whirlpool

Maytag Business Integration“Integrating Two World Class Supply Chains” : Maytag Business Integration “Integrating Two World Class Supply Chains” Supply Chain Management Steve Whalen Chris Richards Trish Vigansky Ellie Lundberg Kevin O’Meara


Slide2 : Detroit Tigers New Agenda Tonight


Agenda : Agenda Introductions and Structure Kevin O’Meara Overall Project Management and Scope Trish Vigansky International Integration Activities Ellie Lundberg Physical Network Integration Steve Whalen Systems Integration Chris Richards Questions and Answers All


The Presenters……. : The Presenters……. Trish Vigansky Responsible for our inventory deployment / management Overall Supply Chain Project lead reporting to Brian Hancock, VP Supply Chain and the Corporate PMO


Slide5 : NAR Supply Chain Leadership Staff


Agenda : Agenda Introductions and Structure Kevin O’Meara Overall Project Management and Scope Trish Vigansky International Integration Activities Ellie Lundberg Physical Network Integration Steve Whalen Systems Integration Chris Richards Questions and Answers All


Supply Chain Management Integration Scope : Supply Chain Management Integration Scope Integration Objectives: Deliver business case efficiencies Integrate systems & processes: 1 order …1 delivery …1 invoice


Maytag Integration Project Structure – Supply Chain : Maytag Integration Project Structure – Supply Chain Formalized project management structure utilized to manage integration


Maytag Integration Project Structure : Maytag Integration Project Structure 34 projects underway to deliver integration commitments


Maytag Business Case : Logistics Roadmaps Elimination of Private Fleet LDC Integration and Consolidation Logistics Procurement RDC Integration and Consolidation S&OP Process -Production Planning S&OP Process - Demand Forecasting Home Depot Delivery FDC Consolidation Inbound Transportation International Logistics Logistics Staff Consolidation Call Center Consolidation Maytag Business Case Total Whirlpool Business Case Efficiencies: ~ $400 Million Driven primarily by efficiencies in Manufacturing, Procurement & Logistics Savings formally tracked in Roadmapping tool by milestone. . . with detailed back-up required to document attainment of efficiencies


Slide11 : Integrated routing enables multiple shipments on one truck for ~ 40% of deliveries Delivery Documents Two delivery documents, one at each warehouse Two warehouse inventory locations Two Invoices, One Payer Account Invoice WHR & MYG brands can be combined on one order in SAP: - requires one sold-to number for TP - consolidated payment terms - capability to leverage Order On October 30th . . . Invoice 1 order . . . 2 deliveries . . . 2 invoices Maytag Integration Order-to-Cash Map . . . after systems consolidation


Slide12 : Brands can be combined on one order in SAP Order In 2nd quarter 2008 . . . 1 order . . . 1 delivery . . . 1 invoice enabled by Network Consolidation Trade Partner Delivery Document Consolidated RDC Warehouse - one inventory location for MYG & WHR brands Invoice One consolidated warehouse enables one invoice Shipment Future State Order-to-Cash Map


Change Management Scorecard : Change Management Scorecard Testing and Program Level Updates to Track Overall Project Status also included


Agenda : Agenda Introductions and Structure Kevin O’Meara Overall Project Management and Scope Trish Vigansky International Integration Activities Ellie Lundberg Physical Network Integration Steve Whalen Systems Integration Chris Richards Questions and Answers All


International Integration Activities : International Integration Activities CURRENT STATE Scope: Integrate Three Business Units Whirlpool International Business: One entity per region / one system per region / one global process Maytag International Business: Two entities / two systems / two processes FUTURE STATE Transition: Two States Interim State: Operate two systems in the US July - October Final State: Operate one system in the US


Process Change : Process Change As-Is – Centralized Order Management To-Be – Regional Order Management International Customers send their orders into Schaumburg Schaumburg receives the order and manages until fulfillment Warehouse picks and loads the order per Schaumburg’s instructions Order is shipped per the Customer Instructions Order is shipped per the Regional and Hilltop’s Instructions International Customers send their orders into appropriate Region Hilltop receives the order and manages until fulfillment Regional contacts enter order into appropriate system and send to Hilltop Warehouse picks and loads the order per Hilltop’s instructions


Areas Of Impact – Scope - Method : Areas Of Impact – Scope - Method Process – Freight Forwarder, terms Inventory – On Hand or Build to Order: Shared Inventory Shipments – Mixed Loads, Spare Parts Documentation Flow – FDC & RDC Shipment Flow - Port Distribution & ASN Customs Compliance


