Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Jeff MoranskiBusiness Stream LeadProduct Lifecycle Management
Barry JerebManager, Product Selection ToolsGlobal Sales and Marketing
Rockwell Automation and SAP
Journey of Discovery
Topics
• Overview of Rockwell Automation
• Implementation approach (team structure, project timeline, etc.)
• Configurable product line scope – KMAT development
• Configurable system line scope – KMAT development
• Opportunities to Succeed – Making the Right Choices
• Lessons learned
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 3
Rockwell Automation At A Glance
• Fiscal 2011 Sales:Approximately $6.0 billion
• Employees: About 21,000
• Serving customers in80+ countries-- emerging markets over22% of total sales
• World Headquarters: Milwaukee, Wisconsin, USA
• Trading Symbol: ROK
33
Leading global provider of
industrial power, control
and information solutions
Copyright © 2011 Rockwell Automation, Inc. All rights reserved. 4
Serving You Around the World
North America:
300 sales & support locations
9,400+ employees
Latin America:
30 sales & support locations
4,000+ employees
Europe, Middle East & Africa:
90+ sales & support locations
50+ countries
4,000+ employees
Asia Pacific:
60+ sales & support locations
20+ countries
3,600+ employees
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 5
Optimizing Plant Performance, Protecting Your Investment
• Electronic overload protection relays– Increase access to information,
enhance protection & speed troubleshooting
• Soft starters– Decrease mechanical wear
& increase control functionality
• Variable speed drives
– Reduce energy consumption, improve performance & preserve equipment
• Packaged & pre-engineered solutions
– Increase productivity & decrease risk
• Turnkey motor control solutions
– Access manufacturing, engineering & commissioning expertise anywhere
Control | Communicate | Protect
Copyright © 2009 Rockwell Automation, Inc. All rights reserved. 6
Delivering Exceptional Valueto Your Application
• Power
– Circuit breakers, disconnect switches, contactors & starters…
• Connectivity
– Terminal blocks, wiring systems, distributed I/O, DeviceNet media…
• Logic
– Relays, timers, temperature controllers, small controllers…
• Sensing & Switching
– Photoelectric sensors, limit switches & proximity sensors…
• Operator Interface
– Push buttons, signals & alarms, electronic operator interfaces…
• Safety
– Safety contactors & control relays, interlock switches…
Quality components increase functionality & last longer – saving you time & money
Copyright © 2011 Rockwell Automation, Inc. All rights reserved. 7
Increase flexibility & responsiveness while reducing costs & improving quality.
• Bridgestone • Daimler• Chrysler• Ford• GM• Goodyear• Hyundai • JCI • Lear • Magna• Michelin• Toyota
Increase flexibility & responsiveness while reducing costs & improving quality.
• Bridgestone • Daimler• Chrysler• Ford• GM• Goodyear• Hyundai • JCI • Lear • Magna• Michelin• Toyota
Automotive
Satisfy consumer demand, while reducing costs, minimizing waste & improving asset performance.
• Anheuser-Busch InBev• Coca-Cola• Kellogg• Kraft Foods• M&M Mars• Nestlé• PepsiCo/Frito-Lay• SABMiller
Satisfy consumer demand, while reducing costs, minimizing waste & improving asset performance.
• Anheuser-Busch InBev• Coca-Cola• Kellogg• Kraft Foods• M&M Mars• Nestlé• PepsiCo/Frito-Lay• SABMiller
Food & Beverage
Reduce costs while meeting the demands of ever-changing regulations.
• Abbott Laboratories
• Eli Lilly
• GlaxoSmithKline
• Johnson & Johnson
• Merck
• Pfizer
• Roche
• Sanofi
Reduce costs while meeting the demands of ever-changing regulations.
• Abbott Laboratories
• Eli Lilly
• GlaxoSmithKline
• Johnson & Johnson
• Merck
• Pfizer
• Roche
• Sanofi
Meet regulatory challenges & improve quality, consistency, flexibility & time-to-market.
• 3M• Beiersdorf• Colgate-Palmolive• Henkel• Kimberly-Clark• L’Oréal• Procter & Gamble• Unilever
Meet regulatory challenges & improve quality, consistency, flexibility & time-to-market.
