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Systems Express Casestudies Mamee Double Decker
1. we know
they know
Mamee Double Decker discovers the sweet
spot for business control with SAP and IBM
Overview
The Challenge IBM offered the expertise and the Key Solution Components
Snacks and candies producer solutions to help the company Industry: Consumer Products
Mamee Double Decker (M) upgrade their SAP system from Applications: SAP® ERP
Berhad found that paper-based version R/3 4.6C to ERP 6.0, applications including financials,
production planning and quality implemented on IBM System controlling, materials management,
management processes were x3850 M2, x3650 and x3250 sales and distribution, production
error-prone, wasteful and relatively servers, powered by Intel Xeon planning and quality management
slow. To maximize efficiency and series processors, running Microsoft Hardware: IBM ® System x3850
manufacturing throughput, the Windows Server and Microsoft M2, x3650, x3250 powered by
company wanted to introduce the SQL Server to support SAP ERP Intel® Xeon® E7330 and E5405
latest edition of SAP ERP and applications including financials, processors
implement new components – but controlling, materials management, Software: Microsoft® Windows®
the existing infrastructure was not sales and distribution, production Server, Microsoft SQL Server®
capable of supporting the expanded planning, and quality management. Services: IBM Global Services –
workload. The company needed Application Management Services
a trusted advisor to help them The Benefits
integrate their systems more fully. Able to produce month-end cost
reports in less than four days.
The Solution Production forecasting accuracy has
Mamee engaged with IBM Global improved and raw materials wastage
Business Services to roll out new has been reduced. Full track and
SAP functionality, most importantly trace capability has been introduced
SAP ERP production planning, to for every ingredient, manufacturing
link up the manufacturing plants and delivery stage, enabling
and their beverages arm. In phase Mamee to comply with national and
two, IBM also helped the company international food safety standards.
implement costing and quality The new infrastructure supports
management components, roll out existing users and solutions, and
SAP ERP to the beverages plant has the capacity to scale up as
in Kuantan, and implement SAP Mamee grows.
NetWeaver Business Warehouse.
2. “IBM Global Business Mamee Double Decker (M) Berhad of Lawrence Heng, IT Manager,
Malaka, Malaysia, produces an comments, “One of the key business
Services helped us to
extraordinarily wide range of snacks, challenges is to meet customer orders
implement key noodles, yoghurts and potato chips, within the shortest possible time. We
components such as destined for both local and export need to have ingredients and finished
production planning to markets. With some 1,800 employees goods in stock, and be able to change
link up the in five principal sites, Mamee production to meet demand, typically
generated sales of more than MYR within a couple of days.
manufacturing plants
400 million (approximately US$ 135
and SAP NetWeaver million) in 2009. “Availability and visibility of inventory is
Business Warehouse. essential, and if we cannot understand
IBM brought the The company operates manufacturing our stock position then we cannot fulfill
expertise that we sites throughout Malaysia, with an production for customer orders.”
extended national and international
needed for the
sales and distribution network. Many Enterprise-wide solution
implementations, of its plants run at full capacity, and it is Mamee originally selected SAP ERP
offering excellent therefore important to maximize applications to manage the business,
technical and business production efficiency. This entails replacing independent legacy
advice.” sharp focus on coordinating raw systems at each site with integrated,
materials, production and delivery enterprise-wide solutions. Introducing
Lawrence Heng, IT Manager, Mamee across this diverse business. As an SAP ERP allowed Mamee to view,
Double Decker
additional challenge, the ingredients control and manage the end-to-end
for many products, such as noodles business processes, from goods
and yoghurts are highly perishable, inwards to final sale.
and ensuring timely processing helps
to reduce wastage and control costs. The company implemented core SAP
financials, controlling, materials
management and sales and
distribution components, supporting
around 150 users. At that stage,
production planning was handled
manually, and quality management
was a paper based-process. Already
experiencing the benefits of the
integrated SAP solutions, the Mamee
team chose to implement the SAP ERP
modules for production planning and
quality management, and upgrade to
the latest edition of the software.