Agenda : Agenda Introductions and Structure Kevin O’Meara Overall Project Management and Scope Trish Vigansky International Integration Activities Ellie Lundberg Physical Network Integration Steve Whalen Systems Integration Chris Richards Questions and Answers All


Slide19 : Factory Factory Distribution Center (FDC) Trade Partner Regional Distribution Center (FDC) $62 M $161 M $100 M Trade Partner Local Distribution Center (FDC) Trade Partner Home $42 M $48 M $117 M $119 M 2006 Combined Whirlpool – Maytag U.S. Appliance Distribution Network $830 M Combined Spend (Duplicate Network) Supplier Supplier $180 M


Distribution Network Engineering and Consolidation : Distribution Network Engineering and Consolidation Legacy Whirlpool Distribution Network Legacy Maytag Distribution Network


Results - Whirlpool 2008 Distribution Network : Results - Whirlpool 2008 Distribution Network We must build, re-locate, bid, and/or shut down over 75 facilities (approximately 1 facility/week)


Slide22 : MYG Current State Factory Routed Transportation MYG/WHR Future State Centrally Routed Transportation (WHR process) Inbound Logistics Consolidation Key Challenges: 1) Engineering 2) Loss of Control by Factories 3) Determination of Savings (supplier changes) Integrate MYG Inbound Logistics into Whirlpool Centrally Controlled Inbound Network


Slide23 : FDC Consolidation WHR/MYG Current State WHR/MYG Future State Key Challenges: 1) Post Closing Announcement Productivity 2) Property Disposition Eliminate FDC’s at Closed Factories


Slide24 : RDC Consolidation WHR/MYG Current State WHR/MYG Future State Consolidate Duplicate RDC’s Key Challenges: 1) Funding (Zenith - $500 M +) 2) Operational Efficiency (Size) 3) WM Functionality


Slide25 : LDC Consolidation WHR/MYG Current State WHR/MYG Future State Consolidate Duplicate LDC’s Key Challenges: 1) Engineering 2) Procurement (specialized providers) 3) Service Disruption


Agenda : Agenda Introductions and Structure Kevin O’Meara Overall Project Management and Scope Trish Vigansky Physical Network Integration Steve Whalen Systems Integration Chris Richards Questions and Answers All


Purpose (Planning) : Purpose (Planning) Integrate Maytag Existing locations and products into the Whirlpool Planning Environment Support of activities required to build Maytag product inside Whirlpool facilities and distribute that product back into the Maytag network Support taking an order in SAP for Maytag Product in the October time frame


Current Planning Landscape : Current Planning Landscape Order Entry Load Consolidation Shipment Builder Returns Inventory levels Deployment Planning Fcst (Appliances) Historical orders Fcst Inventory levels Production Sch Target Setting MRP WIP Inventory Raw Material Inv G/L WISE Data W/H Orders Shipments Fcst Production Schedule Deployment Planning Master Planning Inventory Planning Order Entry Inventory Levels Load building Warehouse Mgmt Warehouse Mgmt Adexa Quantum Pull and Flex PRMS COMPASS SAP I2-SCP SAP LOGICS Orders Shipments Inventory levels Intransits Deployment Plan Production Plan Detailed Sch MRP Delivery information Delivery information WMCS Production Crates Inventory levels MAYTAG WHIRLPOOL Deployment Targets Production Recommendations Historical Shipments Inventory Levels Production Schedule Forecasting I2-DP Forecast Production Plan (outside of firm) Production Plan (firm)


Phase I--Forecast Goes Early : Phase I--Forecast Goes Early Order Entry Load Consolidation Shipment Builder Returns Inventory levels Deployment Planning Fcst (Appliances) Historical orders Fcst Inventory levels Production Sch Target Setting MRP WIP Inventory Raw Material Inv G/L WISE Data W/H Orders Shipments Fcst Production Schedule Deployment Planning Master Planning Inventory Planning Order Entry Inventory Levels Load building Warehouse Mgmt Warehouse Mgmt Adexa Quantum Pull and Flex PRMS COMPASS SAP I2-SCP SAP LOGICS Orders Shipments Inventory levels Intransits Deployment Plan Production Plan Detailed Sch MRP Delivery information Delivery information WMCS Production Crates Inventory levels MAYTAG WHIRLPOOL Deployment Targets Production Recommendations Historical Shipments Inventory Levels Production Schedule I2-DP Forecast Maytag Whirlpool Production Plan (outside of firm) Production Plan (firm)


