Siemens A&D – Global logistics with the j&m strategy method

j&m designs “Product Supply Scheduling” at OMV

Redesigning business processes – SAP Best Practices at HAUPT Pharma AG

Central customer support program successfully implemented by
j&m at Siemens MED using SAP NetWeaver technology


Special: The new general ledger in mySAP ERP –
opportunities and risks for new and existing customers


Events with j&m

 
 
Mannheim, December 2005
Dear Sir or Madam,

Welcome to our fourth newsletter of the year. In this issue we will be focusing on our projects at Siemens A&D and OMV and the increased efforts of our customers to use global SCM and logistics strategies to gain a competitive edge. Our comprehensive pharmaceutical industry expertise will also be an important factor in designing best practices at HAUPT Pharma AG. And our technical knowledge of SAP NetWeaver was a decisive factor in the success of the innovative implementation of the Siemens MED marketing and customer support program.

A very exciting 2005, marked by political discontinuities and (unrelated) slight economic growth, is almost over. In his after-dinner speech at the “SCM World 2005“, Prof. Dr. h. c. Lothar Späth, former premier of the German state Baden-Wuerttemberg and chairman of Merrill Lynch Germany as well as vice chairman of Merrill Lynch Europe, stressed that Germany will only be able to retain its position as a business location by using innovative concepts, for example in supply chain management, and by its expertise in the control of logistics networks.

On this note we would like to wish everyone, including ourselves, every success and the courage to tackle future challenges. We will be pleased to answer any questions you have.

Dr. Andreas Müller
Member of the Management Board, responsible for Marketing/PR

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Siemens A&D – Global logistics with the j&m strategy method

Siemens A&D is restructuring its global logistics. The logistics processes, which up to now have been organized individually by each business area, are to be transferred to a centralized "Global Logistics" for the company's worldwide business activities. In the spring a range of tasks was drawn up and coordinated across all operations with the help of j&m. Now another important step for the redesign has been completed: The initial draft concept has been defined in greater detail and released for implementation. Important elements are the division of global logistics into the three global regions “Europe/Middle East,” “Americas” and “Asia,” held together and coordinated by information systems that form the “global backbone.” In this global roll-out, certain target regions have been defined as priorities: China, NAFTA and Europe.



In addition, the concept for controlling global logistic flows and the related flow of information and goods has been developed. This has been split up into four thematic blocks, “functionalities and processes," “IT architecture,” “performance measurement,” and “rules for logistics processing.” Internal and external best practices will be used to define how the processes in each block are to be organized. This results in the combination of a leadership function (governance) and the responsibility for execution of the individual processes in order processing and physical distribution. All these elements were developed with the assistance of j&m, with special procedures from the j&m method for logistics strategy and IT strategy being effectively applied, together with the in-depth knowledge of the experts for IT design.

“The effect of this will be that we will have the best industry logistics in the world and achieve clear competitive advantages for our customers.” Franz-Paul Grasser, VP Global Logistics, Siemens A&D

As a result of the pioneering work in this project, the keynote presentation at this year’s “SCM World 2005“ in Stuttgart was dedicated to this topic.

Further information can be obtained from Mr. Dr.-Ing. Dieter Bölzing, Partner, j&m Management Consulting AG by telephone on +49 (0) 621 12 47 69 - 0 or by e-mail d.boelzing@jnm.de.

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j&m designs “Product Supply Scheduling” at OMV

Following on from the successful redesign of the “Supply & Demand Manager” and its implementation with SAP SCM at mineral oil group OMV, the next project relating to Supply Chain Development is now underway. In close cooperation with OMV, j&m is designing “Product Supply Scheduling” as the next phase of supply chain optimization towards operational implementation (see diagram).

In this project, monthly planning within the SCM system (APO) will be changed over to supply-relevant allocations and disaggregated into different monthly processes. Once planning is completed, these allocations are to be transferred via an interface to the operational SAP R/3 system, where they are used for allocation checking. In the course of a month, the reimport of actual data enables various monitoring and tracing functions to be used in reporting. As a result, operational business and planning can be adapted to take account of a new product or market situation, if necessary. Corrections that need to be made to the original plans can be quickly anticipated thanks to the trend analyses on the actual development and counteractive measures can be initiated.



“In j&m Management Consulting we have found the partner we need for the design and implementation of our SCM developments, a partner that has already proven its competence and reliability.” Klaus P. Kirnbauer, Head of Department Supply Chain Development & Benchmarking, OMV

The basic design phase of the project has already been completed and the implementation of prototypes for allocation planning and reporting, including visualization, has begun. The project will end in December with the Business Blueprint document, on the basis of which a pilot implementation is to be carried out. We will keep you informed on how the project develops.

