CenterPoint Energy’s EWM

Implementation on HANA
Miriam Montross – CenterPoint Energy
Kevin Gandy – CenterPoint Energy
TOPICS OF DISCUSSION

CenterPoint Energy Background

EWM Project
EWM Functionality Implemented
Illustrations of Enhancements
Challenges at Go Live
Lessons Learned
Recommendations
Looking Ahead
Questions
CENTERPOINT ENERGY, INC. (NYSE: CNP)
REGULATED ELECTRIC AND NATURAL GAS UTILITY SERVING MORE THAN 5.5 MILLION CUSTOMERS
Electric transmission & distribution
Natural gas distribution
Energy services
1. As of Dec. 31, 2013 per AGA and EEI
Electric transmission & distribution:
• Electric utility operation with ~2.3 million
metered customers
• ~5,000 square mile service territory in and
around Houston
• 18th largest U.S. investor-owned electric
utility by customer base1
• Over 81,000,000 MWh delivered in 2014
Gas operations
• 10 gas distribution jurisdictions in six
states with ~3.4 million customers
• 5th largest U.S. gas distribution company by
customer base1
• Recently ranked 1st among the largest
Midwest region natural gas utilities in the
U.S. for operational satisfaction in a 2014
Cogent energy study
• Gas distribution company and energy
services company delivered ~1.1 Tcf of
natural gas in 2014
CENTERPOINT ENERGY SAP FUNCTIONALITY MAP
Work Management / Equipment
Management / Project Management(PM, PS) Equipment Maintenance
Work order mgmt Notifications Capacity planning Project management
maintenance planning

Material management / purchasing (MM) Material External

Inventory
Purchasing requirements services management Physical inventory
management
planning (MRP) (ESM)
Supplier relationship management (SRM)
Shopping carts

E-sourcing (Sourcing and CLM) Supplier Contract

Sourcing
registration management
Business Warehouse (BW) – PM, PS, MM, FI, CO, CCS, SD, HR (Date TBD)
Extended Warehouse Management
Inbound Outbound Labor
Internal process
processing processing management

Spend performance management (SPM) Spend analysis

reporting
Finance / controlling /
investment management (FI, CO, IM) Accounts payable Controlling -
General ledger Fixed assets Consolidation Internal orders
open text - VIM general

Profit center FERC /

Planning/budgeting Capital investment
accounting special ledger
Sales and distribution (SD)
HSP sales orders HSP parts orders ARO sales orders

Customer relationship & billing

(CR&B/CCS, CRM) Install service New customer Invoicing / Account credit
Meter reading Collections
set up / move In billing process management

Marketing, sales Online customer

and service self-service
Human resources (HR)
HR master data Organization Health & safety Employee data
ESS & HR portal
management management tracking warehouse

Employee Medical Volunteer

Driver system Exben
qualifications surveillance system

Payroll (HR) Expense

CATS time entry Leave entitlement W4 changes Paycheck / Third party
SAP / intranet tracking on intranet direct deposit remittance process reimbursement
CENTERPOINT ENERGY SUPPLY CHAIN SYSTEMS DIAGRAM

SPM

SRM- Data passed to standard BW BW Sabrix

cubes for basic reporting tax
MDM
catalog engine

Internal catalog item

searches/retrieval
RFx w/attachments passed to ESO
Documents created in backend
system (ECC) Sourcing
PI / CLM
SAP ECC
SRM PO or contract created in ECC
Doc #’s passed back to SRM to
update Shopping Cart

Supplier
self-
Contractor website – service
CNP custom web front portal
end to ECC EWM
Custom solution designed by CNP for
Content assigning work to 3rd party contractors and
server facilitate their ability to invoice for services
(Filenet) performed.
CENTERPOINT ENERGY DISTRIBUTION CENTERS

MINNEAPOLIS
• Number of bins: 19,825 bins
• Annual lines rcvd = 38,061
• Annual lines picked = 278,424
• Trucks receipt/ship = 75/wk
• Warehouse employees = 13
• Sq ft = 50,000 HOUSTON
• # of SKU’s = 10,900

HOUSTON ELECTRIC SOUTHERN GAS-HOUSTON

• Number of bins : 3106 • Number of bins : in process

• Annual lines rcvd = 45,920
• Annual lines picked = 112,262
• Trucks receipt/ship = 100/wk
• Warehouse employees = 40
• Sq ft = 140,000
• # of SKU’s = 14,409
7 Battery repair
• Annual lines rcvd = 58,507 stations
• Annual lines picked = 72,526
• Trucks receipt/ship = 130/wk
• Warehouse employees = 16
• Sq ft = 50,000
• # of SKU’s = 10,156
PROJECT BACKGROUND

