Corporate-wide planning of the IT architecture at Siemens CIO

Successful ERP re-engineering and template design at Haupt Pharma

Brose Vehicle Parts: Tool management with SAP

System consolidation of Grammer’s accounting processes

Special: Spare Parts Management

Factory Physics Europe and j&m to cooperate closely

j&m Partner on the ITA Board: a finger on the pulse of innovation

Event with j&m

 
 
Mannheim, December 2006
Dear Readers,

Christmas and the New Year are almost upon us. This is the best time for looking back and reflecting on the past few months and making plans for the year ahead. Welcome to the December issue of the j&m newsletter!

In this month’s edition you can learn how Siemens is carrying out a worldwide road show for the planning of a uniform IT infrastructure. We also report on the successful introduction of a customized ERP system at Haupt Pharma AG.

We also look forward to the future. Forecasts for the world economy moving forward are positive. We expect j&m to continue the growth achieved over the past few years in Germany and at its international branches. Our new London office will strengthen our international presence, in addition to enabling us to improve still further the service and support offered to our new customers in the UK. Furthermore, we will be strengthening our core operative supply chain man­age­ment skills thanks to our exclusive cooperation agreement with Factory Phys­ics Europe. Our automobile industry activities have been significantly intensified because of our collaboration with ITA – Information Technology for the Auto­mo­bile Industry.

We have also made the necessary investments in personnel to underpin our plans for the future. Dr. Volker Zeuzem is a new member of our Marketing and Sales division. He is an experienced expert of the telecommunications industry and will be driving forwards our CRM activities.

From January 2007 j&m Management Consulting will also be introducing its new corporate logo. But you’ll have to wait!

We hope you have pleasure reading this issue and would like to wish you a Merry Christmas and a Happy New Year!


Dr. Andreas Müller
Chairman of the Management Board and Marketing/PR Director

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Corporate-wide planning of the IT architecture at Siemens CIO



Since 2004, Siemens CIO has been working with operations representatives, regional companies, and j&m to define the requirements of IT architecture planning – termed Corporate Application Policy (CAP). CAP documents the target architecture, rules, and standards for a harmonized IT landscape at Siemens. The aims of the globally implemented target architecture are to raise the efficiency, lower costs, and offer extreme flexibility for rapid implementation of global business requirements.

A global roadshow planned for August through October presented the latest status of CAP to all of Siemens’ lines of business. This presentation covered the target architecture for process divisions, general underlying principles, and the preferred vendor and vendor release strategy.

j&m was responsible for supporting various elements of CAP, and has also conducted many inter­national projects, workshops, and events in the Siemens Corporation. j&m assisted with the inten­sive preparations for the CAP roadshow, and will moderate all these events around the world.

“We were able to further raise the high level of quality of our work worldwide, thanks to con­sul­tants from j&m. The significance of the Corporate Application Policy is evidenced by the fact that an external professional has been engaged to moderate the roadshow.” Rainer Groß, Siemens CIO, Germany.

If you would like any further information Mr. Stefan Bley, 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 s.bley@jnm.de.

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Successful ERP re-engineering and template design at Haupt Pharma





With five production sites, Haupt Pharma is one of Europe's largest pharmaceuticals manufacturers. Its 800-strong workforce manufactures products for more than 100 major pharmaceutical com­pa­nies. Haupt Pharma offers a full service from procurement right through to customized packaging solutions for nearly all medication administration types.

Haupt Pharma wanted a uniform ERP system to be in place at all its production facilities by the beginning of 2008. And it was set against this background that j&m Management Consulting was commissioned to develop a template that could be rolled out successively without major ad­just­ments having to be made. The project team started work in November 2005. Introducing a uniform system meant that a large number of ad­just­ments to the business processes had to be made. The new system design was implemented under SAP release ECC 5.0.

The main project objectives were as follows: The company’s Wolfratshausen site has been working productively using the new validated SAP system since the beginning of November. This represents the completion of the first step in the introduction of a company-wide process and system harmonization arrangement that will form the strategic foundations for continued business growth.

“The SAP template developed by j&m makes it possible for us to roll out a uniform R/3 system across Haupt Pharma AG’s other production sites. j&m was also commissioned to introduce ac­count­ing systems in accordance with HGB and IFRS standards by the turn of the year.” Marco Liesegang, Head of Corporate IT, Haupt Pharma AG.

Further details and information can be obtained from Mr. Karsten Brockmann, Partner, j&m Management Consulting AG by telephone +49 (0) 621 12 47 69 - 0 or at the e-mail address k.brockmann@jnm.de.

