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Implementation Aspects of SCM

September 27, 2003
Shyam Bhaskar

Implementation Aspects of

SCM Project Impact • SCM implementation is one of the most difficult projects a company undertakes. • If it is implemented right. 2001 Implementation Aspects of . July 15. it can even break a company. it will have a huge savings. • If not. CIO. Quotes from Lee Pender.

’” Jeremy F.Shapiro. obviously a college student. The clerk tells him. but the young man has at least twenty.Massachusetts: “A young man. or you go to Harvard and you can’t count.Successful Implementation Factor T A story is told in Cambridge. A large sign above the counter indicates that it is for customers with 8 items or less. is unloading his purchases at a super market checkout counter. ‘You either go to MIT and you can’t read. Modeling the Supply Chain Implementation Aspects of .

Madison Implementation Aspects of . School of Business.Factor T of Implementation • A successful implementation of an SCM project needs both Breadth of knowledge (Managerial) and Depth of knowledge (Technical) ‘T’ in Technical and Managerial education was proposed by U.Wemmerlov. UW. Professor.

Skill Set for Success • • • • • Technical Know-How Domain Knowledge Change Management Project Planning and Execution Handling Execution Blues Implementation Aspects of .

Speed. Scalable design.Technical Know-How Analytical Front • SCM modules • Multi-echelon systems • Large-scale optimization Development Front • Design of software – Data Management. Quality of solution • User Interfaces • Integration w/ other modules and external systems – Standards like RosettaNet Implementation Aspects of .

Domain Expertise • Understand peculiar problems specific to an industry – No standard BOM in Automotive OEMs – VMI in Retailing – Kits in Tech sector • Customer is the king vs. Others follow the “eaten apple” strategy – Benchmark studies – Competitor info Implementation Aspects of . customer doesn’t know a thing – Some would want to be the first movers.

Implementation Aspects of . zero-in on the road-map of execution – Value analysis • Quantify benefits using measurable metrics like ROI.Change Management Unfreeze – Change . Pareto analysis.S. Enterprise Applications Forecast. Inventory reduction and Lead time reduction* • Early Buy-in – Demonstrate the impact – Influence of culture: Strategic thinking of the West vs Execution as the strategy in the East *Sadagopan.Refreeze • Strong motivation for change – Create a sense of urgency – Opportunity assessment • Goals. Gap analysis.

Change Management • Successful change management – Political sponsorship .Top management involvement – Conflict resolution – Top-Down vs Bottom-Up approaches – Expectation management • Some customers expect a radical re-engineered process and at the same time expect status-quo!! – Resistance to change • Employee reluctance • Job security • Time management – Regular job tasks + tasks for SCM project Implementation Aspects of .

mini-scale.Project Planning and Execution • Big Bang vs Incremental Blitzkrieg Implementations Big Bang – Comprehensive. – Long lead time before actual use Incremental Blitzkrieg – Focused. result-oriented ‘go-lives’ – Requirements added incrementally in each delivery – User goes into action quickly – Transition problems more severe in the initial deliveries Implementation Aspects of . corrected and the end user gets a complete solution. large scale (all modules) solution – All requirements delivered – All implementation problems identified.

etc. ease of implementation. are some ways to prioritize – How to reduce the time to implement • Prefabricate – Tailor-made industry specific solutions – Examples : i2’s industry templates. urgency of needs. data availability.Project Planning and Execution • Rapid Implementations – Where to start • Splash effect. mysap.. solution Implementation Aspects of .

Redman. Sloan Management Review. and T. A.V. 1998.C.Project Planning and Execution • Rapid Implementations – How not to digress • • • • Solution planning as the first step in implementation Sign-off on the project scope Identify few key performance metrics to evaluate the project needs Don’t deviate from software’s pre-established blueprints (fit organization to the software) – How to manage data • View data as a critical resource * • Provide specificities of data needs as much as possible to the users *Levitin. Fall. Implementation Aspects of .

UIs) • Too little gotten for too much of money • Over budget and time limits • Show me the value Implementation Aspects of .Execution Blues Typical pain points – From the eyes of the user • Solution does not work as expected • Performance (speed) is not satisfactory • Too much of work on data management • Too much of work outside the software solution (pre-process. post-process.

not right • Not enough support from the top management – no change champions • Issues in data access.Execution Blues. cont’d Typical pain points – From the eyes of the solution provider • Requirements keep changing • Turnover of project members • Composition of the team – Not enough. quantity and quality • Nit-picking by the users • Restlessness of the users • Resistance to change Implementation Aspects of .

Handling the Execution Blues • SCM projects are Socio-Technical Systems • Successful implementations have various dimensions – – – – Art and Science Qualitative and Quantitative Technical and Managerial Effective communication and Networking Implementation Aspects of .

What to Add to the Curriculum • Technical Knowledge – Technical emphasis . Industry visits • Change Management – Case studies. Benchmark studies. Case studies • Handling Execution Blues – All of the above + Working in teams. Socio-Technical System studies • Project Planning and Execution – Managerial topics – esp Project Management. Class Participation and Report Writing Implementation Aspects of .Problems in OR. Software project development and Bottom-line analysis • Domain Knowledge – Research. Guest lectures. Presentation.

Do we have enough time to cover all the topics? – If multiple courses – Do we have enough material to justify a full set of courses? • Do we have material available – eg. heuristics? • Can students (mostly with no industry background) appreciate the issues? Implementation Aspects of .Discussion Points Challenges • Will SCM be offered as a single course or as a set of courses? – If one course . on domain knowledge..