process ecosystem people goals missed: hard to meet all requirements. difficult and costly to...
TRANSCRIPT
March 18-21, 2013New Orleans
#conv13
Manufacturing solutions for Microsoft Dynamics® AX 2012: implementation successes & lessons learned
Rudy Dillenseger | Solutions Architect | Microsoft ServicesJohn Birch | Chief Information Officer | Hastings DeeringGustavo Mattedi | IT Director | Hunter DouglasMike Kavanagh | IT Director | Dell
CSAX30
Session objectives: sharing experienceHow to have a successful implementation of Microsoft Dynamics AXMinimum requirements for a project.The solution: Microsoft Dynamics AX.Sure Step.
Hastings Deering | Dell | Hunter Douglas experience: Why they made the decision to run their business on Microsoft Dynamics AX.Business and technical challenges they were looking to solve.Project management and lessons learned.Benefits of Microsoft Dynamics AX.
How to implement ERP successfullyThe minimum requirement for a project:Executive management commitmentSufficient budgetingMinimize modificationsExperienced project management and teamChange management and training
Manage the retail offer
Evolving and emerging business models
Understand and connect to customers
Increasing employee productivity
Process EcosystemPeople
Social and environmental responsibility
Improve supplier collaboration
Globalization and expansion
Business challenges
Microsoft Dynamics AX Deliver more value faster with a single, powerful solution:• Gain value quickly with purpose-built industry and operational capabilities in a single solution.• Scale your organization quickly with a single global solution.• Gain immediate insight and unlock greater productivity with a Role Tailored user experience.
Increase opportunities and reduce risk with an agile solution:• Plan, visualize, and change your business by using unified natural models.• Support your business today and tomorrow with flexible deployment alternatives (centralized,
decentralized, or two-tier).• Differentiate your business easily with model-driven layered architecture.
Drive user involvement and innovation with an easy-to-use solution:• Drive user adoption with a solution that is familiar and simple to use.• Connect employees, customers, suppliers, and partners easily through integrated collaboration
capabilities.• Streamline IT processes by simplifying management of your ERP solution at every stage of the life cycle.
Powerful
Agile
Simple
Two-tier strategy
Goals Missed:• Hard to meet all
requirements.• Difficult and costly to
modify.• Expensive skillsets.
Goals Achieved:• Enterprise-wide financial
visibility.• Consolidated reporting.• Unit-to-unit comparisons.
Goals Achieved:• Tuned for small entities.• Local Business/IT
alignment.• Support local business
processes.
Goals Missed:• No global view of operations.• No standardization, many
local apps.• Maintainability and TCO.
Microsoft Dynamics AX to meet needs for all units:• Agility and innovation support.• Insight, alignment with unit practices and rhythms.• Standardize business process and competencies.• High adoption, global presence.
Connect to Microsoft Dynamics AX & capitalize on investment:
• Consistency.• Unit-to-unit comparability.• Consolidated reporting.• Enterprise-wide visibility.
Divisional Operations ERP
Divisional Operations ERP
Subsidiary Operations ERP
Subsidiary Operations ERP
Administrative ERP Corporate HQ
Operational ERP
Administrative ERP
End-to-end solution for Manufacturing
Product Design - BOMs, Formulation and Configuration, Supplier Relationship Management – Global and Multi-Currency
Manufacturing/ Supply Chain Management – Quality, Costs, Skills Logistics Financial Management – Business Intelligence
Order Management – Customer Relationship Management
Supply Chain Demand Chain
Suppliers Customers
ManufactureProcure Deliver
Plan Supply Distribute SellManufacture
Product Data Management
Supply Chain Planning
Sales Order Management
Manufacturing OperationsManagement
Logistics
Microsoft Operations Solution for
Manufacturing
Process
Lean
Discrete
ComposableCollaborative
Mix-mode production
Microsoft Sure StepMethodology for successful implementation
End-to-end services offerings
Mitigate risks
Improve consistencyand predictability
Increase agilityMicrosoft Dynamics sure step
Diagnostic Deployment OperationAnalysis Design Development
Role guidance
Businessprocess maps
Project plan and WBS
Environment specification
ROI business case
Scalable workflows
Solution envisioning
Decision accelerat
oroffering
Solution optimization Optimization offering
Solution del ivery Implementation offering Upgrade offering
Solution support
Microsoft premierofferings
What is included in Sure Step?
