Navy Enterprise Resource Planning (ERP): The Journey Continues

Ready. Resourceful. Responsive!!

presented by: CAPT Kurt Wendelken

NAVSUP Assistant Commander for Enterprise

Logistics Engineering!

Navy ERP: The Journey Continues!

2 Ready. Resourceful. Responsive!!

What Is An ERP?

Integrates management of information across an entire organization—embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc.

Enterprise Resource Planning (ERP) !


What Is Navy ERP?

People

Organizations Business Rules

Policy + +

Not just an IT system!

4 Ready. Resourceful. Responsive!!DoD Business Environment Driving Navy to ERP

2001 2003

2005

2009 2007

2011

Pilots Launched

Pilots Converged

Single Supply Solution March 2010

NAVAIR Navy ERP 1.0 October 2007

1999

Navy ERP Evolution

2013

Fully Deployed


Providing An Enterprise View!

N8 FMO/FMB N4 N9

NAVY’S BUSINESS

NAVAIR NAVSUP NAVSEA SPAWAR* ONR/SSP*


Common Business Processes!


End To End Functionality!

• Planning • Procurement • Inventory Management

• Standardized Finance & Accounting • Budgeting Capabilities • Automatic Financial Reporting

• Earned Value Management • Work breakdown structure • Total visibility of programs

• Wholesale & Retail Supply • Enterprise-wide forecasting • Business to business procurement

• Time and Labor Data • Training Management • Personnel Data Management

Materials Management

Pgm Management

Finance

Workforce Management

Supply Chain

Management


Challenges!

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!Converting Data!

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Managing Change!

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Managing Interfaces!

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Governance! !!

Training!

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Standardizing Data!

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Working Failed Transactions!

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Meeting Leadership

Information Needs!

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Modifying Processes!

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Managing Data Volume!


What Worked!

•  Senior Level Commitment

•  Well-defined Transition Plan

•  Local Ownership of Training

•  Centralized War Room

•  Understanding and Preparing Data

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Total Visibility of Warehouse/Ship/Air Station Inventory


Total Asset Visibility


Before ERP After ERP

Global Sourcing


After ERP

Inventory Reductions

Before ERP

Ready. Resourceful. Responsive!! 11 Over $200M Saved in POM 12

Ready. Resourceful. Responsive!! 10

Now What?

•  Navy ERP Program Sustainment

•  Finalizing approach to harness data from the system to inform Navy decision making

•  Possible future decision about expanding functionality

Ready. Resourceful. Responsive!! 11

Next Stop: ERP Sustainment

•  ERP Program Office/NAVSUP/SPAWAR sustainment partnership

•  Increase enterprise organic sustainment capabilities •  Re-invest sustainment savings in projects to support:

–  Reduction of custom system objects thru increased business process standardization

–  Increase use of already deployed functionality –  Increase retirement of legacy systems

“Sustainment Through Continued Innovation”


The Future: Data!

“Every block of stone has a statue inside it and it is the task of the sculptor to discover it”

Michelangelo

•  Analysis of large data sets driving productivity/innovation

•  Data is being used to help companies: •  Make better management decisions •  Move to high-accuracy planning •  Precisely tailor products or services •  Reduce fraud


Navy ERP Data!

•  Navy ERP already contains a substantial amount of data

•  Multiple Efforts Underway to: •  Extract •  Analyze •  Present

•  Efforts will benefit: •  Navy Auditability •  Cost/Execution Analysis •  Supply Chain Optimization •  Reliability


•  Navy has implemented a world-class ERP

•  We now have SYSCOM-wide business processes

•  Navy ERP enables auditibility/FIP-FIAR compliance

•  Sustainment will bring future legacy reduction/system improvements

•  Data from Navy ERP will great enhance Navy business processes and readiness

Key Take Aways!


Questions?!

Technology

Navy Enterprise Resource Planning (ERP): The Journey Continues