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Brose Vehicle Parts: Tool management with SAP

Together, Brose Fahrzeugteile (Brose Vehicle Parts) and j&m have developed a concept for a tool management solution that is currently being implemented in SAP R/3.

The main requirement of the solution was its ability to illustrate tools and to include all relevant technical detail needed for a tool catalogue. These tools are used by its own production facilities and by suppliers. This made it necessary to achieve transparency with regards to the current location of the tools. Another important requirement was to make it possible for the purchasing department to move the tools should there be a change in supplier.

Having a planning capability is another tool management system requirement with regards to making sure that tools are replaced at the end of their working lives and their ability to deal with capacity overload situations.

In the future, the capacity limits of the tools will be included in the master data records. The actual output quantity of a tool will be automatically reassessed drawing on the relevant numbers of fin­ished parts entering the finished goods department. The capacity requirement over time feature is used to forecast the tool usage numbers drawing on the material requirement planning system with regard to the number of parts that need manufacturing.


An early-warning system is in place to proactively inform the tool planning officer on time when the tool has reached its expected maximum output quantity numbers or when the tool cannot achieve the output quantity required in the allotted time. A monitoring feature is used to provide in­for­ma­tion about the reach of a relevant tool over time and about when action needs to be taken.

“This jointly developed solution will enable us to recognize tool bottlenecks earlier. Linking up to the operative data in this manner serves in securing the quality of statements that is required. j&m has proven itself as a professional and reliable partner during the project and played a decisive role in ensuring the success of the solution.”, says Christian Ley, Director of Logistical Application Systems at Brose Fahrzeugteile GmbH & Co. KG.

Further information can be obtained from Mr. Helge König, Senior Manager, j&m Management Consulting AG by telephone on +49 (0) 621 12 47 69 - 0 or by e-mail h.koenig@jnm.de.

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System consolidation of Grammer’s accounting processes

Grammer AG is listed on the stock exchange and based in Amberg, Germany. A supplier to the international automotive industry, the company is currently involved in a worldwide system con­soli­dation project. This project involves introducing and establishing uniform SAP-based finance and accounting processes for its domestic and international subsidiaries.

These changes are also affecting its Slovenia operation, where the current assets accounting system, which absorbs substantial resources to maintain, is being replaced. In the future the administration of the tangible assets will be taken care of by an integrated SAP R/3 financial management system.



The following aspects had to be taken into account to ensure a smooth transition from the old to new accounting systems:
  • Correctly mapping Slovenian tax law regulations
  • Integrating Grammer’s investment processes across all modules
  • Adopting data relevant to the current year incl. reorganizing asset classes and inventory control structures
Working together with Grammer AG, j&m was involved in defining the technical and specialized parameters and implementing the necessary functionality of the system during a tight two-month project period. The data transfer process was carried out using SAP's tool LSMW (Legacy System Migration Workbench). The project was successful, with the SAP-based accounting system including coordinated account and asset management system going into operation on time.

“Once again j&m managed to exceed our expectations both in terms of their specialized knowledge and their social skills. We are delighted to have found in j&m a highly committed partner that pro­vides us with valuable support during the implementation of new challenges.”, says Josef Tretten­bach, Head of Group Accounting at Grammer AG.

If you would like any further information Mr. Karsten Ötschmann, 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 k.oetschmann@jnm.de.

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Special: Spare Parts Management


While the replacement parts business can be very profitable, until now only a few companies have been in a position to use service parts management (SPM) to its full potential. To this end, then, setting up an ideal replacement parts management system is an important factor in increasing customer satisfaction.

The secret to success in this area lies in recognizing that not only is replacement parts man­age­ment different to traditional distribution logistical methods but that it is also far more challenging.

  • The lifecycle of replacement parts is longer than the product lifecycle itself
  • Estimating the requirement level is difficult and variable
  • Demand for replacement parts varies depending on the type of replacement part. This is because replacement parts are dependent on product defects, which, in turn, are difficult to predict and manage
  • It is often necessary to coordinate the supply chain for replacement parts with the technical staff on site
  • Demands on the reverse logistics system represents an important success factor for a service-orientated supply chain management system



As soon as the importance of SPM is established within an organization, just a few fundamental man­age­ment decisions can significantly increase the performance of the replacement parts man­age­ment system. Some of the best practices, which j&m has already successfully introduced for its customers, are listed below:
  • Creating an integrated, process-controlled service parts management system that takes into account the organisational structure, as well as the functional and regional demands involved
  • Standardized reports and simulations of the service and spare part network
  • Applying lean principles
  • Developing a suitable IT roadmap that is coordinated with the strategy
  • Ensuring supply chain transparency through the introduction of an individual, all-embracing data management system, a tracking & tracing system, an event management system and integrated IT applications
  • Service level differentiation
Service parts management, then, is an important component of supply chain processes. Setting up the perfect system, however, is quite a challenge, since it has to strike a balance between low costs and a high level of customer service.

