1. 1 © The Delos Partnership 2004 Delos Excellence Project Implementation Project Plan

2. 2 © The Delos Partnership 2004 Programme Management and Planning Enterprise Systems programmes are notorious for being late, over budget and failing to meet reasonable business expectations. The secret to a successful programme is to use the same management techniques that we use for engineering/capital projects Contingency planning is a critical element of any well managed project Major programmes like this are infrequent experiences for most organisations

3. 3 © The Delos Partnership 2004 Delos Change Journey MobiliseDesignCommunicateReviewUnderstand Identify quick Benefits Develop Change Vision InternalSell-in ReviewSystems Establish Resources Resources Gain quick Benefits Detailed Process Design Public/PrivateWorkshops DevelopSystems Develop Task Teams Gain early Benefits Document Policies etc InternalEducation CreateSystems EstablishOrganisation SecureBenefits Refine ASSESSContinueEducation RefineSystems GainTeamwork ASSESS Cost/Benefit Develop Bus Strategy InitialEducation AppointSponsor PILOTPILOTPILOT

4. 4 © The Delos Partnership 2004 Project Plan 1.Timescale needs to be realistic and achievable 12 months minimum 24 months maximum 2.Key stages Vision Software understanding Task Team activities Pilots User Education Cutover

5. 5 © The Delos Partnership 2004 Timescales Most successful projects complete within 18 months – 12-15 months is not unusual. Why? –Organisations have a short attention span –Things change – acquisitions, new markets, new products etc. –Scope creep –Cost –Individual and corporate fatigue

6. 6 © The Delos Partnership 2004 Project Plan Project Plan should cover: –Scope –Systems/Technology –Process Development –Culture/People – winning hearts and minds Key phases : –Create the vision of the company –Develop the detailed policies and procedures, roles and responsibilities –Match the software to the requirements –Educate and train the users

7. 7 © The Delos Partnership 2004 Scope Scope drives everything! –The business case – both cost and benefits –The project organisation –The project timescale –The process design –The implementation programme A badly defined scope usually results in a poor project – over budget, over time, under delivery of benefits etc. Also a badly defined scope is a major opportunity for an implementation partner!

8. 8 © The Delos Partnership 2004 Scope What must be covered: Detailed functional scope – by individual process area (and sub-process where necessary) Detailed geographic scope – by region, country, office, plant etc. Detailed organisational scope – by department/function What is excluded must be as clear as what is included. There should be some people who are unhappy with the scope. Be ruthless in defining and maintaining the scope.

9. 9 © The Delos Partnership 2004 Project Plan 1.Formal document 2.Recognises need for resource management 3.Illustrates cost of delay 4.Provides review for recovering delay

10. 10 © The Delos Partnership 2004 Project Plan - details Initial Buy-in/Top Man seminarTop management Team Establish Project TeamTop management Team Cost/Benefit analysis Project Team Develop Company Vision Project Team Project Team PilotProject Team Set up Task TeamsSteering Committee Integrated Enterprise Planning Task Team Sales Forecasting Task Team Master Scheduling Task Team Innovation management Task Team Data Accuracy Task Team Lean and Agile Task Team Procurement Task Team Supplier Relationship Management Financial Management Task Team Performance Measures Task Team Change Management Task Team Task Force PilotTask Team Internal Education for Users Data Migration from Legacy to new Cutover Management User Pilot GO LIVE Education for Top ManagementTop management Team Education for Project Team Project Team Education for Task TeamsTask Teams

11. 11 © The Delos Partnership 2004 Project Plan Key Milestones –Completion of Vision –Completion of Policies and Procedures –Project Team Pilot –Task Team Pilot –User Pilot

12. 12 © The Delos Partnership 2004 Critical Path 1.Pilots only occur after each phase 2.Understanding crucial to each phase 3.Education requires around 80 hours per person 80 hours for each Task Team member 80 hours for each user Software should not be on critical path Data should not be on critical path People can be Software should not be on critical path Data should not be on critical path People can be

13. 13 © The Delos Partnership 2004 Key activities MONTHS Activity0-344-789-1111-1415 EducationProject TeamPilotManagersPilotUsers InternalPilotLive IEPDefine ProcessPilotPilot processPilotAdd all familiesPilotLive InnovationDefine ProcessPilotDefine policiesPilotEstablish organisationPilotLive Demand PlanDefine ProcessPilotDefine PoliciesPilotEstablish organisationPilotLive MPSMTS v ATOPilotDefine PoliciesPilotEstablish organisationPilotLive IRA AccuracyControl GroupInitCycle CountingPilotLive BOM AccuracyFind ErrorsFix ErrorsUploadLive BOM StructureDefineRestructure and set up all Bills of MaterialsLive RoutingsFind errorsFix ErrorsLive Planning DataDefineSet upLive PurchasingDevelop Purchasing ToolsPilotEducate all vendorsLive ManufacturingDevelop Lean ManufacturingPilotEstablish across businessLive FinanceDevelop costing and IEP/Budget LinkPilotDevelop costs, Inv and WIP valuesLive MeasuresDevelop Vision, objectives and measuresPilotEstablish across businessLive SoftwarePT debugPilotCarry out Software modifications and interfacesPilotLive