ISSUE

• CenterPoint Energy’s Minneapolis’ Distribution Center (MNG) had an

aging WM application that was fast approaching sunset status

OPPORTUNITY

• Standardize common processes and technology across distribution centers

(Minnesota, Houston Electric and Southern Gas)
• Implement a core technology for all three DC’s to enable/support their
business processes and would increase warehouse efficiency and
accuracy

OBJECTIVE

• Develop and implement a global EWM template for all three

sites with the participation of subject matter experts from each business
WHY SAP’S EWM?
 Met all core requirements needed by CenterPoint
Energy Logistics
 Supported CenterPoint Energy’s technology roadmap to
replace legacy applications with core technologies
 EWM <-> ECC Integration – standard SAP
 Enables CenterPoint Energy to leverage their existing
SAP support team for on-going support and
development
 SAP’s on-going investment in EWM
 EWM capabilities
– Route Guide Engine
– Labor Management
– Radio Frequency
– Replenishment
– Wave Management
– Two-Step Picking
PROJECT TIMELINE
• Bids/Evaluation of WM Best of Breeds
• EWM software selected
2012

• Bids/Evaluation for Integration Partner

• Logistar/EY selected as partner
2013 • Q4 – Blueprint Phase Begins

• Blueprint phase completed in April

• Realization phase begins in June
2014

• Realization phase continues (slight pause due to internal budget issues)

• Migrated to HANA data base in project landscape
2015 • Migration from project landscape to production landscape

• Delayed EWM implementation to February to synchronize with move to new Golden Valley Facility
2016
PROJECT METHODOLOGY

CenterPoint Energy has a long-standing tradition of co-implementing SAP

functionality with their consulting partners.

The end goal is for the CenterPoint Energy SAP Support Team to be able
to provide product support for the company after the product has been
implemented.

CenterPoint followed this methodology with our partnered consultants

through blueprint, EWM configuration, development, testing, training,
and technical environment cutover to production.
BLUE PRINT PHASE

Rapid MaxAttention
Develop BPDD
•Usage of story Prototyping •Show and Tell •Consulting team Review
cards •Consulting team developed list of
•Whiteboard demo’d customizations
flow charts •Consulting team prototypes to •Consulting team that would be •A session was
prototyped CNP team to developed the required based held with SAP
•Focus on how it
processes in a validate design Business Process on workshop MaxAttention
“needs to be
sandbox system. based on Design sessions group to review
done”
workshop Documents to proposed list of
sessions be used during customizations
Interactive Realization and confirm
Playback Phase Develop RICEF they were valid
workshop List and necessary.
sessions Sessions

Pros : Very interactive and fast paced.

Participation from both CenterPoint Energy business and Technology
Operations team members
REALIZATION PHASE
Consultants
configured in Sandbox
to document
configuration guides
for each process.
User validation of
system conducted in
Minnesota. Interactive KT sessions
Confirmation nothing led by consultant
was missed in design. team to review config
Also gets SME’s in for each process
system prior to final
UAT

CNP team replicates

configuration in
All config and
sandbox and dev
development is tested
environments. This
in multiple
allows multiple
environments
people to do hands-on
config

Pros : High quality of delivery and knowledge transfer.

Cons : Can take longer so it is important to be mindful of milestone dates
SYSTEM LANDSCAPE
EWM landscape EWM Hana landscape ECC project landscape ECC prod landscape
Sandbox non-Hana Sandbox
SCS 810 (coding) PRE 810 (coding)
SCS 820 (config) PRE 820 (config)
SCS 830 (transactional) PRE 830 (transactional)
SCS 840 (transactional) Converted to PRE 840 (transactional)
Development
Hana
DV3 810 (coding)
Development DV3 820 (config)
Development Development
DV3 830 (transactional)
SCD 810 (coding) EWD 810 (coding) DV9 810 (coding)
SCD 820 (config) EWD 820 (config) DV9 820 (config)
SCD 850 (transactional) EWD 850 (transactional) DV9 830 (transactional)
SCD 830 (transactional) EWD 830 (transactional)
(Production size)

QA (production size) QA (production size) MA6 900 (transactional) (Production size)

EWQ 901(transactional) EWQ 901(transactional) PRM 900 (transactional)

EWQ 900(transactional)

Production Production

EWP 900 PRD 900

KEY FUNCTIONALITY IMPLEMENTED
Inbound processing Internal processing Outbound processing

• Receiving • Cycle counting/physical • Order processing

• Vendor PO receiving inventory • Standard customer
• Auto receipt into hold • Automatic replenishment orders
bins for 311 moves from • Labor management • Emergency part pickups
tech enabled for all internal • Stock transfer orders
• Customer returns processes • Return to vendor
receiving • Subcontracting
• Plant/sloc returned to • Wave management
EWM plant/sloc
• Multiple order/batch
• Quality inspection picking
• System-guided putaway • Multi-zone picking
• Enhanced two step picking
process
• Labor management
• Shipping
• Parcel carrier integration
via XPS
PROJECT ACCOMPLISHMENTS
High Level of Integration between Applications/Devices
• Replication of master data from ECC to EWM
• Two way interfaces for transactions between ECC and EWM
• Security roles/authorizations
• RF real time integration to application
• XPS integration to scales

