Broad SAP ProjectApproach & Functionality

Implemented

06/23/06

Agenda• Project Goals

• Project Scope and Approach

• Timeline

• Functionality

– Master Data Management

– Planning

– Procurement

– Inventory Management

– Cost Tracking

– Production

– Quality Management

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

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

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 IS&T

– Co-team leaders – established a cohesive team– Broad business and IS&T 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 – don’t 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

Project Timeline

• Project Prep• Plan• Resources• Infrastructure

• Blueprint• Flows• Policy & Process• Spec’s• Walkthrough

• Realization• Config (DEV & TST)• Playbacks • FRICE• Integrated Test 1• UAT (IT2 & Regression)

• Final Prep• Build (PS1)• User Training• Convert

• Go Live & Support• Week 1 Support

Nov Dec Jan Feb Mar Apr May Jun

SAP Functionality Implemented

SAP

Receive PO’s

Print/Display Reports

Create PO’s

Print/Display Reports

Pass data to/from SQUID

Release Req’s

Print/Display Reports

Purchase Expensed Material

Run MRP

Input a Forecast

Set up Master Data

• Materials• BOM/Recipe• Costs• Info Record

Misc Goods Receipt

Inventory Movements

Goods Issue

Create & use an Inspection

Lot

Backflush (fixing as

necessary)

Create a Process Order

Project Expensed Material

Mini-MartExpensed Material

Set up QualityMaster Data

• Groups• MIC’s• Insp. Plans• SPC param

Print/Display Reports &

SPC

Overview Broad Flow

Pay InvoicesPrint/Display

Reports

Print Checks

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

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

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 (BOM’s)• Master Inspection Characteristics (MIC’s)• Inspection Plans• Recipes• Reason Codes• Purchasing Info Records• Purchasing Source Lists• Release/Approval Levels (Req. & PO)

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

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

PO’s (RFQ, Quotes, Spec’s, 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

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 $$$

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

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

Cost Tracking

• Monthly Updated Standard Cost tied to each material

• Material $$$ tracked to individual WBS cost objects, internal orders (projects).– Based on Standard cost X Unit Qty– For PO’s, Goods Issues, Returns, etc– Single transaction moves $$$ 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