Mike & Jerry’s Ice Cream Corp ERP Implementation

by the Ben Team(Team Members: Randy Knebel, Lenart Collier, William Alex)

CIS 521Professor AnvariJune 9, 2007

Company Introduction

• Mike & Jerry’s Ice Cream Corp started as a small company with a few stores.

• The company grew as their product line and the popularly of the product grew.

• The company could no longer keep up with the demand using a single store model.

• The company incorporated and set up two Operation centers.

• The West Coast center is located in San Francisco, CA and serves as the headquarters.

• The East Coast center is located in Charlotte, NC.

Mission Statement

• We are in the business of manufacturing and selling to retail stores high-quality gourmet ice cream, to include international retail. We value the quality of our products and the relationships with our customers. We consider our employees to be the most critical resource.

Current Problems

• The Two Operation Centers work autonomously with minimal interaction with each other due to the geographical separation.

• The company culture contributes to several inefficiencies to include: • The information gathered at each Operation Center is

not effectively shared with the other Operation Center• Duplication of Effort• Investment in Duplicate Information

Systems/Technology• Maintenance of Dual Information Systems/Technology

Current Problems

• Each Operation Center has implemented their own business processes resulting in inconsistencies.

• The company is faced with the challenge of not being to able to integrate the business activities of the two Operation Centers.

• The solution should enable the company to optimize its resources.

Business CaseMeasurable Organizational Value (MOV):

Define Feasibility and Assess Risk: • Feasibility:

• Based on Resources • Based on available Budget

• Risk:• The system does not work• The system is not accepted by the stakeholders

of the organization

Business CaseMOV:

Desired area of impact - • Strategic; penetration of new markets, increased

market share

• Customer; customers have more choices of better products transaction processes are more efficient or effective

• Financial; increased profit, increased margins

• Operational; lower costs, increased operational effectiveness, improvements to supply chain

Business CaseMeasurable Organizational Value (MOV):

• Desired value of the project –• Better; to improve the quality of communication and the

effectiveness of communicating the weekly, monthly, quarterly and yearly results up the management chain through the implementation of an ERP system.

• Do more; to expand market share nationally and create new markets globally.

• Faster; improve efficiency and reduce cycle times through streamlining the supply chain processes.

• Cheaper; reduce costs across the board to improve the profit margin.

MOV Specific Metric

• Reduce Supply waiting times by 10%.• Reduce Supply management costs by 25%.• Reduce Management meetings by 15%.• Obtain a new customer base globally of 1 million.• Increase the profit margin by 9%.• Increase Stockholder's equity by 7.5%.

Summarized MOV Timetable

MOV

Measurement

Year 1

Year 2

Year 3

Year 4

Year 5

Total

Customer Base* +10% +10% +10% +10% +10% 50%

Return on Investment

+5% +15% +20% +25% +25% 90%

* Includes both nationally and globally located customers.

• Schedule for Increasing Customer Base.

• Schedule to Recouping cost of the ERP System.

ERP Implementation:

• Project Preparation

• Business Blueprint

• Realization

• Final Preparation

• Go Live & Support

• Continuous Improvement

Implementation Plan

ERP Implementation:

• Project Preparation

• Sizing and Blueprinting

• Functional Development

• Final Preparation

• Go Live & Support

Purpose of Implementation Plan

• Crafting a Solution Vision

• Develop a Project Plan

ERP Implementation:Project Preparation

1. Justify Cost of Investment (MOV)

2. Address Current Legacy Systems: Up Grade, Consolidate, Decommission

3. Identify New Technology Solutions:• ERP System• Data Warehouse • Decision Support System (DSS) • Executive Information System (EIS)

4. Evaluate New IT Solutions at an Enterprise level perspective using SAP Stack Vendors

ERP Implementation:Sizing and Blueprinting

Current System (As-Is)

• Utilizing Obsolete Systems.

• Functional Areas are located in Different Geographical Regions.

• Functional Areas are utilizing different Applications specific to their specific organization.

Current System (As-Is)

Functional Area

West Coast East Coast

Manufacturing In-house package Same In-house Package (Different version)

Sales CORESense Multi-Channel Retail Software

CORESense Multi-Channel Retail Software

Marketing InterlinkONE InterlinkONE

Shipping In-house package Same In-house Package (Different version)

Receiving In-house package Same In-house Package (Different version)

Purchasing Aestiva Procurement Aestiva Procurement

• Non-Uniform Systems in the Enterprise

Human ResourcesUltiPro’s

Research andDevelopment

In-House ManufacturingIn-House Sales

CORESenseMulti-Channel Retail

Software

MarketingInterlinkONE

ShippingIn-House

ReceivingIn-House

PurchasingAestiva

Procurement

West CoastEnterprise

ManufacturingIn-House

SalesCORESense

Multi-Channel RetailSoftware

MarketingInterlinkONE

ShippingIn-House

ReceivingIn-House

PurchasingAestiva

Procurement

East CoastEnterprise

Current Software Enterprise

Current System (As-Is)

