erp system implementation - pengembangan softskills...

Taru Wibowo [email protected] May 2012

Universitas Bakrie

ERP System Implementation Case: SAP HCM Implementation Project

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Contents

• What is ERP? • Enterprise Information System • How IT helps the business? • ERP System, fit it with the business • Implementation • Case: SAP HCM Implementation


• What is ERP?

www.cartoonstock.com


What is ERP?

• ERP is a process of managing all resources and their use in the entire enterprise in a coordinated manner.


Enterprise’s Business Activities

Customer Supplier Production

Finance/Accounting

Human Resources

Inventory

Demand Planning

Distribution


Enterprise’s Business Processes

Customer Supplier Production

Finance/Accounting

Human Resources

Inventory

Demand Planning

Distribution


Financial Accounting Management

• Account Payable (Supplier related financial transaction)

• Account Receivable (Customer related financial transaction)

• General Ledger (Common financial transaction)

• Cost Accounting (Expenses cost assignment and allocation)

• Profit Accounting (Intra company cost allocation)

• Product Costing (Cost calculation to produce product)

• Asset Management


Production Planning/Manufacturing

• Production Planning (Master production schedule)

• Production Optimation • Production Strategy (Make to Order, Make to

Stock, Assembly to Order, etc) • Plant Maintenance (Preventive, preemptive

maintenance)


Supply Chain Management

• Purchase to Pay Processes (Procurement, receiving, invoice processing, payment to vendor)

• Vendor Management (Vendor master data, vendor evaluation)

• Inventory Management (Administering materials, moving from one storage area to another)

• Warehouse Management (Storage and physical arrangement)

• Quality Management (Quality inspection and statistical quality management)

Supplier Production

Inventory

Planning


Customer Relationship Management

• Marketing • Order to Pay Processing

(Inquiry, Quotation, Order, product distribution, invoicing, incoming payment)

• Customer Service (Customer database and characteristics)

• Demand Management • Transportation Management

Customer Production

Demand

Distribution


Human Capital Management

• Organizational Management

• Personnel Administration

• Payroll and Benefit • Talent

Management • Learning

Management System


• Enterprise Information System

“we met online” www.cartoonstock.com


Information System

• Information Systems is the application of information technology to support the major functions and activities of either a private sector business or public sector institution on managing resources such as labor, capital, and raw materials.

• Management of information systems involve three primary resources: people, technology, and information or decision making


IT System Infrastructure HARDWARE SOFTWARE/

APPLICATION

TELCO/ NETWORK

DATA MANAGEMENT

IT IS


Information System Management

PEOPLE

start

stop

PROCESS

POLICY


Summary IT System in an Enterprise

• Hardware (Server, PC, Laptop, Mobile Device, Printer, Scanner, Cash Machine, Kiosk, Optical Recorder, etc)

• Network (LAN, Wireless, VSAT, Firewall, Microwave, etc) • Software/Application (Operating System, Office Application,

ERP Packages, Mail System, Virtual Collaboration System, etc)

• Data Management (Database System, Document Management System, etc)

• People (Purchaser, Cost controller, Finance Manager, etc) • Process/Procedure (Order to Cash, Procure to Pay, Hire to

Pay, etc) • Policy


• How IT helps the business?



IT System for the business


IT Roles in a business

• Enhance Efficiency – Size of Transaction – Complexity of

Business Processes – Number of involved

Party – Accuracy of

Transaction



• Enhance Business Opportunities – Accurate demand

analysis – Creating space to

inovate – Business expansion



• Maintain Valuable Customer – High product

availability – Customer order

tracking – High quality

deliverables



• Maintain Optimum Inventory – MRP to MPS

balancing – Reduce backlog – Accurate Reorder

point – Minimize inventory

cost



• Increase Market Share – Comprehensive

customer analysis – Keep product quality

high – Reduce product

distribution time – Raise barier to entry



• Enhance Business Collaboration – Supplier integration – Marketplace – Other commercial

interfacing



• Retain the Talents – High competences

new hired – Well defined talent

development – Competitive

compensation program

– High available capable successor


• ERP System


ERP System

• ERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management


ERP System Characteristics

• Integrated modules • Common definitions • Common database • Update one module, automatically updates others • ERP systems reflect a specific way of doing

business • More in value chain rather than function

Finance/Acctng

Supply Chain

Inventory Mgt

Production Sales & Distributi

on

Human Capital

Mgt


ERP System Benefit

• Common set of data • Help in integrating

applications for decision making and planning

• Allow departments to talk to each other

• Easy to integrate by using processed built into ERP software

• A way to force BPR (reengineering)


ERP System Usage

Operation Support

Mgt Support

Transaction Processing

Process Control

System Collaboratio

n

Analytic Tools

Decision Support Syst

•Sales order processing •Purchase requisition •Invoice verification •etc

•CNC •CAM •etc

•RFC •EDI •BAPI/API •etc

•Business Intelligent •Strategic Reporting •etc

•Management dasboard •etc


ERP Software solution map

• SAP based solutions


• Implementation


Right! That’s the roof Done. Now to build the rest of the

House.


