SAP MANUFACTURING INDUSTRIES FORUM 2015 RUN SIMPLE: INTELLIGENTLY CONNECT EVERYWHERE SAP Manufacturing Industries Forum – The Westin Lombard Lombard, IL | June 23-25, 2015
Consolidating Multiple Product Development Systems at TreeHouse Foods into SAP Product Lifecycle Management Kathy Kugelman
Robin Patrawala
Director, Product Lifecycle Management TreeHouse Foods
Senior Solution Architect Linx-AS
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
About TreeHouse Foods • Leader in supplying high quality private label brands to retail grocery and food service industries. • Celebrating 10 years in business: On June 28, 2005 became an independent and public company trading on the NYSE (THS). • CPG manufacturer with approximately $3.5 billion in sales • Principle Operating Company: Bay Valley Foods, LLC • 25 manufacturing locations with approximately 7,000 employees SAP Manufacturing Industries Forum 2015
Category Growth
SAP Manufacturing Industries Forum 2015
Strategic Acquisitions
SAP Manufacturing Industries Forum 2015
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
Initial State of PDM • Management of recipe and specifications conducted in multiple legacy systems • Manual handoffs and tools used to manage over 16,000 finished good materials. • Manual creation of specifications based off of vendor documents and legacy systems data.
SAP Manufacturing Industries Forum 2015
This Resulted In… • Technical product information managed in disparate legacy systems • Separate processes for several business units
• Manual keying of data into different systems slowed process time and increased risk of inaccurate or redundant data • Lack of collaboration between product developers of various business units
SAP Manufacturing Industries Forum 2015
This Resulted In… • Inability to copy, scale, or synchronize a recipe—must build from scratch • Gaps in review and reporting processes – In-process analytics of nutritional data – Multiple sources needed to create specifications reports • Workflow inefficiencies
SAP Manufacturing Industries Forum 2015
Process Change Initiatives • January 2010, company-wide SAP ERP initiative • Goal was to replace legacy applications across all locations and create enterprise wide design for future acquisitions • February 2011 first went live with Customer Service, Accounting, Corporate Purchasing and Supply Chain Planning • Continue to roll out to manufacturing and individual Business Units
SAP Manufacturing Industries Forum 2015
Process Change Initiatives • During 2013, began planning for an improved Product Data Management solution – Functional area assessments completed • Developed a business case for Product Data Management. • Project team started in Q2 2014 to begin SAP PDM blueprint process • Implemented across two Business Units in March 2015
SAP Manufacturing Industries Forum 2015
What We Set Out To Do • More time creating target products, less time managing ‘paperwork’
• Create a single version of the truth for all technical product information to eliminate redundancy/improve efficiencies, improve accuracy, reduce compliance risk, and accelerate new product development. • Establish blueprint for implementation across all businesses units • Improve ability to service customers by leveraging technology and streamlining current processes. • Support the overall PLM initiative through Change Management activities.
SAP Manufacturing Industries Forum 2015
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
Solution Scope Product Data Management functionality within current SAP system • Modules:
– Recipe Development – Specification Management
– Document Management • Enhancement Pack 7, Support Pack 5
SAP Manufacturing Industries Forum 2015
Changed Business Processes • Manage Ingredient Specifications
• Manage Handover to Manufacturing – Material Master
• Manage Packaging Specifications
• Manage Recipe – Formulas
• Manage Handover to Manufacturing – Quality Inspection Plans
• Manage Recipe – Finished Goods
• Handover to Manufacturing – BOM and Master Recipe
• Manage Label/Nutritional Data
• Specification Workflow
SAP Manufacturing Industries Forum 2015
Solution Overview
Product Change Process (PDM: Product Data Management) Ingredient Specifications
Spec Documents
Recipe – Food Product
Label Data
Food Product (WIP) Specifications
Recipe – Finished Product
Spec Documents
Packaging Component Specifications
Spec Documents
Document Management System
SAP Manufacturing Industries Forum 2015
Finished Product Specifications
Spec Documents
Project Timeline May-14
June-14
July-14
Aug-14
Sept-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Blueprint & Design Workshops Realization
Data Conversion Build / Solution Build
Testing Training Cutover
Support
SAP Manufacturing Industries Forum 2015
Legacy System Replacement
Formulation •
Legacy systems used by R&D to create recipes.