• 3M• Beiersdorf• Colgate-Palmolive• Henkel• Kimberly-Clark• L’Oréal• Procter & Gamble• Unilever
Consumer-Driven Industries Include…
Household & Personal Care Life Sciences
Consumer Packaged Goods
Copyright © 2011 Rockwell Automation, Inc. All rights reserved. 8
React to changing production conditions while maintaining operations at peak efficiency.
• BP• Chevron• ConocoPhillips• ExxonMobil• Shell
React to changing production conditions while maintaining operations at peak efficiency.
• BP• Chevron• ConocoPhillips• ExxonMobil• Shell
Oil & Gas
Execute real-time control & maintain critical process parameters to respond to customer demands.
• Alcoa• BHP Billiton• CEMEX • Holcim• Lafarge• Rio Tinto• US Gypsum• Vulcan
Execute real-time control & maintain critical process parameters to respond to customer demands.
• Alcoa• BHP Billiton• CEMEX • Holcim• Lafarge• Rio Tinto• US Gypsum• Vulcan
Mining / Metals / Cement
Increase yields while reducing risk & total cost of ownership by using a single automation control & information infrastructure.
• Agilent• Applied Materials• ATS Automation• Axcelis• IDC / CH2M• KLA-Tencor• Novellus• Praxair• Seagate
Increase yields while reducing risk & total cost of ownership by using a single automation control & information infrastructure.
• Agilent• Applied Materials• ATS Automation• Axcelis• IDC / CH2M• KLA-Tencor• Novellus• Praxair• Seagate
Heavy, Resource-Driven Industries Include…
Achieve low long-term cost &on-demand engineering expertise with scalable solutions.
• A & E Firms• Consultants• Design Engineer Firms• Design Institutes (Asia)• Global Municipalities• Privatizers (Europe)• Pump OEMs• System Integrators
Achieve low long-term cost &on-demand engineering expertise with scalable solutions.
• A & E Firms• Consultants• Design Engineer Firms• Design Institutes (Asia)• Global Municipalities• Privatizers (Europe)• Pump OEMs• System Integrators
Water / Wastewater Semiconductor / Electronics
Machine & Equipment Builders (OEMs)
• Preferred by leading OEMs in our focused segments including:
– Packaging: ADCO, Columbia Machine, Hartness, MaSipack, RA Jones, Schneider Packaging, Bradman Lake, Tetra Pak, Tissue Machinery Company, OPEM S.R.L., Krones, Bosch Packaging, Optima Group, Cavanna
– Converting/Print/Web: Black Clawson, Catbridge, Cerutti, CG Bretting, Curt G. Joa, Jennerjahn, Mark Andy, Nordson, PCMC, Fabio Perini, Fameccanica, Calemard/Spoolex, Futura
– Material Handling: FKI Logistex, HK Systems, Jervis B. Webb, Lantech, Selex Elsag, Grenzebach Maschinenbau, Takraf, Grundfos A/S, ECL, TGW, Knapp Logistik, Vanderlande, Harburg Freudenberg, VMI, Grenzebach, Karl Eugen Fischer
– Process: ABEC, A&B Process, AZO, GEA, Getinge, Glasstech, New Brunswick, Paul Mueller, Steris, Bühler, Aasted Mikrovaerk
– Assembly: ATS, ITCM, Mikron, Harburg Freudenberger, VMI Holland; Dürr, Comau, Grenzebach
– Alternative energy: Vestas
• Specified by leading end users in consumer and heavy, resource-driven industries around the world
Expertise to help you innovate, build better machines & lower your total cost to design, develop & deliver
10
Importance of Variant Configuration
Variant Configuration provides the foundation for enterprise core processes end-to-end• SAP Variant Configuration forms the functional foundation for processes that enable business strategies
• SAP VC must be used consistently in sales/marketing, order management, planning, manufacturing, engineering, customer service, and analytics
• SAP VC must support all product areas requiring customization: – Standard products (configure-to-stock)– Material variants (configure-to-order)– Configurable products (configure-to-order)– Non-standard products (engineer-to-order)– Systems/Solutions (configure-to-order/engineer-to-order)
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
• Support customer demand for highly configured product lines characterized by a high mix/low volume• Drive sales productivity and effectiveness• Increase growth and profit margins while decreasing costs, and time to market through intelligent customization• Customize marketing experience for product selection and configuration in order to differentiate our companies and our products and services effectively, and simplify complex selection• Treat configuration models and data as assets that can be leveraged inside/outside of SAP • Seek “open” configurator solutions that allow us to leverage our investment in model development by using the configurator in different marketing and sales scenarios on line and off line
Importance of Variant Configuration
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Legacy Product Configuration Cycle
Drawings/Schematics
Bills of Material
DocsSpecs
ManufacturingRoutings
Price PackagedSolutions
Standard Components
Complex Systems
Resulting Data Build/ShipSelect/Book
• 24 legacy configurator tools using 4 core technologies with varying degrees of integration to multiple business systems.
