The document outlines Solar's implementation of SAP within a lean framework, emphasizing the integration of business processes and lean thinking to enhance operational efficiency. It details their approach to lean management, including tools, systems, and organizational changes needed to align SAP with lean elements. Key learnings stress the importance of cultural shifts, management involvement, and the project's focus on business development rather than purely IT concerns.

1. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Implementing SAP
with a Lean thinking approach
by Klaus Petersen

2. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Agenda
• Who is Solar and who am I
• Our Lean journey
• The Lean elements in a SAP environment
• Learning’s
• Questions

3. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Solar in short
Solars business areas:
Electrical
Plumbing
Renewable Energy
Solar is one of Northern Europe’s leading technical wholesalers
Listed on NASDAQ OMX Copenhagen
* € 1,532m revenue – approx. 3,600 people
Servicing customers in 9 countries from 11 central warehouses
3 12-12-03
*2011 figures

4. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Our approach to Lean
The Solar Lean Way
Lean Tools Lean System
Reduction of costs Business development
Solved isolated by Establishment of an overall
functions Lean system adjusted to
the company’s needs
Tool-oriented
New management form
Spans the entire company
Cultural change

5. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France

6. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Why are we involving in the Solar 8000
project (SAP project)
• Ensure this is a business project not an IT project –business
development project
• Need to unite the Solar 8000 (SAP system) and the Lean thinking.
• Other Lean organization outside Solar are struggling with the SAP
system in the daily work
• Solar 8000 will enhance the Lean awareness in Solar
• We are developing the organization in regards of process thinking
• Going for the Solar Way

7. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
The Lean elements in a SAP
environment
• Process thinking
• Visual management
• Monitoring
• Go live model
….and focusing on behavior and habits

8. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Think in processes Process model for Solar
Core processes
Product Life Cycle
Main Process relations
Phase in & Profit analysis
Pricing Catalogues Campaigns Phase out
maintenance (margin protection)
Purchasing related
Procure to Pay master data
Sourcing Invoice verification Accounts payable Claims and returns
Supplier Solar Solars Customers
Receive to Ship Transportation and
Goods receipt Stock optimization Pick/Pack Goods issue
freight
Order to Cash
Accounts
Sales related
Order processing Delivery Billing receivable & Returns & claims
master data
Charge back
Main support processes
HR related Personnel Organizational
Hire to Retire master data Administration Management
E-recruiting
Financial master Financial and
Financial & Analytics data
Accounting Fixed assests Period closing Yearly closing
legal reporting
Management Board
Søren Larsen, CED
7 April 12, 2011
Jens Andersen, Finance
Kurt Storgaard, Market
SALES & MARKETING MARKET & PRODUCT FINANCE & LOGISTICS
Business
Human Resources DEPARTMENT Secretariat Development
DEPARTMENT Lean & QA DEPARTMENT
Britt Andersen Kurt Storgaard Jacob N. Horn Jens Andersen
Søren Larsen Jan Rohde Laursen
Division Director
Sales Director Sales Director Product Grp. 1
Sales Director Heating / Water / Market Department Logistics Department IT Department Accounts Department
Key Account Industry Lighting
Kjeld Gade Sanitation Thomas Hestbæk Finn Kristensen Finn Kristensen Mads Peter Nielsen
Ib Falkenberg Kurt Storgaard Carsten Antonisen
Jimmi Berg
Product Grp. 2 Supply / Service / Finance
Communication Salary Department
Administration Department
Lasse Jægergaard Anette Buch
Brian Jensen Pia Ebbesen
Region East Region North Region South Region East Region East
Peter Ungermann Kim Schrøder Education
Søren Sørensen René Knappman Peter Pedersen Poul Erik Verner
Region Manager Region Manager Region manager Sales Manager Sales Manager
Product Grp. 6 Creditor
Security Production Internal control
Bent Frisk Department
Storkøbenhavn & Lasse Jægergaard Vibeke Adsbøll
Midtjylland Vest-/Midtjylland Region South Indfasning/Stamdata Jette Sarnov
Midtsjælland Region South
Rene Knappmann Gert Fredslund Jesper V. Jensen Lars V Lauridsen
Thomas Grønbech Jimmy Berg
Region Manager Sales Manager Sales Manager
Sales Manager
Product Grp. 3
Nordvestsjælland Industry/PLC Vedligehold Canteen Debtor Department
Nordvestjylland Sønderjylland Region North Region North Jørgen Gull Lars V Kristensen Jytte Ørndrup Lone Larsen
og Lolland Falster Advertising
Jørgen Vester M. Th. Andersen Poul Arne Kloster John Jacobsen
Leif Madsen Poul Toftgaard
Sales Manager Branch Director Sales Manager Sales Manager
Branch Director
Product Grp. 4
Storkunder & Electric Equipment Credit control
Nordjylland Sydøstjylland Product Grp. 8 Offshore Reception
Bornholm Video Svend Erik Sorgenfri Ingrid B. Børnsen
Henning Horsbøl Søren Blomster HWS Kristen Guldager
Søren Sørensen Ebbe Vendelboe
Sales Manager Sales Manager Niels Løhde Sales Manager
Region Manager
Energy & Product Grp. 5
Storkøbenhavn Østjylland Fyn Ventilation IBI/Comfort ventilation
Carsten Knudsen Poul M. Bertelsen Peter Larsen Infrastructur Project Department
Kent Bøje Jensen Nicholai Linde
Sales Manager Sales Manager Sales Manager Kristian Pedersen Allan Ritter Højlund
Sales Manager
Sales Manager
Product Grp. 7 Product Grp. 9
Lighting Communication Security Cable Cable/Marine/Offshore HWS
Carsten Antonisen Bent Ole Jonsen Finn Mortensen Allan Kirkestrup Bent Pedersen Niels Løhde
8 December 3, 2012

9. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Main Processes Main Process relations
Product Life Cycle
Profit Analysis
Phase in &
Pricing (margin Catalogues Campaigns Phase Out
maintenance
protection)
Purchasing
Invoice Accounts Claims and
Procure to Pay Related Master Sourcing
Verification Payable Returns
Data
Stock Transportation
Receive to Ship Goods Receipt
Optimization
Pick/Pack Goods Issue
and Freight
Order to Cash
Accounts
Sales Related Order Returns &
Delivery Billing Receivable &
Master Data Processing Claims
Charge back
Main Support Processes
HR Related Personnel Organizational
Hire to Retire Master Data Administration Management
E-recruiting
Accounting
Financial Asset Financial Treasury
Financial & Analytics Master Data
& Financial
Management Performance Management
9 close
Version 2.0 – 03.11.2011

10. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Sub Process Variants (52)
Order to Cash
Accounts
Sales Related Order Returns &
Delivery Billing Receivable &
Master Data Processing Claims
Charge back
020 010 Sales Quotation. 050 010 Incoming Payments.
020 020 Using 3rd Party. 050 020 Sales Period Closing.
020 030 Sale from Stock CW. 050 030 Account Statement.
020 040 Sales from Stock Drive In. 050 040 Dunning.
020 050 Sales Of Buy To Items. 050 050 Dispute Management.
020 070 Sales Order Inbound Via EDI. 050 060 Interest Note.
020 071 Sales Order Inbound Via Weblink. 050 090 Profitability Analysis.
020 080 Cash Order Flow Drive In. 050 100 Chargeback Workbench.
020 090 Rush Order Flow Drive In. 050 110 Rebate Workbench.
020 140 Sales order inbound via Hand scan (Solar Self service). 050 120 Debit Memo - Course / Services.
020 150 Consignment Fill-Up (Default). 050 130 Credit Memo - Rebate / Compensation.
020 160 Consignment Issue.
020 170 Consignment Pick Up.
020 180 Consignment Return. 040 010 Billing creation.
020 190 Sales Order Processing - Using Red Material. 040 050 Billing Block.
040 060 Cash Invoice.
060 010 Return Orders – Central Warehouse (Green materials)
060 020 Return Orders – Drive-In (un-restricted sales stock)
060 030 Return Orders – Vendor (from customer directly)
060 040 Return orders - Unknown Material (complaint)
010 010 Creation of Customer Master Data. 030 010 Delivery Processing CW. 060 050 Return Orders – Vendor (from CW)
010 020 Maintenance of Customer Master Data. 030 020 Delivery Processing DI. 060 060 Returnable Packaging.
010 030 Create, maintain - Customer EDI Master Data. 060 070 Sales Activity Complaints Processing.
010 050 Create/Maintain Customer Agreement. 060 080 Sales Activity Complaint Processing - Free of Charge.
010 060 Credit Limit Check. 060 090 Sales Activity Complaint Processing - In customer Care.
010 070 DnB Credit Management. 060 100 Sales Activity Complaint Processing - Return Stock.
010 080 Chargeback Agreement – Create/maintain. 060 110 Sales Activity Complaint Processing - Credit Memo.
010 090 Rebate Agreement – Create/maintain. 060 120 Sales Activity Complaint Processing - Debit Memo.
060 130 Return Order - Follow Up.
Version 2.0 – 07.11.2011

11. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Visual management
visualize activities
Study Formulate
countermeasures
problem
Seek root cause

12. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Visuality
Project Planning Week 41
phase
Change Management
Issues/ Activities Other
Milestone KPI Problems
HE HE
•x
LI HI
Change
Management LE LE
LI HI
Communication
Training
Survey

13. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Visual management

14. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Monitoring
-like hatches in a water pipe
• Visualize the status of critical points, handovers and
backlogs in our systems.
• Un-hiding problems to improve our performance and
create stable processes.
• Embed good problem solving behavior.
• Input to the go-live model – tickets in Tivoli or
SharePoint.

15. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Flow of data and information
–monitoring
Process boards – meetings at 11.30 to 12.30
Tickets
Problem solving board
Fishbone 5 x WHY
We sign the standards,
but we do not follow them
Materials
Measurements Methods
Employees do not see the Standards are
• Why no. 1 Benefits of “standard work” not detailed enough
Goal/problem
• Why no. 2 Employees have not
been properly introduced to Standards are not updated
Standards are made in
Quality Department,
Process monitoring board - [Process name]
Standard work Not by process experts
Prio/ID Description Who is measuring Last updated Content OK Status Value Goal Root cause Corrective action Responsible Deadline
Delivery to customers
• Why no. 3
Training in the company is
not done according to the standards
is prioritized over
updating standards Monitoring point:
Management Machines/IT Manpower
Monitoring point:
• Why no. 4 Manager is measured on timely
delivery to customers.
KPI:
KPI:
Board standard Instructions problem solving Parking lot
Communication about corrective actions
High priority
Swimlanes + definitions Standard for board layout Agenda and rules Parking lot
Data EXCEL DATABASE
from
SAP
KPI’s/
monitoring points
Printed lists from
A report with all the daily monitoring
of activities
monitoring points
Department meetings before 11 o’clock (problem solving
and corrective actions)
KPI’s/
monitoring points
Branch meetings in the morning
(problem solving and corrective actions)
Printed lists from
the daily monitoring
of activities

16. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Sample of monitoring board

17. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Layout of boards – MT level
Process monitoring board - [Process name]
Prio/ID Description Who is measuring Last updated Content OK Status Value Goal Root cause Corrective action Responsible Deadline
Monitoring point:
Monitoring point:
KPI:
KPI:
Swimlanes + definitions Standard for board layout Agenda and rules Parking lot

18. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
T-cards T-cards are used to keep track of activities in departments or branches
T-cards has two sides – green and red: Task done or task not done.
The task is written on the card, the SOPs from the training material are covering the steps to take.
The signal is clear – to everyone – if the task is done or not.
The manager is key to making the system work, he/she have to address if the tasks or not done.
Process:
1. Every morning the manager turns all cards into red.
2. During the day or at the end of the day the person assigned to the task, completes the task and turns the
card to green.
3. Usually the result of the task is a list of unsolved issues. It is then the persons task to solve the issues
before the day is over. The list is printed and put on the lean board.
4. Last man/woman (or the manager) controls that all tasks are in green – otherwise action must be taken.
5. Next day, errors and causes for errors on the lists are discussed at the board meeting.
Number of deviations found

19. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Go Live Model
Support the Solar8000 End-users on problems on execution of their work
relating to:
– SAP IT related problems
– SAP skills
– Processes
– SOP’s
– Defects
– Technical and Master Data issues
– …
• Ensure efficient communication about Errors / Incidents / Solutions?
• Stabile information flow between End-user, Super User, LPL’s, Core,
PMO, etc…?

20. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Daily Team Update Meetings are
supported by visual management at the lean boards.
Monitoring
Dashboard
Track your Inform your
teams team via the
activities incident
updates (*)
T-Cards for daily monitoring of activities (*) These
documents are
shared during the
DAY VS. WEEK SU Update meeting

21. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Meeting structure per process

22. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Learnings
• Even if people say they think in processes they still have a long
way to go –it is a mind-set thing
• Be patience when trying to change habits and behaviour
• Leaders and managers must GO SEE, -and support and
understand the process model
• Involve HR –it is about people in change -change management
• Focus on the vital few even if you have many projects
• Make sure everyone knows the priorities
• Have discipline – stick to the plan and the priorities
• Don’t make it a IT project –it is business development

23. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
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