1 © The Delos Partnership 2004
Delos Excellence Project Delos Excellence Project ImplementationImplementation
Project PlanProject Plan
2 © The Delos Partnership 2004
Programme Management and Programme Management and PlanningPlanning• Enterprise Systems programmes are notorious for
being late, over budget and failing to meet reasonable business expectations.
• The secret to a successful programme is to use the same management techniques that we use for engineering/capital projects
• Contingency planning is a critical element of any well managed project
• Major programmes like this are infrequent experiences for most organisations
3 © The Delos Partnership 2004
Delos Change JourneyDelos Change Journey
MobiliseMobilise DesignDesign CommunicateCommunicate ReviewReviewUnderstandUnderstand
Identify quickIdentify quickBenefitsBenefits
DevelopDevelopChange VisionChange Vision
InternalInternalSell-inSell-in
ReviewReviewSystemsSystems
EstablishEstablish ResourcesResources
Gain quickGain quickBenefitsBenefits
DetailedDetailedProcess DesignProcess Design
Public/PrivatePublic/PrivateWorkshopsWorkshops
Develop Develop SystemsSystems
Develop TaskDevelop TaskTeamsTeams
Gain earlyGain earlyBenefitsBenefits
Document Document Policies etcPolicies etc
InternalInternalEducationEducation
CreateCreateSystemsSystems
EstablishEstablishOrganisationOrganisation
SecureSecureBenefitsBenefits
RefineRefinePolicies etcPolicies etc
AASSSSEESSSS
ContinueContinueEducationEducation
RefineRefineSystemsSystems
GainGainTeamworkTeamwork
AASSSSEESSSS
Cost/Cost/BenefitBenefit
DevelopDevelopBus StrategyBus Strategy
InitialInitialEducationEducation
AppointAppointSponsorSponsor
PPIILLOOTT
PPIILLOOTT
PPIILLOOTT
4 © The Delos Partnership 2004
Project PlanProject Plan
1. Timescale needs to be realistic and achievable• 12 months minimum• 24 months maximum
2. Key stages• Vision• Software understanding• Task Team activities• Pilots• User Education• Cutover
5 © The Delos Partnership 2004
TimescalesTimescales
• Most successful projects complete within 18 months – 12-15 months is not unusual.
• Why?– Organisations have a short attention span– Things change – acquisitions, new markets, new
products etc.– Scope creep– Cost– Individual and corporate fatigue
6 © The Delos Partnership 2004
Project PlanProject Plan
• Project Plan should cover:– Scope– Systems/Technology– Process Development– Culture/People – winning hearts and minds
• Key phases :– Create the vision of the company– Develop the detailed policies and procedures, roles
and responsibilities– Match the software to the requirements– Educate and train the users
7 © The Delos Partnership 2004
ScopeScope
• Scope drives everything!– The business case – both cost and benefits– The project organisation– The project timescale– The process design– The implementation programme
• A badly defined scope usually results in a poor project – over budget, over time, under delivery of benefits etc.
• Also a badly defined scope is a major opportunity for an implementation partner!
8 © The Delos Partnership 2004
ScopeScope
What must be covered:• Detailed functional scope – by individual process area
(and sub-process where necessary)• Detailed geographic scope – by region, country, office,
plant etc.• Detailed organisational scope – by department/function• What is excluded must be as clear as what is included.• There should be some people who are unhappy with
the scope.• Be ruthless in defining and maintaining the scope.
