SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Saravan Chellamuthu Sr. Manager - Enterprise Solutions
PepsiCo Worldwide Flavours
SAP MII IMPLEMENTATION
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Agenda
1. Business Description
2. Background
3. Solution through MII
4. MII Project Overview
3.1. Challenges
3.2. Implementation Methodology
3.3. Strategy and Phases
3.4. Solution Architecture
5. Benefits Achieved
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
PepsiCo Worldwide Flavors (PWF)
PWF is the Power House of PepsiCo that manufactures and distributes Concentrates for
Beverage
19 Locations in 12 Countries
1300+ Staff
$9BN Revenue
751 SAP users
PWF supplies 92% of PepsiCo’s Global LRB (Liquid Refreshment Beverage) market which
represents 254 billion consumer servings per year
PWF’s Supply Chain:
Sources 2000+ ingredients from 450+ suppliers,
Makes 900+ concentrates in 11 different plants,
Delivers to 600+ Bottlers across 140 countries
Innovation is driving increases in transactional and operating complexity
1. Business Description
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 1. Business Description
4
Concentrate Manufacturing
Flavour Acidulant Ingredients
Bottlers Add Sugar, Water + CO2
Retail Finished Beverage
One
Batch
of
Conc.
5 Million
8 OZ Cases
>100 Million
Consumer servings
The Beverage / Concentrate Model
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 1. Business Description
5
Liquid Manufacturing
Liquid Filling
Salt Manufacturing
Salt Filling
Manufacturing Flow
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 1. Business Description
Liquid Manufacturing
- Bulk Material stored in Tank
- Ingredients from IM / WM managed areas
- MII Portal used to perform GR / GI
Salts Assembly
- Packing of Salts bags to Cases
- GR through SAP RF Console
- GI through SAP MII
Liquid Filling
- Filling the Bulk Liquid to Packages
- Components to be backflushed upon GR
- Gets the same batch# as bulk
- GR through SAP RF Console
Salts Filling
- Filling of small pre-packs from large sacks
- Components to be backflushed upon GR
- Finished product is a quantity of bags in bin
- GR through SAP MII
Finished Goods Warehouse
Raw Material Warehouse / Tank Farms Raw Material Warehouse
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Agenda
1. Business Description
2. Background
3. Solution through MII
4. MII Project Overview
3.1. Challenges
3.2. Implementation Methodology
3.3. Strategy and Phases
3.4. Solution Architecture
5. Benefits Achieved
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
PWF Embarked on a journey of transformation
2. Background
Ireland – Little Island and Carrigaline
Texas Puerto Rico Venezuela, Brazil
Mexico, and Uruguay
China, India, and
Pakistan NACO
Oracle
FORE -
CAST
MAPICS
PCS&D
MAPICS DB
COS
BOS (invoicing)
Walker AR
Oracle
MFG Pro
SUN
MAPICS XA
DRP
MAPICS DB
MAPICS
XA TRAX
Oracle,
Prevail6 Avail cAvail
FMS
GPR, GFR, and GCD OLIS
GSQA
InTouch / InBatch
DMS
Inqas Inqas Inqas Inqas
Oracle
FORE -
CAST
MAPICS
PCS&D
TRAX
DRP
InTouch / InBatch
TRAX
Inqas Production Execution to
Distribute
Hire to Retire
Accounting to Report
