R12 Implementation

TCMOAUGDate: 22-Sep-2009Presenter: Chandra Viswanathan

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Agenda

▪ Introduction▪ Project background▪ High level benefits▪ Assessment▪ Implementation

– Team, timeline, modules– Custom components (aka RICEW)– Testing approach– Training

▪ What went well▪ Challenges▪ Lessons learned

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Company Intro

▪ Division of Cummins Inc▪ Design and manufacture power generation

equipments worldwide (http://www.cumminspower.com)– Generator sets– Automatic transfer switches and

switchgear▪ Provider of planned maintenance and 24

hour service▪ 2008 revenue: 3.4 billion▪ Product range from 2 KW to 2.7 MW

gensets▪ 6 manufacturing sites worldwide

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Fridley facility

▪ Built in 1968▪ Largest facility and revenue of 1 billion in 2008▪ Over 1 Million Total Square Feet

– 586,000 Square Feet of Manufacturing Space– 214,000 Square Feet of Office Space– 220,000 Square Feet of Warehouse Space

▪ Interruptible Facility with (5) 1.25mW Gensets

▪ ISO 9001 Certified in 1994▪ ISO 14001 Certified in 2004

▪ 3 Shift operation▪ Most of our operations are on 1 or 2 shifts▪ 13 Different Assembly Lines

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Background

▪ Oracle 10.7 existence since 1998 running all the ERP modules (Inventory, Bills of Material, Costing, Engineering, Work in Process, Purchasing, Order Entry, Accounts Receivable, General Ledger)

▪ Integration with various 3rd party tools (PLM, Warranty etc)

▪ Project initiated in Jan 2008 to implement Oracle 11i (not an upgrade)

▪ Integration with our corporate finance Oracle 11i instance

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High level benefits

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Assessment

▪ 6 week requirements gathering/assessment workshop conducted with our IT partner Infosys

▪ During Assessment exercise, all the business processes segregated in 7 high level process streams– Design to Production, Forecast to Plan, Build to Stock, Procure to Receipt, Order to

Invoice, Inbound and Outbound Logistics (WMS), Record to Receipt▪ 35 requirements gathering workshops conducted comprising detailed

questionnaires to capture current state and future requirements▪ Analyzed and captured 500+ L2 level business As-is requirements spanning

across defined 7 different streams▪ Analyzed 1800 technical components existing in 10.7 system▪ Performed a detailed evaluation of system integrations touch points including

interfacing systems to/from Oracle Applications 10.7▪ Deliverables included

– Completed Questionnaires and As-Is requirements for each of the functional areas– High level To Be process flows– Fit-Gap analysis documents, Top gaps understanding document

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Implementation timeline and team▪ R12 decision made in April to utilize the newer functionality

and stay current▪ Single instance approach for all of the plants

– China was already running in R12 instance▪ Big bang approach rather than phased implementation▪ Project duration: 13 months (April 2008 – May 2009)▪ Team size:

– Cummins Power Generation• Business: 10 FTE• IT: 6 FTE• DBAs: 4 FTE

– Implementation partner• 30+ FTE (Onsite + Offshore)

– 3rd party tools team (PLM, Warranty, OBIEE)• 20 FTE

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Implementation timeline

Go-Live (5/11/09)Cut Over Execution

UAT Configuration, Preparation, Dry Runs

2008 2009Apr JanDecNovOctSepAugJulJunMay Feb Mar Apr JunMay

RICEW Functional design and Prioritization

Training Sessions

UAT

RICEW Development and Unit TestingDevelopment

To Be Process Design & Fit Gap Analysis

Solution Design and Workshops

CRP Execution

Requirements

Design

Support

Cut Over

CRP 1CRP 2

CRP Configurations, Preparation and Dry Runs

Breakout CRP Sessions

SIT 1 ExecutionSIT 1

SIT 1 Configurations, Preparation and Dry Runs

SIT 2 ExecutionSIT 2

SIT 2 Configurations, Preparation and Dry Runs

Training Content Preparation

TRG

UAT Execution

M2 – Solution Design

M3 – Solution Development

M4 – Solution Test

M5 – Limited Production

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Modules

Appworx (concurrent programs) Job schedulerAutomated job scheduling

E-Commerce, Alerts, XML Publisher, Tutor, UPKOthers

Business Area Modules

Financials (Record to Report) Accounts Receivable, General Ledger, Costing, Vertex (E-Business Tax module)

Manufacturing (Design to Production, Build to Stock)

Work in Process, Bills of Material, Engineering, Manufacturing Scheduling, Quality

Distribution (Order to Invoice, Procure to Receipt)

Order Management, Inventory, Purchasing, iSupplier Portal, Release Management

Planning (Forecast to Plan) Supplier Scheduling, Advanced Supply Chain Planning

Inbound/Outbound Logistics Warehouse Management System

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Custom components▪ Extended the work accomplished during the assessment phase (M1) and gathered the detailed

L3 level requirements (1100+) spanning across various defined business process areas ▪ Requirements were abstracted into detailed Fit Gap documents and 154+ To be process flows

with an objective to standardize the business process utilizing PEBT approach▪ All the critical decisions on the business solution design were document through detailed Solution

