Every Angle @ Metso Julian Moraes

September 10, 2014

© Metso © Metso

Every Angle @ Metso The Path of our Journey

“Emotions are an integral part of the brain”

Julian Moraes 2 Andy Habermacher, 2011 Leading 100 Billion Neurons

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© Metso © Metso Julian Moreas 3

• Born in Brazil but had the opportunity to live

in various countries

• Over 13 years working with SAP in various

roles ranging from consulting, project

manager and process development in global

large scale organization

- Eli Lilly and Company, Joy Global, and Metso

• Currently Director, Sales Process and

Platform at Metso

-In collaboration with Market Areas, define and

implement common sales management processes

and tool for all business areas

-Define and implement Salesforce.com as a platform

for our sales and service processes

Who am I Background

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How I best descripbe

myself

© Metso © Metso Julian Moraes 4

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© Metso © Metso

Metso Business

Julian Moraes 5

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© Metso © Metso Julian Moraes 6

© Metso © Metso Julian Moraes 7

• Fairly independent

businesses and business

models

• Broad management agenda

• Strengths: Process

knowledge, reliable

products, services capability,

global presence

• Services 40% of business

• EBITA margin <10%

Pre

2001

• Plethora of business

acquisitions made in the

2000s

• Increased focus on services

• Portfolio development and

sharpened focus

• Integration and development

of common processes, tools

and platforms

• Profit improvement and

capital efficiency initiatives

• Improved EBITA margins

• Demerged Valmet (Paper)

2001

-2014

• Increasing focus on higher

margin services and products

• Growing faster than market

driven by services, flow

control and minerals

• Reaching EBITA margin target

>15%

• Delivering ROCE > 30%

• Reducing cyclicality and

volatility

2015-

Transformation

Diversified

company

Focused company

We have been transforming into a focused high-margin industrial company…

© Metso © Metso

The SAP Journey From Good to Great

• First SAP program started in 2005 .... Ended in 2007

- Many process mapping sessions

- Poor management involvement

• Second SAP program started in 2008

- New program management

- Business area president and first line management part of the SteCo

- Focus on delivering – scope management very important

- Design and Build of the SAP system done by technical team

- Technically the system worked

• Focus was on delivering on upper management´s vision

- Don´t sweat the small stuff

• Aggressive deployment schedule

- 2008 to 2012 over 19 implementations done

- Over 92% of Metso Mining Revenue go through SAP

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© Metso © Metso

The SAP Journey From Good to Great

“I understand your change request

I feel your pain

But it´s not my problem”

Julian Moraes 9

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© Metso © Metso

The SAP Journey From Good to Great ……… The business side

• Challenge with current model

- While we have successfully achieved global deployment of SAP ERP system, many

sites face huge challenges in accessing, understanding, communicating and taking

proactive action with the wealth of information that is now available

- Users spend huge amount of hours in downloading/cleansing data to provide

reports/KPI´s to both operations and senior management

- Process harmonization has been achieved within certain functional silos but lack of

visibility of our end to end supply chain has not improved our ability to make decisions

that can improve our operational efficiency and customer satisfaction

• Current reporting strategy/tool does not support operational reporting

- While we have many reports regarding sales (BRB, Sales Analysis, Backlog Aging,

etc) we still – in parallel – prepare excel reports on the same data to send to sites.

• Lack of reporting flexibility and ad hoc report creation increase overall

user dissatisfaction and poor system discipline

- Instead of using SAP as tool to execute everyday operations, it has become a data

repository to meet month end reporting requirements

Julian MOraes 10

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© Metso © Metso

Every Angle @ Metso New Role – New Objective

• Made the leap to the

business side

• Clear objectives set by

stakeholders

• All wanted to feel more in

control of the numbers

before the month-end

results

• What actions can business

operations do to increase

efficiency and revenue

• No silver bullet to fix

process/system/

organizational issues

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R e p o r t i n g a n d O p e r a t i o n a l A n a l y t i c s

M A N U F A C T U R I N G

D I S T R I B U T I O N

C E N T E R

O R D E R D E S K

S E R V I C E

M A N A G E M E N T

CU

ST

OM

ER

Engineering and Product Lifecycle

Production Planning

Production Execution

Inventory and Warehouse Management

Transportation Management

Account Management

Quotation and Order Management

Service and Contract Management

Installed Base and Asset Management

Mobile Solutions

M a s t e r D a t a M a n a g e m e n t

F i n a n c e s / P r o c u r e m e n t / Q u a l i t y / H S E / H u m a n

R e s o u r c e s / I T

Short term

focus on

these 3

main areas

© Metso © Metso Julian Moraes 12 Source: http://memecollection.net/windows-8-repair-tool/

Every Angle @ Metso Where to go?

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© Metso © Metso

Every Angle @ Metso Not another tool

• IT organization focused on their transformation process to support new

company strategy

• Homegrown solutions started to surge

• Many tools in the market and came across another one called Every

Angle

- First reaction was that no way in hell could the Every Angle tool do what it said

- However; while logically it didn´t make sense the message, the presentation

addressed my key concerns

- It contextualized the data in SAP and made it simple for business users

• Took around 6 months to align stakeholders from IT, Business

operations, and management to approve a proof of concept and

subsequently a Pilot

Communication was key in the whole process

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© Metso © Metso

Every Angle Pilot Project Why are you here and next steps

• SBL Management has approved a 3 month pilot to test the system and build a

business case

- Pilot will run from November 1, 2013 to January 31, 2014

- Main focus (and users) will be on DC sites.

