Sap Implementation

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How “pull” works at Caterpillar Global Paving
Last week we had a presenter in class ‘Robert Diede’ , logistics engineer from Caterpillar Global Paving. Robert is an Alumni of St Cloud State with a degree in Operation Management. The presentation was a good help in understanding how SAP is used in real business world and what sort of help it does and what can be the problems with it. The projects Robert is working on currently are

* NPI (New Product Introductions) for the Pneumatic Compactor line * ACOM VST (Asphalt Compactor Value Stream Transition) hardware setup and staging * SCOM (Soil Compactor) NPI pilot build

We saw the logistic side of the use of SAP in this presentation. It was very amazing how SAP has helped the logistics department lower their human labor work. The logistics uses SAP to track the inventory in the warehouses and the product flow from the warehouse to the production line. So once they receive the parts, they are transfer them to either of the two warehouses. From the warehouse the parts are tracked till they reach the production line.

As said by Robert each part is subject to PFEP (plan for every part), a profile is created foe the parts. SAP also tells the material handler its place that is where it needs to go. These profiles are very helpful as it also shows when the parts are supposed to be re ordered.

The explanation of how to pick a part for pull is very complicated or was complicated for me to understand fully. The logistics look at the shipping and production reports for three months of future demand and three months past demand to determine its viability to put on pull. They use a Kanban calculator to plan delivery time and also the re order time.

The interesting part of the presentation was when I came to know that they have to work around SAP using Excel to over come some of the shortcomings there SAP system has, as it is just the basic system of SAP they have installed. They need work around because...
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