Option presentations (47+) and signed off by all the key stakeholders▪ Team decommissioned around 1000+ custom objects through

– Prioritization of each requirement (critical versus nice to have)– Changing/enhancing the existing business processes through industry best practices– Leveraging new and standard Oracle R12 features– Presenting business the solution options comparison, and providing optimal package solutions– Strong and Robust change management process to get any new RICEW component approved– Senior Leadership support, effective communication and organization change management

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Testing▪ Leveraged the Progressive Testing Approach – CRP followed by SIT followed by UAT (2

conference room pilots, 2 system integration testing, 1 user acceptance testing)

▪ Defined Entry and Exit Criteria for each testing cycle

▪ Conducted Kick-off workshops with all the stakeholders and users for each testing cycle

▪ Captured business scenarios with175+ detailed Test Scripts, and Test Data Matrix

▪ Detailed CRP/SIT workshops schedule published and blocked users calendar in 3 weeks advance

▪ Established a robust framework for issue capture, prioritization, tracking and resolution procedures

▪ Introduced the Quality Assurance Role for Testing cycle to ensure effective issue closure

▪ Conducted Dry runs for test scripts with core implementation team membersProgressive Testing Approach Test Script Development Approach

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Training▪ Comprehensive Training Strategy document capturing the training,

business & change management needs, audience analysis and detailed execution approach

▪ Documented 300+ business procedures in Oracle Tutor

▪ Developed 47 simulations in Oracle UPK

▪ Developed detailed Training Plan and Schedule for Super User Training

▪ Integrated Training Contents (Tutor & UPK both) with Oracle Help Link to create single point of help

▪ Training content has been aligned to Job Functions and Roles, and also made flexible to serve as Work Instruction Procedures

▪ Procedures were accessible by job title or by business process through Help link

20FTP

25Query

304 Total

13RTR

74PTR

Track Total Topics

BTS 41

DTP 18

OTI 63

WMS 70

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What went well▪ On-time Implementation go-live within defined budget and resources▪ First successful Oracle Release 12 implementation program within Cummins▪ First successful Oracle WMS module implementation within Cummins▪ Highly complex data migration and cut-over successfully executed with over 99.5% data accuracy,

and within planned weekend time window▪ Utilized Oracle Tutor and UPK tool extensively to deliver state of the art Training content to map to

existing Work Instructions and Role based delivery method▪ Delivered extensive documentation, Roles and Responsibilities matrix and SOD tool to comply with

SOX requirements▪ Effective system change management process helped to reduce overall customizations in system▪ Effective communication channels were used for managing the Organization Change Management▪ Response to issues during cut-over window was quick resulting in timely resolutions▪ Post go-live issues showed continuous downward trend▪ The Fridley R12 Oracle was available to end users (~1100) ▪ The peak load of concurrency (~600 concurrent users) was handled with acceptable performance

benchmarks▪ No unplanned system outage, No major infrastructure related issues, No line shutdowns

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Implementation challenges▪ Dependencies with other parallel programs like SOLAR, Demand Layer, PLM affected

the solution design and testing phases▪ Lack of documentation of existing processes and custom components in Oracle 10.7

▪ Significant number of RICEW components (around 1800) in Oracle 10.7

▪ Aging systems with users being accustomed to existing customizations made it difficult to retire customizations, difficult change management

▪ Business users missing the process details, such as touch points, integration with multiple system, information flow etc. due to lack of dedicated business process owners

▪ Multiple regression testing and coordination required due to already live instance (already live in China)

▪ New technologies like Zebra, XMLP, OAF etc. and Oracle Release 12 issues delayed development cycle. Over 100 Oracle Service requests raised

▪ Load runner issues

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Lessons learned▪ Need to identify single Business Process Owner for each core process area.

Multiple Super users in each area delayed decision making during solution design phase, and difficult sign-off process– As the implementation date approaches Managers want to get involved, new

requirements are identified and past decisions with their team are questioned. – Continually find new processes, not sure how to get all processes identified up front

▪ Needed to do a better job preparing Managers on the expected issues that will result from this size of an implementation

▪ Performance testing should have been started earlier in the program (Load runner issues)

▪ Data cleansing should have started earlier and a person assigned from the business to ensure it gets completed

▪ Need to establish robust and consistent change management processes. Too many change requests towards the end of the project

▪ Cut-over plan much more complex then anticipated due to too many integration points

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Lessons learned (ASCP)▪ Should have established clear expectations with the business

regarding definition of internal processes and ownership (exception messages, capacity adjustments, etc. )

▪ Exception messages must be addressed daily and requires a lot of coordination between MS and MP

▪ ASCP and constrained planning is new to the business. Should have spent more time in testing and training the users

▪ Due to the complexity of the module it requires some time for analysis and resolution of the reported issues which does not meet business expectation (Test to production cycle is min 3 days)

▪ ASCP is best implemented in parallel with current system and incremental approach

▪ Should have trained and setup higher expectations for the super users to support go live

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