrial Membrana Non Wovens

Sub BU's ViscosePolyester-

chipsSympatex

Enka tecnica

HIMA GmbH

Polyester yarn

Carbon fibers

Sites

KelsterbachElsterbergEde NLGorzow PLObernburg

Konz

AKZO NOBEL Faser AGAKZO NOBEL Fibers bv

Oberbruch

Kleefse Ward NL

Aramidnon consolidated

companies

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The starting position at the Oberbruch location:

The

- organizational

- accounting

- EDP-point of view

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The organizational starting position at the Oberbruch location:Five productive units and one non-productive unit for all plants

Maintenance and fixed-asset investments

Ma

teri

als

m

an

ag

em

en

t fo

r a

ll m

ate

ria

ls

Fin

ish

ed

go

od

s

wa

reh

ou

sin

g a

nd

d

istr

ibu

tio

n

Accounting and cost control, personnel management, HSE, power station, sewage plant, Industrial engineering,

chemicals lab, private branch exchange, EDP-system

Spinnerets (Enka tecnica)

Carbon fibers

Polyester yarn

Polyester chips

Viscose yarn

Site Services

ViscosePolyester

chipsPolyester

yarnCarbon fibers

Spinn-düsen

Tecnical Services

Location management

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Maintanance and fixed-asset investments

Ma

teri

als

m

an

ag

em

en

t fo

r a

ll m

ate

ria

ls

Accounting and cost control, personnel management, HSE, power station, sewage plant, Industrial engineering,

chemicals lab, private branch exchange, EDP-system

Fin

ish

ed

go

od

s

wa

reh

ou

sin

g a

nd

d

istr

ibu

tio

n Spinnerets (Enka tecnica)

Carbon fibers

Polyester yarn

Polyester chips

Viscose yarn

Site Services

Viscoseyarn

Polyester chips

Polyester yarn

Carbon fibers

Spinn-düsen

TecnicalServices

Location management

The accounting starting position: Cost accounting and transfer by cost types via main and sub cost centers

Main cost departmentsCost allocation and (late)

accounting per cost center

Primarycosts

Primarycosts

Primarycosts

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The EDP-starting position (1):Host-, Server- and Client level

IBM AS/400 Novell Server

IBM MVS

IBM ES/9000

Host-Level Arnheim

Host/Server-Level

Oberbruch

Client-Level Oberbruch

RF/RA RV PLACOSRK-E PURSTIC PLINS PAISY

NEC INSIDE PLINSMAPICS AKZOInst MACKS MOSER Leisy Zeisy

LAN Token Ring

ca. 250 PC'sPC

LEK

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The EDP-starting position (2):Interacting of different systems by Batch-Interfaces

Customers

Work in process changes

Meaning of colours:MVS-EbeneES/9000-EbenePC-Ebene

BanksC

ost

s at

st

and

ard

RF/RA

RV RK-E

Work in processInventory changes

RF

-en

trie

s

Oth

er e

xpen

ses

PURSTIC

PLACOS

PAISY

LEISYZEISY

WagesSalaries

Hours

Suppliers

LEK/LEE

PLINSHost-based

PLINSPC-based

Materialchanges

MaterialInventory

Moser

NEC

INSIDE AKZOInst

MACKS

Invoices

WA-Nr.

Actual costs

Issues of materials

Finished goods receipt

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The process of transforming to an industrial park :

- from AKZO NOBEL Plant to cooperating with partners

- from cost center-accountingto customer/supplier-relations

- from group wide EDP-systemto an individual EDP-system

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The process of transforming to an industrial park: AKZO NOBEL plants become non consolidated or legally independent companies

Service Units

Viscose

Chips

ENKA tecnica

Site Services

not legally independent

Business Unit Textile BU T

legally independent

HIMA GmbH

Non consolidated

KUAG GmbH

TENAX GmbHAIS

not BU T Dr. IllingE&KMaassenMeckling&GrefkesProspex

Location Oberbruch

AKZO NOBEL New companies

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The process of transforming to an industrial park :From cost center-accounting to customer/supplier-relations

Site Services

Ma

inte

na

nc

e--

>H

IMA

Gm

bH

Materials manage-

ment for all materials

Accounting and cost control, personnel managem., HSE,

power station, sewage plant, Industrial engineering,

chemicals lab, PBX-service

Finished goodsware-

housing and

distribution

AKZO NOBEL Information Services

Carbon fibers-->Tenax GmbH

Polyester yarn-->Kuag GmbH

Spinnerets (Enka tecnica)

Polyester chips

Viscose yarn

New companies

External customers

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The process of transforming to an industrial park :From group wide EDP-system to an individual EDP-system

Mig

rati

on

pro

cess

ViscosePlantR/3

PAISY

TenaxGmbHINDO

KuagGmbH

R/3

SiteServices

R/3

HimaGmbH

R/3

EnkatecnicaMAPICS

PolyesterchipsR/3?