Contains guidance, tools, templates, and recommended practices for Microsoft Dynamics implementations.
Provides supplemental functional guidance:• Project management
library.• Organizational change
management library.
Includes lifecycle phase-specific offerings:• Decision accelerators.• Implementation and
upgrade.• Optimization.
Identifies the roles involved in each activity:• Consultant roles.• Customer roles.
Project types: limit risk
Waterfall methodology
Waterfall methodology
Enterprise• For complex single-site deployments.• For global or multi-site organizations where unique country/site-specific needs must be factored on top of a core
solution.Waterfall methodology
Agilemethodology
Waterfall methodology
Standard• Lean approach.• For implementation at a single site.• Medium to large number of users.
Rapid• Accelerated approach.• For implementation with minimal or no customizations.
Agile• For a single site.• Involves specific features and moderate to complex customizations.• Small to medium number of users.
Upgrade• Technical approach for moving from existing to a subsequent release of Microsoft Dynamics.• For projects ranging from simple to very complex.
Waterfall implementation and upgrade
Technology
Organization
Solution
Diagnostic
Transition to support
Operation
Production environment
UAT
User training
Deployment
Environment specification
Data migration requirements
Fit gap analysis
Process and functional requirements
Training plan
Baseline project plan
Analysis
Integration and interface design
Solution design
Technical design
Functional design
Deployment plan
Design
Production specification
Solution testing
UAT scripts
Development
GO LIVE
Staging options
Commonrequirementsacross sites
Uniquerequirementsat each site
Core build
Site 1 build Site 1 rollout
Site 2 build Site 2 rollout
Multiple site builds Multiple site rollouts
Site 1 build and rollout
Site 2 build and rollout
Multiple site builds and rollouts
Sime Darby Industrial & Hastings Deering AustraliaJohn Birch | Chief Information Officer
Sime Darby International
Risk Averse
Reputation OperationalExcellence
5th Largest CAT DealerExtreme Growth
10 CountriesNew CaledoniaSolomonsAustralia
Largest CAT “device” for mining
Vision, imperatives and valuesOur vision: To be the leading provider of Cat and aligned solutions.
Our imperatives:Safety and sustainability: no harm to our people and minimize environmental impact.Customer Driven: A trusted partner and preferred supplier.People: Attract and invest in the best people - develop for the future.Business Transformation Program: Simplify our business processes supported by the new ERP system.EUCS: Grow service and parts business.
Our values:No harm.Integrity.Transparency.Care.
“In short, our strategy is simple: make our workplaces safer, make it easier for our customers to do business with us, streamline our systems and processes to deliver improved operational efficiencies, grow our newly acquired EUCS business and deliver our people development strategies.” Dean Mehmet, HDAL COO
Project approachSure Step MethodologyProven process.Incorporates guidance from Microsoft’s implementations experiences worldwide.
Maximise Base ProductLook to use “as is” solution.Reduces project risk.Minimising customisations will reduce the upgrade complexity.
Global Template DeploymentValidated and deployed by dealer.Driving uniformity of process.Allows flexibility where necessary.
Strong focus on delivery datesManagement of scope will be very important.
SDI’s enterprise architecture - business study • Defined key Information that needed to be captured to describe the
organization (Our Enterprise Architecture).• Processes.• Applications.• Actors.
• Immerse your team immediately into the solution as basis for requirements gathering and requirements validation.
• Incorporates repetition as basis for learning strategy.• Restructures more traditional implementation methodologies.• Bridges the communication gap between solution specific language
and industry language.
• A repository for architecture artefacts (Information Gathered).• Well defined, structured relationships to assist decision making.• Enables the re-use of captured information (Architecture Assets).
Architecture Content Meta Model
Architecture Development Method
Architecture Repository
Process definition
Category
Process Group
Process
APQC – Process classification framework = Industry Best Practices
Physical Process
Physical Process
Physical Process
SDI Business Reference Model
Process definition
Category
Process Group
Process
Physical Process
Physical Process
Physical Process
Process Based Implementation Approach Leveraging Sure Step
• Begin with a foundation of organization Industry- based processes which define business transactions.
