Implementation of an R/2-R/3-coexistence scenario at a chemical fibers producer with six plants in

R/2- R/3- Coexistence in chemical fibers production

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ENKA-Competence in Viscose

Implementation of an R/2-R/3-coexistence scenario

at a chemical fibers producer with six plants in

three countries

B. Boes Lindh Enka GmbH Wuppertal

Dr. Reinhardt Koch Gesellschaft für Rationalisierung Aachen

Presentation given at the SAP-R/2-infoday at Wiesloch April 13th 1999


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Target:RF, RV, RK-E, FI, FI-AA, MM, PP, PM, CO as well as

non-SAP-systems for human resources and consolidation

Implementation of an R/2-R/3-coexistence scenario at a chemical fibers producer with six plants in three countries

Starting Position:RF, RA, RV, RK-E and non-SAP-systems for pur-

chasing, inventory control, controlling, calculation, maintenance, human resorces, consolidation


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Contents:

- Company and products

- Starting situation of IT-systems and processes

- The way to R/3 in two steps

- Coexistence R/2 with R/3 during step 1

- Phases of productive usage during step 1

- Modeling of the fibers production with PP and CO

- R/3-high availability in an R/3-server park

- Experiences after the first locations shift to R/3


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Company and products (1)

ENKA group ENKA GmbH & Co. KG GermanyENKA bv. NetherlandsViskotex Sp.z.o.o. Poland

Head quarters and central sales: WuppertalSales offices in Mailand, Lyon, Barcelona, Horn (CH)Turnover 1997: 513 Mill. DMMarket share: 50% (Western Europe) 12% (worldwide)Plants:Ede NL 12.500 jatoKelsterbach D 12.000 jatoObernburg D 8.000 jatoElsterberg D 5.000 jatoOberbruch D 4500 jatoGorzow PL 12.000 jato (textile processing)



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Company and products (1)

ENKA is the world's biggest producer of viscose-filament denierand mixtured yarn (PA/PE)Denier interval from 67 to 660 dtex (=gramsper 10 km)

Warp beam production

Delivery types Cones and X-wound bobbins 65% of shipments

Warp beams 35% of shipments

Spinning process Spool


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Contents:










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Starting situation of IT-systems and processes (1)

RF/RA Accounting and Asset ManagementRV Sales and DistributionRM Finished Goods InventoryRK-E Profitability AccountingPAISY Human ResourcesHyperion Consolidation

Sta

nd

ard

so

ftw

are

PLINS Product Calculation and Production AccountgPLACOS Cost Recording and Cost Center AccountingLEE Project and Investition ControllingPURSTIC Purchasing

IBM

-MV

SM

VS

Se

lf d

eve

lop

ed

SW

NEC Inventory Control (raw mat./supplies per plant)INSIDE Maintenance orders (per plant)NLV Administration of warp beam productionAKZOInst Maintenance messages

DP

PX

PC


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Starting situation of IT-systems and processes (2)

RF

RK-ERVRM-MAT

RA

Custo-mers

Supp-liers

PURSTICPurchas.

LEEProjects

HyperionConsolid.banks

PAISYHuman res.

PLACOSActual costs

NECInventory

INSIDEMaintenance

NLVBeam prod.

ES/9000 per plant!

AKZOInstMessages

PLINSCalculation

PLINSPC-part

MVS-Host based

ES/9000-based

PC-based

To be re-placed by R/3

To be re-placed by R/3

SAP R/2 und Batch-Systems


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Contents:










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inclusive Releasechange3.0f to 3.1I

2000

The way to R/3 in two steps

Two step procedureStep 1 Migration of non-SAP-systems

to FI as the leading accounting system in five phases!

Plant Oberbruch and head quart.

1998 1999

Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz

Plant Kelsterbach

Plant Obernburg

Plant Elsterberg

Plant Ede NL

today!

RV RK-E Migration

Step 2: Lead time yet to be determined!

Step 1: 20 months lead time

All plants in old systems Plant Oberbruch and head quart. in coexistence phasePlant Kelsterbach in coexistence phasePlant Obernburg in coexistence phase

Plant Elsterberg in coexistencePlant Ede in coexistence

Step 2 Migration RV, RM, RK-E to R/3

En

kain

R/3!


