1104 bombardier aerospace implements sap extended warehouse management

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    ]

    Orange County Convention CenterOrlando, Florida | May 15-18, 2011

    Bombardier Aerospace Implements SCM EWM within theirAftermarket Parts Distribution Operation

    Troy Rochat Bombardier AerospaceJulie Nesbitt Bombardier Aerospace

    Jason Russo InfoLogix

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    [ Introductions

    Jason Russo

    Senior EWM Consultant with Infologix

    10+ years SAP Supply Chain experience

    Working with EWM since 2007

    Troy Rochat

    Real Experience. Real Advantage.

    ,

    20 years in Bombardier Aerospace

    Certified SAP consultant (2002)

    Julie Nesbitt IT Program Director, BCS & SAA

    22 years in Bombardier Aerospace

    10 years SAP experience

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    [

    Company Overviews

    Real Experience. Real Advantage.

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    [ InfoLogix Overview

    Total solution provider based in Hatboro, PA

    Wholly owned subsidiary of Stanley Black & Decker

    2,200 clients and growing

    SAP supply chain specialists

    Systems Integration

    Hardware

    Real Experience. Real Advantage.

    Strong SAP Credentials

    SAP Services and Software Partner

    SAP Consulting Partner

    Pre-release Testing Partner

    Leaders in Enterprise Mobility Services Proprietary World Class Client Care Portal - over 150,000 assets

    managed

    4

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    Vision: Giving people wings, around the world, through innovation, pride andsetting the highest standard for excellence

    With more than 30,300 employees and well-positioned in global markets,Bombardier Aerospace ranks as the worlds third largest civil aircraft

    manufacturer. Its high-performance aircraft and services set the standard ofexcellence in several markets, including:

    Bombardier Aerospace Overview

    Real Experience. Real Advantage.

    Commercial aircraft

    Amphibious aircraft

    Specialized aircraft solutions

    Customer Services

    Bombardier Aerospace is dedicated to setting new standards of customercare and aircraft availability worldwide.

    Mission: Keep our Customers flying

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    Focusing on the Customer

    Worldwide service and support through

    a network of: Parts logistics

    Aircraft maintenance

    Bombardier Aerospace Overview

    Real Experience. Real Advantage.

    Tailored per hour parts and services solutions

    Field service personnel and 24/7 Customer Response Centres

    Flexible airborne parts delivery service

    Spare parts depots, service centres and authorized service facilities

    6

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    [Bombardier Parts Logistics provides a full spectrum of spares support to 29Bombardier product lines, Commercial & Business, including new AircraftPrograms entering into service.

    6 Challenger Aircraft Product lines

    4 CRJ Aircraft Product lines

    3 Global Express Aircraft Product lines

    Bombardier Aerospace Overview

    Real Experience. Real Advantage.

    28 Product Lineswith ~6,000

    Aircrafts

    12 Learjet Aircraft Product lines

    4 Q Series Aircraft Product lines

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    [

    The Case for change

    Real Experience. Real Advantage.

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    [ Case for Change / Key Drivers Parts Logistics requirements had changed over the previous several

    years.

    Our business has increased dramatically in the International market.

    Our customers growing needs and expectations compelled us to:

    Be more flexible

    Offer more diverse services

    Real Experience. Real Advantage.

    Expand our capabilities

    Improve distribution efficiency

    A new Warehouse Management solution was required

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    [ Who was Impacted?

    Montreal

    Chicago

    Wichita

    Frankfurt

    Toronto

    Service Centres

    Real Experience. Real Advantage.

    Quality Transportation

    Customer Service

    CRC

    Material Logistics

    Configuration Management

    IT

    Legal Services

    Finance

    Chicago Distribution

    Frankfurt Distribution

    Impacts : Approximately 300 employees

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    [ Who was Impacted?

