Situation
A global company was converting each region's legacy systems to SAP. As they began work to convert the last region - North America, their largest, most complex region, they recognized that management of SAP's master data had negatively impacted their customers. Product lead time's had grown as master data administration had eaten into the time normally required to manufacture customer orders. Given that system implementation had been scheduled to occur just as the North American market was to enter their busiest time of year a goal was established that all orders would be processed by SAP within 24 hours of their receipt.
Tools
- Value Stream Mapping
- RACI
- Computer Simulation
- Work Balancing
Solution We designed a new business process that optimized the master data support for the business. Through the use of a computer simulation tool we were able to identify bottlenecks that were able to be resolved through a more effective balance of work. We consolidated three separate departments into one. This removed artificial barriers for communication and eliminated the need for multiple people to "touch" the same order. In short, we designed a process that better aligned the business' ability to work within the SAP framework.
Result The master data team performed flawlessly during an otherwise turbulent conversion to SAP. Within the first 30 days, the key measure of having the materials correctly entered within SAP to facilitate timely manufacture had been routinely achieved. Attention was able to turn towards taking best practices and incorporating key concepts across the other regions.