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Implementation Aspects of SCM. 25/01/02 Shyam Bhaskar [email protected] SCM Project Impact. SCM implementation is one of the most difficult projects a company undertakes. If it is implemented right, it will have a huge savings. If not, it can even break a company.

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Implementation aspects of scm l.jpg

Implementation Aspects of SCM

25/01/02

Shyam Bhaskar

[email protected]

Implementation Aspects of SCM - Shyam Bhaskar


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SCM Project Impact

  • SCM implementation is one of the most difficult projects a company undertakes.

  • If it is implemented right, it will have a huge savings.

  • If not, it can even break a company.

    Quotes from Lee Pender, CIO, July 15, 2001

Implementation Aspects of SCM - Shyam Bhaskar


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Successful Implementation - Factor T

A story is told in Cambridge,Massachusetts:

“A young man, obviously a college student, is unloading his purchases at a super market checkout counter. A large sign above the counter indicates that it is for customers with 8 items or less, but the young man has at least twenty. The clerk tells him, ‘You either go to MIT and you can’t read, or you go to Harvard and you can’t count.’”

Jeremy F.Shapiro, Modeling the Supply Chain

Implementation Aspects of SCM - Shyam Bhaskar


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Factor T of Implementation

  • A successful implementation of an SCM project needs both

    Breadth of knowledge (Managerial)

    and Depth of knowledge (Technical)

‘T’ in Technical and Managerial education was proposed by U.Wemmerlov, Professor, School of Business, UW, Madison

Implementation Aspects of SCM - Shyam Bhaskar


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Skill Set for Success

  • Technical Know-How

  • Domain Knowledge

  • Change Management

  • Project Planning and Execution

  • Handling Execution Blues

Implementation Aspects of SCM - Shyam Bhaskar


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Technical Know-How

Analytical Front

  • SCM modules

  • Multi-echelon systems

  • Large-scale optimization

    Development Front

  • Design of software

    • Data Management, Scalable design, Speed, Quality of solution

  • User Interfaces

  • Integration w/ other modules and external systems

    • Standards like RosettaNet

Implementation Aspects of SCM - Shyam Bhaskar


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Domain Expertise

  • Understand peculiar problems specific to an industry

    • No standard BOM in Automotive OEMs

    • VMI in Retailing

    • Kits in Tech sector

  • Customer is the king vs. customer doesn’t know a thing

    • Some would want to be the first movers. Others follow the “eaten apple” strategy

    • Benchmark studies

    • Competitor info

Implementation Aspects of SCM - Shyam Bhaskar


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Change Management Unfreeze – Change - Refreeze

  • Strong motivation for change – Create a sense of urgency

    • Opportunity assessment

      • Goals, Gap analysis, Pareto analysis, zero-in on the road-map of execution

    • Value analysis

      • Quantify benefits using measurable metrics like ROI, Inventory reduction and Lead time reduction*

  • Early Buy-in

    • Demonstrate the impact

    • Influence of culture: Strategic thinking of the West vs Execution as the strategy in the East

      *Sadagopan,S. Enterprise Applications Forecast.

Implementation Aspects of SCM - Shyam Bhaskar


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Change Management

  • Successful change management

    • Political sponsorship - Top management involvement

    • Conflict resolution – Top-Down vs Bottom-Up approaches

    • Expectation management

      • Some customers expect a radical re-engineered process and at the same time expect status-quo!!

    • Resistance to change

      • Employee reluctance

      • Job security

      • Time management – Regular job tasks + tasks for SCM project

Implementation Aspects of SCM - Shyam Bhaskar


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Project Planning and Execution

  • Big Bang vs Incremental Blitzkrieg Implementations

    Big Bang

    • Comprehensive, large scale (all modules) solution

    • All requirements delivered

    • All implementation problems identified, corrected and the end user gets a complete solution.

    • Long lead time before actual use

      Incremental Blitzkrieg

    • Focused, mini-scale, result-oriented ‘go-lives’

    • Requirements added incrementally in each delivery

    • User goesinto action quickly

    • Transition problems more severe in the initial deliveries

Implementation Aspects of SCM - Shyam Bhaskar


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Project Planning andExecution

  • Rapid Implementations

    • Where to start

      • Splash effect, data availability, ease of implementation, urgency of needs, solution availability, etc., are some ways to prioritize

    • How to reduce the time to implement

      • Prefabricate

        • Tailor-made industry specific solutions

        • Examples : i2’s industry templates, mysap.com

Implementation Aspects of SCM - Shyam Bhaskar


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Project Planning andExecution

  • Rapid Implementations

    • How not to digress

      • Solution planning as the first step in implementation

      • Sign-off on the project scope

      • Identify few key performance metrics to evaluate the project needs

      • Don’t deviate from software’s pre-established blueprints (fit organization to the software)

    • How to manage data

      • View data as a critical resource*

      • Provide specificities of data needs as much as possible to the users

        *Levitin, A.V. and T.C.Redman, Sloan Management Review, Fall, 1998.

Implementation Aspects of SCM - Shyam Bhaskar


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Execution Blues

Typical pain points – From the eyes of the user

  • Solution does not work as expected

  • Performance (speed) is not satisfactory

  • Too much of work on data management

  • Too much of work outside the software solution (pre-process, post-process, UIs)

  • Too little gotten for too much of money

  • Over budget and time limits

  • Show me the value

Implementation Aspects of SCM - Shyam Bhaskar


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Execution Blues, cont’d

Typical pain points – From the eyes of the solution provider

  • Requirements keep changing

  • Turnover of project members

  • Composition of the team – Not enough, not right

  • Not enough support from the top management – no change champions

  • Issues in data access, quantity and quality

  • Nit-picking by the users

  • Restlessness of the users

  • Resistance to change

Implementation Aspects of SCM - Shyam Bhaskar


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Handling theExecution Blues

  • SCM projects are Socio-Technical Systems

  • Successful implementations have various dimensions

    • Art and Science

    • Qualitative and Quantitative

    • Technical and Managerial

    • Effective communication and Networking

Implementation Aspects of SCM - Shyam Bhaskar


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What to Add to the Curriculum

  • Technical Knowledge

    • Technical emphasis - Problems in OR, Software project development and Bottom-line analysis

  • Domain Knowledge

    • Research, Benchmark studies, Guest lectures, Industry visits

  • Change Management

    • Case studies, Socio-Technical System studies

  • Project Planning and Execution

    • Managerial topics – esp Project Management, Case studies

  • Handling Execution Blues

    • All of the above + Working in teams, Presentation, Class Participation and Report Writing

Implementation Aspects of SCM - Shyam Bhaskar


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Discussion Points

Challenges

  • Will SCM be offered as a single course or as a set of courses?

    • If one course - Do we have enough time to cover all the topics?

    • If multiple courses – Do we have enough material to justify a full set of courses?

  • Do we have material available – eg., on domain knowledge, heuristics?

  • Can students (mostly with no industry background) appreciate the issues?

Implementation Aspects of SCM - Shyam Bhaskar


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