Workshop O2POperation integration and optimization2010.06.18

Agenda

2

Who are we?

What is O2P?

How does it work?

What results have we achieved?

Why O2P?

Who are we?

3

We implement IT solutions

/Mobility/System integration/Low TCO

Process Integrator

We perform process reengineering

/Cost reduction/Operation efficiency/Effort effectiveness

Mission Critical Environments

In multiple activities/Logistics/Production/Maintenance/Quality/ ...

In multiple business areas/Distribution/Transportation/Food manufacturing/Aerospace and Defense/ ...

Who are we?

4

O2P: Retail store operation control

O2P: Industrial Logistics Management System

Track&Trace and SICAMC

O2P: Industrial Logistics Management System

O2P: Integrated Warehouse Management System

Main References

O2P: Maintenance and Logistics

O2P: Flight Planning and Control

Agenda

5

What is O2P?

How does it work?

What results have we achieved?

Why O2P?

What is O2P?

6

An open and flexible

software platform to

simplify operations

integration in

What is the border between SAP and O2P?

7

Business Management Infrastructure

Operations Environment

Inte

gra

ted

OperationalVision

Mobility

Flexib

leAdeq

uat

e

Functional Integration

Sale

s

Pro

du

cti

on

Log

isti

cs

Pla

nn

ing

Operations

Sim

ple

Agenda

8

How does it work?

What results have we achieved?

Why O2P?

How does it work?

9

Operations

Business

OperationalVision

Op

era

tion

Op

era

tion

Transport

Decode Pallet

Signal pallet as received in store

Update delivery item received

quantities

Create stock and stock reversal documents

Create return orders

Close Deliveries

O2P

Receive PalletConfirm

Differences

Material in store and updated stock

Create stock transfer orders

Receive centralized material

How does it work?

10

Operations

Business

Produced material

||||||||||

Create Transfer Request

Create DeliveryConfirm Transfer

OrdersUpdate Serial

NumbersDelivery

Goods Issue

Transport

Segregate materials by Plant

and StorageShip materials

Transfer Materials between plants

BatchSerial #

OperationalVision

Decode Batches Delivery||||||||||

Decode Delivery

Op

era

tion

Op

era

tion

Invoice||||||||||

Push

Batches

Automatic batch and

serial number

determination

How does it work?

11

Operations

Business

OperationalVision

Op

era

tion

Op

era

tion

ProductionGoods Receipt

Pickup Pallet from Conveyor Store pallet in Bin

||||||||||||||||||||

Product Available

Partial production order receipt

Create PalletCreate putaway transfer order

Confirm putaway transfer order

Transfer material between

companies

Transfer empties between

companies

Transfer packing material between

companies

Pallet recognition and signaling Decode Storage BinDecode Pallet

Au

tom

ati

on

Create stock transfer orderCreate delivery for stock

transfer orderGoods issue for delivery

Bin barcodeOr

Pallet stored in same bin

Finished product pallet

Label Pallet

Optimal storage bin determination based in material, batch,

capacity and current warehouse status

Create delivery for stock transfer order

Goods issue for delivery

How does it work?

12

Conceptual Vision

Data LayerPresentation Layers Business Layer

HTTP

HTTP

HTTP

tRFC

HTTP

CO

M

TCP / IPXML

Seria

l

TC

P / IP

COM

COM

COM

sRFC

OLE DB

COM

How does it work?

13

/Uses SAP technology, certified for 4.7 and ECC 6.0/ Information exchange fully based in remote calls, without involving file transfer

/Failover mechanisms assure transaction atomicity and IDOC recovery/Uses standard SAP processes to handle inbound data/Uses multiple standard SAP processes to generate and output data from SAP: Distribution Model, Change Pointers, Output Determination

/Supports synchronous remote function calls to reuse existing BAPIs or custom developed function modules

SAP Integration

Standard Processes

RFCO2P

SAPRFC

ALEIDOCService

Asynchronous Communication (tRFC) - InboundIDOC

Asynchronous Communication (tRFC) - Outbound

Synchronous Communication (sRFC)Transaction

Inbound Processing

Change Pointers

Output Determination

IDOC

Master Data

Business Documents

BAPIsRemote FMs

Pure RPCNo file transfer

Standard SAP Processes

How does it work?

14

Deployment scenario

Agenda

15

What results have we achieved?

Why O2P?

What results have we achieved?

16

Industrial Logistic Management System, assures

process optimization with substantial

productivity gains, effective traceability and

operations control without loss of flexibility and

simplicity.

Results ...

/40% Improvement in goods receipt processing time/50% improvement in inventory count productivity/30% improvement in shipping processing time/Significant increase in volume

/From 4000 production orders per day to over 6000 production orders per day

/ Extreme operation throughputs/Over 3500 Goods Receipts / day/Over10000 picking operations per day

What results have we achieved?

17

Retail Store Operation Management System,

controls and assures the efficient execution of

all material handling operations in Grupo

Jerónimo Martins.

Results ...

/60% increase in inventory productivity/80% improvement in goods receipts without purchase order/90% improvement in distribution centre returns/90% improvement in material checking operations/80% improvement in stock loss reporting effort

What results have we achieved?

18

Warehouse Management System for the largest

frozen food manufacturer in Sweden, integrated

with production line operation optimizing material

flows, assuring batch traceability and the real time

update of the SAP corporate infrastructure

Results ...

/30% increase in shipping volume without cost increase/45% increase in production output and warehouse throughput without cost increase

/Eliminated quality issues caused by material handling delays

Agenda

19

Why O2P?

Why O2P?

20

You must address critical requirements.../Assure business rules and data accuracy/Simplify operations in spite of complex business processes/Keep SAP as the single business management platform/Standardize implementations and processes to minimize TCO

Additionally

/Operations demand simplicity and efficiency/Business demands control and integration

SAP assures business.

How do we satisfy operations?

Why O2P?

21

Apply operations-oriented integration

/O2P assures process optimization, data accuracy and business transparent integration

/SAP assures business and functional integration, rules and information integrity

Transparent integration

Operations

Why O2P?

22

An open and flexible software platform to simplify operations integration in

/ Process optimization/ Fast and flexible modifications/ Standard and simpler SAP implementations/ Significant efficiency and productivity gains in the operations

/ Connects operations and business management with reliable and accurate information

/ Real time information/ Effective and sustainable cost reduction

Allows