TOYOTA MATERIAL HANDLING EUROPE PRESENTED BY ULF LUNDIN ON BEHALF OF JOACHIM MAGNUSSON.

TOYOTA MATERIAL HANDLING EUROPE

PRESENTED BY ULF LUNDINON BEHALF OF

JOACHIM MAGNUSSON


The TOYOTA Way

• Core Values– Challenge– Genchi Genbutsu (getting to the source)– Kaizen (continuous improvement)– Respect– Teamwork


The TOYOTA Mission

• To be the first choice partner for all customers looking for materials handling solutions and to be widely recognised for our innovative products and services as well as our respect for society.

To build trust and confidence with customers by delivering outstanding quality products and services which add real value to their businesses.

To respect the expectations and ambitions of employees, stakeholders and suppliers through a never ending search to improve


About TOYOTA -TMHE• We are the worlds largest manufacturer of Materials Handling

Equipment ( Fork Lift Trucks) and manufacture in Sweden, Italy and France.

• We cover sales, service, leasing, training +++• We Run Movex 9.7 and M3 7.1 on System i 570 at V6.1 • We have a hot standby replicated using Vision software• The usual Connective Systems (MEC, STREAMSERVE etc.) • We intend to move to SAN as we upgrade to V7.1 of the

operating system and we will also move to M3 10.1. • We had been outsourced• We are now SMARTsourced!


TMHE Starting Position

• Outsourced – Application and Hardware – hosted and managed by a major provider

• …So we have experience and know how this all works

– Zero flexibility – a very tight contract– Difficulty in managing change in the IT delivery in order to meet the

demands and needs of the TMHE business– High, Very high, Cost– Lack of confidence in Application skill sets

• We ran a separate Application Support policy with another specialist vendor

• Contract was due for renewal!


What we wanted to achieve

Helpdesk


How do we keep to the core values– A Taskforce group was established

– Analyse what we do and don’t like about Now - Create RFI/RFP

– New partner MUST meet main objectives • reduced cost – at least 25% saving• increased FLEXIBILITY in the Service delivery area• FLEXIBLE and TRANSPARENT price structure • REAL KNOWLEDGE about TMHE’s processes, infrastructure, ERP standards and integrations ( Know M3!)• Work TOGETHER with TMHE • Acknowledge that TMHE needs control • Innovation and continual improvement• A stable and competent partner

- Our Core Values

CHALLENGE

GENCHI GENBUTSUTEAMWORKRESPECTKAIZEN


How did we do it?RESPECT – we scored the potential vendors fairly

ID RFP - CriteriaWeight factor

Supplier A

Supplier B

Supplier C

Supplier D

Supplier E

1 Scope scenarios 52 Service Level Agreement 63 Follow up on KPIs 2,54 Financial terms and conditions 2,55 Management 2,56 Technical requirements 67 Business Continuity and Disaster Recovery 68 Security 2,59 Human Resources and technical competences 6

10 Company 2,511 Quality Assurance 1012 Transition project 2,513 Prices 4014 Presentation 615 Transition-in 2016 Risks 30

Totals 0 0 0 0 0


Sourcing Solution & Services Agreement TMHE

How did we do it?GENCHI GENBUTSU – we spent time getting to the very core of what we wanted and constructed a good and fair contract

J. Op5 AMP & SMP Terms

Schedule X10I. ExoSeries Services Terms

H. Roles & Governance

Schedule X10G. Configuration Items

F. Charges

E. Service Levels

D. Responsibility Matrix

C. Continuity Service

A. Technical System Services

B. Technical Appl. Services

MasterThe Master Agreement


Sourcing Solution & Services Agreement TMHE

5. Service OperationsThe Master Agreement

The Master Agreement explains important terms and conditions agreed upon.

Fore details, see next slide..


Sourcing Solution & Services Agreement TMHE4. Background and Executive summary

5. Service Operations

The Master Agreement

4. Background & Executive summary

The Company has a requirement to provide support to their internal organisation making sure that the IT support they provide meets with the TOYOTA business requirements.For many years, the Company has elected to use external providers to manage various aspects of the IT operation of their systems. In particular, the Company has used external resources to manage aspects of their main business system applications – the main platform IBM System i, the Movex 9.7 application, the M3 application and the associated peripheral systems. Since May 2010, the external operation of these systems has been placed into the hands of existing, significant and long serving providers to TMHE – the Service Providers iStone in partnership with Essist the Service Providers.The Service Providers mission is designed to cover three main phases:

PHASE 1 - Transition out: PHASE 2 - On-going SupportPHASE 3 - Transition back

As of the Effective Date, the Parties confirm that phase 1 (Transition out) has been completed and fulfilled and approved by the Company. When considering the creation of this Master Agreement, the Service Providers took careful consideration of the TOYOTA core values – Challenge, Kaizen, Genchi, Genbutsu, Respect and Teamwork and as a result, the Parties have matched these to its own core values as well as Code of Conduct, and accommodated any differences to effect a material connection in the flow of the connection between the Company and the Service Providers.As a result, the Parties feel that the Sourcing Solution in the Master Agreement can deliver Services to the Company that is particularly flexible, adaptive, responsive, respectful, fair and capable of continually improving over time.The Parties have also taken time to consider that circumstances will change over time and a fundamental part of the flexibility of this Master Agreement is in the transparency of the pricing, the capability to accept change on either a temporary or permanent basis, or the in-built, pre-agreed charging mechanism that removes any restriction to just getting the job done.Clearly there is a need to go into some detail when embarking on an agreement of this type and this is duly covered in the Master Agreement but the Service Providers will strive always to look at change and improvement of the Services with an open mind and pragmatic approach.


Description of activities – System operations – Daily operationsResponsibility

ExceptionsEssist CUST

111 Monitor for alerts 24x7: -Hardware error logs. -System Software. -Network Connectivity. -System Log Files. -System processes. -Database alerts using file space thresholds (increments)-Application alerts

O

112 Log alerts during monitoring window using incident and problem management procedures. O

113 Assign problems to the next escalation level as required. O114 Perform first level problem determination and fix where possible

following documented procedures. O

115 Escalation of major incidents outside of normal working hours. O

Not project specific workload

116 Issue and reset expired system passwords according to approved security procedures. O

117 Document application procedures and alerts that affect operations.O

118 Perform second level problem determination and fix where possible.O

119 Assign problem to third level support as required O120 Management of major incidents and escalation to Helpdesk. O121 Participate in business continuity testing

5. Service Operations

The Master Agreement

Responsibility matrix

Sourcing Solution & Services Agreement TMHEResponsibility matrix


Results– New partner from old– Essist providing Infrastructure skills and 2nd line support– iStone providing Application skills and 2nd line support– Essist and iStone ‘Joined at the hip’ with Essist Remote

Monitoring and 1st line Helpdesk – Pune– IBM and Lawson providing 3rd line– Transition-in plan (including recovering H/W to Mjölby) was

faultless!– Some issues with Essist integration in early days, now resolved– Took too long to get the contract straight but the result is very flexible and fair to both parties– Transition-Out plan was a very nice touch– Not Locked In. Continual Improvement plan (KAIZEN)


Closed

What are the benefits– Flexibility - Capabilities and Resources

• The ability to scale up AND scale down at very short• Add or drop new services on-demand

– Quality in Services• At Last! We have Application aware 1st line support• Triage at 1st line is excellent (See Chart)• System and Network support by specialists• Application support by different specialists• Integration and connected system specialists

– Availability• 24 x 7 x 365

– Control• TOYOTA is in control• Internal controls with Essist and iStone coordinated through dedicated Service Manager

– Savings• Service is inexpensive but definitely NOT cheap• Achieved cost savings objective … and some!

– Development• Forward plans and strategy incorporate the Service because it is so integrated into TOYOTA and ‘Aligning the IT with the business requirements

Assigned


What are the recommendations– Look around.

• It is not always the big boys that have all the answers– Tailor what YOU want, not what the vendor has to offer

• It is a competitive market out there and some new services are emerging– Don’t lock yourself in to long deals

• Flexibility, Flexibility, Flexibility• The vendor must earn the right to be your partner, not just expect it because of a rigid, long term contract

– Application, Application, Application… • (many know the systems but fewer know the application)

– Don't miss your integration and connected systems• Often more to consider then you aware of…

– There is no management without processes and measurement• Use a framework - CoBit, ITIL• Regular meetings and defined responsibilities. • Invest in your Service Manager role


Q&A


The ‘Quote’ from Magnusson"The question I am asked most is;

'Why the Essist model and not the IBM, Logica or Lawson model?' Although there many good reasons, the one that stands out mostis that the Essist model allows them to become part of my team, a team that I control and I can include in the wider Toyota IS IT strategic direction. Too many other options simply take away that control and with it theflexibility that the IT department needs in order to meet with the everchanging business requirements.“

Joachim Magnusson

IT Manager

TOYOTA MATERIAL HANDLING EUROPE PRESENTED BY ULF LUNDIN ON BEHALF OF JOACHIM MAGNUSSON.

Documents

Transcript of TOYOTA MATERIAL HANDLING EUROPE PRESENTED BY ULF LUNDIN ON BEHALF OF JOACHIM MAGNUSSON.