14. 14 © The Delos Partnership 2004 Master Project Plan #ActivityTargetComplete 1Implementation plan prepared by Project Team and Put to Steering committee for approval 2The Plan indicates who is accountable for each element, and acceptance for responsibility agreed 3Each Functional Task Force Leader has signed off on the plan 4Implementation plan signed off by Steering Committee 5Vision approved 6Completion of Project Team Pilot 7Completion of Managers and Trainers Education 8Accuracy of Control Group Data = 100 % 9Pilot phase of Integrated Enterprise Planning complete

15. 15 © The Delos Partnership 2004 Integrated Enterprise Planning #ActivityTargetComplete 1Responsibility for implementation of Integrated Enterprise Planning assigned to MD or equivalent 2Initial Workshop on Sales and Operations Planning complete 3Product Families, Planning Horizon, and Time Fences agreed 4Performance measurements to be reported have been agreed 5Meeting cycle agreed and timetable for next 12 month published 6Process started with one Family 7All other families implemented in the process 8Financial linkage to Budget completed

16. 16 © The Delos Partnership 2004 Innovation Management #ActivityTargetComplete 1Responsibility for implementation of Innovation Management assigned to an Innovation process owner 2Initial Workshop on Innovation and Programme Management 3Stage Gate and Business Filter process defined. Agreement on sign off authority levels, and prioritisation 4Performance Measures for successful completion of milestones agreed. Earned Value calculation agreed. 5Software for Programme Management tested and signed off 6Cross Functional Programme management organisation established.

17. 17 © The Delos Partnership 2004 Customer Relationship Management #ActivityTargetComplete 1Responsibility for implementation of Customer Relationship Management assigned to an Demand process owner 2Initial Workshop on Sales Forecasting and Demand management and CRM 3Forecast process agreed around Level, Horizon, Units and Buckets, and frequency of update 4Responsibility for Sales Forecasting established with Sales and Marketing 5Policies on Forecast Consumption, abnormal demand, and use of Available to promise defined, and approved by Steering committee 6Software for Sales Forecasting and Demand management and Customer Relationship Management tested and signed off 7Demand Planning and Demand Management organisation set up under Sales and Marketing

18. 18 © The Delos Partnership 2004 Master Production Scheduling #ActivityTargetComplete 1Responsibility for implementation of Supply Management assigned to Supply Process Owner 2Initial Workshop on Sales Forecasting and Demand management and CRM 3Model for Master Scheduling established which specifies how Make To stock, Assemble To order and Engineer to Order will operated 4Software checked for ability to support the Master Scheduling model. 5Policies on Time Fences and Changes to Master Schedule agrees and approved by Steering committee 6Performance measures and target service levels agreed 7Master Scheduling Organisation established which follows Vertical Planning concept.

19. 19 © The Delos Partnership 2004 Data Quality - Inventory #ActivityTargetComplete 1Task Force established with responsibility set up under Warehouse Manager 2Inventory Data Quality objectives agreed, with Target accuracy of 98 % of all items with 0 tolerance 3Process for movement of inventory, and recording of Inventory Transactions completed 4Review of required equipment and technology completed and recommendations accepted 5Control Group cycle counting established, in order to identify errors 6Control Group achieves 100 % 7Policies and Procedures for Inventory process in Stores and Factory agreed and communicated. 8Initialisation of Balances complete 9Systematic Audit established using Process Control cycle counting.

20. 20 © The Delos Partnership 2004 Data Quality – Bills of Material #ActivityTargetComplete 1Task Force established with responsibility set up under Development department 2Bill of Material objectives agreed, with Target accuracy of 100 % of all BOM’s 3Sample of current Bills of Material used to verify current level of accuracy of BOM’s 4Bill of Material Policy Established on Accuracy of BOM’s and agreed 5Correction of Database undertaken for the whole database. 6Procedure for reporting of BOM inaccuracy completed and established. 7Process for prompt correction of Bills of Materials within Development department agreed and established. 8Bill of material Administrator role defined and filled within the Planning Deparment

21. 21 © The Delos Partnership 2004 Data Quality – Structure of Bills of Material #ActivityTargetComplete 1Task Force established with responsibility set up under Planning Function 2Structure of BOM’s agreed with reference to the MPS task force and decision on MTS/ATO/MTO 3Software checked to ensure that configuration ability is supported 4Resource identified for restructuring of Bills of Materials. 5Bill of Material Database populated with restructured Bills of materials. 6Restructured Bills of Materials verified for accuracy as part of Bill of Material Quality audit.

