Winning Strategies for a Successful ERP Implementation

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[ [ Winning Strategies for a

Successful Implementation

Presented by:

Jonathan Gross

Vice President and Legal Counsel

(866) 282-5899 ext 802

[email protected]

mailto:[email protected]



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[ [ What if I told you…

In the next couple of weeks…

your most valuable [insert function] manager…

will be leaving your company.



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[ [ What would you do?

• How long would it take you to:

– Find a replacement?

– Onboard that replacement?

• How much pain would you suffer?

– Financial?

– Business disruption?

– Employee strain?



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[ [ Now, what if I told you…

In the next couple of weeks…

You will lose your most valuable manager…

of each and every department!



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[ [

Represent a leanly staffed company?

Are planning to complete ERP selection in 2014?

Have turned your minds to ERP implementation?

Have started implementation-related tasks?

Ready for Implementation?

How many of you:



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[ [ Introduction – Pemeco Consulting

• Founded in 1978

• Independent consulting and advisory firm

• 500+ projects

• Implementation management guide sells in 40 countries

• Manufacturing and distribution client base



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[ [ Your ERP project’s org structure

Defining what you need in an internal PM

Defining core team member involvement

Sample process reengineering task

Implementation readiness: backfilling

Implementation planning (time permitting)

Agenda



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[ PROJECT ORG STRUCTURE



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[ [ Project Structure



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[ [ Steering Committee

• Executive leadership

• Project sponsorship

• Strategic decisions

– Budgets, resources,

schedules

• Empowerment of PM

• 4 – 6 hours/week

Select End-Users

Core Team

Project Management

Steering Committee



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[ [ Sample Decision



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[

[ PROJECT MANAGEMENT



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[ [ Project Management

• The different flavors

– Internal

– Contracted internal

– Vendor-supplied

Select End-

Users

Core Team

Project Management

Steering Committee



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[ [ CASE STUDY:

MARIN COUNTY V. DELOITTE, ET AL.

Key Facts • Paid $30 million for software and services

• Marin relied on project delivery expertise of

service provider

• Marin sued the vendor and services provider: – For alleged project staffing with inexperienced consultants;

– For alleged system inability to reconcile cash accounts, process payroll

• In two separate lawsuits, Marin sued for a combined $120 million (US)

• Marin settled for $3.5 million



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[ [ CASE STUDY:

MARIN COUNTY V. DELOITTE, ET AL.

…One More Key Fact

• The Services Agreement stated as follows:

• “Vendor shall initially assign each of the

individuals identified in Schedule 3.1.1 (omitted).

Each individual shall be subject to the County’s interview and

approval” [Emphasis added]

• “The County’s Project Director shall at all times… (b) have overall

responsibility for directing… the Project as a whole; and (C) be vested

with the necessary authority to fulfill all of the responsibilities of the

County’s Project Director…” [Emphasis added]

Reference: Gross, Jonathan. SAP, Deloitte, and Marin County ERP Lawsuits - A Parsing of ERP Implementation Project Management Duties, Inside-ERP, March 8, 2013.

http://www.inside-erp.com/articles/inside-erp-blog/sap-deloitte-and-marin-county-erp-lawsuits-a-parsing-of-erp-implementation-project-management-duties-55283









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[ [ Sample Contract Language

• “[Customer] is solely responsible for the proper installation and

implementation of the Software.”

• “[Customer] will provide a project manager”

• “[Customer] will be responsible for project team validation and

acceptance testing”

• “[Customer] is responsible for managing the implementation… “

• “[Customer] is expected to allocate the resources as necessary to

accomplish tasks and stay on schedule.”

In other words, integrator PM is not accountable. Your company is.



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[ [ Responsibilities of Your Internal PM

PM

Teams

Internal

Steering Committee

Core Team

End Users External

Tasks

Planning

Process Reengineering

Data migration

System testing

Infrastructure, customizations

Cutover

Bu

dg

ets

Sc

he

du

les

Risk

s

Co

mm

un

ica

tion

s



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[ [ Four Pillars of an Internal PM

• Complex projects

People

Processes

Technology

• Ownership

• Buck stops here

• Hands-on project

execution

• Empowered by

Steering to apply:

Resources

Budgets

EXPERIENCED

ACCOUNTABLE

RESPONSIBLE

AUTHORIZED



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[ [ Internal PM Alternatives

• Pro: initial cost effectiveness

• Con: risking worst-case scenario Don’t hire an internal PM

• Pro: Full time expertise

• Con: Expensive, expertise leaves at end of contract

Contract experienced ERP PM

• Pro: Cost midpoint, retain knowledge

• Con: Expert is in-and-out

Designate “up-and-comer” & support

with expert PM



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[ [ Your Internal PM’s Profile

Characteristics

• Expertise – what’s unique about your project?

