sap ppm at the heart of driving transnet’s value · pdf filesap ppm at the heart of...
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DISCLAIMER
This presentation and the information shown in the slides herein is for thepurpose for illustration only, and does not represent any actual facts of thecompany.
Agenda
Transnet at a GlanceTransnet at a Glance
The journey of SAP PPM in TransnetThe journey of SAP PPM in Transnet
The fundamentals of understanding SAP PPM to position it in TransnetThe fundamentals of understanding SAP PPM to position it in Transnet
Key LearningsKey Learnings
Transnet at a Glance
Transnet is the largest and most crucial part of the freightlogistics chain that delivers goods to each and every SouthAfrican. Every day Transnet delivers thousands of tons of goodsaround South Africa, through its pipelines and both to and fromits ports. It moves that cargo on to ships for export while itunloads goods for overseas
Our vision and mission is to be a focused freighttransport company, delivering integrated, efficient,safe, reliable and cost-effective services to promoteeconomic growth in South Africa.
Overall framework forMarket Demand Strategy MDS delivery
MDS objectivesSignificant economic growth and socio-economic impact for South Africa
Human capital strategy
Volumes andcustomer
satisfaction
Regulatory and keystakeholderengagement
Finance and fundingSafety, health,
environment andquality
Capital planningand execution (incl.
procurement)
Operationalefficiencies and
productivity
High performing organisation (including MDS governance and SPO's)
MDS strategiesCapturing unfulfilled logistics demand and creating capacity for that demand
Key areas to be tracked to ensure success of initiatives
MilestonesKPIs Outcomes and deliverables
SOURCE: Transnet Group RMO13
MDS initiatives
The Journey
• Why are we embarking on this journey:- Consolidation of the Transnet Portfolio and Project Management
- Standardisation and consolidation of the tools used to manage projects in Transnet
- Reduce the level of efforts in implementing SAP PPM
- By Leveraging on existing SAP PPM in Transnet
SAP PPMfor all
TransnetProjects
Engagementwith business
on SAPPPM forStrategicInitiative
Monitoring
Startdevelopmentof SAP PPM
for CI
Engagementwith businesson SAP PPMfor CAPEX
Engagementwith businesson SAP PPM
for CI
SAP PPMfor ICT,CAPEX
GO Live ofSAP PPM for
LSS
SAP PPM forContinuous
ImprovementDeployment
End StateEnd State2009
Principles behind the approach
Innovations ManageInnovations
ReviewOpportunity
SelectResources
ExecuteProjects
Handover &evaluate
Reward &Recognise
Cor
pora
teP
lan
Empl
oyee
s
ERM
Stra
tegi
cIn
itiat
ives
Legi
slat
ion
Project Management Principles
Change Management Principles
Transnet Portfolio Management Process
MANAGE THEINNOVATION
REVIEW THEOPPORTUNITY
ASSIGN THERESOURCE
EXECUTE THEPROJECT
HANDOVER &EVALUATE
REWARD &RECOGNISE
• Log the innovation• Review and classification• Innovation qualification
using questionnaires• Workflow and notification• Complete MI Phase• Approve Gate1
• Innovation becomes anopportunity for continuousimprovement
• Prefeasibility study• Metric assessment: AS-IS and
TO-BE• Further qualification and
scoring• Opportunity ranking to form a
pipeline portfolio of projects• Workflow and notification• Complete RO Phase• Approve Gate2
• Assign Project Manager• Assess required financial
resources if known• Workflow and notification• Complete AR Phase• Approve Gate3
• Execute the project accordingto methodology:- Just Do It- Lean- Six Sigma- CAPEX/OPEX- ICT- Product Development
• Workflow and notification• Complete EP Phase• Approve Gate4
• Benefits tracking• Workflow and notification• Complete HE Phase• Approve Gate5
• Top Projects of the Monthreporting
• Top Project of the YearReporting
• Employee or Project teamrewards
• Workflow and notification• Complete RR Phase• Approve Gate6
Innovation/idea Opportunity Project Benefits Employee/TeamReward
Gate
1G
ate1
Gate
2G
ate2
Prioritised PortfolioPrioritised Portfolio Assigned to PMAssigned to PMG
ate3
Gate
3
Gate
4G
ate4
Project is executed tocompletion
Project is executed tocompletion
Gate
5G
ate5
Benefits realised for 12months
Benefits realised for 12monthsGood or bad idea!Good or bad idea!