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Contents:










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Coexistence R/2 with R/3 during step 1 (1)

Principals of the R/2-R/3-Coexistence strategie

No changes on the R/2-side because

- Different companies of the concern are in the same client and use the same R/2-modules and processes. Each change needs numerous negotiated agreements.

- The dynamics of the business processes dont need an online- coupling between R/2 and R/3.

- The coexistence phase is to be replaced after a time period by the migration from RV and RK-E to SD and CO-PA. The project costs therefore have to be minimized.

- R/3-FI should be the leading accounting system of the ENKA company.


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Inventory accounting finished goods R/2 und R/3Completion confirmations finished goods R/2 und R/3Customer orders for warp beams R/2 und R/3 (als PP-Auftrag)Customers R/2 und R/3

Profitability analysis R/2Sales R/2

Accounts receivable R/3Suppliers and accounts payable R/3Assets Accounting R/3Inventory accounting raw materials and supplies R/3Inventory accounting semi finished goods R/3Cost accounting R/3Product calculation R/3Project- and investition cost accounting R/3Maintenance management R/3Production orders (half- and finished goods) R/3Completion confirmations half finished goods R/3

What does R/2? What does R/3?


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banks

HyperionConsolid.

CustomersRF

RK-ERVRM-MAT

FI

PM CO MM PP FI-AA

SuppliersCustomers

InhouseBanking

InhouseHedging

PAISYHuman res.

AKZOInst

Bau

mau

fträ

ge

Bau

mrü

ckm

eld

un

g

Alle

RM

-Bel

ege

Mat

eria

lstä

mm

efü

r F

F‘e

Co

stp

rice

fü

r F

F‘e

(fix

+va

riab

el)

RV

,- D

X-

un

d A

B-B

eleg

e

Geg

enb

uch

un

g

FI-

Sal

den

fü

rR

F-S

ach

kon

ten

Wäh

run

gsk

urs

e

Overdue-list

Interfaces between SAP R/2 und SAP R/3


SF

Kre

dit

kon

tro

lle


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Semi finished goods and transactions: only in R/3!

Raw- mat.

Semi-f. goods

Semi-f. goods

Fin.-goods

Coexistence R/2 with R/3 on the materials level

CostCntr

CostCntr

CostCntr

MMMM

COCO

PPPP

PP-order PP-order PP-order

WA WE

LART

Shop floorCompletion

confirmationCompletionconfirmation

RM-MATRM-MAT

Weighting

Spoolsin colli

Delivery

Retoureback to

production

RM-SST

all RM-Documents

bac

k to

pro

du

ctio

n

DeliveryRetoure

Weighting

WE

Finished goods and finished goods transactions: in R/2 and R/3!Finished goods transactions: first in R/2 and then in R/3!


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Contents:










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Phases of productive usage during step 1 (1)

- The shift to R/3 happens "one location at a time" and "one after the other"

nn

21

SA

P R

/2

TR

21

49

LE

21

53

WV

21

03

WK

21

20

WK

21

14

WK

21

BA

LO

AU

61

WM

21

76

WE

21

13

FE

54

40

FE

54

TR

FE

54

51

LA

54

SA

P R

/3

TR

21

49

LE

21

53

WV

21

BA

LO

AU

RV-Documents RM-Documents

R/2-R/3-Coexistence

after phase 1

- Each location has one or more business areas (BA). One BA belongs either to a group of productive or non-productive cost departments.

- The business area TR is not dedicated to a location. It's only for sales. TR will shift to R/3 in the first phase.- Productive business areas coexist in R/2 und R/3. Non productive business areas are only in R/3. Balances are transfered from FI to RF every month to BAnn.

Consolidation

Transfer of balances


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nn

21

SA

P R

/3

TR

LE

21

49

LE

21

53

WV

21

BA

LO

AU

RV-Documents RM-Documents

- The R/3-balances will be transfered once per month to R/2 for the profitability analysis and for the consolidation.

03

WK

21

20

WK

21

14

WK

21

61

WM

21

RM-Documents

- Each shift of a location from R/2 to R/3 will let behind an unused business area in R/2 for the site-areas!

- After the shift of the last location (phase 5) RF will only have the postings of RV and RK-E and the business area nn for the transfer of balances.

