]

ASUG Illinois Chicago Chapter

Kellogg Company

October 21, 2011

[ JUERGEN LINDNER
SAP POINT OF CONTACT
MEMBER SINCE: 1998

Shwet Bhasin
Norris Ingbretson

[ LINDA WILSON

ASUG INSTALLATION MEMBER

MEMBER SINCE: 1999

[ ATUL PATANKAR

ASUG INSTALLATION MEMBER

MEMBER SINCE: 2000

[ Topics
Kellogg Company
Kellogg IT Background & History

Program Symphony
Warehousing

Manufacturing
Organizational Change Management

Q&A

Real Experience. Real Advantage.

Real Experience. Real Advantage.

Real Experience. Real Advantage.

Chicago (31st)

Chicago (Cone)

K
K
K

Aurora

Elmhurst

Oak Brook Information Technology

~ 1,500 Employees in the Chicago Area

5
Real Experience. Real Advantage.

Real Experience. Real Advantage.

Real Experience. Real Advantage.

8
Real Experience. Real Advantage.

Real Experience. Real Advantage.

Program Symphony

Real Experience. Real Advantage.

[ Program Symphony The Facts

Key pillar in our overall IT strategy
Objectives
Standardize, simplify, and automate our Kellogg Business Processes enabled by a
new SAP platform
Eliminate business and technical constraints in our current production SAP solution
Provide flexible and sustainable foundation for the future
Data Governance and Quality
BI Reporting and Analytics

Identify and deliver on key value drivers for business benefit

Dimensions
Scope: Full ERP Suite, Supply Planning, CRM, BI and Recipe Mgmt
Major Partners:
System Integrator: Accenture
Software: SAP, Linx-AS
Hardware: HP (HP Unix & Linux, EMC, Cisco
Real Experience. Real Advantage.

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[ Current Data Systems

Currently within our SAP environment Special K is described as:
Special K

Spec K

SPK

SPECIAL K

SPECIALK

SPECK

SP SK

SPCK
Lack of data quality, consistency, and data
governance limit ability to perform timely and
accurate analysis of information and
business results

Real Experience. Real Advantage.

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[ System Integration Issues

Lack of integrated data structures, reporting hierarchies, and disjointed

systems is common place and requires significant manual intervention to
perform simple daily analysis
Real Experience. Real Advantage.

13

[ Business Process Challenges

Lack of documentation, standard operating procedures,

and training tools for systems usage
limit ability for staff rotation, on-boarding,

and effective system utilization

Real Experience. Real Advantage.

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[ Program Scope
Scope is broad and covers a wide range of Kellogg business processes
Scope
Americas implementation
Global foundational design (master data)
Replace current SAP transactional system and implement additional SAP
modules to reduce customization

Real Experience. Real Advantage.

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[ Phased Approach - Realization

Deployment
Preparation

PLAN

Americas Template

Blueprint
ANALYZE
DESIGN

Realization
DESIGN
BUILD TEST

Release 1

Release 2

Release 3

LOCALIZE
TEST
DEPLOY

LOCALIZE
TEST
DEPLOY

LOCALIZE
TEST
DEPLOY

10 MONTHS

Continue RICEF Functional Designs

Perform Testing Cycles

Create Technical Designs

Assess Business Readiness

Perform Configuration
Build RICEF Objects
Create Security models
Develop Training Material
Real Experience. Real Advantage.

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[ Deployment Plan
Deployments span across all business units and regions over a period of 3 years
Program Phases
Foundational Design

KNA Planning
Release 1

2011

2010
Q1

Q2

Q3

Q4

Q1

Q2

2012

Q3

Q4

Q1

Q2

Q3

2013
Q4

Q1

Q2

Q3

2014
Q4

Q1

Q2

Q3

Q4

Design

Build and Test

Training and
Go-Live

KNA Supply Chain

Release 2

Build and Test

Training and Go-Live

KLA Solution
Release 3

Build and Test

Training and Go-Live

We are here

Real Experience. Real Advantage.

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Supply Chain Warehousing

Real Experience. Real Advantage.

[ Warehousing Scope
Type of Sites

Manufacturing Plants
Third Party Manufacturing
Shipping Locations
Temperature Controlled Warehouses

Get to Customer Models

Direct Store Door
Third Party Distribution
Warehouse Delivery

Systems
Red Prairie
SAP WM
EDI
Real Experience. Real Advantage.

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[ Warehousing Systems Integration

EDI/GIS

3PL
CoMan/Pack

EDI/GIS

DLx
Red Prairie

Idoc

Idoc

EDI/GIS

SAP WM

SAP IM

Idoc Based Interfaces

EDI Interfaces
GIS Middleware
Real Experience. Real Advantage.

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[ SAP WM Processes

RF Solutions

Receiving
Replenishment
Putaway
Inventory
Transfers
Production

TO Processing
Stock Checks
Picking
Returns
Loading
Packing

Day 2

Day 1

Order/
Delivery
Creation

Orders Keyed
via Hand Held
Device

Shipment Creation
& Route
Optimization

SAP WM TOs
Created & Sent
to PTV

Real Experience. Real Advantage.

Shipment
Complete; PGI
Triggered

TOs
Confirmed
in SAP

Day 3

Day 2 Contd.

Order Packed/
Loaded on Truck

Orders
Picked via
PTV

Invoices
Triggered

Order
Delivered to
Store Door
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[ Pick To Voice

Real Experience. Real Advantage.

22

[ Red Prairie<>SAP Integration

As-Is Technical Complexities

Real Experience. Real Advantage.