Decision Support
Source to Pay
Order to Cash
R&D to Launch
Demand Management to
Supply Planning
MAPICS XA
Ireland – Little
Island and
Carrigaline
Texas Puerto Rico
Venezuela, Brazil
Mexico, and
Uruguay
China, India, and
Pakistan NACO
Ireland – Little
Island and
Carrigaline
Texas Puerto Rico
Venezuela, Brazil
Mexico, and
Uruguay
China, India, and
Pakistan NACO
Oracle
FORE -
CAST
MAPICS
PCS&D
MAPICS DB
COS
BOS (invoicing)
Walker AR
Oracle
MFG Pro
SUN
MAPICS XA
DRP
MAPICS DB
MAPICS
XA TRAX
Oracle,
Prevail6 Avail cAvail
FMS
GPR, GFR, CDD and GCD OLIS
GSQA
InTouch / InBatch
DMS
Inqas Inqas Inqas
Oracle
FORE -
CAST
MAPICS
PCS&D
High Jump
DRP
InTouch / InBatch
TRAX
Inqas Production Execution to
Distribute
Hire to Retire
Accounting to Report
Decision Support
Source to Pay
Order to Cash
R&D to Launch
Demand Management to
Supply Planning
Business Streams
MAPICS XA
Avail
Amex
Cognos Cognos
Vies and Intrastat
Nota
Fiscale
BU
Systems
Hyperion Hyperion Hyperion
Hyperion
Hyperion
Suite Voyager
High Jump
High Jump
Rockwell
Business Objects
XCeed
Hyperion
RFPPS
Business Objects
Cognos
BOS
CMDS
EMN S
WinLi ms
WinLi ms
WinLi ms
WinLi ms
WinLi ms
WinLi ms
Loftware
Loftware
Loftware
Maximo
PeMAC
MasterSaf
Maximo
Domus
Citibank Citibank
CitiDirect
COLME NA
Banamex
CPA
FTZ Group
Fortis
Ireland – Little Island and Carrigaline
Texas Puerto Rico Venezuela, Brazil
Mexico, and Uruguay
China, India, and
Pakistan NACO
Oracle
FORE -
CAST
MAPICS
PCS&D
MAPICS DB
COS
BOS (invoicing)
Walker AR
Oracle
MFG Pro
SUN
MAPICS XA
DRP
MAPICS DB
MAPICS
XA TRAX
Oracle,
Prevail6 Avail cAvail
FMS
GPR, GFR, and GCD OLIS
GSQA
InTouch / InBatch
DMS
Inqas Inqas Inqas
Oracle
FORE -
CAST
MAPICS
PCS&D
TRAX
DRP
InTouch / InBatch
TRAX
Inqas Production Execution to
Distribute
Hire to Retire
Accounting to Report
Decision Support
Source to Pay
Order to Cash
R&D to Launch
Demand Management to
Supply Planning
MAPICS XA
Ireland – Little
Island and
Carrigaline
Texas Puerto Rico
Venezuela, Brazil
Mexico, and
Uruguay
China, India, and
Pakistan NACO
Ireland – Little
Island and
Carrigaline
Texas Puerto Rico
Venezuela, Brazil
Mexico, and
Uruguay
China, India, and
Pakistan NACO
Oracle
FORE -
CAST
MAPICS
PCS&D
MAPICS DB
COS
BOS (invoicing)
Walker AR
Oracle
MFG Pro
SUN
MAPICS XA
DRP
MAPICS DB
MAPICS
XA TRAX
Oracle,
Prevail6 Avail cAvail
FMS
GPR, GFR, CDD and GCD OLIS
GSQA
InTouch / InBatch
DMS
Inqas Inqas Inqas
Oracle
FORE -
CAST
MAPICS
PCS&D
High Jump
DRP
InTouch / InBatch
TRAX
Inqas Production Execution to
Distribute
Hire to Retire
Accounting to Report
Decision Support
Source to Pay
Order to Cash
R&D to Launch
Demand Management to
Supply Planning
Business Streams
MAPICS XA
Avail
Amex
Cognos Cognos
Vies and Intrastat
Nota
Fiscale
BU
Systems
Hyperion Hyperion Hyperion
Hyperion
Hyperion
Suite Voyager
High Jump
High Jump
Rockwell
Business Objects
XCeed
Hyperion
RFPPS
Business Objects
Cognos
BOS
CMDS
EMN S
WinLi ms
WinLi ms
WinLi ms
WinLi ms
WinLi ms
WinLi ms
Loftware
Loftware
Loftware
Maximo
PeMAC
MasterSaf
Maximo
Domus
Citibank Citibank
CitiDirect
COLME NA
Banamex
CPA
FTZ Group
Fortis
From – Many disparate legacy systems….
