Hanneke Raap SAP*® Product Lifecycle Management om ° Galileo Press Bonn + BostonAcknowledgments I would like to dedicate this book to my family and loved ones. and support, this book wouldn't have been possible. jout your love First, to my fiancé, Freddie Tuinstra, who happily let me pursue my dream of becoming a published author and sharing my knowledge with readers. He sacri- ficed endless hours and many weekends by supporting me during the rescarch, writing, and chapter delivery. Second, to my parents, Albert Raap and Jelly-Raap Westerbrink, who gave me the best possible foundation. They taught me to work hard, be determined, share with others, and value my independence, and they allowed me to make my own decisions and mistakes from the moment I could talk. They showed me how to pursue my hopes and dreams Lots of love, too, to my sister, Ria Andringa, and her family, who show their love and support in many ways, make me feel proud, and keep me grounded. (My nieces don't seem to care about my being an author—they just want a kiss and a cuddle!) ‘The scope of this book was enormous, so I am very grateful to several colleagues who performed reviews in their specialized field: Karan Hon, Mark Wilson, Pieter van Daal, Lilliana Grbic, Brindusa Radulescu and Nicholas Nicoloudis. Thanks are due to David Iredale, Martin Burke, and Bruce McKinnon, who gave me confi- dence and always believed in my professional capabilities. Special thanks go to Jocelyn Dart, who inspired, guided, and coached me during the writing process, Thanks also to everyone at Galileo Press, especially to my editors, Emily Nicholls and Katy Spencer, who subjected themselves to countless readings and provided invaluable feedback. Although we were in different time zones and continents, they were always just an email or phone call away, and their dedication helped us cross the finish line. I'd also like to thank fellow SAP PRESS author Eric Stajda for his technical review. %Acknowledgments Finally 1 would like to thank the many customers and dedicated employees who have influenced my career; they have made my job rewarding by letting me understand their organizations and translate their business requirements into workable SAP business processes. I would like to mention Brabant Water, COA, International Criminal Court, Rodamco, NedTrain, Dutch Defence Organization, LOreal, Greater Wellington Regional Council, Christchurch City Council, Austea- lian Defence Force, Australia Post, Coles, and Brisbane City Council in particular, among others. 6SAP Product Lifecycle Management solutions provide all of the end-to-end business processes for effectively and efficiently managing the lifecycles ‘of your company's products, programs, projects, and assets so you can succeed in today’s dynamic and connected world. 1 Product Lifecycle Management SAP Product Lifecycle Management (SAP PLM) provides you with integrated solu- tions to support all of your company's necessary end-to-end business processes. During the different stages of their lifecycles, software solutions can provide the required practices and advantages you need to succeed in today’s rapidly chang- ing world. This book provides you with an overview of SAP's solutions to manage your com- pany's products, projects, programs, and assets. It shares insight into the different solutions that SAP PLM offers and shows how your organization can benefit from implementing it. The book describes the supported business processes, functions, and features of the solutions so you can evaluate whether a solution is relevant for your organization. By implementing these solutions, you can leverage best practices and focus on your core business activities, ensuring that you stay ahead of the competition and are equipped to succeed. 4.4 Goal and Purpose of the Book This book provides you with a comprehensive functional overview of SAP PLM, You'll learn about the benefits you can gain by implementing this integrated solu- tion, which supports the decision-making process and gives you valuable infor- mation for drawing up a business case or other project initiation documents. The book also provides you with insights on how to benefit from implementation when solutions are introduced gradually in separate phases. Where possible, the supported business scenarios and processes are supplemented with examples of how other customers have implemented the product. After reading this book, 74. | Product titecyle Management you'll understand what SAP PLM is and which business processes are supported by which part of the solution. This book provides you with knowledge about SAP and its product portfolio, along with insights about how SAP PLM fits into the picture and what is covered under the term product lifecycle management. It outlines the specifics of SAP PLM. within the SAP Business Suite and gives you an overview of the newest features and functions within SAP PLM 7.02, such as the latest SAP NetWeaver Portal, SAP Project and Portfolio Management (PPM), SAP Governance Risk and Compliance (SAP GRC), products supporting innovation (e.g., code name "Edison" and SAP Product Development), and the latest available business intelligence (B1) tools (e-g., SAP 3D Visual Enterprise and product dashboards). Any company that is using SAP PLM today should be able to understand its cur- rent SAP footprint and determine which parts of SAP PLM the company already uses (e.g., the SAP Materials Management [SAP MM], SAP Document Manage- ment System [SAP DMS], and SAP Engineering Change Management [ECM]), where future improvement possibilities lie, and which parts are irrelevant for its business. Businesses that are about to start an SAP implementation (with or with- out SAP PLM) need to know what functionalities are included in product lifecycle management, develop an understanding of the SAP terminology, and know how to find more information on specific topics such as SAP DMS and SAP PPM. aaa Target Audience This book will be valuable for project team members (such as key users, super users, and project managers) who are about to start implementing SAP PLM in their organization. You'll be able to research and evaluate the functions and fea~ tures offered by the different components within SAP PLM to determine which are relevant for your organization. It’s also valuable for customers that use SAP PLM today and are looking to opti- mize or extend their existing SAP PLM processes. Consultants, solution architects, and advisors within the product lifecycle arena will also find this information, helpfull because it provides insights into the expected benefits, integration, and concepts of the solution that can be leveraged during engagements. 