top 10 considerations for upgrading ca user group meeting romeo sequeira

Top 10 Considerations for Upgrading

CA User Group Meeting

Romeo Sequeira

QAD Proprietary

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Why Upgrade?

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Practical Competitive Optimum

Proactive Application Management

Status Quo

Regular Applications Value Reviews

PeriodicApplicationRefresh

Competitive Opportunity

Time

Competitive Erosion

Go Live

By harnessing the power of new technology, you can achieve competitive advantage

Com

peti

tiven

ess

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Upgrade Cost Drivers

Can upgrade provide new business value?

Productivity

Business justification examines the overall impact to your organization’s performance

Cost

Can customizations be reduced ?

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Benefits of Upgrading Take advantage of new

functionality Reduce customizations Reduce operational costs Respond to globalization and

consolidation needs Increase user productivity Ensure compliance Optimize application and system

performance Drive lean principles throughout

the organization

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Value of Upgrading

According to Aberdeen Group, Best-in-Class manufacturing companies are 35% more likely than

Laggard companies to operate on a current version of ERP.

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QAD Enterprise Applications 2009

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Tokyo

Sydney

Rio de Janeiro

Munich

Washington

domainsShared ServicesSarbanes-Oxley ComplianceEnterprise IntegrationFlexible global DeploymentCommon Data Global GovernanceInteroperability & Integration

globalplatform

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total enterprise

capabilityEnterprise Resource PlanningEnterprise Asset ManagementProduct Lifecycle Management

Demand ManagementCustomer Relationship ManagementService and Support Management

Transportation ManagementProduct Information Management

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humanengineering

.NET User InterfaceData AccessIntegrationConsistency

RolesProcess

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Recent Enhancements, New Modules

JUST-IN-TIMESEQUENCING

MANUFACTURINGEXECUTIONWORKBENCH

TRANSPORTATIONMANAGEMENT

DESKTOPSHIPPING

SALES FORCEAUTOMATION

.NET UI2007

MARKETINGAUTOMATION

QAD ENTERPRISEAPPLICATIONS 2007

2007

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Recent Enhancements, New Modules

DISTRIBUTEDORDER MANAGEMENT

DEMAND MANAGEMENT

CONFIGURATORJUST-IN-TIMESEQUENCING

ENHANCEDCONTROLS

MOBILEFIELDSERVICE

GLOBALENTERPRISEEDITION

PRODUCTIONSCHEDULERWORKBENCH

.NET UI2007

2008

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QAD Enterprise Applications Development

MFG/PROeB2

MFG/PROeB2.1

QAD2007

QAD 2007.1

QAD2008 EE

QAD 2008 SE

Shared Services Domains

QAD Standard Financials

QAD 2008.1 EE

QAD2008.1 SE

QAD2009 EE

QAD2009 SE

QAD Enterprise Financials (EF)

March 2007

March 2008

September2007

September2008

April 2009

QAD Internationalizations

2002 2005

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Two versions of QAD 2009

QAD 2009 Enterprise Edition (EE)– Includes Enterprise Financials– Also includes enhancements in other areas of Enterprise

Applications, including Manufacturing & Distribution– New UI Shell version

QAD 2009 Standard Edition (SE)– Includes Standard Financials (as in eB2.1)– Equals QAD 2007.1 plus Service Packs– New UI Shell version

Differences in add-on availability and versions of add-ons

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UpgradeConsiderations

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Top 10 Considerations for an Upgrade

1. Technical Considerations

2. Business Considerations

3. Security Considerations

4. Implementation Considerations

5. Customization Considerations

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Top 10 Considerations for an Upgrade (contd.)

