New ERP solution for Northland – Implementation of IFS Applications

Patrick Harlin, IT-manager Northland Resources Östen Westman, Project manager Novacura

Agenda

Northland Resources – short background Goals for new solution Implementation of IFS Applications Experiences and lessons learned

Northland Resources – A new company in rapid change

Canadian idea that transformed a wet bog to a mine within 24 months

Total investment approx. 1.2 billion USD

From 70 till 250 employees in 12 months

(Long term number will be 400-500 employees)

Europe’s new iron ore producer

From a wet bog to a mine

Från blöt myr till gruva

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…..och november 2011

11 11

Logistiken

9 27

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Kaunisvaara Projektöversikt inkluderande Pellivuoma

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Logistics

12 17

First delivery 25 feb 2013

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Effects of rapid buildup

Rapid buildup of organization and construction at the same time

Company lifecycle phases and IT

No history = Unclear requirements definition and no history considerations

”Loop of systems acquisitions”

Reasons for the late ”heart change” = change of business solution Transformation from ”Project” to ”Operation” Both organization and operation needed a new

focus IFS Applications offered the flexibility needed for

the start up of the operations Usability Different types of clients, access to information,

role based interfaces ”Total Cost of Ownership” – TCO Aprox. 1 million USD lower TCO over 5 years

Timeline – new solution

SAP implemented in 2010 to replace old finance solution: Solution included Finance and Purchase

Northland selected future maintenance solution during Q4 2011 Scope included Equipment, Preventive Maintenance, Work Order and Inventory and

IFS Applications,8 was selected In Q2 2012 - Northlands management initiated a process review

The goal was to synchronize Northland needs and address existing issues: High level definition of Northland system map Transition from “project” to “operation” Implement common and cross-functional processes for critical areas such as:

Purchase Requisition – Purchase Order – Invoice – Payment Fault Report – Prepare Work Order – Execute Work Order – Report Work Order

Create a foundation for future development Processes & Business analysis

A Total Cost of Ownership analysis between current solution compared with a new solution from IFS was executed: Over a 5 year period Northland would lower the cost with more than 1 Million USD

using a an IFS Applications based solution compared with an integrated solution between SAP and IFS Applications

Investment approved by board and agreement signed by the end of June 2012 and the project was initiated immediately with technical installations

System overview Northland

Mining Enrichment Distribution Contract Invoicing

SHEQ HR

Maintenance Inventory

Business Performance

Project

Document

Process and control system Logistics

Purchase Finance

Production process

Goals for the project

Common business solution for Northland Common processes for all companies in the Northland group

Finance – Purchase – Inventory – Maintenance – Project Long term integration with critical solutions (future needs)

SURPAC/CAT Minestar – Mine planning ABB 800xa – Crusher and enrichment

Currently on-going Savage – Logistics Intelex – health, Environment and Safety Trix – Technical Document Management

Support for mobile devices Touch applications and bar code readers

On-going Development of long term strategy for the new solution

When the project started many of the critical roles and resources where not hired yet

High level project plan - 2012

Agreement signed Installation

Databases TEST and PROD Pre-study Finance

Planning the switch from SAP to IFS

Workshops and configuration of solution Configuration of processes and

creation of work instructions Migration of data to IFS

Suppliers, equipment objects, parts etc.

Final solution tests In each area and cross functional

Training based on work instructions Northland key users

Go-live – Monday December 3rd Go-live support

Adjustments of configurations

Jun Jul Aug Sep Oct Nov Dec Jan

Inst

Pre-study Finance

WS & configurations

Migration

Test

Train.

Go-live support

How did Northland do it? – Resources, time and cost

Project organization IFS (4 persons)

Project Manager/Inventory/Purchase Finance Project Technical

Northland (7 persons) Solution management/Project Manager/Maintenance (external) Finance (2 persons) Purchase (1 person) Inventory (1 person) Maintenance (1 person) Project (1 person)

Implementation July 2012 – January 2013

Total cost external consulting resources (excluding travel cost) 2,5 milj SEK = approx. 385 000 USD

Results

160 users active in new solution 15 users in old solution

New finance solution Tough timing of the ”heart surgery”

New integrated purchase process including scanning and interpretation of invoices Focus on operations

New maintenance solution Focus on asset life cycle

New inventory solution Control from day 1

Integration to QlikView updated New budget process and follow up for 2013

What does it look like?

8 companies 63 projects >1000 equipment objects and parts Full event history for production

www

Thank you for your attention!

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www.northland.eu