Consolidating Multiple Product Development Systems at TreeHouse Foods into SAP Product Lifecycle Management

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Consolidating Multiple

Product Development Systems at TreeHouse Foods into

SAP Product Lifecycle Management

Kathy Kugelman, TreeHouse Foods Robin Patrawala, Linx-AS

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About TreeHouse Foods

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Product Data Management at TreeHouse

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Solution with SAP PLM

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Change Management

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Highlights, Benefits & Lessons Learned

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Looking Ahead

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Q&A

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About TreeHouse Foods

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Product Data Management at TreeHouse

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Solution with SAP PLM

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Change Management

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Highlights, Benefits & Lessons Learned

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Looking Ahead

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Q&A

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 Leader in supplying high quality products and services to private label brands of retail grocery and food service industries.

 Celebrating 10 years in business: On June 28, 2005 became an

independent and public company trading on the NYSE (THS).

 CPG manufacturer with approximately $3.5 billion in sales

 Principle Operating Company: Bay Valley Foods, LLC

 25 manufacturing locations with approximately 7000 employees

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 Become the recognized industry leader in private label, customer brands and custom products  Grow tall via product innovation, consumer insight, customer partnerships and strategic

acquisitions

 Grow strong through strategic vision, operational excellence, structural consolidation and collaborative teamwork

 Build competitive advantage through the relentless pursuit of our customers’ needs, lowest cost operations and shareholder returns

 Live by our values, true to our beliefs, respecting our legacy heritages and uniting them under one roof and culture, while building the TreeHouse of the future

 Exceed the expectations of our customers, suppliers, employees and shareholders alike

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About TreeHouse Foods



Product Data Management at TreeHouse

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Solution with SAP PLM

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Change Management

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Highlights, Benefits & Lessons Learned

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Looking Ahead

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Q&A

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Management of recipe and specifications

conducted in multiple legacy systems.

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Manual handoffs and tools used to manage

over 16,000 finished good materials.

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Manual creation of specifications based off of

vendor documents and legacy systems data.

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 Technical product information managed in disparate legacy systems each requiring varying IT maintenance and separate processes for several business units.

 Manual keying of data into different systems slowed process time and increased risk of inaccurate or

redundant data

 Lack of collaboration between developers of various business units

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 Lack of timely product costs: inability to copy, scale, or synchronize a recipe—must build from scratch

 Gaps in review and reporting processes

 In-process analytics

 Multiple sources needed to create specifications reports

 Workflow inefficiencies

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 January 2010, company-wide SAP ERP initiative focused on streamlining processes and identifying future business

requirements.

 Goal was to replace legacy applications across all locations and create enterprise wide design for future acquisitions

 February 2011, first went live with Customer Service,

Accounting, Corporate Purchasing and Supply Chain Planning.  Continue to roll out to individual Business Units one at a time.

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 During 2013, began planning for an improved Product Data Management solution

 Functional area assessments completed

 Developed a business case for Product Data Management.  Project team started in Q2 2014 to begin SAP PDM blueprint

process

 Implemented across two Business Units in March 2015

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 More time creating target products, less time managing ‘paperwork’

 Create a single version of the truth for all technical product information to eliminate redundancy/improve efficiencies, improve accuracy, reduce compliance risk, and accelerate new product development.

 Establish blueprint for implementation across all businesses units

 Improve ability to service customers by leveraging technology and streamlining current processes.

 Support the overall PLM initiative through Change Management activities.

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About TreeHouse Foods



Product Data Management at TreeHouse



Solution with SAP PLM



Change Management



Highlights, Benefits & Lessons Learned

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Looking Ahead

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Q&A

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 Modules:

 Recipe Development

 Specification Management

 Document Management

 Enhancement Pack 7, Support Pack 5

SOLUTION SCOPE

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 Manage Ingredient Specifications

 Manage Packaging Specifications

 Manage Recipe – Formulas

 Manage Recipe – Finished Goods

 Manage Label/Nutritional Data

 Manage Handover to Manufacturing – Material Master

 Manage Handover to Manufacturing – Quality Inspection Plans

 Handover to Manufacturing – BOM and Master Recipe

 Specification Workflow

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SOLUTION OVERVIEW

Product Change Process (PDM: Product Data Management)

