College Implementation

1. Dit college zalgaan over praktijkvoorbeelden van het implementeren van eeninformatiesysteem. Ikzaljulliewatachtergrondengeven en daarnaastbelangrijkeaspectenvermelden die iktegenkomalsprojectmanager. Een van de belangrijksteaspecten is hoe gaikom met mijngebruikerswatjullie nu ookzelfhebbenkunnenervaren, doordatdezetekstvan bovennaarbenedenstaat. Erik van Daalen, May 12th 2009

2. College Implementation Erik van Daalen, 12 May 2009

3. Introduction • Erik van Daalen • Programme and Project Manager • 21 years working experience, 11 years for Capgemini • Main focus areas: • Package selection & implementation • Engagement manager • Trainer Rapid • How to manage large programmes (PMI’s) • Manufacturing Execution Systems • Industries: • SCM, High Tech, Manufacturing, Transport, Financial Sector Erik van Daalen, May 12th 2009

4. Agenda • Back ground information • Example single site implementation • Example multi site implementation Erik van Daalen, May 12th 2009

5. Background information

6. CSF’s within ERP implementations Strategic CSF Tactical CSF Balanced team Project team: the best and brightest Communication plan Empowered decision makers Team morale and motivation Project cost planning and management BPR and software configuration Legacy system consideration IT infrastructure Client consultation Selection of ERP Consultant selection and relationship Training and job redesign Troubleshooting/crises management Data conversion and integrity System testing Post-implementationevaluation • Top management commitment and support • Visioning and planning • Build a business case • Project champion • Implementation strategy and timeframe • Vanilla ERP • Project management • Change management • Managing cultural change Finney, S. and Corbett, M. (2007), “ERP implementation: a compilation and analysis of critical success factors”, Business Process Management, Vol. 13 no. 3 pp329-347 Erik van Daalen, May 12th 2009

7. Key Concepts behind implemenations Innovation versus 1:1 Process thinking Integrated Approach Change Management Improvement Agenda Value proposition Speed Erik van Daalen, May 12th 2009

8. Innovation versus 1:1 Measure of reengineering / business value Difference 1 on 1 reengineering obv package innovation Make maximal use of package for realization vision of future (business driven, limited by technology) Realization vision without limitation (business driven, real innovation, changes thinking and action of people) Start from the current situation, only change when required (technology driven) Implementation speed What stays BPR Quality Management, Risk Management, Project Management, Human Factors, etc. Erik van Daalen, May 12th 2009

9. Integrated approach Vision Knowledge Consists of Make Processes Company use Technology of Method People Tools Architecture To integrate Environment Erik van Daalen, May 12th 2009

10. Change Management(The Supportcurve) This is good for myself and for the customers and company. Commitment- phase: Behaviour Institutionalise Lets make it a success Adoption Is this right, this change? Acceptation Acceptation- phase: Attitude I understand what the impact is for me. Level of support from the employee Test Awareness- phase: Knowledge I understand what is going to change. Understand the change I hear that something is going to change Awareness Contact Time Conner en Patterson (1982) Erik van Daalen, May 12th 2009

11. Improvement Portfolio Processes Technology People Speed of Change • Improvement; • Identify Improvements • Estimate benefits versus costs • Score improvements in matrix • Identify which improvements to take in account • Determine impact on People, Process and Technology Fast Slow Profits High Low Erik van Daalen, May 12th 2009

12. Task driven Implementation SLOW TASKS DELIVERABLES Erik van Daalen, May 12th 2009

13. Milestone driven Implementation FASTER DELIVERABLES TASKS Erik van Daalen, May 12th 2009

14. Value Added Implementation Deliverables Faster/Value Tasks value proposition Adding Value Erik van Daalen, May 12th 2009

15. Value Proposition (example) Focus on added value Level of added value LOGISTICS FINANCE SALES/ CUSTOMER SERVICE MAINTENANCE PRODUCTION Erik van Daalen, May 12th 2009

16. Know the main drivers? Know what the main drivers are in your implementation? Erik van Daalen, May 12th 2009

17. Multi versus Single Site implementation • Single site: • Implementation within one Organisation entity; • Change Management (people), one culture; • Team located on one location; • Faster implementation; • Functional changes can be incorporated faster. Erik van Daalen, May 12th 2009