    Chicago Distribution Centre:

    238,000 square feet (22,110 sq. m);

    Stores over 120,000 unique parts at full capacity;

    Operational since June 2005;

    Supplies Bombardier network of parts depots and service locations;

    Ships 1,700 Lines daily

    Real Experience. Real Advantage.

    Frankfurt Warehouse:Direct shipments to Europe, Middle East, Asia & Africa;

    50,000 square feet (4,650 sq. m);

    Capable of storing approximately 40,000 parts at full capacity;

    Operational since August 2005; 200 lines shipped per day

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    [

    BombardierSAP

    BombardierSAP

    Vision

    Interface

    CLS

    SCM

    ERPLIMS

    Existing

    Real Experience. Real Advantage.

    BombardierSAP

    SCM/eWM

    ERP

    are ouse anagemen o u onthat is consolidated into 1 System

    New

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    [

    Project Overview

    Real Experience. Real Advantage.

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    [Structuring the Main Project Team

    Delivery team

    Dedicated business and IT resources identified:

    From the business:

    Main Sponsor (VP or higher), Project Sponsors (VPs or Directors),

    Business Focal (Manager representation),

    Data Management Focal (Manager representation),

    Real Experience. Real Advantage.14

    Business Focals by function (Business leads),

    Power Users (Business leads) and Super Users (End Users withTraining skills) by functional areas

    From IT:

    Qualified resources for Business Analysts, ApplicationSpecialists and ABAP team members for all functional areas.

    Subject matter experts (eWM) - Infologix

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    [Project Team Organizational Chart

    EXECUTIVE SPONSORSBUSINESS PROJECT SPONSORS

    STEERING COMMITTEEIT CIO AND DIRECT REPORTS

    EXECUTIVE SPONSORS

    A powerfulcoalition ofleaders forsuccessful

    projectdelivery

    Real Experience. Real Advantage.

    DELIVERY TEAM (IT)

    PM SAPCC PM SITE

    BA

    AS

    ETL

    PSI

    CM and Org

    Alignment

    IT site support

    Legacy

    Infrastructure

    STAKEHOLDERS TEAM (BUSINESS)

    Directors / Focals:Worldwide Distribution

    Customer Services

    Material Logistics

    ConfigurationManagement

    Pricing & Cost Control

    Quality

    Business Planning &

    Development

    Project specific:

    Main Project Owner

    Project Manager

    Data ManagementFocal

    ContinuousImprovement

    Team

    Power/ Super

    Users

    Dedicated,multi-

    disciplinary

    teams

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    [ Key Changes Improved processes for inbound, outbound and Inventory Control

    Heightened visibility throughout the entire warehouse

    100% inventory visibility

    Every physical part movement will be captured in eWM with user ID, date and time

    Eliminate Databases, interfaces and IDOCs Radio Frequency Technology

    Minimize Waste:

    duplicate processes

    Real Experience. Real Advantage.

    manual data entries, (minimize errors)

    duplicate auditing

    reduce paperwork

    Wave Management

    Consolidation of customer orders allowing financial benefits for customers and

    Bombardier Reduce delays in processing

    Reprint capabilities of key paperwork

    Real time status improves accuracy

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    [Key eWM Integration Points

    Synchronization & Communication between eWM & ERP.

    Master data

    Transactional Data between EWM and ERP (Sales orders, Purchase

    Orders and Stock replenishment orders, etc) Inventory Updates Inventory postings

    Financial Integration Financial postings for Post Goods Issue (PGI) andPost Goods Receipt (PGR)

    Real Experience. Real Advantage.

    17

    t er commun cat on to or egacy systems nee e ase on t escope of EWM functionality such as Environmental Health and Safety(EH&S), Billing systems, and Global Trade Services.