JDIJDI LeanLean Six SigmaSix Sigma
AnalyseAnalyse DesignDesign DevelopDevelop TestTest FinaliseFinalise
Integration of the Transnet Project Management Methodologies
DMAICDMAIC
DefineDefine
MeasureMeasure
AnalyseAnalyse
ImproveImprove
ControlControl
CAPEX Concept(FEL-1)Concept(FEL-1)
Pre-feasibility(FEL-2)
Pre-feasibility(FEL-2)
Feasibility(FEL-3)
Feasibility(FEL-3)
Execution(FEL-4)
Execution(FEL-4)
Finalise(Close-
out)
Finalise(Close-
out)
DMAICDMAIC
DefineDefine
MeasureMeasure
AnalyseAnalyse
ImproveImprove
ControlControl
Just Do ItJust Do It
JustifyJustify
DoDo
InformInform
EvaluateEvaluate
ICT
Implication of SAP PPM
Methodology
Project ExecutionLevel
PortfolioManagement
Level:
PortfolioManagementCommittees
Lean sixSigma
DMAIC
ICT
SDLC/ASAP
CAPEX
PLP
Voice of the CustomerVoice of the Customer1. Corporate Plan/RMO Input2. ERM3. Customer Engagement4. Project Requests/Wishlist5. Employees
1. Wireless Networkupgrade
2. Installation of equipment3. 1064 Loco acquisitions4. Improvement of
turnaround time5. CRM System
implementation
1. Continuous ImprovementsCommittee
2. OPCO3. CAPIX/Investment
Committee4. RMO
SAP PPM Landscape in Transnet
Transnet SAPPPM
Transnet National PortsAuthority
Transnet Freight Rail Transnet Engineering
Port
folio
s/S
trat
egic
Buc
kets
Tran
sact
iona
l
syst
ems
ERP System 1 ERP System 2 ERP System 3
TETPL
TNPATFR
OperationalExternal System
Operational ExternalSystem
* The portfolio items can belinked to different ERP andOperational Systems to extractall required data. This allows toconsolidate a heterogenoussystem landscape.
ARIS & Web Methods PlatformARIS & Web Methods Platform
MiddlewareMiddleware
What is SAP PPM
• A central solution based on a SAP platform, designed to manage portfolios ofideas/innovations, allowing visibility and governance of the execution of projects .
• Manages all project types; CAPEX, ICT, Engineering/Product Development and Continuous improvement
• Enforces discipline aligned to best practise; PLP, PMBOK, Lean Six Sigma, Prince 2
• Strong toll gate approach; phase-gate-phase on initiatives and projects
• Workflow; informing the right person to action the respective task, milestone, phase or gate approval
• Reporting and Dashboard
Functions of SAP PPMPortfolio
Management
Bucket structure
Initiative lifecyclemanagement
Pipeline visibility
Idea Ranking and scoring
Tollgate management
Document management
Knowledge management
ProjectManagement
Project Execution usingvarious methodologies
Execution and monitoring
Programme management
Resource management
Tollgate management
Workflow Management
Capability of WBS costsmonitoring
Integrated 3rd Party projectmanagement tools
Document Management
Dashboard &Reporting
Portfolio Performance
Programme Performance
Project Performance
Strategic, tactical andoperational views
Financial performanceview: benefits tracking
Progress view: task &activities, GANTT
Integration to otherSystems
Integration to SAP
Integration to documentmanagement systems
Integration to third partysystems through
middleware
Integration to datawarehouse
Integration to MS Projectsserver or other 3rd Party
tools
Transnet Value Chain: hierarchy model defined
Transnet core business objectives; top level mapping of thebusiness, with customer centricity.
