LARGE SYSTEMS IMPLETATION PROCESS  Overview Review process diagram homework practice

LARGE SYSTEMS IMPLETATION PROCESS  Reduction Divide the project into phases Activities in subsequent phase are dependent on the completion of prior phase Simultaneous tasks within each phase

Change is a Process Organizational Stages Individual Stages (ADKAR) Business Need Concept and Design Implementation Post-Implementation Awareness Desire Knowledge Ability Reinforcement

The Processes Stage Description Awareness of need for change -- reasons, and degree of comprehension Desire to participate and support -- motivating factors and consequences and level Knowledge about how to change -- skills and insights Ability to implement new skills and behaviors -- evaluate level and determine shortcomings Reinforcement to keep the change in place -- incentives and constraints to make it stick For Individual Change Management

LARGE SYSTEMS IMPLETATION PROCESS  Phase I: Estimated time duration 9-12 months Build the awareness Emphasis clearly the need to change Motivated people and get them interested in the idea of large system implementation from effectiveness and efficiency point of view

LARGE SYSTEMS IMPLETATION PROCESS  Phase I - Includes: Sales & Operations Planning, Demand management, Rough-Cut Capacity Planning, Master scheduling, Material Requirements Planning, Plant scheduling where practical, and Necessary applications for finance and accounting. Inventory accuracy, Bill of material accuracy and structure, Plus activating the feedback loops from the plant floor and purchasing

LARGE SYSTEMS IMPLETATION PROCESS  Phase II  Estimated time duration: 3 – 6 months  Emphases the desire, knowledge and ability to change to participate and support Knowledge about how to change include skills required Abilityto implement new skills and behaviors  Technical Integrations Within the organization Downstream Upstream

LARGE SYSTEMS IMPLETATION PROCESS  Phase III  Estimated time duration: several months to one year Least defined phase Free form Planned and unplanned problems  Extension to Support Corporate Strategy  Reinforcement to keep the change in place -- incentives and constraints to make it stick

LARGE SYSTEMS IMPLETATION PROCESS  Phase III  Enhancements activities Simulation capabilities, Advanced planning systems (APS), Manufacturing execution systems (MES), Enhanced customer order entry processes, Development of a supplier rating system, and so forth.

Large Systems Implementation Challenges  Its not Priority #1  Leave change management to consultants  Underestimate the amount of work due to lack of experience  People-intensive  Requires senior management leadership and participation

Large Systems Implementation Challenges  Involves the entire enterprise  New thinking and new processes  New tools and retooling  Too intensive for too long  Unplanned problems and changes  Schedule Slippage Work, Time, Resources

The ERP Market Support  ERP supports about 70-95% of a large organizational need  The remaining 5-30% Interfacing the ERP application with existing legacy systems using middleware, which adds to the complexity Interfacing ERP to third-party solutions. Writing custom software to extend functionality. Modifying the ERP source code directly.

Large Systems Implementation  Time Related Issues Total project time can range from one year to 3+ years  Why such a long time span? Organizational size Organization complexity Resources allocation Scope of implementation especially phase

Large Systems Implementation  Critical Time Related Issues Implement basic ERP in phase I If done well you can carry some of the lessons learned to same time in phase II Avoid scope creed.  If it is not basic move it to phase II Identify time zero?

Large Systems Implementation  Getting Ready  First Cut Education What is ERP? Is it for us? Does it make sense for our business? What will it cost? What will it save? What are the benefits we’ll get if we do it the right way and get to Class A?

Large Systems Implementation  Mission Statement The executives’ and managers’ knowledge of: The company and its problems. (Where are we today?) Its strategic direction. (Where are we going?) Its operating environment. (What does the marketplace require?) Its competition. (What level of performance would gain us a competitive advantage in that marketplace?)  What was learned in first-cut education.