Local HR
&T&A Local HR
&T&A
Local HR
&T&A Local HR
&T&A
Local HR
&T&A
To – Common Enterprise suite
SA
P R
6
Production Execution
to Distribute
Demand Management to
Supply Planning
Hire to Retire
Source to Pay
Order to Cash
R&D to Launch
Ireland – Little
Island
& Carrigaline
Texas Puerto Rico
Venezuela,
Brazil, Mexico
& Uruguay
China, India
& Pakistan NACO
PWF SAP ECC, MII
& BW
Financial Planning
XMii linked to local MES & Labelling
Local PM Local PM Local PM Local PM Local PM
Treasury & Hyperion
Accounting to Report
Decision Support
Local HR
&T&A Local HR
&T&A
Local HR
&T&A
Local HR
&T&A
Local HR
&T&A
Local HR
&T&A
R&D Systems
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 2. Background
And we had a complex MES Landscape that we would like to streamline
Level 2 – Inbatch, Intouch, RS View
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
The MES
Area
MAPICS MAPICS MAPICS
/Oracle
QAD/
Mfg Pro MAPICS
SV DB PILIS VOYA S1 CMDS DB SPC DB
Labelling:
Loftware, Codesoft, Bartender
etc.; Often integrated with ERP
Online - Offline
Data Collection:
Sometimes Automatic (SCADA,
Serial); Sometimes manual
Reporting:
Some at the MES layer; Sometimes at
BI Layer; Different kinds of data –
SPC, EDT, OEE, Energy etc.
Other:
Integrated batch in CG; CMDS in
Asia; Automated Pallet LI; Pick To
Monitor in LI; SPC application
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 2. Background
Issues summarized in the MES Space
• 11 Manufacturing plants with varying MES capabilities • Ranging from highly integrated to little or no integration
• Limited MES skills / resources across PWF
• No MES platform commonality with varying levels of complexity & capability • Customisation / bespoke solutions
• Hybrid systems (multi-vendor solutions)
• Inconsistent support network
• Lack of alignment with other PepsiCo Divisions
• Legacy systems
• No coherent MES strategy in place – no cross plant standards applied
• Integration largely consists of custom, plant specific solutions for: • Production Tracking
• Product Labelling
• Data Collection
• Quality Control
• Inventory Control
• Investigated both MES and SAP/MES connector technology.
• Baseline requirement is to replicate existing functionality
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Agenda
1. Business Description
2. Background
3. Solution through MII
4. MII Project Overview
3.1. Challenges
3.2. Implementation Methodology
3.3. Strategy and Phases
3.4. Solution Architecture
5. Benefits Achieved
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 3. Solution through MII
In the pursuit to streamline the systems, we first defined the “Scope Principles”
Define the ‘ultimate goal’ for the SAP/MES project!
Identify the tasks we should we do now to:
1. Allow the business to continue as normal
2. Allow us to evolve in the MES sphere
Enable existing integration so the business can continue to perform.
SCADA, Batch Integration, Integrated Labelling etc.
Do this in an standardised way to enable future expansion
Standardised interfaces with SAP using MII
Conformance to appropriate standards (ISA 95, S88, B2MML etc.)
Standardised Core MES Database
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 3. Solution through MII
Scope Finalization
1. Standard, generic database to enable integration.
Built in accordance with appropriate Standards, S95, S88, B2MML communication
Retrofit SCADA integration where it exists already
2. Integrated Labelling Interface
Standard output that can be used in any Labelling System (Loftware, Codesoft ,etc)
3. Inbatch Interface (Two Way Integration)
Productions Orders from SAP to Inbatch
Inventory usage from Inbatch to SAP
4. Other Misc. interfaces – Easy to Replicate with considerable business benefit
Pick To Monitor , Auto Pallet Labelling, SPC Application.
Possibly some IM functionality not readily available in SAP
5. Opportunity for Standard EDT & OEE Reporting Portal
Real-time, Dynamic and Interactive
Can be used where data is collected manually as well as automatically
6. Standard SPC Reporting
Real-time or Historical
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 3. Solution through MII
SAP MII identified as the Integration layer that will serve the need. The Ultimate Goal
Standard Level 2 Systems
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
SAP
SAP MII – Standardised Interfacing To and From SAP
Standard FDB Core Database The MES
Area
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Agenda
1. Business Description
2. Background
3. Solution through MII
4. MII Project Overview
3.1. Challenges
3.2. Implementation Methodology
3.3. Strategy and Phases
3.4. Solution Architecture
5. Benefits Achieved
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.1. Challenges
Need for a consistent standard solution. Security is very
important, Secure Network Communications (SNC) is
required
Consistency &
Security
Need for a very robust solution with high availability High
Availability
Need for a multi-language user-friendly portal for the process
rooms and filling lines
Multi-Language
User-Friendly
Portal
During the blueprint phase some requirements were not
covered by SAP; quite a challenge to draw the line
between SAP and MII Requirements
Considerable emphasis on Inventory Management (expensive
materials, complex batching process) Inventory
Management
Historical practice of modifying the ERP system to provide
additional controls for operators in the process areas Historical
Practice
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.2. Implementation Methodology
PepsiCo Standardized Methodology of SAP Implementation
PepsiCo’s Centre of Excellence (CoE) for SAP have developed a standard SAP
Template, called PIRT (PepsiCo International Reference Template)
PIRT evolves every year with new solutions, new practices, etc.,
MES or the Integration layer was not identified before we embarked this project.