• Begin with a “Shell Company” partially configured with industry standard default data.• Begin with a “Personalized” data base on Day 1 of Analysis.
• Immerse your team immediately into the solution as basis for requirements gathering and requirements validation.
• Incorporates repetition as basis for learning strategy.• Restructures more traditional implementation methodologies.• Bridges the communication gap between solution specific language and industry language.
• Enhanced Progress Tracking Metrics:• Begin with the end in mind.• Project Goals and Objectives are quantified and managed throughout the entire project.
• Enhanced Structure for Client Activities.• Always know where you are, what you have completed and what needs to be scheduled.• Focus on Analysis Activities.
Not Starting From Blank
Focus on Building Application Competency
Know Where You Stand at all Times
Project best practicesProcess iterations Thorough testing
• Test Early, Test Often• Windows® Problem Steps
Recorder.• Automated & automatic tests.• Ranorex test engine.
• Building Robust Long Life Tests• Utilizing data sets.• Validation points.• Schedule tests (1,000 per day).
• Reports on Tests• Capturing screen shots.• Emailing alerts to the test team.• Reporting any issues found with
execution.• TFS (Team Foundation Server).
Process
Security
Application
Deployment
DataIntegration
Process
Security
Application
Deployment
DataIntegration
Process
Security
Application
Deployment
DataIntegration
Process
Security
Application
Deployment
DataIntegration
Iteration 1 – Process/Requirements Workshop
Iteration 2 – Initial Setup/Configuration and Initial Documentation of FRD/Gaps
Iteration 3 – Client Hands on Review
Iteration 4 – Update Configuration and FRD/Gaps
Process Flows AX ApplicationClient
ValidationFRD/Gaps
FRD/Gaps
Hunter Douglas
Gustavo Mattedi | IT & Operations Director
Hunter DouglasMaking a big difference at the window
17,000 Employees
Continuous innovation across the company
90 years-young company
Presence in 100 countries
100,000 retail dealers worldwide
162 companies, 67 plants and 95 assembly plant
Leading brands
Architectural Products
Window Coverings
World market leader in window coverings & major manufacturer of architectural products
Hunter Douglas Product Lines
Sheers
BlindsShades
VenitianShutters
Honeycombs
Indianapolis Airport
Redmond City Hall
Shanghai Expo Culture Center
Business pains• 8 Countries running different ERP´s (Hunter Douglas USA runs SAP).• Decentralized IT Infrastructure (Links, Servers, Database and Software).• High cost of IT departments:
• 8 x the same project.• Different languages, cultures and local infrastructure.
• Huge variety of customer defined products: • Materials, Colors and dimensions.• Special formats and type of controls.
• Make-to-order.• 90% of imported components.• Average lead time for raw material in LATAM is 70 days.• Promised delivery time is 3-5 days.
IT Operating Costs
Product Information Management
ComplexSupply Chain
Objectives• 8 Countries running different ERP´s (Hunter Douglas USA runs SAP).• Decentralized IT Infrastructure (Links, Servers, Database and Software).• High cost of IT departments:
• 8 x the same project.• Different languages, cultures and local infrastructure.
• Huge variety of customer defined products: • Materials, Colors and dimensions.• Special formats and type of controls.
• Make-to-order.• 90% of imported components.• Average lead time for raw material in LATAM is 70 days.• Promised delivery time is 3-5 days.
IT Operating Costs
Product Information Management
ComplexSupply Chain
• IT cost reduction (people and Infrastructure).
• Create better synergy and integration between countries.
• Standardize solutions and way of work.
• Countries working together with the same solution.
• All IT and Operations departments in the same direction.
• Replace the home made product configurator.
• Low level of investments in the project (*).
Why Microsoft Dynamics AX?Cost of solution and consultants dependency.User friendly and easy to customize.Microsoft Dynamics CRM and Office integration.Internal IT team are more familiar with Microsoft coding.Low impact for the dealers and production line.Dynamics AX has a very powerful module called "Product Configurator“, that supports all manufacturing needs:Thousands of variations in just one order entry screen.No mistakes, all order are ready to be produced after typing.Dynamic B.O.M. according to the order.All new products can be typed without any system change.
