MICROSOFT WINDOWS NT SERVER 4.

Coca-Cola FEMSA chose the Microsoft platform to implement its SAP management system in all the companys areas
This is a useful case to observe how the Microsoft platform allows optimizing the distribution of resources and expertise of the companys IT Department, letting it focus on improving processes and providing more business value to the company. It is also an interesting case to observe how Microsoft Windows NT Server and Microsoft SQL Server support mission-critical applications, even in the most complex areas, such as production.

Customer Profile

Approximate annual sales: US$600 million Number of Employees: 2300 Number of production plants: 2 in Buenos AiresNumber of production lines: 8 Number of distribution centers: 4

Business Situation

Situation
Coca-Cola FEMSA de Buenos Aires is part of Coca-Cola FEMSA, S.A. de C.V., an anchor bottling plant of The Coca-Cola Company. This is the countrys main bottling plant, with total sales of US$388.7 million in 1997. It belongs to the Mexican Group Fomento Econmico Mexicano, S.A. de C.V. in 51 percent; 30 percent is property of The Coca Cola Company, and the rest belongs to individual shareholders of the Mexican and U.S. Stock Exchanges. It is currently the market leader, with approximately 61 percent market share. Coca-Cola FEMSA de Buenos Aires carries out all tasks related with the production of soda and water beverages. From the purchase of the concentrate from CocaCola Co. syrup is obtained; as well, bottling, marketing and sales are performed, and the product is distributed. Its franchise includes the Capital City and Great Buenos Aires area, extending to the Northern Zone, up to Carmen Areco. Coca-Cola FEMSA sells its products directly. It has direct contact with all distribution channels in its area. Among these are hypermarkets, supermarkets, self-service stores, restaurants, service stations and small stores. Its customers are demanding and expect to be served with quality. Some of the indicators that Coca-Cola FEMSA takes into account to provide a better service are: offering a greater area of coverage (being present with a different service at all points of contact with the consumer,

Some of the objectives were: enabling access to the information distributed among the different Company Operating Units; having information in real time; performing a reengineering of the administrative processes (having updated budgets on line, speeding the order authorization system); and decentralizing the information provided, by obtaining proprietary users of the generated information.

Benefits Important reduction in costs Increase in productivity Increase in efficiency Elimination of redundant controls Improvement of processes, which let to greater quality Better inventory control Greater safety Greater service compliance index Software and Services Microsoft Windows NT Server 4.0 Microsoft SQL Server 6.5 Microsoft Proxy Server 2.0 System Management Server Microsoft Windows 95 Microsoft Office 97 Microsoft Internet Explorer 4.0 Partners SAP

Solution

attending the territory integrally); being sensitive to the customers needs, offering a quality product (different flavors, sizes, types of bottles); efficiency in the delivery and distribution and, above all, flexibility (in quantity and frequency of visits, for example: having the capacity to sell from one bottle up to entire trucks, and delivering it with the necessary frequency.)

Customer profile
This is a useful case to observe how the Microsoft platform allows optimizing the distribution of resources and expertise of the companys IT Department, letting it focus on improving processes and providing more business value to the company. It is also an interesting case to observe how Microsoft Windows NT Server and Microsoft SQL Server support mission-critical applications, even in the most complex areas, such as production.

"Regarding the specific benefits obtained from using Microsoft platform products, in addition to important savings in departments resources, we now have easy to use, user-friendly, productive, efficient and reliable products."
Sergio Rossi CIO Coca Cola FEMSA de Buenos Aires S.A.

Issue Discussion
Coca-Cola FEMSA had an AS 400 server park, some application software packages, solutions created by local developers, sales management software, a self-developed and limited internal mail system, and Novell Netware as an office network operating system. This configuration offered a heterogeneous platform that demanded a high number of resources for its administration and maintenance. As a result of an important internal reengineering project, the IT Department needed to change the companys systems, transform them to a client/ server structure, as well as migrate and uniform its management systems to SAP modules. The projects aim was to reorganize all companys processes, implement a unified management platform, and modernize the information systems, providing greater capacity to users and offering greater quality and immediate information geared toward business decision-making. Some of the objectives sought were: enabling access to the information distributed among the different Company Operating Units; having information in real time; performing a reengineering of the administrative processes (having updated budgets on line, speeding the order authorization system); and decentralizing the information provided, by obtaining proprietary users of the generated information.

