March 18-21, 2013New Orleans

#conv13

Manufacturing solutions for Microsoft Dynamics® AX 2012: implementation successes & lessons learned

Rudy Dillenseger | Solutions Architect | Microsoft ServicesJohn Birch | Chief Information Officer | Hastings DeeringGustavo Mattedi | IT Director | Hunter DouglasMike Kavanagh | IT Director | Dell

CSAX30

Session objectives: sharing experienceHow to have a successful implementation of Microsoft Dynamics AXMinimum requirements for a project.The solution: Microsoft Dynamics AX.Sure Step.

Hastings Deering | Dell | Hunter Douglas experience: Why they made the decision to run their business on Microsoft Dynamics AX.Business and technical challenges they were looking to solve.Project management and lessons learned.Benefits of Microsoft Dynamics AX.

How to implement ERP successfullyThe minimum requirement for a project:Executive management commitmentSufficient budgetingMinimize modificationsExperienced project management and teamChange management and training

Manage the retail offer

Evolving and emerging business models

Understand and connect to customers

Increasing employee productivity

Process EcosystemPeople

Social and environmental responsibility

Improve supplier collaboration

Globalization and expansion

Business challenges

Microsoft Dynamics AX Deliver more value faster with a single, powerful solution:• Gain value quickly with purpose-built industry and operational capabilities in a single solution.• Scale your organization quickly with a single global solution.• Gain immediate insight and unlock greater productivity with a Role Tailored user experience.

Increase opportunities and reduce risk with an agile solution:• Plan, visualize, and change your business by using unified natural models.• Support your business today and tomorrow with flexible deployment alternatives (centralized,

decentralized, or two-tier).• Differentiate your business easily with model-driven layered architecture.

Drive user involvement and innovation with an easy-to-use solution:• Drive user adoption with a solution that is familiar and simple to use.• Connect employees, customers, suppliers, and partners easily through integrated collaboration

capabilities.• Streamline IT processes by simplifying management of your ERP solution at every stage of the life cycle.

Powerful

Agile

Simple

Two-tier strategy

Goals Missed:• Hard to meet all

requirements.• Difficult and costly to

modify.• Expensive skillsets.

Goals Achieved:• Enterprise-wide financial

visibility.• Consolidated reporting.• Unit-to-unit comparisons.

Goals Achieved:• Tuned for small entities.• Local Business/IT

alignment.• Support local business

processes.

Goals Missed:• No global view of operations.• No standardization, many

local apps.• Maintainability and TCO.

Microsoft Dynamics AX to meet needs for all units:• Agility and innovation support.• Insight, alignment with unit practices and rhythms.• Standardize business process and competencies.• High adoption, global presence.

Connect to Microsoft Dynamics AX & capitalize on investment:

• Consistency.• Unit-to-unit comparability.• Consolidated reporting.• Enterprise-wide visibility.

Divisional Operations ERP

Divisional Operations ERP

Subsidiary Operations ERP

Subsidiary Operations ERP

Administrative ERP Corporate HQ

Operational ERP

Administrative ERP

End-to-end solution for Manufacturing

Product Design - BOMs, Formulation and Configuration, Supplier Relationship Management – Global and Multi-Currency

Manufacturing/ Supply Chain Management – Quality, Costs, Skills Logistics Financial Management – Business Intelligence

Order Management – Customer Relationship Management

Supply Chain Demand Chain

Suppliers Customers

ManufactureProcure Deliver

Plan Supply Distribute SellManufacture

Product Data Management

Supply Chain Planning

Sales Order Management

Manufacturing OperationsManagement

Logistics

Microsoft Operations Solution for

Manufacturing

Process

Lean

Discrete

ComposableCollaborative

Mix-mode production

Microsoft Sure StepMethodology for successful implementation

End-to-end services offerings

Mitigate risks

Improve consistencyand predictability

Increase agilityMicrosoft Dynamics sure step

Diagnostic Deployment OperationAnalysis Design Development

Role guidance

Businessprocess maps

Project plan and WBS

Environment specification

ROI business case

Scalable workflows

Solution envisioning

Decision accelerat

oroffering

Solution optimization Optimization offering

Solution del ivery Implementation offering Upgrade offering

Solution support

Microsoft premierofferings

What is included in Sure Step?