6. Financial / Regulatory Considerations

7. Standardization Considerations

8. Reporting Considerations

9. Training Considerations

10.Tool Considerations

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1. TechnicalConsiderations

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Technical Considerations

Architectural – Number of databases

– Number of domains

– Options• Single database with multiple domains

• Multiple databases with multiple domains

• Single database with single domain

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Technical ConsiderationsDatabase and domains considerations

– Strategy for points of failure (single or multiple)

– Database maintenance or shutdowns strategy

– Language considerations in the same database

– How many sites are you willing to upgrade at once

– Time zone considerations

– What level of separation or granularity do you require

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Technical ConsiderationsHardware considerations

– Centralized, decentralized or hosted

– Number of servers

– Location of servers

– Server size and capacity

– Will existing infrastructure support the envisioned environments

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Data communication considerations– Network bandwidth

– Network latency

– Bridges between ISP providers

– What UI’s will be running

– What other applications will be running over the lines (telecom, radio frequency, email systems, and voice)

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Business Continuity strategy– Up time requirements and support strategy

– Backup strategy

– Fail over strategy

– Disaster Recovery strategy

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PresentationPresentation

Business ServicesBusiness Services

PlatformsPlatforms


ExposedServicesExposedServices

QXtend

EDI

Data AccessData Access

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2. BusinessConsiderations

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Business Considerations Is there a clear understanding of business drivers / objectives and

reporting requirements (KPIs / Metrics) at all levels?

Measure baseline metrics before upgrade

What is the level of local autonomy versus central control?

Is there an understanding of internal supply chain requirements and flow?

Degree of change management or managing change that will be required

Is there a clear definition and understanding regarding shared services requirements ?

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Business Considerations

The amount of business process reengineering that is envisioned to support initiatives such as Lean, Shared services, etc.– Customer Service Applications– Support Operations– Accounts Receivable– Accounts Payable

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Business Considerations– Is there an understanding of what new functionality is

available or net change from legacy version

– Will there be new features and functionality the business will be taking advantage

• Enhanced security• CRM• Lean manufacturing • PIM• Production schedulers• EAM• DOM or CSS• Configurator• Warehousing

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3. SecurityConsiderations

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Segregation of Duties (SOD) Objective

– Limit the duties of individuals to certain areas of responsibility– Minimize the ability of any individual to misappropriate company

property – without collusion between individuals

Specify roles that are conflicting from a segregation of duties perspective

Identify users that have any access rights that are part of conflicting roles

ConflictsRole A Access right Access right ….

Role B Access right Access right ….

User

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Segregation of Duties (SOD)Partition all activities (menu options) to

only one categoryDefine sets of categories that are

mutually exclusive– No individual can have access privileges to

functions that are defined as being mutually exclusive

Establish rules and verify no violations– Rule 1: Activities granted to a role must belong to compatible

SOD categories– Rule 2: User roles must have compatible SOD categories

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Role Based Security

All application security in QAD 2009 EE is role based

Roles are defined for each discrete area of the business using Segregation of Duties concepts

Roles are linked to menu functions using Role Permissions

Users are assigned access to Domains and Entities

Users are assigned to roles for Entities and Domains

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Business Considerations Define Roles and Permissions Segregation of Duties:

– Define conflicting roles

User Interface depending on Role

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Role Membership

Users will typically be assigned more than one role Users may have different roles in different

Domains/Entities

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Default Roles and PermissionsDefault set of pre-defined roles and

permissions supplied with QAD 2009 EE– Around 80 roles are already defined

Roles are defined using Segregation of Duties Principles– Separate role for PO creation and PO receipt– Separate roles for supplier creation, supplier

invoice recording and supplier payments– Separate roles for inquiry access by functional area

Tools provided for the automatic loading and editing of default roles and permissions– XML integration already available

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4. ImplementationConsiderations

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Implementation Considerations

Is this project considered a new implementation, technical upgrade or is it a reimplementation– Will a business process assessment (BPA) be

required

– Will business process reengineering (BPR) be required

Is this project a “Lilly pad” for another upgrade – If so how can it be positioned for the next upgrade

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Upgrade ScenariosTechnical Migration with data conversion