18. Multi versus Single Site implementation • Multi sites: • More then one location or Organisation entity; • Change Management: more organisation or/and country cultures involved; • Need to develop a core, choose one of the core developments: • Develop on central location with representatives of all sites; • Take one plant/location as development location (pilot). • Which implementation strategy will you choose: • Location: • All sites at once (Parallel); • Site for Site (serial); • Hybrid, a few together. Erik van Daalen, May 12th 2009

19. How will you go live? • Big bang: • The complete solution at once; • Con: The risk is the size of the implementation • Pro: facing out the old system; • Pro: no extra interfaces. • Module for module • One or a combination of two/three will be implementated • Con: Throughput time; • Con: complexity in connecting the new system to the old systems; • Pro: a more controlled go live. Erik van Daalen, May 12th 2009

20. The role of the Project Manager • Project management has to do with human factors • People, process en technology influence the success • Project tracking & tracing is important • Project management is not a science, it is based on experience • There are different • methods to plan and manage • ways to organize projects • ways to guard the quality of projects These are topics treated in SDM1 Erik van Daalen, May 12th 2009

21. MOL Logistics

22. Logistics Service Provider: • Airfreight (import/export) • Transport (trucks) • Distribution • See freight • Warehouse • 325 employees (at the go live) • Four locations: Schiphol, Eindhoven, Rotterdam and Tilburg Erik van Daalen, May 12th 2009

23. Implementatie DCS TRANSPORT AND LOGISTICS SOLUTIONS • Independent implementator • Project management • Project Approach • Customer • Software supplier The implementation was a success thanks to Colaboration Erik van Daalen, May 12th 2009

24. Relation between people and effort • Putnam-Nordon-Rayleigh (PNR) curve • putting more people on a project does not decrease time linearly • people need time for communication • 4 zones in the curve for a certain defined project: • 1) it can not be completed within a certain time 2) overstaffed: completed fast, but inefficient 3) linear range: efficient staffing, man-power trade-off with time is good possible 4) understaffed: becomes also inefficient Erik van Daalen, May 12th 2009

25. Project organisation Customs: Super: Sea freight: Super: Airfreight Export: Super: Airfreight Import: Super: Warehouse: Super: Finance: Super: Distribution: Super: DCS Steering committee: MOL, DCS, CGEY Directeur Management Sponsors: COO, Managers Projectmanager Projectmanager Consultants: Tarieven/contracten System support: Co-ordinators: Erik van Daalen, May 12th 2009

26. Planning Month January February March April Week 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 STC date Communicated Go Live date Test Training of super users Functional impl. of LIMS Defining missing software Writing missing software Writing missing reports Define internal processes Creating manuals Go Live date 1 april 2001 Training of end users Testing period Defining management infor. Training end users on pc’s. Erik van Daalen, May 12th 2009

27. Rapid Implementation Support (RIS) Stap 3 Develop processes Stap 5 Optimalise organisation Stap 1 Project Startup Stap 2 Configure LIMS Stap 4 Implement systeem • Defined scope • Organisation • Planning • Budget • Acceptation criteria • Defined interfaces • Train Key Users • Develop scenarios • Configure parameters • Enter Static Data • Define Conversion Plan • Execute RIS-sessions • Describe procedures • Define Improvement agenda • Finalise procedures • Train End-users • Implement IT-environment • Conversion • Accept system • Go Live • Detail out improvement agenda • Input for RIS sessies; • People, proces, mens and technologie; • With RIS sessions. • Implement improvement agenda • iteratie Erik van Daalen, May 12th 2009

28. RIS sessie • Colleborative design and decision taking • Closed number of days • No disturbances • Focus on LIMS • Develop one common language • Iterative developemt of processes • Make use of growing insights Erik van Daalen, May 12th 2009

29. Demostrations • Key user shows package • Why? • Determine progress • Define what is missing • Outcome used for go/ no go decision • Probably adding builds/bolt ons Erik van Daalen, May 12th 2009

30. Success factors for this project • Sense of Urgency • Need for structured approach • Only focus on software package LIMS • Good cooperation between three involved parties • Good use of resources • High level of commitment from key-users • Strong/Tight management • Method Erik van Daalen, May 12th 2009

