Broad SAP Project Approach

1
Broad SAP ProjectApproach Functionality
Implemented

• 06/23/06

2
Agenda

• Project Goals
• Project Scope and Approach
• Timeline
• Functionality
• Master Data Management
• Planning
• Procurement
• Inventory Management
• Cost Tracking
• Production
• Quality Management

3
Project Goals

• Enable the Broad to be the lowest cost provider
  of genomic sequencing data.
• Improve Production cost tracking
• Implement product costing (cost per read)
• Simplify Purchasing and Financials, including the
  addition of ECAT purchasing
• Simplify batch creation and inventory management
  processes
• Improve ease of use for highly repetitive
  transactions
• Enhance operational performance
• Improve shop floor tracking of batch numbers to
  enable timely troubleshooting
• Improve quality management by tying inspections
  results to materials and batches produced
• Fully integrate with the MIT SAP system, to
  reduce long term IT costs
• Eliminate a grant funded legacy system (OPM),
  multiple system interfaces
• Eliminate the dual User licenses and system
  maintenance contracts
• Provide a scalable platform, that supports the
  addition of new/more complex business processes

4
Project Scope

• Replace Oracle OPM with SAP functionality in the
  following areas
• Master Data Management
• Planning
• Procurement
• Inventory Management
• Cost Tracking
• Production
• Quality Management
• Provide specific functional enhancements to
  improve ease of use increase efficiency
• Including direct use of MIT SAP Purchasing
  Financials
• Out of scope items clearly defined and agreed
  upon

5
Project Approach

• Team expectations clearly defined
• Team members educated on basic project truths
• Scope, Schedule, Budget (resources)
• Measurable acceptance criteria for project
  success
• Collaborative effort between Broad and IST
• Co-team leaders established a cohesive team
• Broad business and IST members paired
• Active sponsorship and steering committee
• Business Power Users dedicated to the project
• You are empowered. Make the decisions!
• Deal with tough or controversial issues up front
  dont wait!
• Involve everyone, at every step
• Extensive planning and scoping analysis conducted
  prior to project kick-off (2 month effort)
• Project scope under change control at the onset

6
Project Timeline
Nov Dec Jan Feb Mar Apr
May Jun

• Project Prep
• Plan
• Resources
• Infrastructure
• Blueprint
• Flows
• Policy Process
• Specs
• Walkthrough
• Realization
• Config (DEV TST)
• Playbacks
• FRICE
• Integrated Test 1
• UAT (IT2 Regression)
• Final Prep
• Build (PS1)
• User Training
• Convert

7
SAP Functionality Implemented
8
Overview Broad Flow
Print/Display Reports
Print/Display Reports
Print/Display Reports

• Set up
• Master Data
• Materials
• BOM/Recipe
• Costs
• Info Record

Receive POs
Create POs
Release Reqs
Run MRP
Inventory Movements
Goods Issue
Project Expensed Material
Misc Goods Receipt
Pay Invoices
Print/Display Reports
Input a Forecast
Create a Process Order
Mini-Mart Expensed Material
Backflush (fixing as necessary)
Purchase Expensed Material

• Set up Quality
• Master Data
• Groups
• MICs
• Insp. Plans
• SPC param

Create use an Inspection Lot
Pass data to/from SQUID
Print/Display Reports SPC
Print Checks
9
SAP Modules at Broad

• SAP Modules include
• Materials Management (MM)
• Master data (material, vendor, purchasing
  information record),
• Purchasing
• Material Requirements Planning (MRP)
• Inventory management (goods issue, goods
  receipts, goods transfer, physical inventory)
• Batch management
• Quality Management (QM)
• Inspection plans / Master Inspection
  Characteristics, Inspection lots, Inspection
  Results Recording and Statistical Process Control
• Quality inspection stock
• Production Planning (PP)
• Process orders and master recipes including Bill
  of Materials
• Financial and Controlling (FI/CO)
• Product Costing
• Cross-Application Components
• Document Management
• Workflow

10
Broad is an SAP Plant

• SAP defines a plant as a location that holds
  stock (inventory), contains service or
  maintenance facilities and or manufactures
  products
• Each plant within SAP can have many unique
  features
• Factory calendar identifies working days
• Storage locations location where stock is
  physically kept in a plant
• Master data - materials, work centers, bills or
  material, recipes, batch
• Planning requirements reorder point, forecast
  based
• Quality mgt inspection plans/master inspection
  characteristics

11
Master Data Management

• Plant Calendar specific for broad
• Organizational Structure (Plant, Purchasing
  group, etc.)
• Material Master (Part Numbers)
• Re-Order Points
• Lead time
• Standard cost
• Bills Of Material (BOMs)
• Master Inspection Characteristics (MICs)
• Inspection Plans
• Recipes
• Reason Codes
• Purchasing Info Records
• Purchasing Source Lists
• Release/Approval Levels (Req. PO)

12
Planning

• Forecasting
• Long Term Planning (LTP)
• Materials Requirement Planning (MRP)
• Finished and Semi-finished (Make)
• Raw materials/Components (Buy)
• Bulk materials (Buy)
• Cash Flow Analysis
• Actuals vs Budget Comparisons

13
Procurement

• MRP generated Purchase Requisitions
• Directly created Purchase Requisitions
• In SAP
• Via SAP Web
• Purchase Requisition approval workflow
• Purchase Order creation using Req info master
  data
• Electronic document management for both
  Requisitions and POs (RFQ, Quotes, Specs, etc)
• Purchase Order approval workflow
• Automatic Purchase Order print/fax
• Single screen for Expensed material Receiving
• Custom Confirmation transaction for Inventory
• Quality Hold on Invoice payment until after
  approval (where desired)
• Automated 3 way match for Invoice payment

14
Inventory Management

• Goods receipts
• Purchase Orders/Production Orders
• Cost Centers
• Projects/Internal Orders
• Mini-Marts/Groups (WBS cost objects)
• Goods Issues
• Production Orders (including Backflush)
• Cost Centers
• Projects/Internal Orders
• Mini-Marts/Groups (WBS cost objects)
• Goods movements within Stockroom
• Cycle Counting Physical Inventory
• Restricted and Un-restricted stock
• Connected/Synchronized Unit and

15
Production

• Process orders
• Capturing costs
• Goods Issue and/or Back Flush
• Automated batch assignment
• Debugging via Lot Genealogy (from Supplier to
  finished product)
• Yield tracking
• Integration to Quality results tracking
• MRP Planning capability

16
Quality Management

• Automated Batch assignment
• Lot Genealogy from Supplier to End Product
• Feeds to Broad Data Warehouse (SQUID) reporting
• Invoice payment hold until Quality approval on
  Receipts (where desired)
• Pre-defined Master Inspection Characteristics
  and Inspection Plans
• Consistency
• Ease of maintenance
• On Line Usage Decisions
• Inventory Units and moves to correct bucket
  automatically
• Results tracking and Alerts
• Statistical Process Control (SPC) charts

17
Cost Tracking

• Monthly Updated Standard Cost tied to each
  material
• Material tracked to individual WBS cost
  objects, internal orders (projects).
• Based on Standard cost X Unit Qty
• For POs, Goods Issues, Returns, etc
• Single transaction moves and Units
• Variance accounts to isolate particular
  activities
• Reason codes to provide granularity
• Expanded reporting (Inventory , PPV, etc)
• Ability to track actual cost expended against a
  pre-established budget
• Capability to plan and track Labor costs as well,
  though this is not being used by the Broad