Ease of Use
• Customizations were made to the RF to streamline activities
• Custom solution was developed for consolidated picks of materials
• Custom programs developed to streamline master data activities for mass creations
• All physical moves can be scanned which fosters efficiency and accuracy and eliminates key
strokes

Facilitated Standardized Processes for Logistics

• Customizations were made in EWM/RF to facilitate goods receipt by PO number
• Custom program developed to close STO items to avoid backorders so MRP could re-plan
• Customizations were developed to support work order reservations
ENHANCEMENT FOR INBOUND PROCESS
ALLOW RECEIPT BY PURCHASE ORDER
Receiving users receive by PO. If there is no Inbound delivery in EWM they are unable
to proceed. If there are multiple inbound delivery per PO they will all be taken into
account but the user does not need to know about them.
RECEIPT BY PURCHASE ORDER
ENHANCEMENT AUTOMATING REPACKING TO
CARTHU FOR PUTAWAY
Custom development was made on the RF to repack the Dummy HU into a “cart” HU. This allows the receivers to
add multiple PO received onto a single CartHU until full. When the CARTHU is “closed” standard putaway
warehouse tasks are created and material is put-away by HU to the appropriate bin location.
PUTAWAY MATERIAL BY CARTHU
ENHANCEMENT FOR OUTBOUND PROCESS
AUTOMATES CREATION OF TU AND LOADING OF HU(S) ONTO TU

An enhancement was made to create the TU by scanning the pre-printed TU label and then
load Pick Hu's onto the TU. Materials will remain “staged” on the TU until carrier arrives.
NOTE: Both the Pick HU and the TU have barcoded tags for logistics to scan.
ENHANCEMENT TO PGI THE TU
Multiple HU’s can be assigned to a single TU. When the carrier arrives and picks up the
materials, logistics will scan the TU label. A single button is pushed on the handheld and
all HU’s/materials will be PGI’d against the EWM delivery and the appropriate goods
movement is posted in ECC.
CHALLENGES AT GO LIVE

Move to new facility in

System Performance Security
addition to software Shipping Issues
Issues Roles/Authorizations
implementation
• Reduced amount of • Network bandwidth • Communication • XPS development
time available for issues at the new settings between ECC lagged behind causing
training facility and EWM as a issues at shipping
• Everything was new • RF latency issues “trusted system” were station
and different • Screen size on the a bit troublesome
• Floor layout of bins actual handheld was • The integration
• Software problematic between ECC and
• Database stability EWM used different
• New RF devices
movement types that
• Load balancing
needed to be added
across the servers
to the Logistics role in
had not been set up
ECC .
• Fire fighter roles
needed to be set up
correctly to talk
between systems
LESSONS LEARNED

What went well?

• Resource commitment and flexibility during the
implementation
• Teams ability to identify and resolve issues quickly
• Level of communication and visibility into progress made
and upcoming milestones
• Well defined requirements
• Project was managed within the approved EC budget
• The project was able to manage to and deliver the
baseline scope
• Integration partner’s knowledge base and expertise in
support of the project
LESSONS LEARNED

What could have gone better ?

• Post go live issues and defects
• Plan additional time/effort for defect mitigation post go live
• Hyper care time line
• Should have planned for four vs. two weeks of hyper care support
• Hand held device and printer config issues
• Coordination of security roles testing
• Environment migration
• Make sure corrective actions are documented in lower level
environments to ensure they are completed as migration occurs.
• Vendor cutover and go live support overruns due to incomplete
development (RF/XPS)
• Clarity on who will oversee and perform master data conversions
• Training/testing timeline
RECOMMENDATIONS

Project resources
• Make sure you have someone with strong ECC business and system
knowledge to pair with the EWM resources
• Have a resource that can focus on the master data components for both ECC
and EWM
• Have a resource that can focus on the RF and printer elements of the project

Testing
• Make sure to include integration with production like batch job variants and
scheduling and XPS
• UAT should be more encompassing and threaded to ensure transactions post
correctly between ECC and EWM
• Provide adequate time for end user training
• Properly plan for security roles testing per SAP security guidelines. Formalize
role testing and ensure that’s it’s a part of UAT.
LOOKING AHEAD

Continuing Improvements

• Look for opportunities to streamline transactions and/or processes

• Automate transactional and master data activities
• Conduct knowledge transfer and training of system to both clients
and internal SAP Support Team

Subsequent Implementations

• Review the blueprint document to ensure documented processes

and still valid for Southern Gas and Houston Electric DC’s
• Update blueprint with any changes needed in preparation for the
subsequent implementations
QUESTIONS?
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