This project used the PIRT Deployment Methodologies used for SAP Projects.
Development Methodology
Mini-Blueprint & Prototyping Development with Single Global Blueprint with Production
box per plant
Proof of Concept validation
Blueprint Phase – Detailed Specifications & Screens developed in HTML
Realisation Phase – Phased Delivery of functionality (Unit test as delivered!)
Test Phase & Operate Phase – Initial Project team testing, then End User testing
Go-Live (Waved approach and Staggered go-live)
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.2. Implementation Methodology
Dedicated SAP MII Team
Roles included:
SAP MII Lead – PWF Business Analyst Expert
SAP MII Technical PM
SAP MII Developers
DBA / Basis SME
Super Users
Co-Located with the SAP Implementation Team (A Must)
Aligned with Overall SAP Schedule and Reported into Overall Manufacturing Lead
Highlights:
Unlike SAP, MII wasn’t a out of the box solution and has to be implemented per site
Site specific hardware procurements had to be planned
Getting a MII resource has taken much longer than anticipated and project timeline
had to be adjusted
The main SAP project utilized most of the controls and change management
resources, quite a challenge to pull them in
Quite amount of time spend to distinguish the scope of SAP and MII
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.3. Strategy and Phases
Discovery 1
Blueprint 2
Test and Operate 4
Go Live !
Realization 3
05/11 10/11 08/11 04/11 01/10
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.4. Solution Architecture
SAP MII
SAP
Standard Interface regardless
of Level 2 Systems
Batch System
Liquid
Manufacturing
SCADA System
Liquid/Salts
Filling
Batch I/F
SCADA I/F
LABEL I/F
Labelling System
Labelling
System
LEVEL 4
LEVEL 3
LEVEL 2
Other I/F
Automated
Pallet Processing
SAP MII
Central
Local
FDB – Factory Database
Standard Core Database for
all MII Implementations
(MSSQL)
Manufacturing Reporing
Other
Auto Systems
Examples Site
Specific
Single Site Architecture View
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.4. Solution Architecture
Multi Site Architecture View
Pla
nt
SAP MII n SAP MII 3 SAP MII 2
Plant n
SAP ERP
Production
Planning
Quality
Management
Plant
Maintenance
Materials
Management
Cork
(Ireland)
Arlington
(USA) China
SAP
Enterprise
Portal
SAP MII 1
En
terp
rise
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Cork - Little
Island
Cork - Carrigaline
Cidra Colonia
Guangzhou
Arlington
Atlacomulco
Central SAP
Infrastructure
Plants Corporate
RFCs
BAPIs IDOCs
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
SAP & MII – Combined Approach
SAP
Raw
Materials
W/H
SAP MII Raw
Material
Staging
Raw
Material
Returns
Process
Areas
Finished
Goods W/H
and
Shipping
Focus of SAP:
Controls Inventory within the Materials
Warehouses
Manages the staging of Raw Material for a
Process Order (Including Batch Determination
and Directed Work)
Manages the Final Product for Shipping or
Finished Good Storage
Focus of MII:
Controls Inventory movements from the Staging to the
Process Area and from the Process Area to the Returns
location.
