JDE & Peoplesoft 2 _ Ian Spencer _ JDE EnterpriseOne as the focus of WCB's ICT Plan.pdf

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JDE Enterprise One as the focus of WCB's ICT plan

Ian Spencer

The most comprehensive Oracle applications & technology content under one roof

Warrnambool Cheese & Bu5er (WCB) •  Established in 1888 and the oldest dairy company in Australia •  Only dairy company listed on Australian stock exchange (listed in 2004)

•  Approx turnover $500 million •  2 JV’s owned by the company

•  Great Ocean Ingredients •  Japan sales trading house

h5p://www.wcbf.com.au

h5p://www.dairyaustralia.com.au/

Victoria produces about 2/3 of Australia’s milk; WCB processes about 1/6 of Victoria’s milk


WCBF Systems Timeline

1993 2007 2008 2009 2010 2011 2012

JDE World

ICT Strat Plan

Me @ WCB

JDE E1 Live

WCB “Annus Horribilis”

BI – S&OP, Sales, Milk

BI – Bud & F/C

S&D Mgt, EIM, PINS


Original ICT Strategy


ICT Strategic Plan – 2007 to 2012 •  A number of underlying themes:

•  Business alignment – strategic context •  “Do wells” to achieve strategic outcomes •  Inadequacy of then exiseng systems porfolio •  Program Governance (eg Steering Commi5ee, SDLC, methodologies) •  ICT Organisaeon (range of skills, leadership) •  Progressive Implementaeon

•  Twenty programs of work, eg JDE ‘Upgrade’, Enhanced Inventory

Management


Exiseng systems c 2006/7 Func%o

nal Q

uality

Technical Quality 0

10

5

Quadrant 4

Quadrant 2

Quadrant 1

Quadrant 3

10 5

Retail Sales

Accounts Payable Procurement Accounts Receivable

Financial Repor7ng

JDE

Milk Forecast Yield Forecast

Produc7on Forecast

Product Op7misa7on

Sales Forecast

Financial Forecast

Bulk Sales Cost Accoun7ng

Management Repor7ng JDE

Milk Tracking

Supcon

Laboratory Informa7on Management System

Madcap

Shopkeep

Cheese Block Tracking

SCADA

Mex

Transport Pickups

Trident

Document Management CHRIS21

Redesign & Rewrite

Scrap & Replace

Maintain & Enhance

Quadrant Descrip%on

1.  Meets users needs but have technical deficiencies

2.  Candidate for replacement, poor func7onal and technical quality

3.  Have func7onal deficiencies but technically easy to operate and maintain

4.  Meets users needs for func7onal support and technically easy to operate and maintain


Upgrade to Enterprise One “The JD Edwards EnterpriseOne applica%on suite has provided the founda%on for a range of projects that will transform the way WCB operates now and in the future. It will ensure that we can con%nually streamline manufacturing and distribu%on.”


WCB Strategic Planning Framework – 2011 onward

Initiatives

Strategic Themes / Objectives

Mission / Goals

Values / Beh Stds

Vision

Alignment of individual goals

Team Mobilisation

Excellence; Working together; Contribution by all; Our reputation; Honesty & Integrity; Innovation

To be Australia’s leading Dairy Company

Organisational strategic objective (financial goal)

Objective statements for each of the key functions

Strategic initiatives schedule, business improvement projects

Business plans (various), performance reviews, salary & bonus system


Vision, Values & Financial Goals 2011-‐14

Initiatives

Strategic Themes / Objectives

Mission / Goals

Values / Beh Stds

Vision

Alignment of individual goals

Team Mobilisation

Vision To be Australia’s leading Dairy Company

Values Excellence; Working together; Contribueon by all; Our reputaeon; Honesty & Integrity; Innovaeon

Goals -‐ Improved financial performance Target ~2.5% improvement in gross profit margins & ~ 2.5% improvement in EBIT margins F10 to F14.


Key Strategic Planning Principles

–  To get to market sooner we can improvise and accept higher cost – but not for long.

–  InnovaGon into higher margin products must generate margins that cover the cost of complexity in manufacturing.

–  The best strategies well executed will deliver us the best customers. We should be able to name the customers we want.

–  The best strategies begin with the end in mind.

–  Therefore, our strategic plans should be modeled to determine whether they deliver us what we want.


Three Levels of Planning

Mission& Goals

Strategic themes & objectives

Initiatives & projects

1.   High level business strategic objecGves: ü  Specific, aspiraGonal, give clarity of direceon ü  Top line financial measure of performance ü  Measurable & easily communicated

2.   FuncGonal business plans; 1 x each GM ü  Headed by an objeceve statement for the funceon ü  Contains the aceons & operaeonal plans that support

business objeceves ü  These aceons are supported by the business plans of

reporeng managers – cascading effect

3.   Business improvement iniGaGves & strategic projects list ü  Projects that link directly into strategy execuGon ü  Not operaeonal or conenuous improvement type inieaeves,

these are important but belong in business plans ü  Generally significant in size, require cross funcGonal

resources to achieve & are transformaGonal in nature


Business Plan CFO 2012 – other GMs same format

FuncGonal Business Plan -‐ CFO KPIs

CFO Corporate Inieaeves

CFO KPIs

2012 Aceon Plans

Stability & Predictability 1 2

Incremental Change/Conenuous Improvement 1 2

Transformaeonal Change ‘Projects’ -‐ Flow from ‘Strategic inieaeves’