If you would like to know more about this subject, please contact Mr. Roeland Smets, Managing Director, j&m Management Consulting, Brussels by phone on: +49 (0) 621 12 47 69 - 0, or e-mail to: r.smets@jnm.com.

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Factory Physics Europe and j&m to cooperate closely

Factory Physics Europe and j&m Management Consulting have entered into an exclusive co­oper­ation agreement for the German-speaking countries and Belgium. Factory Physics Europe offers consultancy services, seminars and software solutions aimed at tackling the problem of variability in supply chains. This work is based on the book by Mark L. Spearman "Factory Physics".

The Factory-Physics approach is based on a quantitative view of the inter-relationships in pro­duc­tion networks and supply chains and forms a bridge between lean management and supply chain management approaches among others.


The illustration above shows the fundamental problems involved in terms of developing a pro­duc­tion strategy. In order to save costs, the capacity utilization of existing and expensive production facilities has to be as high as possible. At the same time, however, the sales strategy demands the fast production of smaller batches to respond to customer needs. These differing requirements lead to a conflict of interests that is difficult to resolve.

j&m and Factory Physics offer solutions aimed at resolving this problem within the framework of a comprehensive supply chain strategy. Based on a variability analysis of the supply chain, this is done by developing a segment-specific supply chain strategy that offers a way out of this dilemma.
Factory Physics and j&m will be holding a joint seminar for management personnel in March 2007.

For more information and details please contact Dr. Christoph Kilger, Member of the Bord, j&m Management Consulting AG by phone on +49 (0) 621 12 47 69 - 0 or by e-mail c.kilger@jnm.de.

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j&m Partner on the ITA Board: a finger on the pulse of innovation




j&m Management Consulting's Automotive Partner, Karsten Ötschmann, has been appointed as an Associate Member in the Strategic Steering Committee (SSC) of the ITA (Information Technology for the Automobile Industry). “We are delighted because this means that j&m will be even more closely involved in the automobile industry's most important innovation forum and in a position to drive forward new solutions”, says Karsten Ötschmann.

ITA was founded on the 14th of March 2000 with the aim of improving the flow of information be­tween the automobile and supplier industry on one side and IT com­panies on the other. The main emphasis of its work is on analyzing logistical systems within the supply chain. More than 50 com­panies with more than 350,000 employees and a total turnover of 50 billion euros have taken part in the initiative so far. ITA operates in national and international committees and task forces such as ODETTE, AIAG and OAGi on helping to develop and structure industry standards and best prac­tices. “Working together with the VDA and companies from the automobile industry, we focus on creating innovative best-practice-based business processes and IT solutions that will work at a practical level”, explains Mr. Ötschmann. Within the ITA he is mainly responsible for the automotive after-market, that is, trade involving replacement parts, accessories and services including all the associated logistical processes.

j&m Management Consulting has been actively involved in the association since February 2006. Exchanging ideas and knowledge with other ITA members and cooperating on the VDA KIT (Com­mu­nications and Information Technology Committee) on a regular basis means that know-how is transferred on an intensive level from which the customers of j&m Management Consulting benefit. Karsten Ötschmann: “Actively participating in the ITA means that we are directly involved in the development of new standards and best practices for the automobile industry. To this end, we are always aware of the latest trends and challenges and can quickly apply our portfolio of solutions accordingly”.

For more information and details please contact Mr. Karsten Ötschmann, Partner, j&m Management Consulting AG on the following number: +49 (0) 621 12 47 69 - 0 or via e-mail at k.oetschmann@jnm.de.


It would give us great pleasure if you could visit us at the following event in Mannheim, Germany. Please feel free to agree an appointment for a meeting:

1. BVL Mittelstandsforum (Medium-Sized Company Forum) 25th to 26th of April 2007, Mannheim
Globalization as an opportunity for growth for medium-sized companies

“Logistik”, a federal organization, is working together with j&m and other partners to organize a platform specially developed for medium-sized companies in order to address logistic issues from the perspective of small-to-medium-sized companies.

Practical examples and innovative logistical concepts from medium-sized companies will be presented and associated ideas and approaches discussed in 16 speeches and 2 plenum meetings.

We very much look forward to welcoming you to the "Mittelstandsforum", which is being held in the "Kunsthalle" Mannheim. More details about this will be made available shortly.

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

 
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