• Team player, influence both up and down

• Excellent communicator, organization skills

Roles

• Planner, task manager

• Facilitator, communicator

• Risk manager

Responsibilities

• Develop and execute project plan

• Make tough recommendations, “go/no-go”



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[

[ CORE TEAM



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[ [ Profile

• “A” players from each department

• Functional process

experts

• Cross-functional

knowledge

• Team players

Select End-Users

Core Team

Project Management

Steering Committee



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[ [ Roles and Responsibilities

• Business process reengineering

• Testing

• User documentation

• User training



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[ [ Sample – Reengineering Task

• 50% – 75% committed to project

• Receiving blueprint whitepaper

E:/SampleReceiving.pdf



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[ [ Staffing Alternatives

1. Work longer hours

2. Hire

3. Cross-Train

Start planning now!



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[

[ WRAP-UP



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[ [

Project’s org structure

Steering committee responsibilities

Internal project manager requirements

Core team requirements

Backfilling planning best-practices

WRAP-UP

What we learned:

Q&A



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[ APPENDIX – PROJECT PLANNING



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[ [ Sample Implementation Plan -

Overview



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[ [ Sample Implementation Plan –

Planning Phase



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[ [ Sample Implementation Plan – Core

Team Training Phase



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[ [ Sample Training Plan

33

Create a New

Purchased Item

ZP-100000-XXX

(XXX) Your Initials

Use Script E001.1

Create a New

Manufactured E-Item

ZM-100000-XXX

(XXX) Your Initials

Use Script E001

Create a New

Revision for the

Manufactured E-Item

ZM-100000-XXX

REV001

Use script E001

Create a New BOM for the Manufactured E-Item

ZM-100000-XXX REV001

Add Item ZP-100000-XXX created earlier

Add item RSC-50-6AC120

Copy Bom ZM-100000-01

Add text to ZM-100000-00 “this is text”

Use script E001

Approve BOM

Revision for the

Manufactured E-Item

ZM-100000-XXX

REV001

Use script E001

Copy the

Manufactured E-item

To an Item

ZM-100000-XXX

REV001

Use script E001

Generate the P-BOM

Manufactured E-Item

and Finalize

ZM-100000-XXX

REV001

Use script E001

Set Phantom/Non-

Phantom for P-BOM

ZM-100000-XXX

REV001

Use script E001

Make Unreleased

REV002

Of ZM-100000-XXX

Copy Rev1

Change the Qty. of

RSC-50-6AC120 to 2

Do not approve

release or finalize

Use script E006

Check Inventory

RSC-50-6AC120

Check stock for

RSC-50-6AC120

Use script E008

Use MBC to Preform a

General Change

Replace RSC-50-6AC120

With RC-50A-56AC120

Only change your

ZM-100000-XXX

Use script E003.2

Make Revision

REV002 Current

using MBC

(Mass Bom Change)

ZM-100000-XXX

REV002

Use script E003.1

Review E007 Create

Item for Sales

Bookings

Very similar to E001

Review E009 Get

Serial Number from

Work Order



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[ [ Sample Training, Cont -

• 3. Select item ZM-100000-XXX.

• 7. Under description enter For MBC Example.

• 9. Leave the item signal blank.

• 10. Under Engineer select your name from the dropdown.

• 11. Set the BOM Quantity to 1, Unit Set to STD, and Unit to EA

• 13. Leave blank (should fill to engineering standards)

• 14. Save and closed (when asked if you want to copy BOM say YES)

• Skip steps 17-32. change the quantity of RSC-50-6AC120 to 2

• 33. Save and close

34



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[ [ Process Reengineering and System

Testing Tasks

• Core team members own and execute the tasks, with guidance from consultants

• Key phases and tasks implicating core team include: – Process reengineering and walkthroughs (1 to 2

mnths)

– Conference room pilot tests (1 to 2 mnths)

– Departmental pilot tests (1 to 2 mnths)

– Integrated pilot tests (2 to 3 weeks)

– Inventory physical (week/weekend)

– Cutover (weekend)



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[ [ Business Process Reengineering and

Conference Room Pilot Testing

Phase



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Departmental Pilot Testing Phase



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Business Process Reengineering and

Conference Room Pilot Testing

Phase

Winning Strategies for a Successful ERP Implementation

Business

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