Enterprise Resource Planning (ERP) System (System Perspective)

ERP System

Datawarehouse

MarketingInformation

Systems

Research andDevelopment

HumanResource

POSSystemStore #1

POS SystemStore #3

Manufacturing

POS SystemStore #2

Retail Stores Point of Sale(POS) Systems

Executive Information

Systems (EIS)

Decision Support

System (DSS)

Operation/Transaction Databases

R & D Database

Personnel Database

Production Database

Purchasing & Procurement

Database

POS Database

Operation/Transaction Systems

Financial

R&DDatamart

HRDatamart

Manufacturing/FinancialDatamart

FinancialDatamart

Transition

To-BeEnterprise Resource Planning (ERP) System (System Perspective)

ERP System

Datawarehouse

MarketingInformation

Systems

Research andDevelopment

HumanResource

POSSystemStore #1

POS SystemStore #3

Manufacturing

POS SystemStore #2

Retail Stores Point of Sale(POS) Systems

Executive Information

Systems (EIS)

Decision Support

System (DSS)

Transaction Data

R & D Data

Personnel Data

Production Data

Purchasing & Procurement

Data

POS Data

Operation/Transaction Systems

Financial

R&DDatamart

HRDatamart

Manufacturing/FinancialDatamart

FinancialDatamart

Criterion Weight Company Aagility with new Market needs 4%

Future Proof Decision migration of current data 20%longevity of company 8%upgrade paths available 7%

Elimination of implementation high in strategic value 7%Guesswork fast implementation 4%

roadmap 5%Tailor-Made Business Fit system settings 3%

tools to customize the system 4%advanced tools 2%portals 2%field consulting 6%

Community Collaboration national helpline 6%(minimum requirements) installation/upgrade support 6%

software consulting services 6%

Exclusive services offered remote consulting 3%client list server and data access 2%on-call web conferencing 2% user supportweb-based training and 3% solution web seminars

Total Score 100%

Identify New Technology Solutions:Selection Criteria for ERP System/Company

ERP Implementation:Functional Development

• Use a Top Down Approach.

• View all Aspects of the Organization.

• Conducted Joint Application Design (JAD) Sessions to seek Feedback from all Stakeholders.

• Restructured Organization Chart of the Company

• Developed Comprehensive Testing Procedures for the ERP System that is being Implemented.

Headquarters CEO

R & DAccounting

Financing

HumanResources

West Coast VP

East Coast VP

manufacturing

sales

marketing

shipping

receiving

purchasing

IT

manufacturing

sales

marketing

shipping

receiving

purchasing

Charlotte, North Carolina

San Francisco, California

Main FacilitySecond Facility

IT

Original Organization Chart

Headquarters CEO

R & D

Accounting

Financing

HumanResources

West Coast VP

East Coast VP

manufacturing

sales

marketing

shipping

receiving

purchasing

IT

manufacturing

sales

marketing

shipping

receiving

purchasing

IT

Charlotte, North Carolina

San Francisco, California

Main FacilitySecond Facility

CIO

ISManager

Restructured OrganizationChart

ERP Implementation:Final Preparation

Develop Deployment Plan:• Upgrade Legacy Systems.

• Consolidate Duplicate Legacy Systems.

• Decommission Obsolete Legacy Systems.

• Implement New Systems.

• Integration of New Systems into ERP System.

• Integration of Legacy Systems into ERP System.

ERP Implementation:Go Live & Support

• Implement ERP System using the Deployment Plan as the Roadmap.

• Ongoing Maintenance to ensure system is optimized.

• Assess Performance of the ERP system on an ongoing basis to determine if the system is fulfilling the expectations of the MOV.

Justification and Benefits to the Organization

• ERP• Combine all company data into a central

location. • Backup systems to protect data and

processing.• Provide collaboration, training, scalability,

and integrity.

Justification and Benefits to the Organization

• Data Warehouse• Provide a history of the company’s data and

information. • Internal and external data will be collected

• product sales and the stock market, weather and other conditions

• Data marts will provide the needed information to groups.

• User tools will be provided with training classes.

Justification and Benefits to the Organization

• Data Mining tools • Customer retention:

• To identify customer characteristics

• Direct marketing: • To identify the best way to use a mailing list

• Trend Analysis: • Investigating the difference between average

purchases over month, years

Justification and Benefits to the Organization

• Executive Information System (EIS) • Used by management to get a quick and

top level overview of the company.• Supports graphic tools that can be used to

generate presentations and reports. • Allows the managers to communicate with

others.

Conclusion

• Questions