Mike & Jerry’s Ice Cream Corp
ERP Implementation
by the Ben Team
(Team Members: Randy Knebel, Lenart Collier, William Alex)
CIS 521
Professor Anvari
June 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 Case
Measurable 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 Case
MOV:
 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 Case
Measurable 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
• Schedule for Increasing Customer Base.
• Schedule to Recouping cost of the ERP System.
MOV
Year
Measurement 1
Year
2
Year
3
Year
4
Year
5
Total
+10%
50%
+15% +20% +25% +25%
90%
Customer Base* +10% +10% +10% +10%
Return on
Investment
+5%
* Includes both nationally and globally located customers.
ERP Implementation:
Implementation Plan
• Project Preparation
• Business Blueprint
• Realization
• Final Preparation
• Go Live & Support
• Continuous Improvement
ERP Implementation:
Purpose of Implementation Plan
• Project Preparation
• Sizing and Blueprinting
• Functional Development
• Final Preparation
• Go Live & Support
ERP Implementation:
Project Preparation
• Crafting a Solution Vision
• Develop a Project Plan
ERP Implementation:
Sizing and Blueprinting
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
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)
• Non-Uniform Systems in the Enterprise
Functional West Coast
Area
East Coast
Manufacturing
In-house package
Same In-house Package
(Different version)
Sales
CORESense MultiChannel Retail Software
CORESense MultiChannel 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
Current System (As-Is)
West Coast
Enterprise
East Coast
Enterprise
Human Resources
UltiPro’s
Research and
Development
In-House
Marketing
InterlinkONE
Manufacturing
In-House
Purchasing
Aestiva
Sales
CORESense Procurement
Multi-Channel Retail
Software
Shipping
In-House
Receiving
In-House
Current Software Enterprise
Marketing
InterlinkONE
Manufacturing
In-House
Sales
CORESense
Multi-Channel Retail
Purchasing
Software
Aestiva
Procurement
Receiving
In-House
Shipping
In-House
Enterprise Resource Planning (ERP) System
(System Perspective)
Executive
Information
Systems (EIS)
Decision
Support
System (DSS)
Retail Stores Point of Sale
(POS) Systems
Transition
POS
System
Store #1
ERP
System
Data
warehouse
POS System
Store #2
POS System
Store #3
Operation/Transaction Databases
R&D
Database
Marketing
Information
Systems
Personnel
Database
Production
Database
Purchasing &
Procurement
Database
POS
Database
Operation/Transaction Systems
Research and
Development
R&D
Datamart
Human
Resource
HR
Datamart
Manufacturing
Manufacturing/
Financial
Datamart
Financial
Financial
Datamart
Enterprise Resource Planning (ERP) System
(System Perspective)
Executive
Information
Systems (EIS)
Decision
Support
System (DSS)
Retail Stores Point of Sale
(POS) Systems
To-Be
POS
System
Store #1
ERP
System
Data
warehouse
POS System
Store #2
POS System
Store #3
Transaction Data
R&D
Data
Marketing
Information
Systems
Personnel
Data
Production
Data
Purchasing &
Procurement
Data
POS
Data
Operation/Transaction Systems
Research and
Development
R&D
Datamart
Human
Resource
HR
Datamart
Manufacturing
Manufacturing/
Financial
Datamart
Financial
Financial
Datamart
Identify New Technology Solutions:
Selection Criteria for ERP System/Company
Criterion
agility with new Mark et needs
Future Proof Decision
migration of current data
longevity of company
upgrade paths available
Elimination of implementation high in strategic value
Guesswork
fast implementation
roadmap
Tailor-Made Business Fit
system settings
tools to customize the system
advanced tools
portals
field consulting
Community Collaboration
national helpline
(minimum requirements)
installation/upgrade support
software consulting services
Exclusive services offered
Total Score
remote consulting
client list server and data access
on-call web conferencing
user support
web-based training and
solution web seminars
Weight
4%
20%
8%
7%
7%
4%
5%
3%
4%
2%
2%
6%
6%
6%
6%
3%
2%
2%
3%
100%
Company A
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.
Second Facility
Main Facility Original Organization Chart
Charlotte,
North Carolina
San Francisco, California
Headquarters
CEO
East Coast
VP
manufacturing
West Coast
VP
manufacturing
sales
sales
marketing
marketing
shipping
shipping
Accounting
Financing
Human
Resources
IT
receiving
receiving
purchasing
purchasing
IT
R&D
Second Facility
Main Facility Restructured Organization
Chart
Charlotte,
North Carolina
San Francisco, California
Headquarters
CEO
East Coast
VP
CIO
manufacturing
sales
IS
Manager
West Coast
VP
manufacturing
R&D
Accounting
sales
Financing
marketing
marketing
shipping
shipping
receiving
receiving
purchasing
purchasing
IT
IT
Human
Resources
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