Case study… a real project !

Société Internationale de distribution de produits aluminium

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 Global overview
The Société Internationale de Distribution de Produits Aluminium (SIDPA) is in charge of the distribution of the parent
company's products.

SIDPA is the wholly-owned subsidiary of a major international industrial group. In the following text head (mother)
company will be named Alluminor.

Alluminor has 100 000 employees.

SIDPA is a subsidiary (100%) of this major company which manufactures basic aluminium products used by
automobile sector, aeronautic and other major industrial companies.

SIDPA and its parent company (Alluminor) has been undergoing major restructuring for several years. Today, it has
returned to profit at the cost of a drastic reduction in its workforce.

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 SIDPA Id Card

• SIDPA is a company with 1500 employees. It has seven subsidiaries, mainly in Europe and one over US area.

•These subsidiaries have been bought out recently by the head company (Alluminor) and the head office has decided
that French subsidiary will have the operational management of this set of subsidiaries but not the formal control.

•Each subsidiary is legally dependant on Alluminor. It’s only the operational control which is delegated to SIDPA France
through Mr Tobiac.

•. 75% of revenue provides from EU area.

•Among these subsidiaries, the most important is the German subsidiary with a very high profitability and an annual
sales equivalent to french subsidiary.

•Each subsidiary has its own resources, and the consolidation of the new entity is essentially carried out from a financial
point of view. The market in which SIDPA operates is a very competitive sector and margins are low.

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 Holding overview

Alluminor

Sipda

Sipda France German company Us company Italian company Spanish company Italian company ……

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 The top management
• SIPDA is now managed by Mr Tobiac (62 years old) ex top manager of head company. He has spent a large part of his

career abroad (mainly in the US).

• The different subsidiaires are managed by the historic CEO.

• The "staff" of each subsidiary is reduced. The managers are mainly sales staff.

• Each subsidiary has its own organisation.

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Common structure of each subsidiary

CEO

Financial and
Human
accounting
ressources
Management

Process and
Operationnal Commercial
methode
management management
management
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 Case study overview
Framework
▪ A few monthes after his nomination, Mr Tobaic decides to unify the differents processes which are rolled out by
each subsidiary.
▪ His idea is to create an unified industrial group, where every countries use the same processes. After that, his
idea is to create a common information system afterwards a centralization of transversal functions is plannified
(out of scope for this project).
▪ He entrusts the Canadian consultancy company Industrial Software Product (ISP) with the development of the
project.

▪ SIPDA’s responsible for this project is Mr. Berg (DSIO)* whith a light team (4 people) who are just recruited.
▪ Budget : 1 million Euros
▪ The project must be finished in 18 months
▪ *Mr. Berg in charge (for France) of organization, process management and Information systems

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 Who are you ?

➢ You are SIPDA’s project team

➢ Project’s sponsor is Mr Tobiac

➢ You work under Mr Berg’s responsability

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 Some informations from … Mr Tobiac

A few notes written by Mr Berg during a meeting with Mr Tobiac

✓ I want harmonizing the practices between the differents subsidiaries

✓ First successes have to be obtained in less than one year
✓ Top management of each subsidiary are agreed to this project
✓ ISP is very efficient and when i was in US, working with them was very pleasant
✓ With your team you must be an intermediate between subsidiaries and ISP
✓ Be carefull ! Subsidiaries must keep a strong autonomy and keep the responsibility to their objectives in term of
profitability
✓ Project will be profitable because I expect from this project : productivity profits between 10 and 15 % due to a decrease
of personnal staff and a dramatically stock diminution.

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 Main processes
✓ Purchasing
✓ Customer management
✓ Logistic
✓ Billing
✓ Stock management
✓ Engineering (Customization according to customer request)
✓ Financial management
✓ Human ressources management

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Common structure of each subsidiary

CEO

Financial and accounting Managemen

Human ressources
Accounting, Billing
Human ressources management
Information systems management

Operationnal management
Purchasing
Commercial management
Process and method management Logistic
Customer relationship
Definition and process reenginering Stock management
management
Engineering (Customization according to customer
request

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 ISP
➢ Industrial Software Product
• Young company (10 years old)

• Consultancy company specialized in processes modelling and information systems

especially on industrial processes

• Canadian company with essentially US clients

• 300 employees

• High performance in term of revenue increase and profitability

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 Your final work
• Prepare a communication to the « SIPDA executive board » about your project
management plan including :
1) Project stakes
2) Project objectives
3) Final deliveries and associated metrics (performance)
4) Strategy
5) Risks analysis
6) Planning
7) Communication plan
8) Supplier management plan
9) Project organization

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 Details (not an exhaustive list!)
1. Project’s stakes
➢ Could you explain :
➢ Why this project is important and a priority for SIPDA ?
➢ How we’ll know if this project is a sucess ?

2. Project’s objectives
Could you define :
Project’s perimeter
➢ Who… is impacted or involved ?
➢ When … the project in planned to be ended ?
➢ What … are the main waited functionnalities?
➢ Where … the project must be rolled out ?

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3. Final deliveries:
➢ Main final deliveries
➢ Main metrics associated to each delivery (level of performance)
➢ A first PBS (product breakdown structure) : breakdown your final product(system) into different sub product (different families of
deliveries) and identify the associated deliveries
➢ WBS (Work breakdown structure) : reusing your PBS defin your WBS with the deliveries associated to each branch
➢ OBS (Organization breakdown structure) : Within SIPDA which entities and may be countriers are able to take the responsability for
each branch of the WBS ?

4. Strategy:
➢ Complexity analysis
➢ Agile methode or V methodology

5. Risks analysis
➢ Major risks
➢ Do a feasibility check-up
➢ Technique
➢ Organizational
➢ Operational
➢ Cultural
➢ Probability and impact of each one
➢ Please don’t work on effects but root causes
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 6. Planning
➢ Activities
➢ Ressources
➢ Link between activities
➢ Time schedule
➢ Time and budget contingencies

7. Communication plan
➢ Making decision comittees and meetings
➢ Formal and informal channel of communication
➢ Defining communication channel with :
➢ Stakeholder
➢ Team
➢ Who (request some information on your project ?)
➢ What type of information ?
➢ When ?
➢ Channel to transmit this information ?
➢ By whom (who has the duty to transmit theses informations ?)

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 8.Supplier/Stakeholder management plan
➢ How to communicate with stakeholder (Clients, sponsor, …) around the provision notion ?
➢ Document: Stakeholder Registry
➢ Identification, Info on expectations/requirements/influence, position
➢ E.g.: The customer, the PM, the project team, the staff representation.

Essential to know the

position and
the real motivations of each stakeholder !

9.Project organization
➢ Specific meetings
➢ Project follow up
➢ Change management
➢ Reporting

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