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

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

Dec

Jan

Feb

Mar

Apr

May

Jun

SAP Functionality Implemented

Overview Broad Flow

Print/Display
Reports

Set up
Master Data
Materials
BOM/Recipe
Costs
Info Record

Input a
Forecast

Run MRP

Print/Display
Reports

Release Reqs

Create POs

Print/Display
Reports

Pay Invoices

Print/Display
Reports

Receive POs

Inventory
Movements

Goods Issue

Project
Expensed
Material

Create a
Process Order

Mini-Mart
Expensed
Material

Create & use

an Inspection
Lot

Pass data
to/from
SQUID

Misc Goods
Receipt

Backflush
(fixing as
necessary)

Purchase
Expensed
Material

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

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)

Goods Issues

Production Orders (including Backflush)

Cost Centers
Projects/Internal Orders
Mini-Marts/Groups (WBS cost objects)

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