How to Run Leaner and Faster at

Faurecia by Using a Real-Time Inventory

Management Accelerator for SAP HANA Eric Godard, Head of Applications, Faurecia

Jose Gascon, SAP Program Director, Faurecia

Leipzig • July 2nd, 2014

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A global player in the automotive industry – July 2014 2

Agenda

Faurecia Introduction

FCS a global SAP Program

What is the problem?

HANA Accelerators

What is next?

Conclusion and Q&A

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A global player in the automotive industry – July 2014 3

Agenda

Faurecia Introduction

FCS a global SAP Program

What is the problem?

HANA Accelerators

What is next?

Conclusion and Q&A

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A global player in the automotive industry – July 2014 4

97,500 employees

320 sites

34 countries

Group revenues: €18 billion

30 R&D centers

5,800 R&D engineers and technicians

500 patents filed in 2012

Annual R&D investment: €916 million

5.1% of revenues

Faurecia overview

2013 key figures

N°6 worldwide equipment

supplier

6th largest automotive equipment suppliers

(2012 revenues €bn)

18. JTEKT

17. Toyota Boshoku

14. BASF

13. TRW

12. Delphi

10. Yasaki

11. Lear

9. ZF

8. Hyundai

6.

6. Johnson Controls

5. Aisin Seiki

4. Magna

3. Continental

2. Denso

1. Bosch

20. Cummins

19. Hitachi

15. Valeo

16. Sumitomo

17.4

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A global player in the automotive industry – July 2014 5

NORTH AMERICA

41 plants

6 R&D centers

21,000 employees

€3.7 bn product sales

EUROPE

160 plants

15 R&D centers

55,000 employees

€7.4 bn product sales

SOUTH AMERICA

22 plants

3 R&D centers

6,000 employees

€0.7 bn product sales

ASIA

45 plants

6 R&D centers

13,500 employees

€1,7 bn product sales

A strong presence in all automotive regions

D&D centers not included, ROW not included

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A global player in the automotive industry – July 2014 6

American OEMs represent

28% of product sales

German OEMs represent

38% of product sales

Asian OEMs represent

7% of product sales

French OEMs represent

20.5% of product sales

Product sales by customer

Commercial vehicles 1.9 %

14.0 %

GM

PSA

Renault

Chrysler

Hyundai 1.6 %

Other

4.9 %

6.5 %

Ford

24.7 %

7.1%

6.1 %

BMW

Daimler

VW Group

5.0 % 14.9 % 7.9 %

Other Asian 1.3 %

Nissan 4.2 %

A diversified customer portfolio

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A global player in the automotive industry – July 2014 7

Source: Roland Berger analysis

#1 in Europe

#1 Worldwide

#1 Worldwide

#3 Worldwide Complete Seats

#1 Worldwide Frames & Mechanisms

Leading market positions

in our four core business lines

Padding

Headrest

Cover

Mechanisms

Frames

Door

panels

Instrument

panels

Center

consoles

Cockpits

Acoustic

modules

Complete

exhaust lines

Mufflers

Catalytic

converters

Manifolds

Diesel

particulate filter

Commerci

al vehicles

• Front End Modules (FEM)

• Front End Carriers / GOR

• Engine cooling systems (ECS)

• Bumpers

• Trims & rocker panels

• Outside body panels

• A-class

• Semi-structural (closure)

• Structural

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A global player in the automotive industry – July 2014 8

Faurecia supplies 1 in 4 vehicles worldwide Recent examples of Faurecia « on board »

Mercedes-Benz

S-Class

Complete exhaust

system (standard

& AMG versions)

Instrument panel,

door panels, center

console

Front and rear

bumpers, rocker

panel

Nissan

Qashqai

Front seat frame,

seat tracks &

recliners, power

height adjustment

mechanism

Emissions control

systems

Acoustic

components

Ford

Ecosport

Complete exhaust

system

Instrument panel,

door panels, center

console

Peugeot

308

Seat frames, tracks and

mechanisms, foams and

seat covers, complete seat

assembly

Emissions control systems

(Selective Catalytic

Reduction)

Instrument panel, door

panels (natural fiber-based

injected material), center

console, decorative &

acoustic components, cross

car beam

Rear bumper

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A global player in the automotive industry – July 2014 9

Agenda

Faurecia Introduction

FCS a global SAP Program

What is the problem?

HANA Accelerators

What is next?

Conclusion and Q&A

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A global player in the automotive industry – July 2014 10

What is FCS?

Project launched in April 2007, first go live in July 2008.

FCS stands for Faurecia Core System

FCS is an IT application based on SAP (FI/CO/MM/SD/PP/PS …)

FCS is fully based on FCP (Faurecia Core Procedures) and FES (Faurecia Excellence System)

Objectives : Provide a solution covering the whole scope, including program

controlling (before serial life)

Provide a standardized solution to all plants, based on FCP

Support the development of finance shared services

Implement a common IT core system so we have only

one system to be maintained.