• 1200+ product lines with configuration models
• Many man-year estimate for conversion to SAP models and user interfaceCopyright © 2012 Rockwell Automation, Inc. All rights reserved.
PLM Implementation Scope
Live Data Elements Total
Material Masters 750,000
BOMs 500,000
Documents 1.7 million
CAD Files 750,000
Routings 250,000
Product KMATs 500
System KMATs 72
Product Data Management
• Material Master (extensions, language, classifications, types, etc.)• Product Structure Management (BOM Management)• Eng Change Management (standard product, CTO, ETO, Systems)• Document Management• Product Design Integration: AutoCAD, Pro/E• Global Product marking master data• cFolders Collaboration (internal and external)• Order Engineering Integration
Configurator
• Variant Configurator (ECC)• Internet Pricing & Configurator (CRM - AP7)• Complex Order BOM and routing generation for CTO and ETO • System Configuration - PowerControl Builder and SAP Integration• Quotation & Proposal Management integration
Project Management
• Project Systems for Misc. Capital & Internal Projects w/ WBS• Project Systems for ETO - WBS & Networks w/ cross company code; Eng Labor reporting;
Goods issue processing w/ delivery from projects, Project progress, revenue recognition
Quality Management
• Inbound test/inspection; QIRs• Quality Notifications: (Manf/Supplier defects, Internal Block, MRB, In-Process
Test/Inspection (including ATE interface), Process Qualification, CAPA, OCN, Quality Certificates; Product Deviation Notification Outgoing Audit, Stop Order/Hold/Release/Waiver)
Idea to Offering
Product Continuation
Order Engineering
Idea Management
Consideration to Release (CPD)
Project & Portfolio, Management
Migration to Discontinuation
Locations/Users Total
US Plants 12
Sales Orgs 4
US Design Centers 6
Total users (Global Gen_all) 14,000
Primary Users (Engineers) 1,000+
Key Stakeholders: Business Units; Engineering Services
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Implementation approach (e.g. team structure, project timeline, etc.)
• RA future state vision - including configurator vision
• Release strategy, timelines, and scope
• SAP upgrades and service packs
• Release cycle phase gates including release overlaps
• Methodology and tools
• SAP Client Environments and test cycles
– Client landscape
– KMAT and data deliverables and accuracy requirements for each cycle
– Synchronization of data
• Project management approach
– Master project plans (high level timeline) and stream level project plans
– Small group and team member task lists, etc.
• High level process overviews – Quote/Order to Cash for Products, systems/ CTO and ETO from CTO
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Configurable Product Line scope –KMAT development
• KMAT types – True CTO versus Characteristic Search
• KMAT development phases
– Catalog number (SKU) validation
– Pricing
– BOM
– Routing
• KMAT management
– Complexity and work estimates
– Development and testing
– Rework and defect resolution: spec error, modeling error, source of truth error
• Conversion/development roles
– On-shore/Off-Shore IBM consultants
– Rockwell business team resources
– Rockwell IT resources
– Rockwell product owners
– Configurator Services
• Working with Offshore IBMCopyright © 2012 Rockwell Automation, Inc. All rights reserved.