8Goal and Purpose of the Book 44.2. Chapter Outline This book walks you through each of the significant elements of SAP PLM. Each chapter gives you insight into the solution and which master data and business processes are delivered. Where possible, tips, tricks, and practical, real-world ‘examples have been included to provide the information with appropriate depth and context to make it easier for you to digest. Bulleted lists, step-by-step pro- cesses, and valuable screenshots and figures help to illustrate the topic at hand. This book provides you with a complete functional overview of all the function- alities and tools offered within SAP PLM—from the initial product idea and prod- uct strategy tools, to SAP Product Data Management (SAP PDM), SAP Project and, Portfolio Management (PPM), and delivering the product to your customers, to servicing it via maintenance and service. Along with all this, SAP PLM enables you to provide your organization with the appropriate product BI at any given time. You can either read the book from cover to cover or simply focus on the chapters that are most relevant to your organization. This book roadmap will help you chart the solutions and elements that are discussed in each chapter. Chapter 1: Product Lifecycle Management ‘The book starts off with an introduction to SAP and its product portfolio and dis- cusses how SAP PLM fits into this picture. It explains the history of SAP ERP and SAP PLM, outlines trends and challenges that customers face today, and gives insight into how your organization might be able to benefit from implementing the SAP PLM solution. Note that if your company seeks to introduce the SAP PLM. solutions gradually instead of all at once, you can find the benefits specific to the solution in their respective chapters. Chapter 2: Product Management This chapter focuses on the first stage of developing a product: the product strat- egy and planning phase. You'll learn how to manage your own product portfolio and how ideas and concepts for new products can be tracked, investigated, and followed up by activities for new product introductions and how processes for post-launching can be formalized. It includes the management of product compli- ance, risk, and policies as well as protecting product intellectual property. 194. | Product titeeycle Management Chapter 3: Product Data Management Product-related data and project-related data know no departmental boundaries; it’s collected throughout all phases of the product lifecycle, from when the first product idea is formed until the product is delivered to the customer. This data is used and changed continuously by various users along the supply chain. Within the SAP PLM and SAP ERP data model, different master data objects can be used to support all relevant parties with the necessary product information in a timely matter. ‘This chapter explains the main master data objects used within SAP PLM, such as the product master, routings, Specification Management and Recipe Manage- ment, SAP DMS, classification, and product costing. Lifecycle data management is a key part of an SAP PLM solution and should be considered its foundation. Downstream processes leverage integrated master data maintenance tools such as the product browser, the Engineering Workbench, and the Integrated Product and Process Engineering (iPPE) Workbench, Chapter 4: Product Variants, Classification, and Collaboration The frst section focuses on how to manage complex, highly variable products through Variant Configuration, which gives you the functions to reflect those in a flexible way (Le., with minimal master data maintenance effort) and the ability to configure the products according to individual customer requirements. The last section outlines the different end-to-end processes available for product data to enable effective and efficient product collaboration among the different stake- holders, such as product development and engineering. Chapter 5: Maintenance and Customer Service ‘This chapter gives you an overview of the master data and the processes available through both the SAP Plant Maintenance (SAP PM) and SAP Customer Service (SAP CS) components. SAP PM is focused on the master data and maintenance processes of the technical objects (often referred to as company assets) for which ‘you are responsible and are often for company-owned or leased assets. SAP CS focuses on the master data and processes available when performing maintenance activities in a customer environment, where activities can inchide customer con- ‘tract management and invoicing the customer for these performed activities. 