Decision making process

The hardware recommended platform was IBM. Although the Unix installed base was greater and the product was tested and robust, Windows NT was frankly becoming more and more appealing as a choice to be combined with SAP, and was gaining acceptance given that, although it provided a comparable service and quality, it would require less expertise and personnel for its administration, maintenance and support. The choice was directly related with the IT Departments mission: allocate its resources to projects that make the business grow, and not to in-house technology development. The organization did not want to spend money solving technical problems. It thus decided on a platform that would provide the necessary peace of mind, reliability and quality so they could focus on business.

Today, the IT Department is made up of four individuals (one of which is a Microsoft Certified Engineer) who handle all Coca-Cola FEMSA de Buenos Aires IT problems. Of these four professionals, one deals exclusively with safety issues. Therefore, only three people really deal with managing, supporting and providing a help desk for the whole network.

Solution
Coca Cola FEMSA de Buenos Aires has distributed systems. The Central IT Area, that contains the main servers is located in the Alcorta Plant, together with the central offices, and the main production plant. There are 8 remote locations connected to the Alcorta Plant, since the implementation of the new solution. These are 5 operating units (sales and distribution centers); a second production plant in San Justo; a refrigeration equipment warehouse, and an equipment repair center. This connection is handled through a Wide Area Network (WAN) and each local area has a LAN, where one server connects with the PCs, always through N5 structured and reinforced cable. Topologically, the network has a token ring structure, and it is currently being migrated to Ethernet. Remote points are reached by means of microwave radio links. Regarding the software use in the solution, all networks use Microsoft Windows NT Server 4.0, and SQL Server 7.0. as a data base engine. The management software chosen was SAP, in order to modernize most areas. For customers, the Windows 95 operating system is used, as well as the Office 97 application suite and the Internet Explorer 4.0. browser.

Deployment
The project start up was in May of 1996, and the implementation continues today. Modules were implemented by stages. Today, the FI (Finance), CO (Controlling) and MM (Materials Management) modules are already deployed. The SAP production modules are currently being deployed. The PP (Production Planning) module deployment is done and, in July, the PM (Plant Maintenance) and QM (Quality Management) deployment will be completed. Today, Coca Cola FEMSA de Buenos Aires uses Microsoft Windows NT Server and Microsoft SQL Server 6.5 for mission-critical applications, such as production, which are non-stop applications. We are talking about a test of fire, where the application works on production management, from handling the purchase of raw materials, controlling authorizations, production orders, monitoring development, costs, inventory, as well as working with entry process automation of all products produced and distributed. Production applications were deployed in the year and a half projected term, with the support of Ernst & Young consulting services.

Benefits

The first positive impact was verified in: Important reduction in costs Increase in productivity Increase in efficiency Elimination of redundant controls Improvement of processes, which let to greater quality Better inventory control Greater safety Greater service compliance index

Some of these benefits are easily measurable on a quantitative basis, such as the purchase planning (which allows a framework agreement with partial deliveries, instead of hundreds of individual transactions that increased costs and consumed administration time). Nevertheless other benefits are very important, although it is difficult to give them a numerical value. For example, being able to use accounting as a management tool, or changing from a central control (where decision-making processes reached a centralized point for being authorized and then the information was distributed) to a system without paper work, where control is decentralized and is handled automatically through rules. In this way, all company management is currently handled electronically and on line. "Regarding the specific benefits obtained from using Microsoft platform products, in addition to important savings in departments resources, we now have easy to use, user-friendly, productive, efficient and reliable products." Sergio Rossi, CIO , Coca Cola FEMSA de Buenos Aires S.A.

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