Configurable Product Line scope –KMAT development
• Product Configuration– One KMAT per product line
– Product selection and resultant data for a single SKU, price, and production order
• Configuration purpose– Order to Cash configuration (aka Manufacturing configuration)
– Market to Quote configuration (aka Sales configuration)
• Phased KMAT implementation driven by release timelines
• RA scope: ~ 500 product lines = 500 KMATs
• Specification development for product KMATs: decentralized responsibility
• Specification workbook development (capture rules in Excel)– Manual spec creation
– Programmatic extraction from legacy systems
– Re-engineering the products to improve upon legacy vs extract and convert
– Rule simplification for table based development
• Qualification testing– Manual vs automated
– Comparison to legacy – good source of truth for comparison
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Configurable System Line scope –KMAT and functionality development
• System configuration – Multiple KMATs per system
– Requires customer configuration at the unit KMAT level with system values
– Rule based validation and optimization of the structure/system
– System layout
• RA scope: 5 system lines utilizing approximately 200 system KMATs
• KMAT styles– Common KMATs
– Unit type KMATs
– Structure KMATs
• Additional KMAT development phases– Layout and optimization tool and rules (outside SAP)
– System level KMAT
– Engineered options
– Customer Specific options and tools
• All or nothing implementation for each release – all KMATs and tools are needed at cutover.
• Specification development for KMATs: centralized responsibility
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Configurable System Line scope –KMAT and functionality development
• Order Engineering process (CTO & ETO from CTO)– Standardized manufacturing output for all plants
– Collective orders driven by a BOM/Routing structure and proxies
– Architecture - Quotation to Order Engineering output generation
• System configurator - outside SAP
• Configuration database - in ECC
• BOM/Routing structure and proxy material generator - in ECC
• Quote and quotation cost estimator - in CRM
• Engineering workstation /drawing & MES generator - outside SAP
• Qualification testing– Unit level testing
– System level testing of whole configured systems
– Engineered options
– Customer Specific options
– Real life order testingCopyright © 2012 Rockwell Automation, Inc. All rights reserved.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Opportunities to Succeed –
Making the right choices……
Configurator PerformanceModellingUser Interface DesignProcess Automation
Examples of Key Choices and Opportunities to Succeed
• Performance
– IPC/AP7 – Get Help
• Modelling
– Custom Ztables and Pfunctions for large BOM selection tables (>15k records) instead of variant tables to avoid time-intensive BOM explosion time and other development complexities
– Compliant Mode instead of Advanced Mode modeling for System Configuration
• User Interface Design (AP7/IPC)
– Develop custom UI based on standard instead of using standard
• Process Automation
– Automatically generate material variants for CTO products instead of leaving theKMAT material on the order
• System Configuration and Order Engineering Architecture
– Use IPC to do what it is good at instead of asking IPC to do everything
– Support order and manufacture of CTO system AND ETO from CTO system – had to have both – by embracing complexity
Let’s take a
closer look
at these
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Configurator User Interface
Challenges:
• Non-intuitive standard interface for our users
• No support for entry and encoding or decoding of intelligent catalog numbers
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
21
Supporting Intelligent Catalog Numbers
20CC261M0AYNBNN0
• Organizational shorthand for communicating product information
• Long established method for commercial product identification
– Cost and inconvenience for customers and partners to change their drawings and documentation
– Cost to change marketing and product literature to refer to part numbers
“Why do you want to keep this?”
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Component Configurator User Interface
Simplifed Customized User Interface – version 1
23
Catalog Number
Field for
Encoding and
Decoding
Catalog Number
Product attribute
selectionSAP standard
layout eventually
looked much like
our custom layout
Encoding and Decoding Supported by Java
Function Modules in CRM and ABAP Function
Modules in ECC
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Version 2
• A material variant is an individual configuration of a configurable productmaterial that can be kept in stock
• The material variant’s material master is linked to the configurable material and configured using the characteristics of the configurable material.
• Variants can be manufactured in advance and supplied from stock when ordered (MV can be linked to BOM and routing of the KMAT)
Automatic Material Variant Creation Process
Standard Use of Material Variants in SAP
Rockwell Automation’s Use of Material Variants
• A material variant is created automatically AFTER a KMAT is used to order a variant We do it before too!