Displays Process Order and BOM data to the Operator
Creates the Goods Issue to SAP for Raw Material (Dependant
on Material type)
Creates the Goods Receipt to SAP (Dependant on Process)
MES (Future)
Focus of MES (Manufacturing Execution System - Future Project):
MES will provide enhanced Shop floor functionality (More detailed than MII)
MII will supplement MES functionality (SAP Integration)
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Key Architectural Decisions
Local Site level Implementation of MII (Production Environment at Each Plant)
Bypass SAP XI Layer for messages between SAP and MII
Use of RFCs / BAPIs vs. Enterprise Services
Use of a Supplementary MS SQL database to support MII functionality
Decision not to use SAP Portal and rather use MII portal
Use Internet Explorer on Radio Frequency Devices
Centrally managed configuration
Scheduled IDOC and BAPIs for Master Data
User Exit (RICEF) to trigger IDOC of Process Orders on Add/Change/Delete
Use of Net Weaver Development Infrastructure for User Access Control (Roles) and
change control
Use of SNC for Data Security
MS Clustering for High Availability
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
MII Transaction Points
4.4. Solution Architecture
Raw
Material
WareHouse
Staging
Returns
Conc
Tank
Finished
Goods
WareHouse
or
Shipping
Container
Point of Use
Process
Room
Staging
Returns
Liquids
Point of Use
Filling
Machine
Staging
Salts
Returns
Point of Use
Salts Filling
Point of Use
Salts
Assembly
Staging Returns
Bulk
Storage Palletising
Palletising
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.4. Solution Architecture
Integrated Labeling Solution Labeling Interface:
SAP Master Data
Operator Friendly Interface
Standardized Labeling
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.4. Solution Architecture
Back-End Data Integration – In Batch Batch Execution
In Batch Interface:
Orders Direct from SAP
Material Usage direct to SAP
Goods Receipts
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 4.4. Solution Architecture
Back-End Data Integration – Auto-Palletizer
Palletizer Line Interface:
Manage Palletizer
Palletizer Master Data Maintained on SAP MII
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Material Staging Process Flow with SAP ECC & MII
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Product Labeling Process Flow with SAP ECC, MII, SCADA and Labeling System
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
MII – User Interface – Desktop Version
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
MII – User Interface – Mobile Version (with Internet Explorer)
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
MII – User Interface – Desktop Version – Product Labeling Interface
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
MII – User Interface – Desktop Version - Reporting
4.4. Solution Architecture
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Agenda
1. Business Description
2. Background
3. Solution through MII
4. MII Project Overview
3.1. Challenges
3.2. Implementation Methodology
3.3. Strategy and Phases
3.4. Solution Architecture
5. Benefits Achieved
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM 5. Benefits Achieved
MII
Reporting
MII Inventory Control Material
Staging
Production Execution
InBatch
Int.
Auto
Pack
Count
Auto
Pallet
Mgmt. Tanker
Offload
Labelling
Interface
Process Order Int. SFC / SPC Int.
Business Layer
Technical Layer
Inventory Control
- Standardized interface through Portal and RF
- Provides a mechanism for implementing controls
- Manages accuracy and controls in the inventory process with staging.
InBatch Interface
- Enables Automatic Posting of Process Orders from SAP to InBatch and reporting back the usage and Yield
- Decreased human errors
Automated Pack Count
- Enabled different methods to capture yield at ease
- Enabled automation and mobile scanners
Automated Pallet Management
- Provides integration that facilitates the management and control of pallets through wrapping, labeling and receipting.
- Interface techniques can be applied to future implementations.
Product Labeling Interface
- Standardized, Configurable Interface of SAP data to Labeling Systems.
- Works with all Enterprise Labeling Systems (e.g. Loft ware, Codesoft, Bartender)
- Mechanism for SCADA integration on automated filling lines.
Tanker Offload Validation
- Ensures the correct bulk raw material is offloaded to the correct storage location or skid.
- Can be integrated with automation or used independently.
Reporting and Data Collection
- Real time reporting portal for filling lines
- Enables to capture variances, downtime, efficiency, OEE, SPC
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
Benefits Achieved
Adopted a standard practice between different systems for controlling inventory in the process
areas.
Drives a common approach to material management and traceability.
Provides a standardized way of integrating with SAP and other systems.
Helped to reach a common, user friendly portal for process operators.
Minimizes the risk of human error.
Facility to implement key controls.
Implemented utilizing ISA referenced standards (S95, S88)
Provides a industry recognized method of interfacing business data to the Manufacturing layer.
Facilitates future upgrades and maintenance and Provides a roadmap for further integration
Helped creating a common procedure to carry out goods receipt from Liquid Filling and Salts
Assembly.
RF device used to trigger good receipt. Real time transaction, real time data.
Triggers printing of pallet label where applicable.
Adopted a standard practice for interfacing label data from ERP
Eliminates the need for double entry
Provides a foundation for standardizing product labels across PWF
Helped creating a standard mechanism for providing data to peripheral databases
Helped achieving integrated Active Ingredients calculations and KPI using SAP & MII.
5. Benefits Achieved
SAP ENTERPRISE OPERATIONS
MANAGEMENT FORUM
© SAP 2008 / Page 38
Thank You!
Saravan Chellamuthu Sr. Manager - Enterprise Solutions
Q&A