20Goal and Purpose of the Book Chapter 6: Product Compliance This chapter discusses the functionalities offered within SAP Environment, Health, and Safety Management (SAP EHS Management) component. SAP EHS ‘Management helps you address global regulatory compliance as well as cost- effectively identify, manage, and mitigate global environment, health, and safety risks by taking an integrated approach to Operational Risk Management. The goal is to provide a reliable solution in a market environment with the increasing importance of corporate responsibility and sustainability. Chapter 7: Project Management A discussion of project and resource management capabilities will give you a solid understanding of the business processes that are covered, from a project's initiation to its delivery to the end user, whether this is an external customer or your own organization. This chapter explains how to ensure that you spend and distribute your limited resources wisely and in alignment with your company’s strategy. This chapter teaches you how to gain insight into your project pipeline, how to provide the right information to make informed decisions during all phases of a project, and how to monitor costs and make accurate, up-to-date fore- casts. Both the SAP Project System (SAP PS) and the web-based SAP Project and Portfolio Management (PPM) solutions are explained in detail. Chapter 8: Product Quality and Product Change Management Chapter 8 discusses two separate components: SAP Quality Management (QM) and SAP Engineering Change Management (ECM). Both are integrated, play a key role during all phases of a product's lifecycle, and are fundamental parts of the SAP PLM solution suite. QM capabilities ensure that your products conform to predetermined quality standards and allow you to perform quality checks during all of the different product phases and stages. ECM capabilities can be used when any changes need to be formalized and managed for a product, for other objects such as bills of material (BOMs) or routings, and for documentation. Chapter 9: Relevant SAP PLM Additions Chapter 9 covers two additional topics that are often part of an SAP PLM imple- mentation: fleet management and mobility. SAP Fleet Management manages your company's diverse vehicle fleet. The second section provides a functional a4 Product Lifecycle Management overview of the SAP Mobile Platform solution offering by explaining the current mobile solutions and applications as well as providing insight into the future direction of SAP Mobile Platform. Chapter 10: Product Insights and Analytics This chapter provides an overview of what SAP offers for product intelligence by explaining the searching capabilities, SAP Visual Enterprise, and the end-to-end reporting processes. Reporting on product data is discussed by first explaining the standard reporting options within SAP ERP, followed by how an organization can benefit from implementing additional reporting tools, such as the SAP NetWeaver Business Warehouse (SAP NetWeaver BW) and SAP BusinessObjects. It shows some examples of these reports and provides details about the standard content that is available for SAP PLM as of this book's publication date. Chapter 11: Conclusion This chapter provides summary and take-away points for each of the chapters and \cludes information on what you should be able to do after you've read the book. 12 SAP When you're considering when or how to use an SAP solution, it’s useful to understand the background and future of SAP in terms of its strategy and mis- sion, Because SAP PLM and product development is part of the book, this section, briefly describes how the organization is structured and managed so you can ‘understand how SAP innovates and develops new products. As the market leader in enterprise application software, SAP helps companies of all sizes—including small businesses and midsize companies—and of all indus- tries to simply run their businesses better. From product idea to product develop- ment, from strategy to execution, from project initiation to project execution and. closure, SAP sofiware aims to empower people and organizations to work together more efficiently and use business insight with the objective of staying ahead of the competition in today's challenging business environment. 2sap The software products SAP offers today have been developed and enhanced over the years based on decades of experience and a strong facus on research and development. Products have gone from a client server-based technology to enter- prise service architecture. SAP's product strategy leverages in-memory, cloud, and mobile technologies in a way that builds on the existing application platform to minimize disruption. Through orchestration, all SAP solutions offer master data management, business process management, and unified lifecycle manage- ment. The overall management, primary research, development activities, and corpo- rate administration functions take place at SAP's headquarters in Walldorf, Ger- many. Other offices in more than 50 countries around the world ensure that SAP stays close to its customers and their needs. The subsidiaries perform various tasks such as the distribution, research and development, and sales of SAP's prod- ucts, as well as providing SAP services (such as customer support, marketing, and administration) on a local basis. ‘The company and its functional areas are managed both globally and regionally. Because certain information is accessible on a regional level, it can be useful to understand how SAP has been split into the following geographical regions: » Americas (America, Canada, Latin America) > APJ (Asia, Pacific, and Japan) > EMEA (Europe, Middle East, and Africa) Afier you've bought an SAP solution, understanding where to go for additional information improves your chances of successfully implementing and running the solution, Let's briefly explore the community and its stakeholders. SAP Ecosystem and Partners SAP's ecosystem offers a complete and consistent framework for customers, part- ners, and individuals to innovate rapidly, improve return on investment (ROD, and grow. SAP offers global and local partnership categories for every strategic business area and customer need in all market segments. SAP's partner program offers a set of business enablement resources and program benefits to help partners, including value-added resellers (VARs) and indepen- dent software vendors (ISVs), to be profitable and successful in implementing, 3