Barston Consuleng Review – April 2011 Challenges in Delivering the ICT Strategy Possible ResoluGon Leadership •  Execueve view on ICT Strategy fit •  Free up SMEs for ICT projects

•  Communicaeon, involvement & sponsorship

Roadmap •  Develop an agreed ICT “To Be” picture, •  Guidelines for Steering Commi5ee use to approve WCB-‐wide ICT projects

•  Agree the ICT “To Be” picture •  Confirm the technology and standards in “To Be”

IT OrganisaGon Need aceve ICT funceon to support Steering Commi5ee

•  Review current roles, capabiliees and accountabiliees & ownership

Current ICT Environment •  Too many un-‐integrated “best of breed” systems

•  Focus on JDE & integraeon


BIS Strategy – 2011 onward


To Be – Focus for future BIS Projects The agreed focus on future BIS projects is:

•  Increased use of JDE Enterprise One for Supply Chain

•  Enhance and integrate (where appropriate) “best of breed” solueons

•  Conenue development of BI (in TM1 and Calumo)

•  Invest in Oracle Fusion middleware to integrate as required

•  Limit investment in “new” applicaeons (non JDE/Oracle)

•  Maintain and develop exiseng “stand alone” applicaeons (e.g. MEX, CHRIS21)


BIS Strategic Projects & Inieaeves Strategic AcGviGes Stability/

Predictability Incremental Change

TransformaGonal Change (People, Processes & Systems)

Named Items

Higher Margin Products – move up the Value Chain

Enhanced Inventory Management ** -‐ Produceon & Inventory Tracking -‐ LIMS/E1 Integraeon

Sungold Range & Capacity Expansion

Sales & Distribueon Management -‐  Bulk Order Taking (CSS) -‐  Contra Billing -‐  Electronic Invoicing

Milk Intake/Supply Milk Management System, Milk Tracking System & Plant Informaeon System (all intertwined)

** Linking E1, LIMS, 3PLs & BSM


Enhanced Inventory Management Applicaeons

Oracle Fusion Middleware OSB

JD Edwards Manufacturing Inventory Sales Procurement Quality

LIMS Laboratory Test Results

Paperless Warehousing

WHM Scanning Inventory Sales Quality

BSM Transporta7on Containerisa7on Inventory

MPS/MRP & Scheduling

Manufacturing Batching Lots

Excel & Make Sheet

Planning Scheduling Repor7ng


Possible BIS Goals for Enhanced Inventory Mgt BIS Funceon Goals Support the Powders Strategy 2011/14 through: •  Facilitaeng Fusion Middleware understanding / knowledge •  Enabling Fusion Middleware skills development in-‐house •  Building & having approved the business case BIS -‐ Technology Goals •  Develop Fusion Middleware skills in-‐house •  Review E1 & other Applicaeon Security requirements arising from EIMS BIS – People & Process •  Develop procedures & implement to integrate Supply Chain apps •  Integrate JDE E1 #PL Warehousing & LIMS


Sungold Strategic Inieaeve – BIS Impacts


Sales & Distribueon Mgt – Solueon Matrix


Schemaec of preferred opeon – Sungold/BIS


Resuleng BIS Goals for Sales & Distribueon Mgt BIS Funceon Goals Support the Sungold Range & Capacity Expansion Strategies 2011/14 through: •  Providing Customer Self Service (CSS) knowledge •  Developing CSS skills in-‐house by end Apr 2012 •  Business case / CER development & approval BIS -‐ Technology Goals •  Develop CSS/EDI skills in-‐house •  Review E1 & other Applicaeon Security BIS – People & Process •  Develop procedures & implement to integrate with JDE E1

-‐  Order taking/confirmaeon processes -‐  Contra processing -‐  Email invoicing Customer Self Service


BIS Approach to Goals •  All of the above needs to be in the context of value •  Delivering the value is the reason for doing the project Jed Simms (from Totally Opemized Projects*) noted in a recent “post” •  In the eme – cost -‐ scope “iron triangle”, scope is most usually sacrificed •  The project then runs to eme & cost but business outcomes suffer •  The missing dimension – value – is compromised •  This doesn’t make sense, we all do projects to derive value (benefits) We aim to avoid compromise & “go for value” in line with WCB strategy. (* see www.totallyopemizedprojects.com for more)


Questions……


Australian Dairy Stats

Table from ‘Australian Dairy Industry In Focus 2010’, Dairy Australia

JDE & Peoplesoft 2 _ Ian Spencer _ JDE EnterpriseOne as the focus of WCB's ICT Plan.pdf

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Transcript of JDE & Peoplesoft 2 _ Ian Spencer _ JDE EnterpriseOne as the focus of WCB's ICT Plan.pdf