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TRANSCRIPT
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Operation strategy
Tektronic, Inc: Global ERP Implementation
Group 5
Simerdeep Singh
(25NMP41) Rahul Kumar(25NMP33)
Ashutosh Karan(25NMP11)
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Context
Problem
ERP Planning & Implementation
Contents
Learning from case
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Tecktronix is $1.3 Bn manufacturer of electronic tools & devices
3 main autonomous divisions
Measurement Business Division (MBD)
Color Printing and Imaging Division (CPID)
Video and Networking Division (VND)
Based in the United States with a presence in nearly 60 countries
Worldwide leader in Oscilloscopes with a market share of more than twicethat of its next largest competitor. Also leader in television test,
measurement and monitoring equipment and work group color printers
Tektronix was operated as 26 independent Divisions
Context
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Hampered by a 50 year legacy that limited its flexibility and growthopportunities
Major issues IT Infrastructure. Many different application systems andtechnologies around the world
Over 460 legacy systems just in the USA
None of the systems were standardized
No common business process
Poor Information visibility for decision making
Legacy systems manifesting issues in a variety of ways
Impossible to ship up to the minute or on Saturday
Sales orders required to be entered multiple times: more errors Could not calculate an invoice total for a customer account
Financial Systems Multiple charts of accounts existed across the firm
Weeks to close the books each month
Extremely difficult to know which products and divisions were profitable
Problem
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Increased Information visibility across the Value Chain
Standardize and improve responsiveness to customer
Improve inventory visibility & performance worldwide
Improve global distribution capability
Integrate business divisions operations globally
Increase business flexibility & agility
Common platform system worldwide
Integration of information systems across all divisions
To improve in maintaining financial information of divisions
To identify profit/loss making divisions
Motivation for ERP Implementation
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Separability of the businesses
Each division would have its own instance of the system that managed itscustomer fulfillment process; however, within each division Neun demandedstandardization.
Leveraging shared servicesGlobal Up to date Financial System
Staying as plain vanilla as possibleMinimize Customizations. Changes allowed only if Company process is not
present in package and is giving competitive advantage to Company.
Vision for the Enterprise : 3 components
Keeping things
Simple &Standardizations
Cost
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Sponsorship:
The CFO at Tektronix Carl Neun was the Sponsor/Champion for the project.
The CEO had given unlimited authority to Carl Neun and he was the finaldecision maker on the project.
This helped the project resolve issues quickly.
Project team structure:
There was one program manager who was responsible for the entire roll out. There were key players in each functional and geographic area who acted as
negotiators when business change was needed.
Business Model and Guiding principles:
Created business model around what responsibilities and processes areowned by divisions and what are owned at the corporate level.
Business practices clearly defined and served as guiding principles
Standardization and a plain vanilla approach wherever possible andchallenged existing business practices. Only in cases of extreme need, the
ERP package had to modify to fit the local divisions requirement.
Tektonix : Approach to implement ERP (One of Best Practices : Glocalisation & PM)
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Project Schedule:
The program was implemented in waves and each wave delivered a specificset of functionality for a particular division or geographic region.
The project was divided into Five sub-projects a) Financials b) OrderManagement and Accounts Receivables modules in the 3 business divisionsOMAR at CPID, OMAR at MBD & OMAR at VND and c) Global rollout.
Tektronix did not have the internal skills for the implementation and hencehired consultants from Oracle, Aris consulting and other small consulting
firms.
Global Rollout:
Approach was to implement to each of the sites incrementally and rollout inwaves The ideas was to apply the learning from each implementation to the
future ones. Global rollout was carefully planned with the approach of implementing
easier ones first and then the difficult geographic regions
Tektonix : Approach to implement ERP (One of Best Practices :Glocalisation & PM)
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Software Selection Single vendor ERP strategy
Rather than spending resources on evaluating alternatives, team spenttime ensuring Oracle could do what Tektronix needed
Worldwide Business Model Global Business Model Exhibit 4
Business Practice Changes & Guiding Principles Exhibit 5
Implementation of business model necessitated a complex architecture Exhibit 6
Using single definition for each piece of data
Project Organization & Management Exhibit 7
Project Schedule Wave Concept
Philosophy of sticking to schedule even at expense of extra resources
Planning for ERP at Teknotrix
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ERP System Architecture (Exhibit)
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Goal to have single view of all financial information worldwide
Plain vanilla approach
No value add
Implemented to have good relationship with suppliers
Provided stimulus to implement Business process improvements
Implementation support: Relied and established long termrelationship with consultants : Aris Consulting
For roles that required less functional & business expertise,Tektronix brought in lower cost consultants and granted right toresell this interface to other companies
Ist sub project: Financial Management System
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CPID chosen first for OMAR implementation
Has simplest operation compared to MBD and VND
Challenging implementation due to newness of technology
Used beta version of package, results in spending lot of time in debugging
OMAR team hired Aris and Oracle and other consultants and paired with theirstaff for functional knowledge
Implementation started in US, then other English speaking countries inEurope or Asia
IInd subproject: OMAR at CPID
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MBD able to leverage much from CPID but MBD was more complex hencemore problems which other not experienced
MBD adopted reliance on Oracle consultants which helped MBD a lot as theyknow their code better than anybody else
Extra care taken to test system with actual work and actual load
Took nearly twice as long as originally anticipated
But it was worth as it reduces risk of issues after launch
No startup problems that CPID faced
Third Subproject : OMAR at MBD
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VND was smallest of all three division
Gained experience from CPID and VND
Strong deadline directed by VND president to implement
Followed fast and high risked approach
Implementation at VND went as scheduled
IVth Subproject: OMAR at VND
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Rollout in Europe
Choice of the Holland DC for the initial rollout
Pilot for select EU / Non EU nations Big Bang approach for the rest of Europe
Rollout in the Americas
Canada , Mexico and Brazil
Rollout in the Asia / Pacific region
Singapore , India
Korea , Taiwan and Hong Kong
Australia
This helps in winning overall confidence of the stakeholder
Information visibility, by division of all inventory and transactionsworldwide
23 countries in < 500 days
Extension of the wave approach to its international operations, starting
Fifth & Final Subproject : Global Rollout
L i f h
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Large scale technology project implementation
Importance of Information visibility in business requirements
Project Management Method approach
Technology bringing organizational change
Global Implementation of standard projects
Glocalisation need as standardization & adaptability
Top Management support requirement for effective project management
Learning from the case
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Thanks