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A global player in the automotive industry – July 2014 11

Faurecia SAP global footprint

SOUTH AMERICA

Argentina

Brazil

Uruguay

NORTH AMERICA

United States

Mexico

Canada

EAST EUROPEAN

Poland

Czech Republic

Romania

Russia

Slovakia

WESTERN EUROPE

German

Belgium

Luxembourg

Netherlands

Spain,

Portugal

France

UK

Hungary,

Sweden

Italy

AFRICA &

MIDDLE EAST

South Africa

Tunisia

Iran

Morocco

Turkey

ASIA

China

South Korea

India

Japan

Thailand

Malaysia Initiated

In progress

In Plan

27 COUNTRIES

400+ BAU

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A global player in the automotive industry – July 2014 12

Agenda

Faurecia Introduction

FCS a global SAP Program

What is the problem?

HANA Accelerators

What is next?

Conclusion and Q&A

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A global player in the automotive industry – July 2014 13

Business Challenges

Operation Excellence is key for Faurecia

Inventory accuracy is a key driver :

we target 99% Inventory accuracy

so inventory transactions efficiency is a must !

With the current high levels of vehicle customization and interior

personalization the risks of obsoletes in much higher hence the aim

to reduce stocks yet further.

High volumes of data due to a centralized architecture

some reports are/were too long, which is generating waste

(additional costs).

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A global player in the automotive industry – July 2014 14

Facts and figures

o MB51 (Material Document List) is the most used report in Faurecia

o FAGLL03 (G/L Account Line Item Display) is in the TOP5 reports

Number of goods movement per day ~5 M /day

Total number of records in MSEG ~325M (3 months)

Number of users who run MB51 at least 1 per month 4500+

How many times a user runs the MB51 report per month ~120 times

Number FI line Item January thru March 500M

Number of users who run FAGLL03 at least 1 per month 1000+

Waiting time in front of FAGLL03 per month (TOP10 users) 6 hours

Waiting time in front of FAGLL03 per user per month 35 minutes

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A global player in the automotive industry – July 2014 15

Agenda

Faurecia Introduction

FCS a global SAP Program

What is the problem?

HANA Accelerators

What is next?

Conclusion and Q&A

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A global player in the automotive industry – July 2014 16

Suite Acceleration Architecture

DB Tables

SAP ERP System

write

read

Copy of ERP

Tables

SAP HANA

SAP Client

ABAP-

Program

Application Server

NW 7.21 Kernel

Accelerated Read Access

DMIS Add-On (LT Server)

Real – Time Replication of selected Tables

Application Acceleration with

SWT2DB Add-On

Scenario Acceleration with

HDBC Transaction

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A global player in the automotive industry – July 2014 17

IM Accelerators

o After activation of HANA the data base access is ~4 times faster while

the MB51 total response time is ~2 times faster after.

o On the other hand the usage increased ~20%.

o Just DB acceleration does not

bring the highest benefit.

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A global player in the automotive industry – July 2014 18

Agenda

Faurecia Introduction

FCS a global SAP Program

What is the problem?

HANA Accelerators

What is next?

Conclusion and Q&A

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A global player in the automotive industry – July 2014 19

HANA for FCS Z-Tcodes Example ZP93 = Vendor Delivery Adherence

o ZP93 is the original transaction using DB2 for data selection.

o ZP93H is the DB/HANA accelerator for the original transaction ZP93:

an identical copy of ZP93 from ABAP perspective.

o ZP93H_2 is revised code version adapted to HANA philosophy.

30 times

faster

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A global player in the automotive industry – July 2014 20

JIT Buffer Accelerator

o In JIT whenever the master data is changed these are updated in the

database and not in the shared buffer. Hence the reorganization of the

application servers buffers needs to be triggered.

o We face performance issues in this process due to the high frequency

of master data changes and overlapping of inbound/outbound

processes, so we had to give up the real-time sync process.

JITSB (MA) refresh takes

about 5 min per server.

Initial POC (4s) shows we

may achieve < 2s

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A global player in the automotive industry – July 2014 21

HANA roadmap ahead

S1 2014 HANA FI Accellerators

Inventory Management Accelerators available in FC2 and FC1

2012 POC launched with HANA and focused on COPA analysis

S2 2013 HANA IM Accelerators

Inventory Management Accelerators available

MB51 is the main transaction with relevant

improvements

S2 2014 Faurecia Tcodes Acceleration

JIT buffer Acceleration

2015... Operational Reporting

Develop special operational reporting over HANA replicated tables

BI on HANA

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A global player in the automotive industry – July 2014 22

Agenda

Faurecia Introduction

FCS a global SAP Program

What is the problem?

HANA Accelerators

What is next?

Conclusion and Q&A

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A global player in the automotive industry – July 2014 23

Conclusions

HANA Accelerators is a good starting point…

…great if you think Kaizen.

Minor impact on existing infrastructure and investment.

Ramp up your internal knowledge to identify opportunities.

DB optimization is good but the really breakthrough comes

with ABAP code review and optimization.

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A global player in the automotive industry – July 2014 24

24 A global player in the automotive industry – June 2012 24 A global player in the automotive industry – April 2012