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Case Study: Philips
Medical Systems’ SAP
Global Implementation
Larry Simanak
Director of Customer Service
Philips Medical Systems
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The Scope
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Solution architecture for PMS HSG
SSD
Field Operations
Integrated Client
SAP 4.6c
RoW
Japan
ALE
PMG
Factory Andover
SAP 4.6c
Factory HeartStream
Factory Zymed
Factory Böblingen
SAP 4.6c
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Americas
Argentina
Brazil
Canada
Mexico
Puerto Rico
US Factory
US Field
US Miami
Venezuela
EMEA
ASPAC
Austria
Belgium
Finland
France
Germany
Italy
Netherlands
Poland
Portugal
Russia
Spain
Sweden
Switzerland
Geneva
UK
Australia
China
Hong Kong
India
Japan
Korea
Malaysia
Singapore
Taiwan
Thailand
United States:
Europe:
Asia/Pacific:
Latin America:
Canada:
95 sites, 3000 users
55 sites, 1400 users
40 sites, 540 users
12 sites, 120 users
10 sites, 90 users
Complicated Program
•Many Users &
•Many Countries &
•Many Languages &
•High Deadline Pressure
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2001
Dec
Jan
Feb
2002
Apr May
Mar
Freeze IC –
Jun
July
Fixes Yes / New functionality No
Aug
Sep
Oct
Nov
HSG/CMS Rollout Planning - Final
CMS Pilot France
Live Test
USA
Tier 1 Canada,
Mex
64.5% Japan
Tier 2 UK / HK-Ch
Italy
18.7% Germany
Tier 3
Tier 4
Direct Export Countries
Agilent will extract data for all current
legal entities. This will cover both
current & Day 2 Direct Export countries.
Benelux/India
Iberia (Sp/Po) /
Australia/NZ
Direct Export Hubs:
Austria-Switz/Swe/Fin/
Tai/Kor/Thai/Mal/Sing
Geneva (1/9) : Andover (1/9)
Merge Centres:
SLI:
Boeb 1/9 :And 1/9
Boeb 1/7 :
Memphis 1/9
Poland:
Nov or Dec
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The Restraints
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HSG IT Separation replaces the IT Business systems under
agreement with Agilent.
Key Business Driver:
Get Off SLAs by
September 1, 2002
Situation:
CMS/ISY has one year from Day 1 to replace all information
technology systems that are maintained by Service Level Agreements
with Agilent or HP. Over the same period, CMS/ISY must integrate into
the Philips system architecture.
This presents an enormous challenge and opportunity to standardize
our processes and systems, and improve both customer satisfaction
and organization efficiency.
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We are paying 10 M$ per month to Agilent for SLAs !
18,000
16,000
Millions $ / Month
14,000
12,000
10,000
8,000
6,000
4,000
Total: $154 million
2,000
0
Aug-01 Sep-01 Oct-01 Nov-01 Dec-01
Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02
Jul-02 Aug-02 Sep-02 Oct-02
If we extend the SLAs beyond September 1st, we pay substantial penalties
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Complexity
Rollout Project Plans
USA/CA
JP
Ger
IT
Global Overview Plan
Inverse
information flow
for drill on status
exceptions
HK / CH
UK
FR
Note:
0nly Tier 1 & 2
countries being
tracked
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Workstream Project Plans
Factory
SAP IC Gap
Office Moves
Infrastructure
Comp. Sol.
Interfaces
Data Extraction
SAP IC Rollout
Document Index (1/plan):
Supports &
Explains Statuses for
Drill Down
Other
Emails
MS Project Plan
Scoping
Direct Export
BW
SLI Rollout
Country 1..7
Stream 1..8
Detailed Cutover Plan
Country 1..7
Stream 1..8
Cutover Tracking Plans
Cutover Plan
Summary Overview
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Integrated Client
 The SAP Integrated Client is the single
SAP standard for PMS
• OAP/ORP
• Finance
• Service Management
• Service Logistics International
• Direct Export
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Integrated Client
 PMS has decided to develop and
implement Integrated Client
• To reduce management and maintenance costs
• To improve reporting capabilities (speed)
• To standardize business processes worldwide while
keeping regional flexibility
•
•
To reduce interfacing problems
To facilitate connection to worldwide PMS data
 Integrated Client v3.0 is rolled out to the
SSDs.
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Build
Product
Generation
Deliver
• SSUI
Heartstream,
Zymed
• Fourth Shift
• Target
Marketing
• CVR
eDHR
/eDH
T
TV
Freq.
Mgmt
DAWG
SAP R/3 4.6c
• Defoa
• DOA
• Laser
Labeling
• PTM
• JetForms
Demand
Planning
SFC
IPP
TER/EER
Product Data Management
HPDL
(2)
eDMR
PERSEU
S
NOVA
MSM
Suite (5)
Supply Planning
•Va
mp
Design
Gatewa
y
Hermes
KEY:
NERD
D
• Epicor
• NAP
Finance
Data Warehouse
•Ne
ssie
•ER
HPDL-MT
MSM Dly
•ED
Upds S
MSM-GEM
Master
XMS
Web Req
Supplier
Mgmt
= Modify
= Interface
KEY:
= Clone
• Bulleted text = Status Quo
= New
* Waiting on replacement
decision
EDI
Gatewa
y
Get
Smart
(EOQ/
SS)
Other/HR
Performance
Mgmt
• Kronos
• TRECS
• EDM
Q&R
Gecko*
Replacem
nt
Insight
Complain
t
Handling
• CDM/CDQS• Soli
• Employe
e Survey
• CAPA
• CDA
Tracking
• TEDS
Lotus
Notes Various
Workplace
Services
CRS2000
Replaceme
nt*
Odessa
• QSMT
Totals
Clone = 11
Interface = 6
As of 04/02/02
Modify = 14
New = 1 (excludes 2
D2+)
Status Quo = 25
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SAP Factory and SAP IC are closely linked
PMG prices
basic product info
configurable
product info
PMG product repr.
manufacturing
product
SAP PMG
CMS/ISY
•
•
•
•
Var.
Conf.
SSD
catalogue
local/
regional
stock
SAP SSD IC
Ultrasound 4500/5500
CMS
Telemetry
Codemaster defibs
Build to Stock (1-5d)
invoice
installed base
configuration
Enconcert
Agilent Info Center
CareVue
OBTraceView
Build to Order (2-6w)
quote
management
sales order
management
purch.
order
Solutions (>6w)
•
•
•
•
sales orders
(SD)
sales
order
Sales
Order
SSD local currency
list price calc.
Material
Master
data
purchasing
orders (MM)
Variant Configurator
Material
Master data
•
•
•
•
•
Cardiographs
AEDs
OptiGo
A1, A3 monitors
Holter
Off the shelf (same day)
• paper
• electrodes
• Point-of-Care
supplies
• defib pads
• stethods
• AEDs
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Ying & Yang
 What went right
 Improvements
 Take away’s
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What went right?
 Project Structure
• Project team was formed early
•
•
•
•
•
and experienced as part of
previous initiative towards ERP
Full-time Project Manager
assigned with Key subproject
leads assigned full-time at
critical point in project
Business team and Consultants
located together with Project
Mgr.
Cross-functional team formed
at project level with weekly
review meetings (Sales,
Logistics, Service and Finance)
Consistent project review
meetings-weekly conference
calls with CS project team. Face
to face approx. once/mth.
Clear ownership for project
team-MRC, Field Delivery, Data
Migration, etc.
 Business
• Steering Committee in place
made up of Senior Support
Management team to provide
quick policy decisions and
provide direction when needed.
•
Prototyping allowed testing of
processes, although this was
done on legacy tools.
•
Committed team members,
willing to work very extended
hours based on compressed
nature of the project
•
Commitment to attending
training courses
•
CLIC newsletter developed for
Field communications
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Challenges/areas for Improvement?