SA

P R

/2

TR

LE

21

49

LE

21

53

WV

21

03

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21

20

WK

21

14

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21

BA

LO

AU

61

WM

21

76

WE

21

13

FE

54

40

FE

54

TR

FE

54

51

LA

54

Consolidation

Transfer ofbalances

- Phase 2/3: Two more locations with four business areas are productive

R/2-R/3-Coexistence

after phase 2 and 3


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nn

21

SA

P R

/3

TR

LE

21

49

LE

21

53

WV

21

GB

LO

BK

RV-Documents RM-Documts

R/2-R/3-Coexistence after phase 5

03

WK

21

20

WK

21

14

WK

21

61

WM

21

RM-Documts

SA

P R

/2

TR

LE

21

49

LE

21

53

WV

21

03

WK

21

20

WK

21

14

WK

21

GB

LO

BK

61

WM

21

76

WE

21

13

FE

54

40

FE

54

TR

FE

54

51

LA

54

Consolidation

Transfer ofbalances BK21

13

FE

54

40

FE

54

TR

FE

54

51

LA

54

nn

54

Transfer ofbalances BK54

RV-DocumentsRM-Documts

76

WE

21

RM-Doc.RM-Doc.RM-Doc.

Final situation of coexistence at the end of step 1


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Contents:










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Modeling of the fibers production with PP and CO(1)

Characteristics of the fibers production:

Specialities Product variance by fibers parameters(batches), By products caused by yarn tears(spools below standard weight) and residues, Individual colli administration withfinished goods, Completion confirmationsonly manual (expensive), for half finishedgoods only by counting (no weightingpossible)

Number of prod. steps Spools: 1 Warp beams: 2

Disposition of product. Spools: stock drivenWarp beams: make to order

Material flow chemical part continouslytextile part discontinously

Number of raw materials low


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Modeling of the fibers production with PP and CO (2)

Division of production flow in steps with corresponding semi-manufactured goods as base for completion confirmations and

monthly accounting of semi-finished goods

FIFI

routing 1 routing 2 routing 3

Raw-mat.

Semi-f. goods

Semi-f. goods

Fin.-goods

D CD C D C

HF1

HS1 HS2R

HF2

HS3 HS4HF1

FF

HS5 HS6HF2

MMMM

COCO

PPPP

Counting 1 Counting 2 Weighting

D C

new! new!


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- Calculation of standard price per production step (cost per step)

- Spools of all weight figures for a specified fiber belong to the same material number!

- Inventory measuring unit is kg, but completion confirmation measurung unit is kg or number of spools with full weight or number of spools with smaller weight

- Relation of material number to PP-order - fibers on spools 1:1 „one PP-order per year“ - fibers on warp beams 1:1 plus administration of the

produced batch per RV-orderand RV-position


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- No PP-planning, ex-post-usage of PP-orders for completion confirmations- Completion confirmations on PP-order for spools automatically coupled with stock receipt- Retrograde posting for raw materials and semi- finished goods- Residues as by products: - no R/3-residues calculation, but residues sales as negative costs added to the main product - residues to finished good stocks with costprice ca. 0 - PP-order only for making completion confirmation of residues to finished goods stock


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Contents:










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R/3-high availability in an R/3-server park

Real time data replication via LAN

MIMIX-SW makes back up for three R/3 productive systems to one backup-system

Hot standby by switching the clients to the backup machine

AS/400 Mod. 53SProduktionFa. HIMA

AS/400 Mod. 53SProduktion

Fa. IPO

AS/400 Mod. S30ProduktionFa. ENKA

Token Ring

MIMIX-SW MIMIX-SW MIMIX-SW

MIMIX-SW

AS/400 Mod. S20Test- und Backupfür ENKA, HIMA,

IPOBS V4R1

Backup-machine also supports the three R/3-test systems


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Contents:










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Experiences after the first locations shift to R/3

- Modeling all real material flows by material numbers and PP-orders means exhaustive administrative work --> Pragmatic R/3-modeling of the fiber production necessary- The potential of the PP-orders in the fibers production still has to be explored- The integration of PP, MM und CO demands for the integration of production and controlling departmnts. - Transition from batch oriented monthly controlling to online-functions in R/3 needs time.Summary: The concept for R/2-R/3-coexistence is operable and works well. It guarantees the parallel living in both SAP-worlds and a smooth path to R/3!