Contains guidance, tools, templates, and recommended practices for Microsoft Dynamics implementations.

Provides supplemental functional guidance:• Project management

library.• Organizational change

management library.

Includes lifecycle phase-specific offerings:• Decision accelerators.• Implementation and

upgrade.• Optimization.

Identifies the roles involved in each activity:• Consultant roles.• Customer roles.

Project types: limit risk

Waterfall methodology

Waterfall methodology

Enterprise• For complex single-site deployments.• For global or multi-site organizations where unique country/site-specific needs must be factored on top of a core

solution.Waterfall methodology

Agilemethodology

Waterfall methodology

Standard• Lean approach.• For implementation at a single site.• Medium to large number of users.

Rapid• Accelerated approach.• For implementation with minimal or no customizations.

Agile• For a single site.• Involves specific features and moderate to complex customizations.• Small to medium number of users.

Upgrade• Technical approach for moving from existing to a subsequent release of Microsoft Dynamics.• For projects ranging from simple to very complex.

Waterfall implementation and upgrade

Technology

Organization

Solution

Diagnostic

Transition to support

Operation

Production environment

UAT

User training

Deployment

Environment specification

Data migration requirements

Fit gap analysis

Process and functional requirements

Training plan

Baseline project plan

Analysis

Integration and interface design

Solution design

Technical design

Functional design

Deployment plan

Design

Production specification

Solution testing

UAT scripts

Development

GO LIVE

Staging options

Commonrequirementsacross sites

Uniquerequirementsat each site

Core build

Site 1 build Site 1 rollout

Site 2 build Site 2 rollout

Multiple site builds Multiple site rollouts

Site 1 build and rollout

Site 2 build and rollout

Multiple site builds and rollouts

Sime Darby Industrial & Hastings Deering AustraliaJohn Birch | Chief Information Officer

Sime Darby International

Risk Averse

Reputation OperationalExcellence

5th Largest CAT DealerExtreme Growth

10 CountriesNew CaledoniaSolomonsAustralia

Largest CAT “device” for mining

Vision, imperatives and valuesOur vision: To be the leading provider of Cat and aligned solutions.

Our imperatives:Safety and sustainability: no harm to our people and minimize environmental impact.Customer Driven: A trusted partner and preferred supplier.People: Attract and invest in the best people - develop for the future.Business Transformation Program: Simplify our business processes supported by the new ERP system.EUCS: Grow service and parts business.

Our values:No harm.Integrity.Transparency.Care.

“In short, our strategy is simple: make our workplaces safer, make it easier for our customers to do business with us, streamline our systems and processes to deliver improved operational efficiencies, grow our newly acquired EUCS business and deliver our people development strategies.” Dean Mehmet, HDAL COO

Project approachSure Step MethodologyProven process.Incorporates guidance from Microsoft’s implementations experiences worldwide.

Maximise Base ProductLook to use “as is” solution.Reduces project risk.Minimising customisations will reduce the upgrade complexity.

Global Template DeploymentValidated and deployed by dealer.Driving uniformity of process.Allows flexibility where necessary.

Strong focus on delivery datesManagement of scope will be very important.

SDI’s enterprise architecture - business study • Defined key Information that needed to be captured to describe the

organization (Our Enterprise Architecture).• Processes.• Applications.• Actors.

• Immerse your team immediately into the solution as basis for requirements gathering and requirements validation.

• Incorporates repetition as basis for learning strategy.• Restructures more traditional implementation methodologies.• Bridges the communication gap between solution specific language

and industry language.

• A repository for architecture artefacts (Information Gathered).• Well defined, structured relationships to assist decision making.• Enables the re-use of captured information (Architecture Assets).

Architecture Content Meta Model

Architecture Development Method

Architecture Repository

Process definition

Category

Process Group

Process

APQC – Process classification framework = Industry Best Practices

Physical Process

Physical Process

Physical Process

SDI Business Reference Model

Process definition

Category

Process Group

Process

Physical Process

Physical Process

Physical Process

Process Based Implementation Approach Leveraging Sure Step

• Begin with a foundation of organization Industry- based processes which define business transactions.