- Objective is to quantify operational benefits the tool will bring

- Present the tool to different areas of the MAC organization to identify potential benefits.

• End user deployment will be done during week 48/49

• Each country would have a main contact and backup (again DC oriented – CSE

would be Tomas/Antti, GIM – Anuj Kumar, Juho Oja, Pablo Brunaldi, Timo

Peuhkurinen)

- Brazil – Julian/Frank

- USA – Julian/Frank

- Sweden – Richard/Turo

- Finland –Turo/Richard

- South Africa – Gary/Richard

- Australia – Gary/Richard

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© Metso Julian Mores 15

Every Angle Business Case Every Angle Pilot Project Results

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• Every Angle Pilot deployed on November 1, 2013

• Technical configuration and linkage to our SAP PMM system took 7 days

• 1 Week Every Angle Onsite consultant to train advanced features plus create initial

set of queries

• Reports fully deployed to all main DC locations in 2 weeks – 70,000 open line items

• 41 of the 43 identified users have logged into the system

• While deployment was fast the period in which the pilot took place did not contribute

too since some people were on vacation and were more concentrated on pushing

year end sales.

• User support (Every Angle Helpdesk) was tested throughout the pilot

also with a high level of customer service

• Standard field additions were done from in max 2 days

•System performance, reliability, and availability were well above

expectations even though we were using a server a third of the

recommended sizing for production

© Metso Julian Moraes

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Every Angle Business Case Every Angle Pilot Project Results

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• Brazil and Finland did not quantify results; however their input has been

documented under non-economic benefits

• Below are the documented benefits realized in this time period for 6

sites

• East/West Perth, V-town, Columbia, Danville, Trelleborg, Sala

•For South Africa, inventory reductions have already been identified to

better visibility between the 2 SA company codes

• Important to note that all benefits identified within the limited scope of

the pilot; potential to use this tool in other areas FICO, manufacturing, etc

Executive summary of PoC

Functional

● Easy to use by business users

● Very fast response time

● Unique process intelligence

● Cross module reporting

● Fast development of Metso specific properties

Technical

● Easy to add additional fields (standard & Y)

● Adding Y-tables to the object model

● Fast, easy and robust installation

17

Check

Business users already worked with

EA

Milliseconds to seconds

Delivery reliability, Execution status,

…

Sales orders linked to Purchase

orders

Matter of hours

Matter of minutes

Matter of hours

At Metso it took one day

Experience at Metso

© Metso Julian Moraes 18

Every Angle Business Case Every Angle Summary Business Benefits

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• The ROI from the Business Value Calculator from Every Angle were

positive and payback period within the year.

• For this exercise I have removed the first year benefit calculated by

Every Angle at my discretion

• While I believe we can achieve 12+MEUR in inventory reduction addressing safety

stock, lead times, OSMI items this does require a change in our process and

behavior

• Important to remember that Prime Project will not cover all MAC inventory/plants and

EA can provide a quick opportunity for that

• Business case from both practical (numbers from Pilot) and theoretical

(Business Value Calculator) clearly support in approving the Every Angle

Project and Deployment throughout MAC

Recommendation: Approve project and proceed with

planning

© Metso © Metso Julian Moraes 19 Source: www.australiasigns.com.au

Every Angle @ Metso What Next?

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© Metso Julian Moraes 20

Every Angle @ Metso Key drivers for Every Angle Approval

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• After initial standstill - took a different approach in getting the project

approved

• Instead of showing/proving that the project made logical sense – I addressed the key

personal concerns that could be addressed with Every Angle

• Trust - Creating a reputation within many areas of the organization

• Communication – Constantly and effectively; spreading the word

• Addressed Concerns – Provided feedback to all stakeholders

• Aligned expectations and goals – Made sure key concerns were

addressed

“The feeling of having very good control thanks to the sales and

purchasing reports are extremely useful - I use it for my weekly meetings

with my managers and we all love it”

Appendix

© Metso Date Author Title 22

Every Angle Business Case Every Angle Pilot Non-Economical Benefits

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•There were a number of additional soft benefits that were not quantified

that should also be taken into account – All inputs from sites - After multiple testing I have a very strong believe in EA showing the right data which I don't have

for BI

- The currency conversion to EUR saves my multiple hours per reporting since this is a mayor

issue in e.g. VA05

- The feeling of having very good control thanks to the sales and purchasing reports are extremely

useful - I use it for my weekly meetings with my managers and we all love it

- Before I sent 2 hours every Sunday to generate the SAP Gary Glen Young report that the full site

of Trelleborg used and I did the same for the full Swedish company once per quarter - This now

takes my half an hour and when we have more users on board they will do it them self.

- My monthly report takes me 4-5 hours before EA to complete, now I can do it in 1-2 hours

instead

- Ability to create reports we need faster by creating our own angle ( Result Oriented Reporting)

- It will eliminate all the vlookups and other jugglery of data that we do in excel

- It will minimize the use of various Access Databases that we currently use, probably eliminate

some of them

- Each individual buyer can respond faster and answer every day questions by referring to this tool

instead of waiting on others to provide information.

- Help in determining and defining the process flow for all master data and reporting activities.

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www.metso.com