Transnet value chain details of the companies businessdrivers.
Key business processes defining the details of thebusiness value chain from
Business Process high-level activities
Business Process detailed activities withdefined attributes of systems,documentation, policies, roles.
Business Process supporting SOP
Transnet L0 Value Chain Model
Cus
tom
ers
Satis
fact
ion
CO
RE
SUPP
OR
T
e.g. Legal Compliance, Finance, ICT, HC, Procurement, Property, Projects, etc.e.g. Legal Compliance, Finance, ICT, HC, Procurement, Property, Projects, etc.
Support ServicesCus
tom
ers
Nee
ds
Partners / Stakeholders
e.g. Supply Chain Partners, Regulatory Bodies, Shareholders, etc.e.g. Supply Chain Partners, Regulatory Bodies, Shareholders, etc.
Capacity andDesign
Marketing andSales
AssetManagement
OperationalPlanning &Execution
CustomerServices
Bucket StructureTransnetPortfolio
TransnetEngineering
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
Transnet FreightRail
Transnet FreightRail
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
Maintenance
Transnet NationalPorts Authority
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
Transnet Ports Terminal
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
TransnetPipelines
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
Transnet CapitalProjects
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
TransnetProperty
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
TransnetCorporate
ProcessBucket
Just Do It
Lean
Six sigma
CAPEX
ICT
Bucket Structure-TPTTransnetPortfolio
Transnet PortsTerminal
Strategic PlanningCycle
Just Do It
Lean
Six sigma
CAPEX
ICT
Demand &Capacity Mngt
Cycle
Just Do It
Lean
Six sigma
CAPEX
ICT
Service Marketing &Service Design Cycle
Just Do It
Lean
Six sigma
CAPEX
ICT
Order ConfirmationCycle, Pricing and
Quotes
Just Do It
Lean
Six sigma
CAPEX
ICT
Berth Plan and VesselPlanning
Just Do It
Lean
Six sigma
CAPEX
ICT
Asset Management
Just Do It
Lean
Six sigma
CAPEX
ICT
Container SectorOperations Execution
Just Do It
Lean
Six sigma
CAPEX
ICT
Portfolio Management at thedifferent levels of the Value Chain:
PrioritisationMonitoring
Portfolio Management at thedifferent levels of the Value Chain:
PrioritisationMonitoring
Innovation Qualifying Questionnaire aligned to MDSDoes this idea align with the expansion and maintenance of economicinfrastructure?
Does this idea align with growing volumes and improving market share?
Does this idea align with enabling regional integration?
Does this idea align with improving performance, productivity and operationalefficiencies?
Does this idea align with promoting sustainable growth?
Does this idea align with prioritising safety, skills development andprocurement?
Does this idea align with creating regulatory certainty and compliance withpolicy including optimising the social and economic impact of all interventions?
Does this idea align with driving research and the deployment of new andcutting-edge technologies?
Is the source of the idea driven by executive from a strategic perspective?
Is the solution to the problem known?
Opportunity Qualifying Questionnaire
Question
Estimated hard benefits from the Financial Analysis and/or primary metric?
Estimated soft benefits from the Financial Analysis and/or primary metric?Expected reduction in defectsDoes this project require capital investment?Is the cost of the effort worth the benefit?Expected number of team members required to drive the project tocompletion?Expected duration of projectWill this project improve customer satisfaction?Will this project have significant strategic impact?Is there baseline data available for the process?Project complexity due to issues with respect to schedule, budget, customerrequirements, difficulty collecting data, union, contractual & regulatorybarriers, change management, size of working group affected, geographicdispersion,etc?Can this project be replicated at another centre/depot?Is this an existing process?
Key Learnings
• Learn and understand the SAP Solution you are implementing and the VALUE itis brining to your organisation!
• SAP PPM is the enabler of corporate performance management in Transnet
• Understand the under-lining business principles that support the SAP solutionfrom a best practise and organisational perspective!
• It is possible to innovate with SAP!
• SAP PPM ROCKS!