22. 22 © The Delos Partnership 2004 Data Quality – Bills of Material Change Control #ActivityTargetComplete 1Task Force established with responsibility set up under Planning Function 2Current change control procedures and policies reviewed for completeness 3Software review of functionality for Change Control completed, and documented 4New Procedures for BOM Change control identified, and established with policies in place for handling phase in and phase out 5New procedures reviewed and agreed through pilot process 6BOM Change control group established to review impact of proposed design and development changes

23. 23 © The Delos Partnership 2004 Data Quality – Planning Data #ActivityTargetComplete 1Task Force established with responsibility set up under Planning Function 2Exercise on verification of existing data on basic information – set-up, run, Queue and move times 3Basic Order Quantity data established with correct figures for minimum and multiples for manufactured and purchased items 4Scrap and yield factors determined and agreed. Correct Units of Measure established. 5Safety Stock parameters agreed in line with the Master Scheduling policy. 6Manufacturing Lead Times agreed and set up in the Planning system, consistent with Shop Floor control data 7Purchasing Lead Times Established within the system

24. 24 © The Delos Partnership 2004 Manufacturing Task Force #ActivityTargetComplete 1Task Force established with responsibility set up under Manufacturing Director 2Decide on where to use Work to Lists, and where to use Kanban process 3Determine opportunities for re-layout of factory to provide improved flow and ways of working 4Determine Work centre definitions and agree parameters for each work centre for routings 5Establish Demonstrated capacity at each work centre. 6Establish Feedback process for planning, and culture of “No news is good news” 7Establish programme for getting Work-in-Process accuracy

25. 25 © The Delos Partnership 2004 Purchasing Task Force #ActivityTargetComplete 1Task Force established with Purchasing as the Task Force Leader 2Establish Vendor Scheduling reporting process, and use. 3Determine Purchasing Strategy based on current spend map 4Determine measurement criteria for suppliers, and establish SMART goals to be shared with suppliers 5Carry out Education programme with suppliers focussing on the key elements of the Purchasing strategy. 6Set up Qualified Vendor group 7Set up organisation that differentiated between Procurement and schedulers.

26. 26 © The Delos Partnership 2004 Finance Task Force #ActivityTargetComplete 1Task Force established with Finance manager as the Task Force Leader 2Establish Costing process based on BOM’s to reflect Standard or Average actual costs 3Determine how Accounts Payable, Accounts Receivable and General Ledger will work 4Develop process for providing Financial Planning process as linked to the IEP process 5Establish how the Budget will be prepared from the ERP system 6Develop reports from the system that will generate Cash Flow reports and simulations

27. 27 © The Delos Partnership 2004 Performance Measures #ActivityTargetComplete 1Task Force established with Finance manager as the Task Force Leader 2Establish Vision, Goal and Objectives together with Targets for achieving the objectives 3Establish how the system will provide Performance measures, and data for problem solving 4Carry out Benchmarking exercise to establish best in class performance for targets 5Layout Process ownership, and responsibility for cascaded sets of measures 6Review current reward structures, and establish new performance measures contained within Personal Development Plans

28. 28 © The Delos Partnership 2004 System and Software #ActivityTargetComplete 1Suitable Software Packages Identified 2Software selected by reference to the users, Standard system, and the degree of integration required 3Internal programming and modification support identified 4Software tested by Project Team 5Modifications identified for supplier to remedy by start of conference pilot 6Software Training set up and carried out for all functions 7Test of Modifed and debugged software completed and signed off 8Validation of Run Times and Response Times

29. 29 © The Delos Partnership 2004 External Education #ActivityTargetComplete 1Start-up Education 2Project Management/Implementation workshop 3Managers Education while Project Team develop vision 4Specialist Education for Task Force Team Leaders and their Teams 5On going external Education

30. 30 © The Delos Partnership 2004 Internal Education #ActivityTargetComplete 1Project Team Develop their Vision of how company will operate 2Project Team detail their vision of how the company will work to the Steering committee so that they sign off on this vision. 3Project Team Educate Managers and Trainers on Business Excellence/Vision/Software 4Managers/Trainers’ Pilot to validate Training and company ways of working 5Managers and Trainers carry out user training on Business Excellence/Vision/Software 6User Pilot to validate Training and that users will be able to do their job.

31. 31 © The Delos Partnership 2004 Pilotting process #ActivityTargetComplete 1Software tested by Project Team, bugs identified, and all required modifications and interfaces identified. 2Project Team pilot to test Software, Organisation, Policies and procedures to verify new company will work 3Managers/Trainers’ Pilot to validate Training and company ways of working 4User Pilot to validate Training and that users will be able to do their job. 5Cutover Takes place during appropriate shut down period

32. 32 © The Delos Partnership 2004 Cutover process #ActivityTargetComplete 1Signoff that Data is at required Quality levels three months prior to going live. 2Sales and Operations planning is up to speed. 3Master Scheduling policies and organisation established, and planners in place 4All purchased part orders have been reviewed, and past due dates eliminated, and replaced with valid dates 5All manufacturing orders have been reviewed, and past due dates eliminated, and replaced with valid dates 6Software modifications fixed and working 7Balanced plan in new system reviewed and established through ensuring all data in old system, and dates updated on open works and purchased orders.

33. 33 © The Delos Partnership 2004 Project Plan 1.A Live document Constant revision Review resource required to complete 2.Key milestones identified Vision identified Education completed Conference pilots Integrated Enterprise Planning started 3.Where Delays are identified Identify possibilities to recover Review cost of delay from Cost/benefit analysis