    CIF (Core Interface) Communication exchange of data betweenSAP ERP and SAP EWM ensuring Data Consistency and Integrity

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    [1System Overall Project Timeline

    2009

    June JulyFeb March April MayOct Nov Dec JanJuly Aug SeptJune

    2010

    Phase 2 Solution Strategy5 months

    Phase 3 Prep & BluePrint7 months

    Phase 4 Realization9 months

    Phase 5 - Final Prep & Cutover

    1 month

    Oct NovAug SeptFeb March April May

    PrototypeDevelo ment

    Develop Solution(eWM, SAP)Gap Workshops,Data Discovery &Strategy Preparation

    Project Evaluation,Initiation &Approval

    Solution Break/Fix.

    Dec

    Real Experience. Real Advantage.

    Documentation

    Training Preparation & delivery

    Integration Tests, Dry Runs, DIAL &UATs

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    Functionality Overview

    Real Experience. Real Advantage.

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    [ EWM Functionality

    Use of process oriented storage control to facilitate multistep inbound, outbound and internal storage processes.

    Quality inspection process using QIE (Quality InspectionEngine) to integrate quality management with ERP QM.

    Real Experience. Real Advantage.

    oa was o con ro nspec ons rom w e con nu ngto leverage ERP QM functionality.

    Stock scenarios included batch management,

    serialization, and split valuated products.

    20

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    [ EWM Functionality (Continued)

    Resource Management optimization and work assignmentefficiency.

    RF system guided picking Different WOCRs based on zone.

    Queue determination by Activity Area

    Real Experience. Real Advantage.

    warehouse order assignment

    Dynamic control of resource assignment to resource groupsbased on workload.

    21

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    [ EWM Functionality (Continued)

    Kit to Stock process using EWM production supplyintegration.

    Use of PP integration to manage kitting process. Separate EWM managed storage location for Production

    Supply Area.

    Real Experience. Real Advantage.

    Wave Management

    Different wave templates determined based on deliverypriority/ship to.

    Warehouse requests automatically assigned to wavetemplate based on condition technique.

    Use of wave monitor to facilitate wave release.

    22

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    [ EWM Functionality (Continued)

    Other topics

    RF enhancements through the RF Framework

    Enhancing standard functionality through BADIs PPF (Post Processing Framework)

    Automation of warehouse task creation

    Real Experience. Real Advantage.

    23

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    [

    Key Lessons Learned

    Real Experience. Real Advantage.

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    [ Key Lessons Learned Utilize standard functionality as much as possible.

    EWM offers comprehensive functionality to fit many complex processes,its important to fully understand the depth of functionality.

    Invest in design prototypes early on in project timeline

    Demo functionality to key users to help drive key decisions.

    Business and IT participation / ownership / engagement

    Key decision makers must fully support project objectives

    Real Experience. Real Advantage. 25

    Business units outside of the Warehouse need to be integrated intoBlueprint

    Post go-live on-site support can not be underestimated in terms of effortor duration

    An overall Business Change Lead to be assigned from the beginning.

    Roles & responsibilities (Business and IT) must be clearly definedwithin the project team

    especially for post go-live support (who does what, when)

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    [Key Lessons Learned (Continued) Cutover plan can not be too detailed and must include contingency

    Communication and planning for all areas can not be underestimated(Business plan, IT plan)

    Contingency planning is critical (what if scenarios)

    Testing and dry-runs need to be comprehensive and long enough

    Do not underestimate the number of business areas and business users thatare required for testing

    Real Experience. Real Advantage.

    ee to test w t rea st c vo umes ata, transact ons, users, etc

    Need to ensure the time to consolidate training & practice in the new systemwith the new processes & tools

    Day In The Life testing and simulation

    Pay attention to the small stuff during dry-runs and go-live scenarios, the

    impact of small variances will be magnified with go-live volumes Dont assume the basics will be acceptable without validation.

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    [

    Thank you for participating.Please remember to complete and return your

    evaluation form following this session.

    Real Experience. Real Advantage.

    SESSION CODE: 1104

    For ongoing education in this area of focus, visit

    www.asug.com.