Kirkham Rk-2 - Copy

7/29/2019 Kirkham Rk-2 - Copy

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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

Documents

Kirkham Rk-2 - Copy