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Automatic Material Variant Creation Process
Having a material master for each configured product that is ordered helps facilitate the following processes:
• Product Returns which requires a material to return to stock
• Advanced planning and optimization
• Pricing/re-pricing and pricing history
• Faster customer service through better differentiation of line items
• Leverage other processes that use material master such as product labeling
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 2626
Automatic Material Variant Creation Process
New Configurations are Ordered with KMATs
Orders are replicated from ECC to CRM with the KMAT Configurable Material and Configuration
2727
Automatic Material Variant Creation Process
The Hourly Job Picks Up All KMAT Order Items
and Creates Materials as Material Variants.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 2828
Data Used to Create the Material Variant
Catalog number of product ordered is compared with catalog number strings in table to identify a “template” material to use for material master
The material is created as a copy of the template with the data from the table laid over the top of the template.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 2929
Automatic Material Variant Creation Process
The material classifications are created
Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 3030
Automatic Material Variant Creation Process
The material is linked to the KMAT and extended to all the plants and storage locations, linked to the super BOMs and super Routings.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 3131
Automatic Variant Creation Process
Product Material Descriptions and Technical Descriptions are automatically generated and put into material master
Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 3232
Orders with KMATs are Switched to Material Variant Hourly
• The job checks whether newly configured material already exists by searching the catalog numbers and series designations of existing materials
• Substitutes the existing material if one exists or creates the new one if no match in found
• The KMAT is deleted and the material variant is inserted if there are no blocks on the material variant.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Opportunities to Succeed –
Making the right choices……
System Configuration andOrder Engineering
System Configuration and Order Engineering
Motor Control Centers
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
System Configuration and Order Engineering
Where should KMATs be used?
Performance?Maintainability?Complexity?
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
36
MCC Super BOM with standard VC design
MCC
Shipping Block3Shipping Block2 Shipping Block16Shipping Block1x 16
Section8Section3Section2Section1x 8
Total Number of KMATs = 1x16x8x68
= 8704 Nested KMATs!
Unit1 Unit68Unit5Unit4Unit3Unit2x 68
Rules are complex, top-down, bottom-up and
sideways.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
System Configuration and Order Engineering
Solution: Custom App that punches out to IPC for configuring system components
Complex and performance intensive rules related to layouts and relationships between the individual KMATs placed in custom application
Used SAP for only what it was designed to handle effectively such as the Unit KMATs, Unit UI, BOMs, Routings, Costing.
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
System Configurator
Application
IPC JSP User Interface
IPC/AP7
System Configuration and Order Engineering
SAP CRM
ECCMinimum Sized Compliant
Mode KMATs
• System Configuration User Interface
Component Selection
• Access to Component Configuration
• System Layout
• Automatic Slotting and Validation
• File/Project Management
• Quote Population
Configuration Data
Engineering and Manufacturing
Data Output Generation
Quote
and
Order
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Architecture - Quotation to Order Engineering output generation
CRM Quote/Order
System Configurator
ECC order triggers
ECC configuration db
ECC configuration data
extraction/formatting
Engineering Workstation
ECCEngineering data
output
ECC order BOM/Routing
generation
CRMKBEs
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Order BOM/Routing Format for System Products
Our complex order BOM/routing generationprocess leveraged the system KMATs in ECC in order to land the order BOM and routing output in a structure for use with collective production orders over a wide variety of scenarios
Using SAP’s collective order structure allows us to use standard SCM processes to drive just-in-time manufacturing of complex system products
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Lessons learned
• Accelerate learning curve
– Have clear plan and goals for deliverablesof blueprinting and concept prototyping;know what you are trying to prove
– Send your people to training; don’t assume consultants will teach them
• Don’t ask configurator to do too much
• Intelligent Catalog Numbers are NOT Dumb
• Don’t lose differentiated processes and services in your SAP implementation
• Work to keep continuity of team (RA and partner)
• If you can envision it, you can do itCopyright © 2012 Rockwell Automation, Inc. All rights reserved.
Lessons learned
• Need diverse skills on your team– Requirements and technical scoping
– Project management
– Product knowledge
• specs
• testing
– Data analysis and conversion
– KMAT development
– End to End process knowledge and cross functional savvy
• supply chain (order to cash)
• commercial/customer facing (market to quote)
• Scope/ Risk management
• Project schedule alignment - implementation team, stakeholders, and product owners
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Thank You!
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.