Technical Migration without data conversion

Re-Implementation

CustomizationData

Conversion

SmallProcessChanges

ConversionDataLoad

SmallProcessChanges

Optimization

Optimization

Re-define Business ProcessesNon-Intrusive

CustomizationsDataLoad

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Centralize/Standardize First

ERPDatabase

Plant 1

ERPDatabase

Plant 2

ERPDatabase

Plant 3

ERPDatabase

Plant 1

ERPDatabase

Plant 2

ERPDatabase

Plant 3

ERPDatabase

Plant 1, 2 and 3

ERPDatabase

Plant 1, 2 and 3

QAD MFG/PRO 8.6, 9.0, eB, eB2

QAD 2007QAD 2008 Standard Edition

QAD 2009 Enterprise Edition

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Migrate first to QAD 2009 Enterprise Edition, than Centralize and Standardize

ERPDatabase

Plant 1

ERPDatabase

Plant 2

ERPDatabase

Plant 3

ERPDatabase

Plant 1

ERPDatabase

Plant 2

ERPDatabase

Plant 3

ERPDatabase

Plant 1, 2 and 3

QAD MFG/PRO 8.6, 9.0, eB, eB2

QAD 2009 Enterprise Edition

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Q-Advantage Implementation Methodology

ManageApplications &

Support

Agree on ProjectPlan & Resources

Agree on ProjectControls

Agree onBusiness ProcessSolution Design

Kick-off Project

Develop Cut-Over& Deployment

Strategy

Train Core Team

Complete Process& Technical

Design

Complete DataValidation &

Functional Testing

TrainEnd Users

Complete System& Performance

Testing

ConductStakeholder

Validation Session

Execute Cut-OverPlan

Complete FinalData Load

Post-LaunchEvaluation

Communication & Change Management

Implement ManagePlanDesign &Configur

e

Test &Accept

Deploy & Evolve

Develop, Deliver& Test

Custom Solution

Build System, Scripts &User Procedures &

Convert Data

Validate / RefineSolution

via CRP Cycles

Determine CoreModel / RolloutRequirements

Adjust Core Model& Rollout Plan

Program & Project Management

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5. CustomizationConsiderations

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Customization ConsiderationsThe number and types of customizations to the

legacy system– Is there a definitive list of customizations

– Is there an understanding of who owns each customization

– Is there an understanding of what each customization does.

– A go forward review and migration strategy for all customization will be required

– Remember - every customization in a multi domained database will have to be domainized

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Customization Considerations API’s and interfaces to 3rd party software

– Needs to be fully identified and go forward strategy developed.

Is it within scope to update 3rd party software solutions

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Customization Considerations

CUSTOMIZATIONS

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CUSTOMIZATIONS

Reports

Maintenance

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CUSTOMIZATIONS

Reports

Customizations Not Used

Maintenance

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CUSTOMIZATIONS

Reports


MaintenanceQAD

Enterprise Applications

2009 EE or SE

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CUSTOMIZATIONS

Reports


Maintenance QAD.NET User

Interface

QAD Enterprise

Applications 2009 EE or SE

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CUSTOMIZATIONS

ReportsQAD.NET

User Interface

ICT

QAD Enterprise

Applications 2009 EE or SE

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Always make sure that the domainization has been done on the customization to be migrated before starting the Realization

Do not just compile your old programs against the new database– Not even reporting!

Make sure you are trained in the Data Model of the new release (be aware of the changes related to add-on modules)

Always consider ICT as alternative

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6. Financial / Regulatory

Considerations

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Financial / Regulatory ConsiderationsDo current polices, practices and system utilization

optimally meet requirements– SOX requirements

– IFRS requirements

– US GAAP reporting requirement

– Local regulatory reporting requirements

– Tax reporting requirements

– FDA validation requirements

– ISO compliance

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Financial Considerations Do current policies, practices and system utilization

optimally meet requirements and what is the impact of an upgrade?

