Switches from PeopleSoft HCM to SAP® ERP HCM

Theresa Krakowski

Director of IT, Enterprise Applications

Newport CorporationMay 16, 2011

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Project Overview2

The Implementation and Keys to Success3

Newport Corporation: An Overview1

Return on Investment4

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Project Overview2

The Implementation and Keys to Success3

Newport Corporation: An Overview1

Return on Investment4

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Leading global supplier of advanced technology products that enhance the capability and

productivity of its customers’ manufacturing, engineering and research applications.

Global Presence:

1774 employees

20 Locations worldwide

11 Manufacturing Facilities

10 Sales & Service Facilities

Newport provides solutions for the following markets:

Scientific Research

Life and Health Science

Aerospace & Defense

Photovoltaics

Industrial Manufacturing

Semiconductors

Microelectronics

Company Overview

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Project Overview2

The Implementation and Keys to Success3

Newport Corporation: An Overview1

Return on Investment4

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Newport Project Overview

Key Objectives:

Implement a single, global Human Resource Solution leveraging the SAP

Human Capital Management and Learning Solution applications

Reduce overhead and maintenance of multiple legacy systems

Provide a system that will be flexible and able to support future Newport strategic needs (both globally and in the US)

Provide additional ESS and MSS system features for all users

Implement automated methods (Time Clocks) to collect and evaluate

employee Time and Attendance events

Deliver meaningful, accurate, easily accessible and timely information

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Implementation Scope

Personnel Administration

Organizational Management

Performance Evaluations (Focal Review)

Learning

Time Management

Benefits

Payroll (interface to ProBusiness)

Employee Self Service

Manager Self Service

Forms, Reports, Interfaces, Conversions, Enhancements

Authorizations

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Key Benefits

Key Project Benefits:

Delivered single source of reference for employee data and processing

Streamlined processes utilizing workflow and a single, integrated company

organization structure

Building the Org Structure was a key component

Replacing paper intensive processes (such as performing online

performance evaluations (focal), vacation requests/approval, benefits

selection)

Enabled legal and global reporting of HR data using SAP

Leveraged resources (HR, IT and our workforce in general)

Facilitated continued workforce development

Improved compliance

Reduced Risk and Reports

Increased personal privacy and security

KPI’s – Time and Attendance made it easier to report

on lost time

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Project Overview2

The Implementation and Keys to Success3

Newport Corporation: An Overview1

Return on Investment4

10

Keys to Success

We successfully teamed Newport’s PeopleSoft HR and technical resources with EPI-USE

SAP HCM consultants for a successful migration

HCM Project Committee established

Strong project controls with a highly experienced team

We developed the blueprint with an eye towards an ultimate global solution

Workshops and discussions were managed during the blueprint with multiple locations

We emphasized SAP Best Practices

Effective Communication & Strong Governance

Transfer of Ownership throughout the project lifecycle

Using Accelerators and Templates

Converted data using SAP’s Best Practices for HCM

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Project Overview2

The Implementation and Keys to Success3

Newport Corporation: An Overview1

Return on Investment4

12

Business Improvement

Organizational Management

Effective management of employee/organizational information

Defines organizational and reporting structures within the company and allows for

structural authorizations

Effective workflow management

Employee Self Service

Empower employees to drive accuracy of data and automated workflow approvals

Manager Self Service

Allow data access, request approvals and employee reporting

Initiate actions on the part of current employees

(job change, promotion, bonus etc.)

Initiate new hire activities

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Business Improvement

Time Management

Automation of Time Rules (Overtime, Shift Premiums, etc) through Time Evaluation

reduce Payroll Staff workload during payroll cut-off processing

Time Clocks accurately and automatically capture clock-in and out times

Project allowed organization to revisit and reduce the number of different work shifts

throughout the business

Improved time and attendance reporting assists in monitoring personnel costs

Learning Solution

Ability to streamline training

Deliver consistent training content to a large number

of users who can attend the course on their own schedule

Content set-up to meet Newport’s needs

Safety for Office Workers

Safety for Manufacturing Personnel

Product training

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Return on Investment

HCM integrated in SAP solution with FILO

Model for converting future mergers/acquisitions into SAP

Workflow, ESS/MSS, Time-Clocks, Organization Management, Performance

Management, LSO, Benefits Automation

User's have single sign-on to access SAP

Global implementation

Objective begun with single HCM system for all of Newport’s US and Canadian

locations

Foundation for globalization and further locations

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Return on Investment

PeopleSoft support was decommissioned

Reduced paper trail and manual processes

Improved accuracy in reporting and other functions

Departments are saving time

Reduction of redundant staff

Cultural transformation

Reduced master data

Employees are very happy with SAP processes

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Next Steps for Newport

Asia

Implementation of SAP Payroll

North America

Compensation Management and certifications

Europe

PA & OM data to be brought into SAP