• Begin with a “Shell Company” partially configured with industry standard default data.• Begin with a “Personalized” data base on Day 1 of Analysis.

• Immerse your team immediately into the solution as basis for requirements gathering and requirements validation.

• Incorporates repetition as basis for learning strategy.• Restructures more traditional implementation methodologies.• Bridges the communication gap between solution specific language and industry language.

• Enhanced Progress Tracking Metrics:• Begin with the end in mind.• Project Goals and Objectives are quantified and managed throughout the entire project.

• Enhanced Structure for Client Activities.• Always know where you are, what you have completed and what needs to be scheduled.• Focus on Analysis Activities.

Not Starting From Blank

Focus on Building Application Competency

Know Where You Stand at all Times

Project best practicesProcess iterations Thorough testing

• Test Early, Test Often• Windows® Problem Steps

Recorder.• Automated & automatic tests.• Ranorex test engine.

• Building Robust Long Life Tests• Utilizing data sets.• Validation points.• Schedule tests (1,000 per day).

• Reports on Tests• Capturing screen shots.• Emailing alerts to the test team.• Reporting any issues found with

execution.• TFS (Team Foundation Server).

Process

Security

Application

Deployment

DataIntegration

Process

Security

Application

Deployment

DataIntegration

Process

Security

Application

Deployment

DataIntegration

Process

Security

Application

Deployment

DataIntegration

Iteration 1 – Process/Requirements Workshop

Iteration 2 – Initial Setup/Configuration and Initial Documentation of FRD/Gaps

Iteration 3 – Client Hands on Review

Iteration 4 – Update Configuration and FRD/Gaps

Process Flows AX ApplicationClient

ValidationFRD/Gaps

FRD/Gaps

Hunter Douglas

Gustavo Mattedi | IT & Operations Director

Hunter DouglasMaking a big difference at the window

17,000 Employees

Continuous innovation across the company

90 years-young company

Presence in 100 countries

100,000 retail dealers worldwide

162 companies, 67 plants and 95 assembly plant

Leading brands

Architectural Products

Window Coverings

World market leader in window coverings & major manufacturer of architectural products

Hunter Douglas Product Lines

Sheers

BlindsShades

VenitianShutters

Honeycombs

Indianapolis Airport

Redmond City Hall

Shanghai Expo Culture Center

Business pains• 8 Countries running different ERP´s (Hunter Douglas USA runs SAP).• Decentralized IT Infrastructure (Links, Servers, Database and Software).• High cost of IT departments:

• 8 x the same project.• Different languages, cultures and local infrastructure.

• Huge variety of customer defined products: • Materials, Colors and dimensions.• Special formats and type of controls.

• Make-to-order.• 90% of imported components.• Average lead time for raw material in LATAM is 70 days.• Promised delivery time is 3-5 days.

IT Operating Costs

Product Information Management

ComplexSupply Chain

Objectives• 8 Countries running different ERP´s (Hunter Douglas USA runs SAP).• Decentralized IT Infrastructure (Links, Servers, Database and Software).• High cost of IT departments:

• 8 x the same project.• Different languages, cultures and local infrastructure.

• Huge variety of customer defined products: • Materials, Colors and dimensions.• Special formats and type of controls.

• Make-to-order.• 90% of imported components.• Average lead time for raw material in LATAM is 70 days.• Promised delivery time is 3-5 days.

IT Operating Costs

Product Information Management

ComplexSupply Chain

• IT cost reduction (people and Infrastructure).

• Create better synergy and integration between countries.

• Standardize solutions and way of work.

• Countries working together with the same solution.

• All IT and Operations departments in the same direction.

• Replace the home made product configurator.

• Low level of investments in the project (*).

Why Microsoft Dynamics AX?Cost of solution and consultants dependency.User friendly and easy to customize.Microsoft Dynamics CRM and Office integration.Internal IT team are more familiar with Microsoft coding.Low impact for the dealers and production line.Dynamics AX has a very powerful module called "Product Configurator“, that supports all manufacturing needs:Thousands of variations in just one order entry screen.No mistakes, all order are ready to be produced after typing.Dynamic B.O.M. according to the order.All new products can be typed without any system change.