Phase II--Order taken in SAP : Phase II--Order taken in SAP Order Entry Load Consolidation Shipment Builder Returns Inventory levels Deployment Planning Fcst (Appliances) Historical orders Fcst Inventory levels Production Sch Target Setting MRP WIP Inventory Raw Material Inv G/L WISE Data W/H Orders Shipments Fcst Production Schedule Deployment Planning Master Planning Inventory Planning Order Entry Inventory Levels Load building Warehouse Mgmt Warehouse Mgmt Adexa Quantum Pull and Flex PRMS COMPASS SAP I2-SCP SAP LOGICS Detailed Sch MRP Delivery information Delivery information WMCS Production Crates Inventory levels MAYTAG WHIRLPOOL Deployment Targets Production Recommendations SAP Shipments Inventory Levels Production Schedule I2-DP Forecast Maytag Whirlpool Production Plan (outside of firm) Production Plan (firm) Orders Shipments Inventory levels Intransits Deployment Plan Production Plan Historical Shipments BW


Phase III--Move MP and DPL : Phase III--Move MP and DPL Order Entry Load Consolidation Shipment Builder Returns Inventory levels Deployment Planning Fcst (Appliances) Historical orders Fcst Inventory levels Production Sch Target Setting MRP WIP Inventory Raw Material Inv G/L WISE Data W/H Orders Shipments Fcst Production Schedule Deployment Planning Master Planning Inventory Planning Order Entry Inventory Levels Load building Warehouse Mgmt Warehouse Mgmt Adexa Quantum Pull and Flex PRMS COMPASS SAP I2-SCP SAP LOGICS Detailed Sch MRP Delivery information Delivery information WMCS Inventory levels MAYTAG WHIRLPOOL I2-DP Forecast Maytag Whirlpool Forecast Production Crates Production Plan (outside of firm) Production Plan (firm) Orders Shipments Inventory levels Intransits Deployment Plan Production Plan Calendars, Capacity Engr Models, Components


Purpose (Warehousing) : Purpose (Warehousing) Integrate Maytag Existing FDC/RDC Warehouse locations into Whirlpool such that they can Process SAP deliveries/shipments by October deadlines Maintain Accurate Inventories and mechanisms to verify and adjust these Inventories with SAP as the Master Inventory System Interact appropriately to other Areas of the business such as Manufacturing, Finance, and Sales


Current Landscape : Current Landscape Order Entry Load Consolidation Shipment Builder Returns Inventory levels Deployment Planning WM Inventory levels Historical orders Fcst Inventory levels Production Sch MRP WIP Inventory Raw Material Inv G/L WISE Data W/H Sales Data Orders Master Data Order information Load Consolidation Item Info Serial Info ASN Delivery info Inventory adjustments Status Schedule Production Count Forecasting Deployment Planning Master Planning Inventory Planning Order Entry Inventory Levels Load building Warehouse Mgmt Warehouse Mgmt PRMS IWCS/HWCS COMPASS SAP i2 SAP LOGICS Orders Inventory levels Intransits Deployment Plan Production Plan(outside firm period) Detailed Sch MRP Delivery information Delivery information WMCS Production Sch(firm period) Inventory levels MAYTAG WHIRLPOOL Order Entry Orders Demand Shipments Reservation Inventory Production Counts Maytag International SAP


Selecting the Approach : Selecting the Approach Three potential approaches were examined Interface Maytag IWCS system through Compass to SAP Interface Maytag IWCS system directly to SAP Implement Logics in all Maytag Sites


Selected Approach : Selected Approach Order Entry Load Consolidation Shipment Builder Returns Inventory levels Deployment Planning WM Inventory levels Historical orders Fcst Inventory levels Production Sch MRP WIP Inventory Raw Material Inv G/L WISE Data W/H Sales Data Orders Master Data Order information Load Consolidation Item Info Serial Info ASN Delivery info Inventory adjustments Status Schedule Production Count Forecasting Deployment Planning Master Planning Inventory Planning Order Entry Inventory Levels Load building Warehouse Mgmt Warehouse Mgmt PRMS IWCS/HWCS COMPASS SAP i2 SAP LOGICS Orders Inventory levels Intransits Deployment Plan Production Plan(outside firm period) Detailed Sch MRP Delivery information Delivery information WMCS Production Sch(firm period) Inventory levels MAYTAG WHIRLPOOL Order Entry Orders Demand Shipments Reservation Inventory Production Counts Maytag International SAP ASN Delivery info Inventory adjustments Status Order information Load Consolidation Item Info Serial Info Production Counts


Agenda : Agenda Introductions and Structure Kevin O’Meara Overall Project Management and Scope Trish Vigansky Physical Network Integration Steve Whalen Systems Integration Chris Richards Questions and Answers All