Will documentation have to be updated? Financial reporting and consolidation

– Is current entity configuration and reporting satisfactory

– Are the financial consolidation toolsets adequate or will it be replaced or upgraded

– Is QAD’s enterprise application 2009 in your upgrade plans

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QAD InternationalizationCompliance with laws and business

practices across the globeExample audit files:

– Argentina– Brazil– Columbia– Venezuela– Spain– Portugal (SAF-T)– Germany (GDPdU)– China

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File Description Argentina Brazil Colombia Venezuela China Spain SAF-T Customer Invoices ASCII ASCII ASCII XML Purchase Invoices ASCII ASCII ASCII XML Tax – Other perceptions ASCII VAT Retentions (Customer/Supplier)

ASCII ASCII

VAT- Sales ASCII ASCII ASCII XML VAT- Purchases ASCII ASCII ASCII XML Gross Income Retentions ASCII Gross Income Perceptions ASCII SUS (Social Security System) retentions – Supplier Invoices

ASCII

Customer Master data ASCII ASCII XML Supplier Master data ASCII ASCII XML Items Master data ASCII XML Chart of Accounts ASCII XML Cost Center Master data ASCII Tax Usage master data ASCII Accounting Balance ASCII ASCII XML Accounting Movement ASCII ASCII XML Bill of Material (BOM) master data ASCII Inventory Transactions ASCII Inventory Balance ASCII Importation Invoices ASCII Exportation Invoices ASCII Legal Documents – Inbound ASCII Legal Document - Outbound ASCII Balance Sheet ASCII Income Statement ASCII Format File ASCII XML Company Information ASCII XML

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7. StandardizationConsiderations

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Standardization Considerations Core models (for multi-site implementations)

– Do core models exist today and if not should they?– Are the core models that exist today for both organic and

acquisition growth being followed?

Is there a data standardization/normalization strategy and is data replication required?

What is the condition or state of your current data?

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Standardization ConsiderationsNon-domained tables standardization

– Users

– Currency code

– Country codes

– Site codes

– Entity codes

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Standardization Considerations

Is there data standardization / normalization strategy and is data replication required– Chart of Accounts– Customers– Suppliers– Item masters– Bill of Material– Other master data

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Data Replication Solution

M

ast

er

Dom

ain

D

om

ain

1

D

om

ain

2

D

om

ain

4

D

om

ain

3

D

om

ain

5

QAD QXtend Outbound

(QXO)

QAD QXtend Inbound

(QXI)

Standardization Considerations

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8. ReportingConsiderations

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Reporting Considerations

Ad hoc reporting– Inquiries– Typically a one-time request for data

Standard reporting– Typically run weekly, monthly, etc.– Fairly static in layout, query parameters, etc.– Can be run in batches and on a schedule

Forms and labels– Invoices, orders, etc. – Package labels, barcodes

BI reporting– Data Warehousing– Metrics/models– OLAP reporting

.NET Browses

.NET Reporting

Requirement Solution

QAD BI

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9. TrainingConsiderations

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Training Considerations

For the average user, QAD.NET UI training only is necessary for the new user interface.

For an organization with heavy use of Excel, advanced QAD.NET UI Browse training is advisable.

Consider Enterprise Financials as an implementation of a new module, so extensive training is necessary.

The ‘traditional operational’ module area needs minimal training effort during upgrade

IT training, especially for the new infrastructure, due to the QAD.NET solution requiring web technology.

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10. Tools Considerations

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Domain Conversion Tool Domain Merge Tool Program Tracer Tool Integrated Customization Toolkit (ICT) QScan

Tools

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Purpose– Modifies a schema definition file to add domain to

selected tables and indexes, and modifies simple schema validation statements

– Goes through the Progress source code and modifies all search and create statements with the domain statement

Benefits– Reduces costs of manual update of the source set with

the domain statement– Reduces the risks to get errors out of this manual

process

Domain Conversion Tool

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Source Code TransformationHow it Works

Read

Transform

Write

Plug-ins

Create

Find

fieldsCode Lines

etc.

