GLOBAL ERP IMPLEMENTATION

Lokesh NarangMohit Sharma

How Successful was Tektronix?

Business processes became efficient and standardized.

Days Sales Outstanding and inventory levels showed improvement.

Finished goods inventory of all the locations visible now.

Improvements in shipments. Cycle time in credit approvals reduced. Improved data integration. Better visibility into sales trends and

internal performance.

How Successful was Tektronix? Improved information gathering leading to

better decision making. Managers as well as the lower level employees

were happy with the results as they became more integral to the business operations.

Flexibility to acquire new businesses and divest others.

“Instead of spending 90% of our time collecting data and 10% of the time turning it into information, we spend 10% of our time getting the data and 90% our figuring out how to turn it into something management wants”

Wave based approach It is a type of scheduling approach. Each wave delivers a specific set of functionality. Once a wave completes, that part of the system is

implemented. Help to break down the project into manageable phases. Advantages of wave based approach

Better feedback Flexibility in scheduling The wave concept made short term wins possible that

resulted in high morale of the team. Board’s support for high cost and long timeline of

implementation Reduced risk of complex implementation Each phase was built on the basis of accumulated

knowledge and skills from the previous.

Staggard approach for implementation. +Ves ERP can be implemented quickly. Resources available can be used

effectively Material requirement planning can

be done easily as one plant one time Employes who participated

previously in the process can teach to the others

It’s a standard and Proven approach ,So little risk Involve as any fault in (ERP) implementation can cost you a lot of money .

They did not run the old and new systems in parallel.

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-Ves Time Consuming Costly

infrastructure before ERP and what was the business implications

When Carl Neun assumed office as the CFO, he knew that he had to bring around a strategic change in the way Tektronix did its business.

Tektronix was facing stiff global competition which affected the financial performance of the company

Multiple entry of data in different system slowed processing and customer service. A lot of errors crept into the system

The company could not get accurate information on performance,  could not identify profit/loss making  divisions or  could not manage customer accounts and credit effectively .

Seven different data centers that existed were decentralized and segregated by divisions .The communication infra structure had to be reworked to standardize the communication protocol

Employees spent 90% of their time in non value added activities like collecting data and only 10% of their time was effectively used.

Managing of this mega project?ERP implementation was split into five major subprojects.

FinaOMAR at CPID OMAR at MBD OMAR at VND Global Rollout ncial Management System

In Tektronix this principle was employed. The decision to start from the U.S where it is closer and easier to manage, the decision to start OMAR from CPID where there was good business fit and lower business barriers from

In the Financial Management System a “plain vanilla” approach was adopted so that the project team could deal with issues one by one and was able to carefully analyze the true requirements for a process

Choose Right consultant Aris Consulting

Tektronix implemented OMAR at three divisions based on Neun’s vision of separability, shared services, and

plain vanilla CPID was chosen first for OMAR implementation as it had the simplest operations. Here the company used

the beta version of the package which resulted in the team spending months on debugging the package

The OMAR implementation at MBD was more complex as it had more problems which were not experienced by other divisions. Extra care was taken to test the system with actual work and actual load

With the experiences learned from the previous waves and with strict adherence to the implementation date established by the VND President, OMAR implementation at VND went on as scheduled

The last sub project was the Global roll out. To win the overall confidence of the stakeholders, Tektronix picked a common denominator, distribution centre in Holland, which everybody in Europe used instead of a specific country. With the knowledge and experienced gained, Tektronix went with the implementation in the rest of the European countries followed by the Americas and the Asia/Pacific.

Reasons for its success Is it realizing your vision? On time and on budget implementation Are all end -users happy with the

system and are they using it?

Points to consider

Despite the successful implementation, I feel that there are some points that might be worth considering.

There was a need to better justify and evaluate the decision to go for Oracle ERP. They could have thought about the alternatives or other vendors.

Their reliance on Aris and other consultants for system details no doubt helped them with quicker implementation, but was their technical expertise transfer?

Will the Tektronix personnel be able to handle some simple technical implementation on their own?

Did they get sufficient training from consultants? They could have done some budget estimation or guide line to

have a better understanding of the ROI or the payback period