Vortrag in Cannes

1
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
2
Implementation of an R/2-R/3-coexistence scenario
at a chemical fibers producer with six plants in
three countries
Starting PositionRF, RA, RV, RK-E and
non-SAP-systems for pur-chasing, inventory
control, controlling, calculation, maintenance,
human resorces, consolidation
3
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
4
Company and products (1)

ENKA group ENKA GmbH Co. KG Germany ENKA
bv. Netherlands Viskotex 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)PlantsEde
NL 12.500 jatoKelsterbach D 12.000
jatoObernburg D 8.000 jatoElsterberg D 5.000
jato Oberbruch D 4500 jatoGorzow PL 12.000
jato (textile processing)
ENKA-Competence in Viscose
5
Company and products (1)
Warp beam production
Spinning process
Spool
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)
Delivery types Cones and X-wound bobbins 65 of
shipments
Warp beams 35 of
shipments
6
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
7
Starting situation of IT-systems and processes (1)
RF/RA Accounting and Asset Management RV Sales
and Distribution RM Finished Goods
Inventory RK-E Profitability Accounting PAISY Hum
an Resources Hyperion Consolidation


Standardsoftware
IBM-MVS
PLINS Product Calculation and Production
AccountgPLACOS Cost Recording and Cost Center
Accounting LEE Project and Investition
Controlling PURSTIC Purchasing
MVS
Self developed SW
NEC Inventory Control (raw mat./supplies per
plant) INSIDE Maintenance orders (per
plant) NLV Administration of warp beam
production AKZOInst Maintenance messages
8
Starting situation of IT-systems and processes (2)
Hyperion Consolid.
banks
PURSTIC Purchas.
LEE Projects
PAISY Human res.
To be re-placed by R/3
PLACOS Actual costs
PLINS Calculation
MVS-Host based
PLINS PC-part
ES/9000-based
PC-based
AKZOInst Messages
SAP R/2 und Batch-Systems
9
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
10
The way to R/3 in two steps
today!
2000
1998
1999
Plant Oberbruch and head quart.
Plant Kelsterbach
inclusive Releasechange 3.0f to 3.1I
Plant Obernburg
Plant Elsterberg
Step 2 Lead time yet to be determined!
Plant Ede NL
RV RK-E Migration
Step 1 20 months lead time
All plants in old systems
Plant Oberbruch and head quart. in coexistence
phase
Enka in R/3!
Plant Kelsterbach in coexistence phase
Plant Obernburg in coexistence phase
Plant Elsterberg in coexistence
Plant Ede in coexistence
Two step procedureStep 1 Migration of
non-SAP-systems to FI as the leading accounting
system in five phases!
Step 2 Migration RV, RM, RK-E to R/3
11
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
12
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 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.
- The dynamics of the business processes dont
need an online- coupling between R/2 and R/3.
- R/3-FI should be the leading accounting system
of the ENKA company.
13
Coexistence R/2 with R/3 during step 1 (2)
What does R/2? What does R/3?
Profitability analysis R/2Sales R/2
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
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
14
Coexistence R/2 with R/3 during step 1 (3)
Hyperion Consolid.
Interfaces between SAP R/2 und SAP R/3
15
Coexistence R/2 with R/3 on the materials level
CostCntr
CostCntr
CostCntr
LART
Raw- mat.
Semi-f. goods
Semi-f. goods
Fin.-goods
WA
WE
back to production
PP
WE
Delivery Retoure
PP-order
PP-order
PP-order
Weighting
RM-SST
Shop floor
Spools in colli
Completion confirmation
Completion confirmation
back to production
Weighting
Retoure
RM-MAT
Delivery
all RM-Documents
Semi finished goods and transactions only in
R/3!
Finished goods and finished goods
transactions in R/2 and R/3!Finished goods
transactions first in R/2 and then in R/3!
16
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
17
Phases of productive usage during step 1 (1)
Transfer of balances
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 shift to R/3 happens "one location at a
time" and "one after the other"
- 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.
18
Phases of productive usage during step 1 (2)
Transfer of balances
RV-Documents
RM-Documents
RM-Documents
R/2-R/3-Coexistence after phase 2 and 3
- Phase 2/3 Two more locations with four
business areas are productive
- 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!
- The R/3-balances will be transfered once per
month to R/2 for the profitability analysis and
for the consolidation.
- 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.
19
Phases of productive usage during step 1 (3)
Consolidation
SAP R/2
LE
LE
WV
LO
WM
WE
LA
21
21
21
21
BK
21
21
54
54
nn
TR
49
53
GB
61
76
51
nn
Transfer of balances BK21
Transfer of balances BK54
RV-Documents
RM-Documts
RV-Documents
RM-Documts
RM-Documts
RM-Doc.
RM-Doc.
RM-Doc.
SAP R/3
LE
LE
WV
LO
WM
WE
21
21
21
BK
21
21
TR
49
53
GB
61
76
R/2-R/3-Coexistence after phase 5
Final situation of coexistence at the end of step
1
20
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
21
Modeling of the fibers production with PP and
CO(1)
Characteristics of the fibers production
Number of raw materials low
Number of prod. steps Spools 1 Warp beams 2
Disposition of product. Spools stock
driven Warp beams make to order
Material flow chemical part continously texti
le part discontinously
Specialities Product variance by fibers
parameters (batches), By products caused by
yarn tears (spools below standard weight) and
residues, Individual colli administration
with finished goods, Completion
confirmations only manual (expensive), for
half finished goods only by counting (no
weighting possible)
22
Modeling of the fibers production with PP and CO
(2)

FI
Raw-mat.
Semi-f. goods
Semi-f. goods
Fin.-goods
MM
routing 1
routing 2
routing 3
new!
new!
Division of production flow in steps with
corresponding semi-manufactured goods as base for
completion confirmations and monthly accounting
of semi-finished goods
23
Modeling of the fibers production with PP and CO
(3)
- 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 11 one PP-order per year -
fibers on warp beams 11 plus administration of
the produced batch per RV-order and
RV-position
24
Modeling of the fibers production with PP and CO
(4)

- 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
25
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
26
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
Backup-machine also supports the three R/3-test
systems
27
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
28
Experiences after the first locations shift to R/3
- Modeling all real material flows by material
numbers and PP-orders means exhaustive
administrative work --gt 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!