Read

Transform

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Domain Merge Tool

Single QAD QAD SE 2008 Database

ERPDatabase

BR

AR Domain

ERPDatabase

AR

BRDomain

CLDomain

ERPDatabase

CL

ERPDatabase

MI

CO Domain

ERPDatabase

CO

MIDomain

MXDomain

ERPDatabase

MX

ERPDatabase

PR

PE Domain

ERPDatabase

PE

PRDomain

VEDomain

ERPDatabase

VE

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Purpose– To identify what customized functions are actively used

in your application– To identify how users are using your QAD applications – The results of the Program Tracer helps you to eliminate

customizations and/or provide feedback on customization areas that needs review

Benefits– Eliminate unused functions from those to be migrated– Analyze how users use specific functions in order to

improve the overall process

Program Tracer Tool

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Program Tracer Tool

MFG/PRO Menu Program Menu Description Executed36.14.13 mgbatch.p Batch Request Processor 400229.11.4 icloiq01.p Inventory Inquiry 49329.11.13 zzpttrrp.p Detailed Transaction History Inq 2455.5.3.3 rssmt.p Schedule Maintenance 1605.13.1 poporc.p Purchase Order Receipts 1237.9.2 rcshwb.p Pre-Shipper/Shipper Workbench 11913.6 bmpsiq.p Product Structure Inquiry 103

60.1.1 xsstana.p Items by Group / PL /Desc Rep 060.1.3.1 xxpcorq.p Send Request to Windchill 060.1.3.10 xxpcolsi.p Load Status Inquiry 060.1.3.12 xxpcoriq.p PCO Request Inquiry 060.1.3.13 xxsixref.p Site Cross-Reference 060.1.3.14 xxpcoprd.p Delete UnReceived PCO Requests 060.1.3.15 xxpcorp.p PCO Report 060.1.3.16 xxpcolfd.p Delete Import Log Files 0

……..

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Purpose– The ICT Services Product enables you to develop

customizations in a non-intrusive way– Eliminates or significantly reduces the need to change

the standard source code set

Benefits– Decrease of development costs for initial developments

and following upgrades of the customization– Enables customization without having the source code

rights– Decrease implementation effort related to patches and

services packs with impact on the customization– Easy to track changes and debug in case of issues

Integrated Customization Toolkit (ICT)

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QAD ICT Components

Security / Role Model

QAD Standards

Tracking & Tracing

Control & Debugging

User Interface

Business Logic

Database

QAD Integrated Customization Toolkit

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QScan Process

Identify Pain PointsDevelop RecommendationsEstablish MetricsQuantify Benefits

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Inventory Control – Pain Points, Issues

High Inventory Levels for New Parts No visibility of WIP Stock Difficult to explain floor stock expenses on P&L Machined parts in the warehouse not being used Inventory counts not always accurate line shut

down Receipts take too long due to PO record locking Warehouses – parts not identified properly

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Inventory Control – Recommendations

Implement– Develop Inventory Analysis Reports

• Inventory Turns• Excess and Obsolete• Transaction Report

– Implement Cycle Count/Inventory Control module:• ABC Classification designation

– Extend the use of RF for all inventory movement transactions

– Introduce Lean Concepts / Investigate MFG/PRO Lean module

– Change the way Material Flow is organized in QAD

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Inventory Control – Benefits

Better Control over New Parts Inventory potential cost savings (actual inventory = $30 million)– Reduce Line stoppages– Reduce expediting costs (freight)

Storing Parts:– Lower cost for warehousing space– Lower cost for handling stock (transport, labeling,

pickup and putaway)

More efficient stock handling in the warehouse (bar coding)

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Thank You

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Questions