ViscosePlant

R2-RF/RAPURSTIC

NECINSIDE

PLACOSPAISY

Carbonfibersplant

Polyesteryarnplant

SiteServices

PlantMainten.Services

Spin-neretsplant

Polyesterchipsplant

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The implementation by SAP R/3:

- the "medium sized companies" Site Services andHIMA GmbH

- the R/3-concept for Site and HIMA

- the peculiarities of the R/3-implementation

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The implementation by SAP R/3:The "medium sized companies" Site Services and HIMA GmbH

Site ServicesEmployees 250 Revenues 70 Mill. DMProducts/Services- Stock, Purchasing, Waste mgm. - Power station - Finish. goods wareh./distribution- Sewage plant- Accounting and cost control - Personnel department- Industrial Engineering - New business marketing- Health, Safety, Environment - Chemical labs

HIMA GmbHEmployees 400 Revenues 50 Mill. DMProducts/Services- Maintenance for customers production units- Manufacturing and assembly of customer specific equipment and components (mechanical and electrical)- Specific measuring services (heat and vibrations)

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The implementation by SAP R/3:The SAP R/3-concept for Site and HIMA (picture Nr. 1)

Replaced bySAP R/3 for Site

and HIMA

Customers

Work in process changes

Meaning of colours:MVS-EbeneES/9000-EbenePC-Ebene

BanksC

ost

s at

st

and

ard

RF/RA

RV RK-E

Work in processInventory changes

PURSTIC

PLACOS

PAISY

LEISYZEISY

WagesSalaries

Hours

Suppliers

LEK/LEE

PLINSHost-based

PLINSPC-based

Moser

NEC

INSIDE AKZOInst

MACKS

Finished goods receipt

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The implementation by SAP R/3:The SAP R/3-concept for Site and HIMA (picture Nr. 2)

Other expenses by

slip

SuppliersCustomers

SuppliersCustomer

Periodic list of supplies and

Services for Kuag, Tenax, ET, Chips,

Rayon HIMA

R/2-RF

W+S AU01

Banks

AU01

RF-entriesfor AU's 60/57/53

FI for HIMA

AM MM PP SD CO

Banks

AU58

L+G AU58

AKZOInst

Materials

Orderplacing

MACKS Orderfinished

FI for SITE

CO PM MM AM

PeriodicFI-->RF-Transfer of Site-balances

PeriodicFI-->RF-transfer

of HIMA-balances

WA-NrAVO-Nr

KSTWA-Nr

orAV-Nr

LEISYZEISY

PAISY

LEK

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- the peculiarities of the R/3-implementation

- the Site is the biggest supplier for the HIMA

- the type of coexistence between R/2 and R/3

- the fixed price conditions for the R/3-Imple-mentation by GfR

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The peculiarities of the R/3-implementation:The Site-stock inventory as a consignment purchasing for the HIMA

Sale to HIMA via materials order for

"Consignment" stock HIMA-shop floorMagazine

View by Site:Own materials

SiteR/3-System

Materialsorder

dat

a m

od

elli

ng

ph

ysic

al f

low

o

f m

ater

ials

HIMAR/3-System

View by HIMA:Consignment by

supplier

Batch Inputs--------------------

Issues

Material demands and consignment

inventory

Ku

ag

Te

na

x

Ch

ips

Vis

-c

os

e

En

ka

tecn

ica

Sales for other customers

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The peculiarities of the R/3-implementation:The type of coexistence between R/2 and R/3

- FI isthe leading system for the accounting of Site and HIMA- All HIMA- and all Site-customers are accounts receivable in the

respective FI - All sister organisations of the AKZO NOBEL group become

accounts receivable/payable, even Site and HIMA vice versa- All debts receivable by invoices, all payments via banks- 1:1-Relationship between R/3-FI-accounts and R/2-RF-accounts- Original RF-entries (f.e. group-Clearing) as slipsto R/3-FI- In special cases transfer and entry of R/3-slips to RF

(f.e. Intrastat)- Before closing the accounts in RF transfer of FI-accounts

balances to RF- Disclosure, consolidation and balancing for

AKZO NOBEL Faser AG unchanged via R2 with Host-programs

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The peculiarities of the R/3-implementation:The fixed price conditions for the R/3-Implementation by GfR Aachen

Prerequisites for the fixed price condition:- Intensive joined preparations - Contractually agreed project contributions from Akzo Nobel employees- Rules for fast conflict clearance and decision making

AKZO NOBEL Faser AGOberbruch

SAP-Team

Use

r-C

on

trib

utio

n

Site

-EM

HIM

A-E

MA

N-E

M W

ptl.

R/3-System Management

GfR-EM and UA

HIMA-EM

Site-EM

AIS-EM

Responsability of projectleader GfR EM=Employee