“The manual processes were prone to
inaccuracy,” says Lawrence Heng. “It
was all too easy to miss out necessary
ingredients in a supplier order, or
under- or over-order the quantities.
Gathering and understanding the
data, such as the current stock
3. position and the necessary new When users had accepted the “We chose IBM System x
quantities, was a relatively slow upgraded components, the IBM and
for our business-critical
process, and there was always the Mamee teams implemented the new
chance that an error could be production planning and quality
SAP software because
introduced. management components, unifying of the combination of
the entire enterprise on the same IBM build quality,
“As the business expands it becomes software platform and application reliability, expandable
more and more important to introduce suite. Finally, the completed
capacity, and the in
rigorous quality management. When landscape was rolled out to a newly-
we order materials, we want to check acquired manufacturing site at
depth expertise of the
the incoming products and keep a Kuantan, replacing legacy systems IBM support service.
record of the quantity, quality, expiry and integrating its operations with the These elements directly
date and so-on. During central SAP business solutions. enable Mamee to meet
manufacturing, we want to store
its business objectives
quality reports organized by batch Mamee engaged with IBM Global
and lot number, and keep track of the Business Services – Application
with the SAP solutions.”
finished goods data. With the paper- Management Services, with full
Lawrence Heng, IT Manager, Mamee
based process, some checks could outsourcing services provided by Double Decker
be missed or skipped, giving us Application Innovation Services and
problems when it came to auditability Business Application Modernization
of manufacturing.” Services. Collectively, these services
provide a complete solution to Mamee,
Leveraging IBM expertise removing the need for in-house
Lawrence Heng invited tenders from capacity for all the infrastructure and
consulting partners, and selected application requirements, leaving the
IBM Global Business Services based Mamee team free to focus on business
on the very wide range of expertise value.
available from a single source. IBM
provided a comprehensive offer, with “IBM Global Business Services helped
a team of technical and SAP BASIS us to implement key components such
consultants, alongside infrastructure as production planning to link up the
sizing and industry specialists who manufacturing plants and SAP
were able to advise Mamee on the NetWeaver Business Warehouse,”
best way to take advantage of the new says Lawrence Heng. “IBM brought
SAP solutions. the expertise that we needed for the TECHNICAL LANDSCAPE
implementations, offering excellent Servers: IBM System x3850 M2,
The Mamee team specified a detailed technical and business advice.” x3650, x3250 with Intel Xeon E7330
list of business requirements in face- and E5405 processors
to-face meetings, resulting in a Addressing infrastructure issues Software: SAP ERP applications
blueprint that IBM used to build The original hardware had reached including financials, controlling,
prototypes and test systems. Mamee capacity, and to enable the upgrade materials management, sales and
upgraded each SAP ERP component and addition of new SAP ERP distribution, production planning,
in turn, and users accessed test components the IT team wanted to quality management, Microsoft
systems and gave their feedback. reconsider the infrastructure strategy. Windows Server, Microsoft SQL
Once the functionality had been Server
agreed, each system was moved into Working closely with IBM, Mamee Users: 150 users of SAP
production. selected IBM System x servers, with
4. virtualization provided by VMware, of the IBM support service. These “With the integrated SAP
running the Microsoft Windows elements directly enable Mamee to
applications we are
Server operating system and meet its business objectives with the
Microsoft SQL Server. The SAP solutions.”
able to analyze our
production systems run on an x3850 costs in a way that was
M2 server powered by an Intel Xeon More detailed control not possible before. We
series quad-core E7330 processor, With the upgraded SAP ERP can now report on all
with x3650 servers powered by Intel applications and new production
the cost components of
Xeon series quad-core E5405 planning and quality management
processors for development, test and solutions in place, Mamee is now able
each product, from raw
quality management SAP to control its business in greater detail, ingredients through to
landscapes. Further IBM System x helping to drive efficiency and meet the proportion of
servers (x3250 or others) support customer demands. overheads allocated, all
general business administration
in less than three days.”