Scope of the project

• Order Entry integrated with Product Configurator.• Cutting optimization system (fabrics, wood and Metals).• MRP.• Field Service.• Pricing System.• ITAX – import control System.• Workflow – Credit, Discounts, Special Products, etc.• Requirements control.• Label wizard.

Microsoft CRM Architects projects and prospects

ASPROVA Production Scheduling System

Qlikview Business Intelligence

Main factors of success

Good reports are so important

A new version will come and you will be in trouble

Especially with high level people

Technical people can be hired

You will need both to be successful

The main problems are hidden in the details

Change Management

Know your company better than you know your ERP

Listen the end users

Change the way you work, not the way the system works

Information is everything

Keep your team and your faith in the project

What’s next?

Rollout (Venezuela, Peru and Panamá)

Third implementation (Argentina – Dynamics AX 2012)

Dynamics CRM for Window Covering

Fourth implementation (Brazil) Find a new job…

Fifth Implementation (Colombia)

2013 2013 2014 2015 2016 2017

Dell

Mike Kavanagh | DirectorDell Product and Supply Chain IT

A look inside DellThe power to do more

47 million PC shipped in 2011

• 65 Customer interactions per second• 5.4 million every day • 2B every year

Deployed Dynamics AX in:• 2 factories in 2011• 4 factories in 2012

Serving customers in 180 countries

34 languages – dell.com

100,000 team members

7 Dell factories

Over 7m units shipped on Dynamics AX

Business challenges• High volume, High variability, 100% CTO.• Each factory different.• Highly flexible.• Highly automated.• Completely optimized around CTO.

• Each factory different.• 95% custom developed apps.• Core ERP hosted on competitors’ platform.• Each unit touched 70+ applications on its path through the factory.• 400-600 physical servers per facility.

• $293M per year IT COGS (6%).• Downtime > 2%.• Incompatible with outsourced supply chain.• Marketing shifting towards standard configs through retail or ships-fast

vs. CTO.

10 Dell Owned Facilities

IT Footprint

The Problem

SolutionsManufacturing Simplification and Lean Transformation:• Re-engineering of end-to-end manufacturing process

based on lean principles.• Global alignment on transformation.

IT Rationalization:• Re-architecture of end-to-end systems based on

simplified processes.• Used Dynamics AX as the cornerstone of our decision

making:• Stand up each factory as an isolated medium sized

business.• Standardize the business process around industry

best practices enabled by AX.• Agree a single, global, business process.

Dell global facilities—Dynamics AX rollout status

EMFP, Łódź100% on

MES

BRH, São Paulo

100% on MES

ICC, Chennai100% on MES

CCC2, CCC4, Xiamen

100% on MES

Factories targeted to be 100% AX transitioned within a quarter of being launched.

APCC, Penang85% on MES

CCC6, Chengdu

Target Launch July 2013

• Manages all factory operations from inbound raw material to outbound finished goods direct to end customer.

• Connects to Dell’s Enterprise applications using open, flexible communication methods thru BizTalk.

• Utilizes the lean, production, inventory, quality & trade AX modules, running through Microsoft Remote Desktop Services.

• Processes 1M transactions per day on Dell PowerEdge Servers and Dell Equalogic storage.

• Implemented in conjunction with Microsoft Consulting Services (MCS) and mcaConnect functional consultants & Dell Services AX development.

• Integrates seamlessly into Dell’s Microsoft SCOM monitoring network.

• Supported through Dell Services and Microsoft Premier Support.

Dell’s Dynamics AX implementation

Chengdu CCC6• Dells largest Manufacturing facility to date - 28 manufacturing lines.• Full Dynamics AX implementation from the start.• Integrating Dynamics AX with the Chinese Customs Work Order management system.• Using AX on Dell Wyse thin cloud client solution for manufacturing clients • Production floor will run on Dell Force 10 Network infrastructure.• Dynamics AX hosted on Dell Compellent storage solution.

BenefitsCost Reduction:• IT COGS $166M $116M by end of 2012.• Retiring 1,935 Servers & 75 Applications.

Performance:• Factory throughput efficiency fully recovered within 2 quarters.• Payback within 6 months.• 50% Reduction in downtime.

Simplification:• 75% reduction in factory IT footprint.• Aligned with our outsourced manufacturing network.• Single, global business process.

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© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.