31. NXP Semiconductors founded by Philips

32. Positioning of ERP-domain ERP Planning ERP-domain Strategy Planning MES Procurement Sales Execution MES-domain Maintenance Management Data Collection And acquisition Quality Management SCADA Control SCADA PLC PMA-domain PLC PLC PLC PLC Raw Material Products Erik van Daalen, May 12th 2009

33. NXP SemiconductorsA leading Connected Consumer company • Revenues of around 6.32 B € in 2007 • Focus on semiconductor solutions for Connected Consumer applications • 3700 employees • More than 7500 engineers. 25,000+ patents. 26 R&D centers located in 12 countries • Global organization, sales force delivering to 60 countries,and 20 manufacturing sites Erik van Daalen, May 12th 2009

34. What is a Wafer • A wafer is a slice of “sand” (Si) • Could have different Diameters e.g. 4”, 5”, 6”, 8” within NXP • Maximum size at this moment: 12”, 18” • Wafers are produced in the NXP fabs: Fishkill, Hamburg, Jilin and Nijmegen Erik van Daalen, May 12th 2009

35. What is a Die • A Die is one Integrated Circuit on a wafer. • Number of Die’s on a wafer depends on the product. Erik van Daalen, May 12th 2009

36. The Project • Standardised integrated ERP system for the NXP Semiconductors manufacturing environment. • Single legacy system. • Reducing the cost of future development, maintenance and support. • Common set of interfaces were needed to enable each site to communicate more effectively with the rest of the NXP global network. • Flexible enough to allow implementation of selected modules in individual sites. • The deployment also needed to be delivered on time, every time, to accommodate a tight timeframe for global roll-out. Globalization of business processes, standardization of data and one integrated information system using the best practices must deliver the platform for a lot of benefits and savings Erik van Daalen, May 12th 2009

37. The Project • First phase started in February 2001, Release I Kernel by Capgemini and NXP Semiconductors. • Modules for Financial & Accounting, Controlling, Asset Management and Materials Management. • Release I rolled out at every Site, except same MDS site • Release II-lite Fishkill, Boeblingen, Hazelgrove, Grandkorn and Zurich • Biggest Site live on Release II are Hamburg and Nijmegen. Erik van Daalen, May 12th 2009

38. Locaties (2004) NXP Semiconductors Heerlen Böblingen LCOS Hamburg Vienna Gratkorn Headquarters Zurich Nijmegen Fishkill Southampton Milton Keynes Kobe Suzhou Hazel Grove Caen Beijing Crolles Shenzhen Le Mans Shanghai Sunnyvale Böblingen San Jose Guangdong Kaohsiung Tempe Hong Kong Cabuyao Calamba Bangkok Seremban Erik van Daalen, May 12th 2009

39. Programmeorganisationinstead of a project organisation Supply Management TL TL TL TL TL TL Demand Support Application Control Kernel Development Implementations Erik van Daalen, May 12th 2009

40. Fasering project Application control Kernel Development Implemetation Management Feasibility Study Business Blueprint Kernel Development Implementation Erik van Daalen, May 12th 2009

41. Project Methodology - Roll Outs Set-up and Scoping Blueprint finalization Core system realization Core system construction Implemen-tation • Scope • Level 1 and 2 process design • Architecture and systems landscape • Detailed plan next phase • Detailed enterprise model / business blueprint • Data conversion plan • Interface high level functional design • Script list • SAP configuration • Data conversion designs • Interface & enhancements functional and technical specs • Organisation model role and job • Interface & enhancement programs • Data conversion programs • User documentation and training material • Integration testing (IT) • User acceptance testing (UAT) • Data conversion • User training • Start-up and go-live • Initial post go-live support • Go live local support group Erik van Daalen, May 12th 2009

42. Project Methodology - Roll Outs Set-up and Scoping Blueprint finalization Core system realization Core system construction Implemen-tation Kick Off Deliverable and timeboxed driven, not value added Erik van Daalen, May 12th 2009

43. What are the main drivers? The driver by NXP where Change Management, Data migration and interfaces ? Erik van Daalen, May 12th 2009

44. Package implementation – A few remarks • Implementing an information system is custom-made • A good preparation is essential • Methods and Tools are not enough • Implementing an information system is also changing organizations • Management participate active in project • Project leader is director, not project owner! Erik van Daalen, May 12th 2009

45. Vragen…. Erik van Daalen, May 12th 2009

46. The success of an implementation is determined by the people