Complexity of the project

Project design phase continued well into
implementation phase.
•
Made knowledge transfer difficult
•
Affected ability to prototype and test
•
Affected documentation-many work instruction
incomplete late into the project, which impacted
training.

Design isolated from roll-out teams

Very time constrained project limited

A large discrepancy in the accuracy of the
installed base (clean-up early)

Design flaws in the logistic (SLI/SSD
processes)
•
Logistics process (being redesigned)

Not using SAP

Not enough emphasis on change
management as necessary early in the
project
•
Senior Management communication
•
Focused owner for communication
•
Early development of most effective tool (CLIC
time in all phases do to SLA’s



Lack of local control over data cleanup
efforts made it difficult to monitor and
control status

Competing field activities prevented fully
focused field data cleanup efforts
Numerous fixes created (issues being
resolved by issue management)

Ability of roll-out teams to create
effective design changes based on clear
SAP practices
Data migration was not tied to business
(migration team being formed for next
project phase)
Newsletter)
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Take a ways
 Project
•
•
•
Close connection between design
and roll-out
Forced completion of issue
management within the team
•
•
•
Keep consultants and business
organized together (centralized)
•
Control of critical path issues within
the roll-out teams
•
•
Settle data migration issues early
•
 Business
Training

Learn the process

Understand the tools
Committed staff
•
•
Change management
Communication
Data migration

Clean up the installed base

Close all transactional data early

Reduce unnecessary inventory

Clear up Financial transactions
Training

Learn the process

Understand the tools
Management commitment to the
principles and processes
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“Integrated Client” for Customer Services
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