Academy of Better Business

Schneider Electric: Implementation of PS solution, standard for corporation

Polish business standard is a model for other countries

International character of the corporation creates an opportunity of free flow of know-how. Schneider Electric is an example that Polish units may actively participate in creating business standards for a global organization.

In Schneider Electric corporation the flow of knowledge can take the form of regular meetings of representatives of the countries in which the SE units use the management-support SAP system.

During such meetings, held once in six months, knowledge is passed and new ideas that may improve the functioning of all the business standard of the concern are presented. Such ideas are shown in the form of the so-called Best Practices, those worth copying.

Polish benchmark

During one of those meetings as a Best Practice was presented the business-IT standard in managing contract operations, worked out in w Schneider Electric Polska with the support of BCC. The solution is based on the module PS (Project System) of the SAP system.

The Polish project was received with enthusiasm, especially because PS was not widely used in other units of the concern and in places where it functioned, it was not used to its best advantage in managing contract operations. 

There were no doubts concerning the Polish standard; it was very well adjusted and proved itself in practice.

Thus the solution was recognized by international environment as a model one and more countries are deciding to use it.

What else caused such a high evaluation and a choice of the Polish business standard? 

Certainly the fact that Poland is a country with wide ‘contract’ operations, which, opposite to repetitive sales or discrete manufacturing is marked by big variety. Contract operations in Schneider Electric are significantly different from discrete manufacturing, which is creating repetitive products, machinery or equipment. Contracts involve project production, which concerns non-discrete manufacturing or services that do not repeat themselves.

In the Polish unit of Schneider Electric this area of operations constitues quite a large, 20% share in income. Additionally, the contracts are very varied, thanks to which they include all possible types that may appear in other countries.

So if in Poland all types of contract have been managed by SAP (PS module), one can infere that in other ocuntries this model will help to manage all possible kinds of contracts.

Important contract operations

PS solution supports a vital aspect of company operations, namely managing contracts connected with designing and installing  electrotechnical equipment for the needs of such areas as construction, power industry, mining, shipbulding, fuel and chemical industries.

From Poland to Czech and Greece

Implementing a model of contract operations management, supported by the PS module, was an element of a complete implementation of SAP, carried out in Schneider Electric Polska by BCC since 2000. Besides PS it covered financial accountancy, controlling, materials management and supply, production planning, and sales and distribution.

The first phase of the project was a detailed analysis of functioning contract operations in the Polish unit of Schneider. 

Curiously enough, besides data from Poland, during preparation of the concept of SAP functioning the BCC consultants also used the experience from the Hungarian unit of the concern, documenting the SAP solutions implemented there.

After this analysis a concept of target model of project system (PS) functioning  in  Schneider Electric Polska was created. The company has been using it since January 2001, i.e. since the moment it started using SAP system.

After the solution was considered a corporate Best Practice, BCC supported Schneider Electric in moving the PS solution to its Czech (2003) and  Greek (2004) units. Model PS solutions were also adopted, to different extents, in Hungary and in France, and next countries where Schneider Electric has its units are already planning to use them.

For the implementation itself, as well as maintaining and developing a model business solution that was worked out in most SAP modules implemented in Poland, especially PS, Schneider Electric Polska suggested creating an internal organisation supporting countries.

The basis for the organisation, called ECO-North Platform, was experience gained during preparation and using SAP solutions in Polish circumstances. Nowadays ECO-North Platform includes five units in Poland, the Czech Republic and Greece (two plants and three commercial units). 

Common model is possible

Can commercial units in Poland, Hungary,  Greece or France operate according to one common model of project management? Yes, because the business model in Schneider Electricunits managed by PS is similar in all countries.

Every one of those markets is supplied with the same types of products, such as low-voltage machinery, medium-voltage machinery, automatic engineering (devices/ terminals to control production processes), and those products can be used in the same way in market segments such as building, power plants or industry.

Moreover, in all countries the hierarchy of products and customer types are similar too; they include installators, end customers, general contractors or switch gear manufacturers and others.

Using our common standard was possible also owing to the fact that in all Schneider Electric units the process of concluding and executing constracts is similar. The corporation has the same requirements in terms of controlling and local law only makes the difference in assessing and reporting works in process.

Thanks to all the above it was possible to move and use the model created during an implementation in Poland.

Advantages 

The decision to use a common business model in different countries, apart from the possibility to move the best and tested in Poland business practices, was also influenced by the reduction of costs in implementing PS in other countries.

The described case may be a good example of how knowledge and ideas flow within a corporation and how IT solutions may be used in the best possible way in business. This example is all the more interesting because it does not happen often that moving an IT model from Poland improves business in other countries.

Up to now the concern units have not only been operating more efficiently using Best Practice, but also their operations are more homogenous, which facilitates management on both local and  global levels.