If you would like any further information Mr. Lars Eickmann, Partner, j&m Management Consulting AG, will be happy to help. He can be reached at +49 (0) 621 12 47 69 - 0 or by e-mail l.eickmann@jnm.de.

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Redesigning business processes – SAP Best Practices at HAUPT Pharma AG



“Inspiring Partner for Efficient Solutions” – the motto of HAUPT Pharma AG – describes what is demanded of the j&m project team, which began work at HAUPT Pharma AG on Nov. 7. HAUPT Pharma AG is one of the largest contract manufacturers for pharmaceutical products in Europe, supplying more than 100 major pharmaceutical companies.

The starting point for the project is HAUPT Pharma’s vision of becoming one of the largest contract manufacturers for pharmaceutical products in the world in just a few years. To meet this challenge, all business processes are to be redesigned. The aim is to introduce best practices for processes and systems across the whole group by 2007.

j&m won the contract competing against several renowned consulting firms. One of the main reasons HAUPT Pharma chose j&m as its consulting partner is “the pharmaceutical expertise that was demonstrated, combined with the flexibility needed for medium-sized enterprises” (J. Schmick, head of group purchasing, HAUPT Pharma AG).

If you have any questions relating to the article, please contact Mr. Karsten Brockmann, Partner, j&m Management Consulting AG by telephone on +49 (0) 621 12 47 69 - 0 or by e-mail k.brockmann@jnm.de.

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Central customer support program successfully implemented by j&m at Siemens MED using SAP NetWeaver technology

After almost a year's work, j&m successfully concluded the implementation project for the migration of the central marketing and customer support solution Life – Programs and Installed Base and Collaboration Management to components of the SAP NetWeaver platform.



Customer project manager Olaf Lemgen on the project:

“The business expertise and customer-oriented approach of the j&m team played a decisive role in the success of the project. The feedback from management and users on the solution, which is now in productive operation, has been very positive.”

In addition to the complex application logic, the requirements for international use (availability and performance) and the strict regulations for medical technology software (FDA compliance) represented a particular challenge. This challenge was overcome to the customer’s complete satisfaction.

The main benefits of the migration project are the integration in the standardized SAP system landscape and the option of shared use of master and transaction data by several projects running on the same platform. This has led to operating cost savings, for example, the servers and software licenses for legacy applications are now no longer required. It was also possible to consolidate the master data.

If you have any questions relating to the issue, please contact Mr. Karsten Ötschmann, Partner, j&m Management Consulting AG by telephone on +49 (0) 621 12 47 69 - 0 or by e-mail k.oetschmann@jnm.de.

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Special: The new general ledger in mySAP ERP – opportunities and risks for new and existing customers

All the applications in the new general ledger uniformly use the familiar posting transactions. The new general ledger offers improved integration of internal and external accounting. Because less clarification and modification work is necessary, the creation of financial statements can be accelerated (fast close).

SAP provides the new general ledger in the mySAP ERP 2004 release. It integrates a series of functions that were previously only available in different sub-modules:

  • Cost of sales accounting and profit center accounting as direct functions of the general ledger
  • Creation of segment balance sheets and mapping of parallel accounting rules (for example, German Commercial Code and IAS alongside each other)
  • The reconciliation ledgers previously required are no longer necessary thanks to the real-time integration of CO and FI
  • The document splitting function enables a zero balance setting for accounting-relevant characteristics
  • Follow-up costs can be split according to the accounting-relevant offsetting items


The change to the new general ledger is not absolutely necessary following a release upgrade. Classic accounting can still be used. Independent of a release upgrade, the changeover to the new general ledger should always be viewed as a separate migration project in which the existing objects in the current sub-modules are transferred to the structures of the new general ledger. SAP has announced that it is providing the required migration programs with release mySAP ERP 2005. Existing customers will therefore be planning the changeover to the new general ledger as a long-term project. However, there is no reason not to use the new general ledger after a release upgrade to mySAP ERP. New customers, on the other hand, should use the new general ledger from the outset when SAP is implemented, as this is the basis for future accounting developments at SAP.

Further information can be obtained from Mr. Stefan Bley, Partner, j&m Management Consulting AG by telephone on +49 (0) 621 12 47 69 - 0 or by e-mail s.bley@jnm.de.


We would be very happy to welcome you to the following event. We are also available for individual meetings at the event – please feel free to make an appointment:



If you have any questions, please feel free to contact Nicola Birken, Corporate Communications, j&m Management Consulting AG by telephone on +49 (0) 621 12 47 69 - 0 or by e-mail at n.birken@jnm.de.

 
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