Every Angle @ Metso Julian Moraes September 10, 2014

Every Angle @ Metso

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The Path of our Journey

“Emotions are an integral part of the brain”

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Julian Moraes

Andy Habermacher, 2011 Leading 100 Billion Neurons

Who am I

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Background

• Born in Brazil but had the opportunity to live in various countries

• Over 13 years working with SAP in various roles ranging from consulting, project manager and process development in global large scale organization - Eli Lilly and Company, Joy Global, and Metso

• Currently Director, Sales Process and Platform at Metso -In collaboration with Market Areas, define and implement common sales management processes and tool for all business areas

-Define and implement Salesforce.com as a platform for our sales and service processes

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Julian Moreas

How I best descripbe myself

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Metso Business

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We have been transforming into a focused high-margin industrial company… Focused company 2015-

Pre 2001

• • •

• •

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Diversified company

Fairly independent businesses and business models Broad management agenda Strengths: Process knowledge, reliable products, services capability, global presence Services 40% of business EBITA margin 15% • Delivering ROCE > 30% • Reducing cyclicality and volatility

The SAP Journey From Good to Great

• First SAP program started in 2005 .... Ended in 2007 - Many process mapping sessions - Poor management involvement • Second SAP program started in 2008 - New program management - Business area president and first line management part of the SteCo - Focus on delivering – scope management very important - Design and Build of the SAP system done by technical team - Technically the system worked • Focus was on delivering on upper management´s vision - Don´t sweat the small stuff • Aggressive deployment schedule - 2008 to 2012 over 19 implementations done - Over 92% of Metso Mining Revenue go through SAP 8

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The SAP Journey From Good to Great

“I understand your change request I feel your pain But it´s not my problem”

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The SAP Journey

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From Good to Great ……… The business side

• Challenge with current model -

While we have successfully achieved global deployment of SAP ERP system, many sites face huge challenges in accessing, understanding, communicating and taking proactive action with the wealth of information that is now available

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Users spend huge amount of hours in downloading/cleansing data to provide reports/KPI´s to both operations and senior management

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Process harmonization has been achieved within certain functional silos but lack of visibility of our end to end supply chain has not improved our ability to make decisions that can improve our operational efficiency and customer satisfaction

• Current reporting strategy/tool does not support operational reporting -

While we have many reports regarding sales (BRB, Sales Analysis, Backlog Aging, etc) we still – in parallel – prepare excel reports on the same data to send to sites.

• Lack of reporting flexibility and ad hoc report creation increase overall user dissatisfaction and poor system discipline - Instead of using SAP as tool to execute everyday operations, it has become a data repository to meet month end reporting requirements 10

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Every Angle @ Metso New Role – New Objective

• Made the leap to the

M A N U F A C T U R I N G

business side

Engineering and Product Lifecycle Production Planning

• Clear objectives set by

Production Execution

stakeholders

D I S T R I B U T I O N C E N T E R Inventory and Warehouse Management

O R D E R

D E S K

Account Management Quotation and Order Management

Short term focus on these 3 main areas

S E R V I C E M A N A G E M E N T Service and Contract Management Installed Base and Asset Management Mobile Solutions

CUSTOMER

Transportation Management

• All wanted to feel more in control of the numbers before the month-end results

• What actions can business operations do to increase efficiency and revenue

• No silver bullet to fix R e p o r t i n g

a n d

M a s t e r

Finances

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/

O p e r a t i o n a l D a t a

M a n a g e m e n t

Procurement / Quality Resources / IT

Julian Moraes

A n a l y t i c s

/

HSE

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Human

process/system/ organizational issues

Every Angle @ Metso Where to go?

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Source: http://memecollection.net/windows-8-repair-tool/

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Every Angle @ Metso

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Not another tool

• IT organization focused on their transformation process to support new company strategy

• Homegrown solutions started to surge • Many tools in the market and came across another one called Every Angle - First reaction was that no way in hell could the Every Angle tool do what it said - However; while logically it didn´t make sense the message, the presentation addressed my key concerns

- It contextualized the data in SAP and made it simple for business users • Took around 6 months to align stakeholders from IT, Business operations, and management to approve a proof of concept and subsequently a Pilot

Communication was key in the whole process 13

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Every Angle Pilot Project

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Why are you here and next steps

• SBL Management has approved a 3 month pilot to test the system and build a business case - Pilot will run from November 1, 2013 to January 31, 2014 - Main focus (and users) will be on DC sites. - Objective is to quantify operational benefits the tool will bring - Present the tool to different areas of the MAC organization to identify potential benefits.

