LARGE SYSTEMS IMPLETATION PROCESS

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LARGE SYSTEMS IMPLETATION PROCESS

• Overview
• Review process diagram homework practice

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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

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Change is a Process
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The Processes
For Individual Change Management
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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

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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

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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
• Ability to implement new skills and behaviors
• Technical Integrations
• Within the organization
• Downstream
• Upstream

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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

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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.

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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

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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

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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.

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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

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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?

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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 well
  get if we do it the right way and get to Class A?

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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.

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