9 © The Delos Partnership 2004
Project PlanProject Plan
1. Formal document
2. Recognises need for resource management
3. Illustrates cost of delay
4. Provides review for recovering delay
10 © The Delos Partnership 2004
Project Plan - detailsProject Plan - detailsInitial Buy-in/Top Man seminar Top management TeamEstablish Project Team Top management TeamCost/Benefit analysis Project TeamDevelop Company Vision Project TeamProject Team Pilot Project TeamSet up Task Teams Steering CommitteeIntegrated Enterprise Planning Task TeamSales Forecasting Task Team
Master Scheduling Task Team
Innovation management Task Team
Data Accuracy Task Team
Lean and Agile Task Team
Procurement Task TeamTask TeamSupplier Relationship Management
Financial Management Task Team
Performance Measures Task Team
Change Management Task Team
Task Force Pilot Task Team
Internal Education for UsersData Migration from Legacy to newCutover ManagementUser PilotGO LIVE
Education for Top Management Top management TeamEducation for Project Team Project TeamEducation for Task Teams Task Teams
11 © The Delos Partnership 2004
Project PlanProject Plan
Key Milestones– Completion of Vision– Completion of Policies and Procedures– Project Team Pilot– Task Team Pilot– User Pilot
12 © The Delos Partnership 2004
Critical PathCritical Path
1. Pilots only occur after each phase
2. Understanding crucial to each phase
3. Education requires around 80 hours per person
• 80 hours for each Task Team member• 80 hours for each user
• Software should not be on critical path• Data should not be on critical path
• People can be
• Software should not be on critical path• Data should not be on critical path
• People can be
13 © The Delos Partnership 2004
Key activitiesKey activitiesMONTHS
Activity 0-3 4 4-7 8 9-11 11-14 15
Education Project Team Pilot Managers Pilot Users Internal Pilot Live
IEP Define Process Pilot Pilot process Pilot Add all families Pilot Live
Innovation Define Process Pilot Define policies Pilot Establish organisation Pilot Live
Demand Plan Define Process Pilot Define Policies Pilot Establish organisation Pilot Live
MPS MTSv ATO Pilot Define Policies Pilot Establish organisation Pilot Live
IRA Accuracy Control Group Init Cycle Counting Pilot Live
BOM Accuracy Find Errors Fix Errors Upload Live
BOM Structure Define Restructure and set up all Bills of Materials Live
Routings Find errors Fix Errors Live
Planning Data Define Set up Live
Purchasing Develop Purchasing Tools Pilot Educate all vendors Live
Manufacturing Develop Lean Manufacturing Pilot Establish across business Live
Finance Develop costing and IEP/Budget Link Pilot Develop costs, Inv and WIP values Live
Cont Imp Develop Continuous Improvement tools Pilot Establish across business Live
Software PT debug Pilot Carry out Software modifications and interfaces Pilot Live
14 © The Delos Partnership 2004
Master Project PlanMaster Project Plan
# Activity Target Complete1 Implementation plan prepared by Project Team and
Put to Steering committee for approval
2 The Plan indicates who is accountable for each element, and acceptance for responsibility agreed
3 Each Functional Task Force Leader has signed off on the plan
4 Implementation plan signed off by Steering Committee
5 Vision approved
6 Completion of Project Team Pilot
7 Completion of Managers and Trainers Education
8 Accuracy of Control Group Data = 100 %
9 Pilot phase of Integrated Enterprise Planning complete
15 © The Delos Partnership 2004
Integrated Enterprise Integrated Enterprise PlanningPlanning# Activity Target Complete1 Responsibility for implementation of Integrated
Enterprise Planning assigned to MD or equivalent
2 Initial Workshop on Sales and Operations Planning complete
3 Product Families, Planning Horizon, and Time Fences agreed
4 Performance measurements to be reported have been agreed
5 Meeting cycle agreed and timetable for next 12 month published
6 Process started with one Family
7 All other families implemented in the process
8 Financial linkage to Budget completed
16 © The Delos Partnership 2004
Innovation ManagementInnovation Management
# Activity Target Complete1 Responsibility for implementation of Innovation
Management assigned to an Innovation process owner
2 Initial Workshop on Innovation and Programme Management
3 Stage Gate and Business Filter process defined. Agreement on sign off authority levels, and prioritisation
4 Performance Measures for successful completion of milestones agreed. Earned Value calculation agreed.
5 Software for Programme Management tested and signed off
6 Cross Functional Programme management organisation established.
17 © The Delos Partnership 2004
Customer Relationship Customer Relationship ManagementManagement# Activity Target Complete1 Responsibility for implementation of Customer
Relationship Management assigned to an Demand process owner
2 Initial Workshop on Sales Forecasting and Demand management and CRM
3 Forecast process agreed around Level, Horizon, Units and Buckets, and frequency of update
4 Responsibility for Sales Forecasting established with Sales and Marketing
5 Policies on Forecast Consumption, abnormal demand, and use of Available to promise defined, and approved by Steering committee
6 Software for Sales Forecasting and Demand management and Customer Relationship Management tested and signed off
7 Demand Planning and Demand Management organisation set up under Sales and Marketing
18 © The Delos Partnership 2004
Master Production Master Production SchedulingScheduling# Activity Target Complete1 Responsibility for implementation of Supply
Management assigned to Supply Process Owner
2 Initial Workshop on Sales Forecasting and Demand management and CRM
3 Model for Master Scheduling established which specifies how Make To stock, Assemble To order and Engineer to Order will operated