services, such as file serving and The production planning application
email. allows Mamee to optimize its raw Lawrence Heng, IT Manager, Mamee
materials, manpower and machinery Double Decker
Intel Xeon Processor 7000 Series requirements by matching sales
processors offer advanced reliability orders and estimates to the actual
for the most data-demanding inventory levels, staff and plant
applications, with intelligent capacity. The information required for
performance that automatically production planning is generated
adapts to the diverse needs of a automatically, eliminating manual
virtualized environment. Intel Xeon errors. Bills of materials needed to fulfill
Processor 5000 Series processors specific sales orders are produced by
offer next-generation intelligent the system, adjusting the amounts
technology, automatically regulating ordered depending on the current
energy consumption to combine stock position, removing under- and
industry-leading efficiency with over-ordering, and therefore reducing
performance that adapts to wastage and costs.
workload.
“In the past, a month-end cost report
“System downtime has a severe took more than five days to produce,”
impact on Mamee, and every aspect says Lawrence Heng. “With the
of our delivery and distribution would integrated SAP applications we are
suffer. We need to ensure we are able to analyze our costs in a way that
always able to meet our customer was not possible before. We can now
orders, and without the ERP system report on all the cost components of
we have no way of knowing who each product, from raw ingredients
should get what, when,” says through to the proportion of overheads
Lawrence Heng. allocated, all in less than three days.
This data helps make us more efficient,
“We chose IBM System x for our by highlighting areas where costs are
business-critical SAP software rising, showing us the effect of
because of the combination of IBM administration costs, and allowing us
build quality, reliability, expandable to calculate the volumes that we need
capacity, and the in depth expertise to sell.”
5. “In the past, our production planning Heng. “It also helps meet regulatory “Together, the SAP
was based on sales figure estimates requirements in Malaysia and in new
applications, IBM
that were given on paper to the factory markets across the continent.”
managers, who in turn calculated their
Global Business
raw materials, machinery usage, Looking to the future Services and IBM
staffing and management needs. Mamee is now considering SAP infrastructure give
Often there were changes between the warehouse management and trade Mamee the capability to
initial estimates of sales figures and promotions components. With greater
grow, delivering
the production plans, which meant that control and visibility of inventory, the
the plans no longer matched the company will be able to ensure that
strategic solutions that
forecasts.” products nearing expiry dates can be help us meet our
promoted and sold, generating sales business objectives.”
“The SAP solutions have removed the that might otherwise be lost and the
Lawrence Heng, IT Manager, Mamee
delay in production planning, as they products wasted.
Double Decker
automatically prompt the sales teams
for regular, updated figures. The more Based on the integrated data captured
structured approach to data input has by the SAP applications, the company
improved forecasting accuracy, and is also considering business
the production plans help us to identify intelligence solutions, that will allow
likely manufacturing bottlenecks that senior managers to gain greater
could prevent us from fulfilling a insight on costs and profitability on a
customer order on time. We use the daily basis. Where previously paper-
software to try out ‘what-if’ scenarios, based management reports could not
for example looking at the delivery and provide the data in a timely manner,
cost consequences of interrupting a and could contain manual errors, the
long production run to fulfill a shorter, data generated by the SAP
more urgent customer order. By applications can be relied on as a
integrating data from all aspects of the consistent source of information that
business, SAP ERP helps us to can be examined for efficiency gains
optimize the business for customer and margin improvement.
service and profitability.”
“Together, the SAP applications, IBM
Similarly, the quality management Global Business Services and IBM
process has been fully transferred to infrastructure give Mamee the
the SAP applications. Should a quality capability to grow, delivering strategic
issue arise, Mamee is able to track and solutions that help us meet our
trace every ingredient, manufacturing business objectives.”
and delivery stage. This is an essential
capability when selling internationally,
since most customers require full audit
data.
“Quality management helps us
improve internal processes, and
enables proper monitoring of
suppliers, manufacturing operations
and finished goods,” says Lawrence