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[ Red Prairie<>SAP Integration

As-Is Technical Complexities
Interfaces
Flat file based Obsolete technology
Minimal error reporting and reprocessing capabilities
No interface audit reports or interface failure notification
Data and Reporting
No centralized repository for DLx data in SAP for the purpose of reporting
Ad hoc data retrieval from DLx into SAP is a very tedious file based process
Currently none of the DLx reports are real time
Data residing in flat files is very difficult to utilize using standard SAP tools

SAP Customizations ABAP Code

Large amounts of customization Both in terms of number of programs and their sizes
Obsolete code that dates back to late 90s Patched repeatedly over the years
Rigid and inflexible due to hard-coding Difficult to upgrade, support or debug
No documentation Reverse engineering is difficult
Flat file and UNIX scripts based - inefficient and complex - not performance friendly
Complex Middleware Processing

Real Experience. Real Advantage.

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[ Red Prairie<>SAP Integration

Grounds
Up
Development

PRD

E1P

VS
Lift & Port
AKA
Copy & Paste

Real Experience. Real Advantage.

PRD

E1P

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[ Red Prairie<>SAP Integration

New Grounds Up Integration Design
Idoc Based Interfaces
Usage of standard SAP Idocs as much as possible for interfacing
Scheduled SAP batch jobs to reprocess errors automatically
Usage of standard SAP tools to monitor interface Idocs for failures
Real Time / Near Real Time Interfaces
Minimal Usage of Flat Files and Unix Scripts
Creation of a Central Data Repository
Design and create one central DLx data repository in SAP for reporting
Streamlining data reconciliation between SAP and DLx
Streamline Code
ABAP programs re-written for higher efficiency
Consolidation of multiple ABAP program
Obsolete code and functionality removed

Removal of custom pop-ups from standard transactions

Usage of Consolidated Middleware Architecture
Usage of GIS a single Middleware platform for all Warehouse integration Internal & External
Real Experience. Real Advantage.

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[ SAP<>3PL EDI Integration

IDOCs

SAP

SO/STO

Delivery
PGI

EDI Feed

Early 940

ORDERS05

Final 940

DELVRY07

945

DELVRY07

3PL
CoMan

PO/STO

ORDERS05

GIS

943
CoPack

PGR

ASN-OUT
ASN-IN

WMMBID02

944

856

DELVRY07
DELVRY07

856

940 Warehouse Shipping Order

856 Ship Notice / Manifest

944 Warehouse Stock Transfer Receipt Advice

943 Warehouse Stock Transfer Shipment Advice

945 Warehouse Shipping Advice

Real Experience. Real Advantage.

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Consolidated ASN Architecture

External & Internal
3PL
EDI ASN

Customers

EDI PGI

EDI
EDI

EDI ASN

DSD RF
Receiving

DLx PGI

DLx (Old)

EDI
ZRF

EDI

DLx (Live)

FTP

ZPALLET

DLx ASN
EDI ASN

SAP
IM / WM

PGI

IDOC

FTP

IDOC

EDI

FM

GIS

IDOC
ZPROGRAM

CoMan/Pack

Sterling
Web
Form

HTML

WEB
FORM

OR
Circles Denote GIS Mapping
EDI ASN

FTP
EDI

DLx (Live)
DLx ASN

Real Experience. Real Advantage.

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Supply Chain - Manufacturing

Real Experience. Real Advantage.

[ Manufacturing Scope
New Functionality
Functionality
Plant Maintenance

Quality Management

Elements Remaining in Scope

Simplified Screens

Incoming Goods Compliance

Inventory Management

One-Plant Model
SAP Warehouse Management

Transportation Planning

Transportation Planning/Vehicle Scheduling (TPVS)

Production Execution

Plant Finance
Deployment Planning

Real Experience. Real Advantage.

MII
Added functionality for Manufacturing Data Entry
Operational Reports
New Account Structure
Supply Network Planning

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[ Manufacturing Scope
Replicate Current Functionality in New SAP
Functionality
Plant Maintenance
Inventory Management
Quality Management
Product Cost

Plant Scheduling
Purchasing

Source of Loss / Production Planning

Process Industries (PPPI)

Real Experience. Real Advantage.

Elements Rebuilt from As-Is

Maintain all current functionalities in Planning, Scheduling,
Execution, and MRO
Warehouse Management where it exists
Product Evaluation System
Formula / BOM Design (with minor foundational tweaks)

Production Planning and Detailed Scheduling (PPDS)

Direct and Indirect procurement
Enhanced Indirect Procurement Approval
Material Groups

All approved Pulse methods of PE (Remove K-PLAS phase 1)

Interfaces for Source of Loss Reporting
Reporting (Source of Loss and Production)
Material Planning with MRP

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[ Symphony Deployment Milestones by Wave

GO-LIVE!
PRD

E1P

2 months
prior
Up3 months
Close
prior
Sessions
Role
mapping

4 months
prior
Road
Show kick
6 months
off
prior
Checklist
calls

Real Experience. Real Advantage.

2 weeks prior
3 weeks prior DeCentralized Centralized
user training user training

1 week prior
Cut-over
prep

Post Go-Live
Support

1st Period Close in

New system

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Organizational Change Management (OCM)

Real Experience. Real Advantage.

[ Organization Change Management (OCM)

Stakeholder
Engagement &
Communication
Key leaders
Engagement
plan for go-live
prep
Communication
strategy

Real Experience. Real Advantage.

Culture &
Organization
Alignment

Change
Readiness &
Measurement

Whats changing
and when
Jobs/roles
Action Plans

Change Network
Local Leaders
Change
Agents
Change
Coordinators
Super Users

Training

Role based
Various methods
and materials

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[ Open Discussion

Real Experience. Real Advantage.

35

Thank you.

Real Experience. Real Advantage.

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