4 Software checked for ability to support the Master Scheduling model.
5 Policies on Time Fences and Changes to Master Schedule agrees and approved by Steering committee
6 Performance measures and target service levels agreed
7 Master Scheduling Organisation established which follows Vertical Planning concept.
19 © The Delos Partnership 2004
Data Quality - InventoryData Quality - Inventory
# Activity Target Complete1 Task Force established with responsibility set up
under Warehouse Manager
2 Inventory Data Quality objectives agreed, with Target accuracy of 98 % of all items with 0 tolerance
3 Process for movement of inventory, and recording of Inventory Transactions completed
4 Review of required equipment and technology completed and recommendations accepted
5 Control Group cycle counting established, in order to identify errors
6 Control Group achieves 100 %
7 Policies and Procedures for Inventory process in Stores and Factory agreed and communicated.
8 Initialisation of Balances complete
9 Systematic Audit established using Process Control cycle counting.
20 © The Delos Partnership 2004
Data Quality – Bills of Data Quality – Bills of MaterialMaterial# Activity Target Complete1 Task Force established with responsibility set up
under Development department
2 Bill of Material objectives agreed, with Target accuracy of 100 % of all BOM’s
3 Sample of current Bills of Material used to verify current level of accuracy of BOM’s
4 Bill of Material Policy Established on Accuracy of BOM’s and agreed
5 Correction of Database undertaken for the whole database.
6 Procedure for reporting of BOM inaccuracy completed and established.
7 Process for prompt correction of Bills of Materials within Development department agreed and established.
8 Bill of material Administrator role defined and filled within the Planning Deparment
21 © The Delos Partnership 2004
Data Quality – Structure of Data Quality – Structure of Bills of MaterialBills of Material# Activity Target Complete1 Task Force established with responsibility set up
under Planning Function
2 Structure of BOM’s agreed with reference to the MPS task force and decision on MTS/ATO/MTO
3 Software checked to ensure that configuration ability is supported
4 Resource identified for restructuring of Bills of Materials.
5 Bill of Material Database populated with restructured Bills of materials.
6 Restructured Bills of Materials verified for accuracy as part of Bill of Material Quality audit.
22 © The Delos Partnership 2004
Data Quality – Bills of Data Quality – Bills of Material Change ControlMaterial Change Control# Activity Target Complete1 Task Force established with responsibility set up
under Planning Function
2 Current change control procedures and policies reviewed for completeness
3 Software review of functionality for Change Control completed, and documented
4 New Procedures for BOM Change control identified, and established with policies in place for handling phase in and phase out
5 New procedures reviewed and agreed through pilot process
6 BOM Change control group established to review impact of proposed design and development changes
23 © The Delos Partnership 2004
Data Quality – Planning Data Quality – Planning DataData# Activity Target Complete1 Task Force established with responsibility set up
under Planning Function
2 Exercise on verification of existing data on basic information – set-up, run, Queue and move times
3 Basic Order Quantity data established with correct figures for minimum and multiples for manufactured and purchased items