Lesson learnt from ERP implementation Failures

Lack of Top Management Commitment Inadequate Requirements Definition Poor ERP Package Selection Inadequate Resources Resistance to Change/Lack of Buy-In Miscalculation of Time and Effort Misfit of Application Software with Business Processes Unrealistic Expectation of Benefits and ROI Poor Project Design and Management Poor Communications Ill-advised Cost Cutting

Project Methodology

Research by Rockford Consulting


Implementation Roadmap

Solution Definition

• Project Charter • Project Kickoff

Solution Development

• Customized & Developed Solution

• System & Integration (S&I) Tested Solution

• User Acceptance Test

Solution Deployment

• System Operation Manual & User Manual

• Training For Trainers and End Users

• Implementation (Productive System is running)

• Application Software & OS installed

• Business Blueprint Document (Functional Specifications Document /FSD and Integration Design Document)

• Production Support • Project Closing

and Acceptance Sign Off

• Project Methodology (Accelerate SAP – ASAP)


Change Management

Data Gathering and Analysis Identify Risk/ Identify issues / response Establish Sponsorship Build Team strength

Assess

Executive Kick-off

Prepare to Change

Business Assessment Analysis

Develop

Plan The Change

Configuration

Design and Finalize Communications Learning (Training) And Rewards

Launch and Execute System Events: • Communication • Learning • Rewards Event designs

Specific communications, learning and rewards events

Deploy

Implement The Change

Implement System/ Processes / Policies

Post-Audit

Sustain The Change

Own It

Identify The Change

Build Project Infrastructure Define goals and Set expectations

- Turnover Responsibility - Identify Next Steps: - Knowledge Transfer

Plan

Change Communications

Lamarsh Model


Implementation Roadmap Cont.

Data Identification

• Data Migration Strategy

Data Collection Data Cleansing Migration Transaction


All about managing expectation


• Case SAP HCM Implementation Project

www.glasbergen.com

“This software will help you manage stress, as long as you don’t try to install it”


New Concept of Human Capital Management


SAP HCM Implementation Project

1. Company Background 2. SAP HCM Solution 3. Implementation Steps


Company Background

• Vision: ”to be world class fried rice company” • Mission: “to be market leader in national fried rice market” • ...HCM Strategy

– Recruit the best candidate – Keep talents always at the peak performance – Lower talent turn over – Competitive market reward – High performance organization sustainability

Froodle Corp.


Company Background cont...

HCM Program – Build HCM system focus on Enhancing HR

Administration in 1 year – Build HCM strategic business partner in 2 years

Strategic Analysis

Administration

Current HR load


HR Programs

Build HCM system focus on Enhancing HR Administration in 1 year

– Organization classification and structure – Employee master data – Payroll Processing – Time data processing


HR Programs cont...

Build HCM strategic business partner in 2 years – Training and Development – Career and Succession Planning

Stage 1 Administration Stage 2 Strategic

2013 2014 2015

Full HCM

online


SAP HCM Solution

• SAP Solution Map


SAP HCM Solution cont...

• SAP HCM Solution Map


SAP Solution • SAP HCM Roadmap

5/24/2012 Phase 1

Phase 2

Phase 3


Fit and Gap Analysis

• High Level Scooping

5/24/2012

Froodle Corp.

Project Definition SAP HCM Implementation Phase 1 -Organizational Management -Personnel Administration -Time Management -Payroll Phase 2 -Learning Solution -Talent Management


SAP HCM Implementation

• Project Execution using ASAP Methodology


1. Project Preparation

• Procurement Process – Software – Hardware – Services (Consultancy)

• Project Charter – Project Definition – Project Timeline (include staging strategy) – Project Organization and Roles – Project Standard – Build Project KPI – Change Management Strategy Plan

• Project Kickoff Meeting



• System Architecture

Database Server

Application Server

Presentation



• Project Timeline

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Project Preparation Blueprint Realization Final Preparation Go Live and Support

• Project Organization


2. Business Blueprint

• Blueprint – To be Business Processes – Enterprise object and structure – Data migration strategy – RICEF (Report, Interface, Enhancement, Customization and Form)

requirements – Authorization definition – Blueprint Sign off

• Build Lanscape strategy (Basis – Software and Infrastructure) – Database server installation – Application server installation

• Change Management – Change identification


2. Business Blueprint

• Landscape/Client Strategy

Development System

QA and Training System

Production System


3. Realization

• System Configuration – System customization – Development: RICEF (Report, Interface, Enhancement,

Customization and Form) – Unit and Integration Test – User Acceptance Test – Blueprint Sign off

• Data preparation • Change management strategy

– Activity planning


4. Final Preparation

• System documentation – User Manual – Technical Document

• Data cleansing and migration • Authorization Configuration • Build cut off strategy • Build support strategy (issue exchallation, etc) • Change management strategy

– Training – Communication on the changes (policy and process)



• Data cleansing and migration

Legacy

Formated Data

•e.g. Ms Excel •Data Verification and validation •Data Sign off



• Authorization Configuration

User Position Composite

Role

Single Role

Authorization Objects



• Build cut off strategy – Cut off – Paralel Run – Big bang – Roll out

• Build support strategy (issue exchallation, etc)

Dispatcher

Problems

Level 1

Level 2


5. Go live and Support

• Production system – Use the new system for transaction – Evaluate and continues improvement

• Perform full support function • Change management strategy

– Evaluate and audit the change result • Project Closing and Signoff


• Thanks

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