PLMRecipe RecipeDevelopment Development PLM
Regulatory •Used for regulatory and governance reference for BU’s on PDM. Maintain & use for ingredients and label information. SAP PLM
SAP ERP
Label Creation •
Manual process and forms will be replaced by SAP specification and workflow. Label files stored in SAP DMS.
Quality Database •
Various attributes for finished good specifications will not need to be manually created.
SAP Manufacturing Industries Forum 2015
Supplier Compliance
Data Migration • Focus on identification of legacy source data and launch resources to clean up data at least 6-9 months prior to go-live. • PLM projects are heavily data related so the focus on data is much greater than other SAP projects • Data team focused heavily on cleansing, collection, transformation, and validation • Used pre-developed tools to load data
SAP Manufacturing Industries Forum 2015
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
Building the Team • Strong support from executive sponsors • Staff top people full time on the core team – Pull key personnel from various functions for dedicated project time – Use consultants with deep knowledge of software and industry – Involve Subject Matter Experts early and often (design, checkpoints, Integration testing, mock data conversion, User Acceptance Testing, training)
SAP Manufacturing Industries Forum 2015
Training Approach • Functional Subject Matter Experts • Change Impact & Process Awareness meetings • Training tools consisting of course wrappers, uperforms, and additional reference tools • Train the Trainer concept
SAP Manufacturing Industries Forum 2015
Training Because Product Data Management touches so many functional departments, the key to our training program was identifying subject matter experts to instill a continuous learning culture. Project Management
Product Development
Regulatory
Package Engineering
PDM Label/Artwork Management
Quality Assurance
Master Data
SAP Manufacturing Industries Forum 2015
Finance
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
Highlights • Most complex data load performed by ERP team in TreeHouse history • Conducted extensive testing, including System Integration Testing (SIT), User Acceptance Testing (UAT), Exploratory, Site Readiness, and Performance testing cycles. Many different departments used to test various user perspectives. • SAP RD sync (push) to SAP ERP
SAP Manufacturing Industries Forum 2015
Benefits • One Source of Truth: Consolidate all technical product information into a central software system (SAP) • Retire legacy development systems • Improve developer productivity and visibility
• Increase synergies and ideation between developers of various business units • Recipe/Specification Development and Execution (ERP) data controlled through SAP system • Promotes packaging efficiency • Integrate automated workflow • Enterprise blueprint which will allow TreeHouse Foods to further implement across acquired business units and existing categories SAP Manufacturing Industries Forum 2015
Lessons Learned • Logging all issues, risks, and defects keeps control • Prototyping / Design Verification were critical steps during the implementation – Clarified business requirements – Increases user acceptance, ownership, and change
• Focus data model design helped early on in the project. – Establishing property trees early helps with the data migration planning and blueprint which leads to clean iterations before go-live
SAP Manufacturing Industries Forum 2015
Lessons Learned • Ensure BASIS resources can support the newer technologies. • Ensure Security is given time to understand the new security objects • Developing a Knowledge Transfer Plan ensures future success
• Expect and manage team resources and changes • Emphasize training and change management impact
SAP Manufacturing Industries Forum 2015
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
Looking Ahead • Future Rollouts • Continue to follow ERP roll out across Business Units with PDM implementation
• Migrate from legacy project management system to SAP PPM
SAP Manufacturing Industries Forum 2015
Agenda • About TreeHouse Foods • Product Data Management at TreeHouse • Solution with SAP PLM • Change Management
• Highlights, Benefits & Lessons Learned • Looking Ahead
• Q&A SAP Manufacturing Industries Forum 2015
Thank You for Your Participation • Kathy Kugelman –
[email protected] • Robin Patrawala
–
[email protected]
SAP Manufacturing Industries Forum 2015