4 Scrap and yield factors determined and agreed. Correct Units of Measure established.
5 Safety Stock parameters agreed in line with the Master Scheduling policy.
6 Manufacturing Lead Times agreed and set up in the Planning system, consistent with Shop Floor control data
7 Purchasing Lead Times Established within the system
24 © The Delos Partnership 2004
Manufacturing Task ForceManufacturing Task Force
# Activity Target Complete1 Task Force established with responsibility set up
under Manufacturing Director
2 Decide on where to use Work to Lists, and where to use Kanban process
3 Determine opportunities for re-layout of factory to provide improved flow and ways of working
4 Determine Work centre definitions and agree parameters for each work centre for routings
5 Establish Demonstrated capacity at each work centre.
6 Establish Feedback process for planning, and culture of “No news is good news”
7 Establish programme for getting Work-in-Process accuracy
25 © The Delos Partnership 2004
Purchasing Task ForcePurchasing Task Force
# Activity Target Complete1 Task Force established with Purchasing as the Task
Force Leader
2 Establish Vendor Scheduling reporting process, and use.
3 Determine Purchasing Strategy based on current spend map
4 Determine measurement criteria for suppliers, and establish SMART goals to be shared with suppliers
5 Carry out Education programme with suppliers focussing on the key elements of the Purchasing strategy.
6 Set up Qualified Vendor group
7 Set up organisation that differentiated between Procurement and schedulers.
26 © The Delos Partnership 2004
Finance Task ForceFinance Task Force
# Activity Target Complete1 Task Force established with Finance manager as the
Task Force Leader
2 Establish Costing process based on BOM’s to reflect Standard or Average actual costs
3 Determine how Accounts Payable, Accounts Receivable and General Ledger will work
4 Develop process for providing Financial Planning process as linked to the IEP process
5 Establish how the Budget will be prepared from the ERP system
6 Develop reports from the system that will generate Cash Flow reports and simulations
27 © The Delos Partnership 2004
Performance MeasuresPerformance Measures
# Activity Target Complete1 Task Force established with Finance manager as the
Task Force Leader
2 Establish Vision, Goal and Objectives together with Targets for achieving the objectives
3 Establish how the system will provide Performance measures, and data for problem solving
4 Carry out Benchmarking exercise to establish best in class performance for targets
5 Layout Process ownership, and responsibility for cascaded sets of measures
6 Review current reward structures, and establish new performance measures contained within Personal Development Plans
28 © The Delos Partnership 2004
System and SoftwareSystem and Software
# Activity Target Complete1 Suitable Software Packages Identified
2 Software selected by reference to the users, Standard system, and the degree of integration required
3 Internal programming and modification support identified
4 Software tested by Project Team
5 Modifications identified for supplier to remedy by start of conference pilot
6 Software Training set up and carried out for all functions
7 Test of Modifed and debugged software completed and signed off
8 Validation of Run Times and Response Times
29 © The Delos Partnership 2004
External EducationExternal Education
# Activity Target Complete1 Start-up Education
2 Project Management/Implementation workshop
3 Managers Education while Project Team develop vision
4 Specialist Education for Task Force Team Leaders and their Teams
5 On going external Education
30 © The Delos Partnership 2004
Internal EducationInternal Education
# Activity Target Complete1 Project Team Develop their Vision of how company
will operate
2 Project Team detail their vision of how the company will work to the Steering committee so that they sign off on this vision.
3 Project Team Educate Managers and Trainers on Business Excellence/Vision/Software
4 Managers/Trainers’ Pilot to validate Training and company ways of working
5 Managers and Trainers carry out user training on Business Excellence/Vision/Software
6 User Pilot to validate Training and that users will be able to do their job.
31 © The Delos Partnership 2004
Pilotting processPilotting process
# Activity Target Complete1 Software tested by Project Team, bugs identified, and
all required modifications and interfaces identified.
2 Project Team pilot to test Software, Organisation, Policies and procedures to verify new company will work
3 Managers/Trainers’ Pilot to validate Training and company ways of working
4 User Pilot to validate Training and that users will be able to do their job.
5 Cutover Takes place during appropriate shut down period
32 © The Delos Partnership 2004
Cutover processCutover process
# Activity Target Complete1 Signoff that Data is at required Quality levels three
months prior to going live.
2 Sales and Operations planning is up to speed.
3 Master Scheduling policies and organisation established, and planners in place
4 All purchased part orders have been reviewed, and past due dates eliminated, and replaced with valid dates
5 All manufacturing orders have been reviewed, and past due dates eliminated, and replaced with valid dates
6 Software modifications fixed and working
7 Balanced plan in new system reviewed and established through ensuring all data in old system, and dates updated on open works and purchased orders.
33 © The Delos Partnership 2004
Project PlanProject Plan
1. A Live document• Constant revision• Review resource required to complete
2. Key milestones identified• Vision identified• Education completed• Conference pilots• Integrated Enterprise Planning started
3. Where Delays are identified• Identify possibilities to recover• Review cost of delay from Cost/benefit analysis
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