Viessmann | IBP S&OP Prototyp and Implementation
The project included the replacement of the old S&OP solution in the ERP and transfer to SAP IBP S&OP within the scope of an SAP S/4HANA implementation with connection to a detailed production planning tool. A range-oriented hierarchical planning for end products, product groups and lines in IBP was realized, where also the capacitive feasibility of monthly quantities on line level is checked.
In order to be able to implement the complex customer-specific algorithms for the fair share distribution of production quantities, the CONSILIO Excel VBA Framework was developed, which extends the IBP standard. For data integration, CPI-DS was used in combination with the Consilio IBP-S4HANA Integration Framework.
Implementation Highlights
- Replacement of the previous architecture with future-oriented technology
- Standardization of previous isolated applications
- Rollout to additional locations to standardize processes
- Process improvement through new and adapted functionalities
CONSILIO took over the successful implementation of SAP IBP as the new standard solution for Sales & Operations Planning as part of the S/4HANA implementation.
Initial situation
An IBP test tenant had already been available at Viessmann since 2016, allowing the company to build up expertise and gain positive experience with prototype development in IBP prior to the project. The Excel-based planning in IBP was very popular with users right from the start. The previous R/3 system was over 20 years old and simply no longer suited the planned end-to-end approach. Viessmann decided in favour of SAP IBP S&OP in order to be able to meet future planning requirements with the new functionalities and to enable continuous improvement in planning.
Challenges
- Hierarchical programme planning on a rolling basis at line, product group and product level
- Strongly varying demand patterns and special features of the products
- Sophisticated company-specific calculation logic
- Numerous Excel solutions in capacity planning
- Extensive cut-over plan due to parallel S/4HANA introduction
Realisation & CONSILIO solution approach
The project began with an innovation workshop to analyse the existing, old planning processes and identify pain points such as a lack of real-time data, a lack of transparency and system breaks. Once the requirements had been recorded, a clear roadmap for the introduction of IBP was defined and a prototype was created in SAP IBP.
This prototype was created in two-week sprints - initially only with minimum requirements and for one production line. The development and tests were carried out in the S/4 system, as the switch to S/4HANA would take place at the same time as the IBP implementation. The data integration was initially carried out manually, without an interface. During the tests, the focus was on close collaboration between business and IT. This collaboration, for example in the form of detailed feedback sessions, contributed significantly to the success of the project. Manual steps were fully automated, enabling significantly faster planning.
Our IT department, key users from the specialist area and the experts from CONSILIO quickly formed a well-coordinated project team that carried out the IBP implementation very successfully.
Once the minimum requirements had been covered, further requirements were included in a second test phase. Test cases and their documentation were used to ensure a high level of transparency for all parties involved. During this relatively difficult and time-consuming phase, the interface was implemented and data was sent automatically between SAP and IBP. A further integration test and a user acceptance test were carried out, the authorisation concept was defined and the first of more than 100 steps for the go-live were scheduled at this early stage.
The IBP go-live, data integration and system connection - for the first time to the S/4 production system - then took place over a weekend. A large-scale test showed that numerous dependencies between the two newly introduced systems had been taken into account and successfully mastered. Since then, Viessmann has benefited from always being able to plan with the most up-to-date data.
Lessons learned
- Early and permanent involvement of the business
- Agile project methodology and regular review sessions with the entire project team
- Early involvement of other planning areas as well as upstream and downstream processes, e.g. MRP Live, detailed planning, etc.
- Implementing the interface can be time-consuming due to security issues
- A good backup concept is required for critical situations
