Varian Associates

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Varian Associates

Varian Associates is one of the founding companies of the Silicon Valley. The organization consists of multiple business units, which are operating in the following main businesses:

  • Health Care Systems

  •  Instruments

  •  Semiconductor Equipment

Business Environment (Nuclear Magnetic Resonance Instruments- NMRI)

Varian Nuclear Magnetic Resonance Instruments (NMRI) is a leading, worldwide supplier of NMR spectrometers for advanced bimolecular, chemical, and material science research. This business unit belongs to the Instrument business, one of Varian’s key businesses generating
revenue of approximately $ 400 millions per year.

Since the introduction of the first NMR instruments in 1946, Varian spectrometers have set the
standard for quality worldwide. Basically, by placing a chemical sample into a very strong magnetic field, and using sophisticated electronic and computer technology, the NMR spectrometer provides information on how the atoms in a molecule are joined together in space.

NMRI is certified to be ISO 9001 compliant. In 1994, it was named one of the 10 best
manufacturing facilities in the U.S. by Industry Week magazine. After evaluating several software solutions, Varian Associates chose the SAP R/3 enterprise system to help them
manage the diversification and autonomy of their multiple business units. The overall goal
of Varian’s IT strategy was to replace multiple ASK systems used in several business units with
one SAP R/3 system having multiple company codes within one client.

SAP R/3 Implementation
Scope

The NMR business was the second unit to be converted over to the SAP R/3 system. The Palo Alto, CA operation installed all the main core business application modules, such as financial accounting (FI), controlling (CO), sales & distribution (SD), materials management (MM), production planning & execution (PP) including repetitive manufacturing and quality management (QM).

Support Teams

Team Consulting Group, Inc. (TCG) was the primary consulting partner for Varian. The TCG
consulting team was formed by a small team of 4 (four) application consultants, covering all the
above mentioned functionality on a full time basis. The consulting team was re-enforced by 1-2
resources from SAP America, Inc.

The overall Varian team consisted of 10 (ten) resources. Most of these resources were fully
assigned to the project. The in-house team was a mix between NMR and other business units
users and Varian’s IT support organization.

Duration

The above mentioned functionality was implemented in only 6 (six) months. This time frame
covered the full project cycle from project planning until going live. The live date was 10/1995.

Business Environment (Traveling Wave Tube Products- TWTP)

The Varian business unit of Traveling Wave Tube Products (TWTP) is a leading, worldwide supplier of vacuum wave tube products used in multiple industries. This business unit belongs to the Instrument business, one of Varian’s key businesses generating revenue of approximately $ 400 millions per year. The TWTP business unit was sold in 1995 to the CPI manufacturing group.

After evaluating several software solutions, Varian Associates chose the SAP R/3 enterprise system to help them manage the diversification and autonomy of multiple business units. The overall goal of Varian’s IT strategy was to replace multiple ASK systems used in several business units with one SAP R/3 system having multiple company codes within one client.

SAP R/3 Implementation.
Scope

The TWTP business was the first unit to be converted over to the SAP R/3 system. The following applications were installed: financial accounting (FI), accounts receivable (FI-AR), controlling (CO) and sales & distribution (SD). Several interfaces were necessary to keep the flow to the main Varian financial corporate systems and the materials management and
planning systems of TWTP up to date, to guarantee the overall integrity of all systems.

Support Teams

Team Consulting Group, Inc. (TCG) was the primary consulting partner for Varian. The TCG consulting team was formed by a small team of 4 (four) application consultants, covering all the functionality on a full time basis. The consulting team was re-enforced by 1-2 resources from SAP America, Inc.

The overall Varian team consisted of 6 (six) resources. Most of these resources were fully assigned to the project. The in-house team was a mix between TWTP and other business units users and Varian’s IT support organization.

Duration

All of the above mentioned functionality was part of the first phase of the TWTP implementation. It took only 6 (six) months to achieve a live date of 10/94. This implementation was one of the first R/3 implementations in the Western Unites States and in the Silicon Valley.