Broad SAP Project

Approach & Functionality Implemented

06/23/06

Agenda
Project Goals Project Scope and Approach

Timeline
Functionality Master Data Management

Planning
Procurement Inventory Management Cost Tracking Production Quality Management

Project Goals
Enable the Broad to be the lowest cost provider of genomic sequencing data.
Improve Production cost tracking Implement product costing (cost per read) Simplify Purchasing and Financials, including the addition of ECAT purchasing Simplify batch creation and inventory management processes Improve ease of use for highly repetitive transactions

Enhance operational performance

Improve shop floor tracking of batch numbers to enable timely troubleshooting Improve quality management by tying inspections results to materials and batches produced

Fully integrate with the MIT SAP system, to reduce long term IT costs
Eliminate a grant funded legacy system (OPM), & multiple system interfaces Eliminate the dual User licenses and system maintenance contracts Provide a scalable platform, that supports the addition of new/more complex business processes

Project Scope
Replace Oracle OPM with SAP functionality in the following areas Master Data Management Planning

Procurement
Inventory Management Cost Tracking Production

Quality Management
Provide specific functional enhancements to improve ease of use & increase efficiency Including direct use of MIT SAP Purchasing & Financials Out of scope items clearly defined and agreed upon

Project Approach
Team expectations clearly defined Team members educated on basic project truths
Scope, Schedule, Budget (resources)

Measurable acceptance criteria for project success Collaborative effort between Broad and IS&T
Co-team leaders established a cohesive team Broad business and IS&T members paired Active sponsorship and steering committee

Business Power Users dedicated to the project

You are empowered. Make the decisions! Deal with tough or controversial issues up front dont wait! Involve everyone, at every step

Extensive planning and scoping analysis conducted prior to project kick-off (2 month effort) Project scope under change control at the onset

Project Timeline
Nov Project Prep
Plan Resources Infrastructure

Dec

Jan

Feb

Mar

Apr

May

Jun

Blueprint
Flows Policy & Process Specs Walkthrough

Realization
Config (DEV & TST) Playbacks FRICE Integrated Test 1 UAT (IT2 & Regression)

Final Prep
Build (PS1) User Training Convert

Go Live & Support

Week 1 Support

SAP Functionality Implemented

Overview Broad Flow

Print/Display Reports Print/Display Reports Print/Display Reports Set up Master Data Materials BOM/Recipe Costs Info Record Project Expensed Material

Run MRP

Release Reqs

Create POs

Receive POs

Inventory Movements

Goods Issue

Input a Forecast

Print/Display Reports

Pay Invoices

Misc Goods Receipt Create a Process Order Mini-Mart Expensed Material

Purchase Expensed Material

Backflush (fixing as necessary)

Set up Quality Master Data Groups MICs Insp. Plans SPC param

Create & use an Inspection Lot

Pass data to/from SQUID

Print/Display Reports & SPC Print Checks

SAP

SAP Modules at Broad

SAP Modules include
Materials Management (MM)
Master data (material, vendor, purchasing information record), Purchasing Material Requirements Planning (MRP) Inventory management (goods issue, goods receipts, goods transfer, physical inventory) Batch management

Quality Management (QM)

Inspection plans / Master Inspection Characteristics, Inspection lots, Inspection Results Recording and Statistical Process Control
Quality inspection stock

Production Planning (PP)

Process orders and master recipes including Bill of Materials

Financial and Controlling (FI/CO)

Product Costing

Cross-Application Components
Document Management Workflow

Broad is an SAP Plant

SAP defines a plant as a location that holds stock (inventory), contains service or maintenance facilities and or manufactures products Each plant within SAP can have many unique features
Factory calendar identifies working days Storage locations location where stock is physically kept in a plant Master data - materials, work centers, bills or material, recipes, batch Planning requirements reorder point, forecast based Quality mgt inspection plans/master inspection characteristics

Master Data Management

Plant Calendar specific for broad Organizational Structure (Plant, Purchasing group, etc.) Material Master (Part Numbers)
Re-Order Points Lead time Standard cost

Bills Of Material (BOMs) Master Inspection Characteristics (MICs) Inspection Plans Recipes Reason Codes Purchasing Info Records Purchasing Source Lists Release/Approval Levels (Req. & PO)

Planning
Forecasting Long Term Planning (LTP) Materials Requirement Planning (MRP)
Finished and Semi-finished (Make) Raw materials/Components (Buy) Bulk materials (Buy)

Cash Flow Analysis Actuals vs Budget Comparisons

Procurement
MRP generated Purchase Requisitions Directly created Purchase Requisitions
In SAP Via SAP Web

Purchase Requisition approval workflow Purchase Order creation using Req info & master data Electronic document management for both Requisitions and POs (RFQ, Quotes, Specs, etc) Purchase Order approval workflow Automatic Purchase Order print/fax Single screen for Expensed material Receiving Custom Confirmation transaction for Inventory Quality Hold on Invoice payment until after approval (where desired) Automated 3 way match for Invoice payment

Inventory Management
Goods receipts
Purchase Orders/Production Orders Cost Centers Projects/Internal Orders Mini-Marts/Groups (WBS cost objects) Production Orders (including Backflush) Cost Centers Projects/Internal Orders Mini-Marts/Groups (WBS cost objects)

Goods Issues

Goods movements within Stockroom Cycle Counting & Physical Inventory Restricted and Un-restricted stock Connected/Synchronized Unit and $$$

Production
Process orders
Capturing costs Goods Issue and/or Back Flush

Automated batch assignment Debugging via Lot Genealogy (from Supplier to finished product) Yield tracking Integration to Quality results tracking MRP Planning capability

Quality Management
Automated Batch # assignment Lot Genealogy from Supplier to End Product
Feeds to Broad Data Warehouse (SQUID) reporting

Invoice payment hold until Quality approval on Receipts (where desired) Pre-defined Master Inspection Characteristics and Inspection Plans
Consistency Ease of maintenance

On Line Usage Decisions

Inventory Units and $$$ moves to correct bucket automatically

Results tracking and Alerts Statistical Process Control (SPC) charts

Cost Tracking
Monthly Updated Standard Cost tied to each material Material $$$ tracked to individual WBS cost objects, internal orders (projects).
Based on Standard cost X Unit Qty For POs, Goods Issues, Returns, etc Single transaction moves $$$ and Units

Variance accounts to isolate particular activities

Reason codes to provide granularity

Expanded reporting (Inventory $$$, PPV, etc) Ability to track actual cost expended against a preestablished budget Capability to plan and track Labor costs as well, though this is not being used by the Broad