Ingredient Specifications Recipe – Food Product Spec Documents Food Product (WIP) Specifications Spec Documents Label Data Recipe – Finished Product Packaging Component Specifications Spec Documents Spec Documents Finished Product Specifications

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PROJECT TIMELINE

May-14 June-14 July-14 Aug-14 Sept-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15

Blueprint & Design Workshops

Realization

Data Conversion Build / Solution Build

Training Testing

Support Cutover

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Formulation

• Legacy systems used by R&D to create recipes.

Regulatory

• Used for regulatory and governance reference for BU’s on PDM. Maintain & use for ingredients and label information.

PLM Recipe Development

SAP ERP SAP PLM

LEGACY SYSTEM REPLACEMENT

Quality

• Specifications will be generated (WWI report) from SAP and will not need to be manually created.

Label Creation

• Manual process and forms will be replaced by SAP specification and workflow. Label files stored in SAP DMS.

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DATA MIGRATION

 Focus on identification of legacy source data and launch resources to clean up data at least 6-9 months prior to go-live.

 PLM projects are heavily data related so the focus on data is much greater than other SAP projects

 Data team focused heavily on cleansing, collection, transformation, and validation

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About TreeHouse Foods

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Product Data Management at TreeHouse

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Solution with SAP PLM

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Change Management

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Highlights, Benefits & Lessons Learned

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Looking Ahead

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Q&A

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Strong support from executive sponsors

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Staff top people full time on the core team

 Pull key personnel from various functions for dedicated project time

 Use consultants with deep knowledge of software and industry

 Involve Subject Matter Experts early and often (design, checkpoints, Integration testing, mock data conversion, User Acceptance Testing, training)

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 Functional Subject Matter Experts

 Change Impact & Process Awareness meetings

 Training tools consisting of course wrappers, uperforms, and additional reference tools

 Train the Trainer concept

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TRAINING

PDM

Regulatory Product Development Project

Management _EngineeringPackage

Quality Assurance

Finance Label/Artwork

Management Master Data

 Because Product Data Management touches so many functional departments, the key to our training program was identifying subject matter experts to instill a continuous learning culture.

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

About TreeHouse Foods



Product Data Management at TreeHouse



Solution with SAP PLM



Change Management



Highlights, Benefits & Lessons Learned



Looking Ahead



Q&A

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 Most complex data load performed by ERP team in TreeHouse history

 Conducted extensive testing, including System

Integration Testing (SIT), User Acceptance Testing (UAT), Exploratory, Site Readiness, and Performance testing cycles. Many different departments used to test various user perspectives.

 SAP RD sync (push) to SAP ERP

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 One Source of Truth: Consolidate all technical product information into a central software system (SAP)

 Retire legacy development systems

 Improve developer productivity and visibility

 Increase synergies and ideation between developers of various business units

 Recipe/Specification Development and Execution (ERP) data controlled through SAP system

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Promotes packaging efficiency

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Integrate automated workflow

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Enterprise blueprint which will allow TreeHouse

Foods to further implement across acquired

business units and existing categories

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 Logging all issues, risks, and defects keeps control

 Prototyping / Design Verification were critical steps during the implementation

 Clarified business requirements

 Increases user acceptance, ownership, and change

 Focus data model design helped early on in the project.

 Establishing property trees early helps with the data migration planning and blueprint which leads to clean iterations before go-live

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 Ensure BASIS resources can support the newer technologies.

 Ensure Security is given time to understand the new security objects

 Developing a Knowledge Transfer Plan ensures future success

 Expect and manage team resources and changes

 Emphasize training and change management impact

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

About TreeHouse Foods



Product Data Management at TreeHouse



Solution with SAP PLM



Change Management



Highlights, Benefits & Lessons Learned



Looking Ahead



Q&A

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Future Rollouts

 Continue to follow ERP roll out across Business Units with PDM implementation