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
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