Scope of the project
• Order Entry integrated with Product Configurator.• Cutting optimization system (fabrics, wood and Metals).• MRP.• Field Service.• Pricing System.• ITAX – import control System.• Workflow – Credit, Discounts, Special Products, etc.• Requirements control.• Label wizard.
Microsoft CRM Architects projects and prospects
ASPROVA Production Scheduling System
Qlikview Business Intelligence
Main factors of success
Good reports are so important
A new version will come and you will be in trouble
Especially with high level people
Technical people can be hired
You will need both to be successful
The main problems are hidden in the details
Change Management
Know your company better than you know your ERP
Listen the end users
Change the way you work, not the way the system works
Information is everything
Keep your team and your faith in the project
What’s next?
Rollout (Venezuela, Peru and Panamá)
Third implementation (Argentina – Dynamics AX 2012)
Dynamics CRM for Window Covering
Fourth implementation (Brazil) Find a new job…
Fifth Implementation (Colombia)
2013 2013 2014 2015 2016 2017
Dell
Mike Kavanagh | DirectorDell Product and Supply Chain IT
A look inside DellThe power to do more
47 million PC shipped in 2011
• 65 Customer interactions per second• 5.4 million every day • 2B every year
Deployed Dynamics AX in:• 2 factories in 2011• 4 factories in 2012
Serving customers in 180 countries
34 languages – dell.com
100,000 team members
7 Dell factories
Over 7m units shipped on Dynamics AX
Business challenges• High volume, High variability, 100% CTO.• Each factory different.• Highly flexible.• Highly automated.• Completely optimized around CTO.
• Each factory different.• 95% custom developed apps.• Core ERP hosted on competitors’ platform.• Each unit touched 70+ applications on its path through the factory.• 400-600 physical servers per facility.
• $293M per year IT COGS (6%).• Downtime > 2%.• Incompatible with outsourced supply chain.• Marketing shifting towards standard configs through retail or ships-fast
vs. CTO.
10 Dell Owned Facilities
IT Footprint
The Problem
SolutionsManufacturing Simplification and Lean Transformation:• Re-engineering of end-to-end manufacturing process
based on lean principles.• Global alignment on transformation.
IT Rationalization:• Re-architecture of end-to-end systems based on
simplified processes.• Used Dynamics AX as the cornerstone of our decision
making:• Stand up each factory as an isolated medium sized
business.• Standardize the business process around industry
best practices enabled by AX.• Agree a single, global, business process.
Dell global facilities—Dynamics AX rollout status
EMFP, Łódź100% on
MES
BRH, São Paulo
100% on MES
ICC, Chennai100% on MES
CCC2, CCC4, Xiamen
100% on MES
Factories targeted to be 100% AX transitioned within a quarter of being launched.
APCC, Penang85% on MES
CCC6, Chengdu
Target Launch July 2013
• Manages all factory operations from inbound raw material to outbound finished goods direct to end customer.
• Connects to Dell’s Enterprise applications using open, flexible communication methods thru BizTalk.
• Utilizes the lean, production, inventory, quality & trade AX modules, running through Microsoft Remote Desktop Services.
• Processes 1M transactions per day on Dell PowerEdge Servers and Dell Equalogic storage.
• Implemented in conjunction with Microsoft Consulting Services (MCS) and mcaConnect functional consultants & Dell Services AX development.
• Integrates seamlessly into Dell’s Microsoft SCOM monitoring network.
• Supported through Dell Services and Microsoft Premier Support.
Dell’s Dynamics AX implementation
Chengdu CCC6• Dells largest Manufacturing facility to date - 28 manufacturing lines.• Full Dynamics AX implementation from the start.• Integrating Dynamics AX with the Chinese Customs Work Order management system.• Using AX on Dell Wyse thin cloud client solution for manufacturing clients • Production floor will run on Dell Force 10 Network infrastructure.• Dynamics AX hosted on Dell Compellent storage solution.
BenefitsCost Reduction:• IT COGS $166M $116M by end of 2012.• Retiring 1,935 Servers & 75 Applications.
Performance:• Factory throughput efficiency fully recovered within 2 quarters.• Payback within 6 months.• 50% Reduction in downtime.
Simplification:• 75% reduction in factory IT footprint.• Aligned with our outsourced manufacturing network.• Single, global business process.
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© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.