2. Business and Systems Aligned. Business Empowered. TM Global ERP Projects Author:Andrew McCumiskey Presentation for:University of Birmingham Course: Commercial Programming Date:6 November 2014

3. 3 Agenda ERP implementation basics What is an ERP Rollout? Fuso Case Study Structured Analysis Realisation Phase and Process Test Integration Test Go-Live Check, Stabilisation and On-going support What went wrong? Q & A Useful links

4. 4 ERP Implementation Basics Enterprise Resource Planning Integrate and automate many business processes — Manufacturing — Logistics — Human Resources — Finance Multi-currency and multi-language Large and functionally rich Has industry specific add-ons Is Configurable Long and costly implementation projects

5. 5 ERP Implementation Phases n Initial Scoping Phase n Vendor Selection n Fit-Gap Analysis with ERP system n Blueprint Phase n Realisation n Process and Integration Testing n Go-Live n On-Going Support / Stabilisation

6. 6 Vendor Selection

7. 7

8. 8 Mitsubishi Fuso Kawasaki Case Study 89% owned by Daimler Trucks Previously had only FI ERP system and collection of Legacy systems 147,700 Lorries per year (2011) Large number of variants Worldwide customers Japanese/English language Many Export requirements Many manual processes Pressure from HQ to use ERP

9. 9 ERP Rollout Implementation Phases n Preparation Phase n Fit-Gap Analysis with Legacy n Blueprint Phase n Realisation Phase n Process and Integration Testing n Go-Live n On-Going Support / Stabilisation

10. 10 Fuso Milestones 20062007 2008 12 56 78910111234567891011121 3 2 Preparation Phase Structured- analyse Training - End-user Stabilisation Gateway 0 Gateway 1 Gateway 4 Gateway 5 Go-Live Gateway 6 Training - Key-user Integration Test Migration Development and Function test Specification Gateway 3 Process Test Gateway 2

11. 11 Preparation - Assembling the Rollout Team Project Manager Sub-project Managers (5) Business (key) Users (15) SAP Trainers (10) Consultancy SAP experts (32) Local Hardware\network\legacy experts (5) Central Programming resource (5,000 Man days)

12. 12 Structured Analysis Phase Workshops organised with Key Users List requirements High-level functionality check with SAP system Document Add-ons and interfaces required Plan the resources, time and work schedule for Realisation

13. 13 Realisation Phase and Process Test Workshops organised with Key Users Prototypes built and demonstrated in SAP Fuso Key Users test and signoff functionality Trainers plan courses and generate documentation Open Issue list and weekly update meetings

14. 14 Integration Test Build up a new client (system) to test the migration programs Test if the individual processes link together End-to-end process test Encourage interaction and inter-departmental interfaces Test performance and ‘real-world’ environment Test hardware such as printers and scanners in the plant

15. 15 Gateway and Go-Live Check Have the users had enough training before Go-Live? Are all business processes in place at the right time? Have we made best use of the technology available? Has all of our knowledge been transferred to Kawasaki? Is there a fallback plan if critical processes do not work? Run a limited amount of transactions / processes in the live client

16. 16 Go-going Support Large support resources available for the first 2 or 3 weeks Any critical issues resolved daily with reducing frequent of software releases Key Performance Indicators measured and compared with target Release dates agreed with client for missing/delayed functionality ERP “hot packages” implemented periodically Statistical monitoring of call, frequency and response times

17. 17 What went wrong? Structured Analysis In experienced initial Team for Gap analysis Inability to say no to the client despite technically unreasonable demands Difficult and demanding client with line level managers not accepting changes to process to reduce add-ons Inability to resolve issues quickly at all levels Lack of detailed signed off Business Scenarios

18. 18 What went wrong? Realization Phase Two development teams (Japanese and Singapore) Split higher-management with subsequent in-fighting and team changes Inability to resolve issues quickly at all levels Insistence by the client on all legacy reports High level of project administration for example change management process High work load placed on consultants resulted in extreme working hours

19. 19 What went wrong? Integration Test Three Integration tests planned First Integration Test faked and ignored New requirements found from the warehouse service provider Many tasks scheduled in parallel Very detailed evidence required for the auditors High work load placed on consultants resulted in extreme working hours

20. 20 Finally Go-Live Success International Sales went live April 2008 with minimal issues System is very similar to the legacy processes and disadvantages this has Business Users and IT do not want to integrate with or modules or upgrade to avoid risk

21. 21 Useful Links Fuso www.mitsubishi-fuso.com/en/index.html SAP www.sap.com Oracle www.oracle.com/us/products/applications/enterprise-resource-planning/overview/index.html Lawson www.lawson.com// Microsoft www.microsoft.com/dynamics/en/gb/default.aspx Info www.cio.com/topic/3009/Enterprise_Resource_Planning_ERP_ News www.erpfans.com/erpfans/erpnews.htm Consulting www.bearingpoint.com Market www.forbes.com/sites/louiscolumbus/2013/05/12/2013-erp-market-share-update-sap- solidifies-market-leadership/

22. 22 Questions and Answers