• End user deployment will be done during week 48/49 • Each country would have a main contact and backup (again DC oriented – CSE would be Tomas/Antti, GIM – Anuj Kumar, Juho Oja, Pablo Brunaldi, Timo Peuhkurinen) - Brazil – Julian/Frank - USA – Julian/Frank - Sweden – Richard/Turo - Finland –Turo/Richard - South Africa – Gary/Richard - Australia – Gary/Richard 14

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Every Angle Business Case Every Angle Pilot Project Results

• Every Angle Pilot • •

deployed on November 1, 2013

Technical configuration and linkage to our SAP PMM system took 7 days 1 Week Every Angle Onsite consultant to train advanced features plus create initial set of queries

• Reports fully deployed to all main DC locations in 2 weeks – 70,000 open line items • 41 of the 43 identified users have logged into the system • While deployment was fast the period in which the pilot took place did not contribute too since some people were on vacation and were more concentrated on pushing year end sales.

• User support (Every Angle Helpdesk) was tested throughout the pilot also with a high level of customer service • Standard field additions were done from in max 2 days

•System performance, reliability, and availability were well above expectations even though we were using a server a third of the recommended sizing for production 15

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Every Angle Business Case Every Angle Pilot Project Results

• Brazil and Finland did not quantify results; however their input has been documented under non-economic benefits

• Below are the documented benefits realized in this time period for 6 sites •

East/West Perth, V-town, Columbia, Danville, Trelleborg, Sala

•For South Africa, inventory reductions have already been identified to better visibility between the 2 SA company codes

• Important to note that all benefits identified within the limited scope of the pilot; potential to use this tool in other areas FICO, manufacturing, etc 16 © Metso

Julian Moraes

Executive summary of PoC Check

Functional

 ● Very fast response time  ● Unique process intelligence  ● Cross module reporting  ● Fast development of Metso specific properties  ● Easy to use by business users

Experience at Metso Business users already worked with EA Milliseconds to seconds

Delivery reliability, Execution status, … Sales orders linked to Purchase orders Matter of hours

Technical

● Easy to add additional fields (standard & Y) ● Adding Y-tables to the object model

● Fast, easy and robust installation 17

  

Matter of minutes Matter of hours At Metso it took one day

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Every Angle Business Case Every Angle Summary Business Benefits

• The ROI from the Business Value Calculator from Every Angle were positive and payback period within the year.

• For this exercise I have removed the first year benefit calculated by Every Angle at my discretion • While I believe we can achieve 12+MEUR in inventory reduction addressing safety stock, lead times, OSMI items this does require a change in our process and behavior

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Important to remember that Prime Project will not cover all MAC inventory/plants and EA can provide a quick opportunity for that

• Business case from both practical (numbers from Pilot) and theoretical (Business Value Calculator) clearly support in approving the Every Angle Project and Deployment throughout MAC

Recommendation: Approve project and proceed with planning 18

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Every Angle @ Metso What Next?

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Source: www.australiasigns.com.au

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Every Angle @ Metso Key drivers for Every Angle Approval

• After initial standstill - took a different approach in getting the project approved • Instead of showing/proving that the project made logical sense – I addressed the key personal concerns that could be addressed with Every Angle

• Trust - Creating a reputation within many areas of the organization • Communication – Constantly and effectively; spreading the word • Addressed Concerns – Provided feedback to all stakeholders • Aligned expectations and goals – Made sure key concerns were addressed “The feeling of having very good control thanks to the sales and purchasing reports are extremely useful - I use it for my weekly meetings with my managers and we all love it”

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Appendix

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Every Angle Business Case Every Angle Pilot Non-Economical Benefits

•There were a number of additional soft benefits that were not quantified that should also be taken into account – All inputs from sites

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After multiple testing I have a very strong believe in EA showing the right data which I don't have for BI

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The currency conversion to EUR saves my multiple hours per reporting since this is a mayor issue in e.g. VA05

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The feeling of having very good control thanks to the sales and purchasing reports are extremely useful - I use it for my weekly meetings with my managers and we all love it

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Before I sent 2 hours every Sunday to generate the SAP Gary Glen Young report that the full site of Trelleborg used and I did the same for the full Swedish company once per quarter - This now takes my half an hour and when we have more users on board they will do it them self.

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My monthly report takes me 4-5 hours before EA to complete, now I can do it in 1-2 hours instead

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Ability to create reports we need faster by creating our own angle ( Result Oriented Reporting)

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Each individual buyer can respond faster and answer every day questions by referring to this tool instead of waiting on others to provide information.

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Help in determining and defining the process flow for all master data and reporting activities.

It will eliminate all the vlookups and other jugglery of data that we do in excel It will minimize the use of various Access Databases that we currently use, probably eliminate some of them

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