Date post: | 11-Jan-2016 |
Category: |
Documents |
Upload: | willa-simmons |
View: | 212 times |
Download: | 0 times |
Federal-Mogul Program Everest
October 2007
2Data classification: Public 09/19/2007Information Systems
Company at a Glance
Sales: $6.3 Billion
Employees: 45,000 Globally
Global 109 Manufacturing and 21 Distribution sites worldwideLocations: operating in 35 countries
Research & 15 Globally-Networked Technology Centers in North America,Development: Europe and Asia
Key Industries: Automotive, light commercial, heavy-duty truck, off-highway,agricultural, marine, rail and industrial
3Data classification: Public 09/19/2007Information Systems
Global Business
Global Sales
OE 60%
Aftermarket 40%
Sales by Geographic Region$6.3 Billion
Light Vehicle$2.2 Billion
Industrial &Heavy-Duty$1.6 Billion
Aftermarket$2.5 Billion
Asia Pacific*8%
$6.3 Billion
EMEA 40%
Americas52%
*Includes 100% of sales through minority held Joint Ventures
4Data classification: Public 09/19/2007Information Systems
OE Global Market Position
Pistons andRings Bearings Valve Seats
and Guides Friction Sealing
5Data classification: Public 09/19/2007Information Systems
Aftermarket Market Position
5
Friction Chassis Gaskets Engine Wipers Ignition
Europe
#1#1 #1#1 #1#1 #1#1 #3#3 #3#3North America
#1#1 #1#1 #1#1 #1#1 #1#1 #2#2
Friction Chassis Gaskets Engine Wipers Plugs
6Data classification: Public 09/19/2007Information Systems
Original Equipment Customer BaseOPTION 1
Each of the logos/trademarks shown above are the properties of their respective owners.
7Data classification: Public 09/19/2007Information Systems
Customer BaseOPTION 2
Global Aftermarket (GA)Original Equipment (OE)
Each of the logos/trademarks shown above are the properties of their respective owners.
8Data classification: Public 09/19/2007Information Systems
IS and Business Units: Friend or Foe?
• First, agree on where you are going
• Agree on barriers to success that can be influenced
• Align each function with that vision and ensure that the strategies are translated into coordinated tactical plans that break the barriers
• Get the right team and focus on execution
Achieving the Goal
It’s About Teamwork
9Data classification: Public 09/19/2007Information Systems
Strategic Alignment Comes First
Path to Global Profitable Growth
Agree on where you are going, what barriers need to be broken and align all
departmental strategies
Global Profitable GrowthGlobal Profitable Growth
10Data classification: Public 09/19/2007Information Systems
Driving Global Profitable Growth
• Develop a global leadership team to achieve breakthrough performance
• Anticipate customer and market requirements to accelerate delivery of value-added solutions to the marketplace
• Provide leading technology and innovation in products and services to improve vehicle performance and exceed customer expectations
• Create a global lean enterprise with world-class engineering, best cost manufacturing, sourcing and supply chain
• Grow global profitable business and develop long-term sustainability
The Target is to Satisfy Customer, Employee and Stakeholder Expectations
The Drive for Global Profitable Growth
is a Must, not an Option
11Data classification: Public 09/19/2007Information Systems
Global IS Strategy
• Investments focused on strategic projects
• Standard enterprise solutions
• A buy vs. make approach to software development
• SAP integration across the business
• Intellectual capital maintained in the function
• Selective sourcing of non-strategic assets/activities
12Data classification: Public 09/19/2007Information Systems
Current Environment
• Heritage of multiple acquisitions
• Chapter 11
• Intensive scrutiny
• Customer diversity
• Distribution channels
• Technology leader
• Global player
13Data classification: Public 09/19/2007Information Systems
Constraints to Business Change
• Federal-Mogul’s stand-alone systems, archaic point-to-point interfaces, and off-line analytic tools result in high maintenance costs and multiple single points of failure
• Islands of information across the company result in a need for hundreds of company IS and Business staff to maintain, adjust, report, reconcile, reformat, and re-report
• Business processes are not uniform and consistent across the enterprise, a barrier to rapid decision making
• Multiple data sources from disconnected systems lead to duplication of effort to synchronize critical business information (customer, supplier, materials master data)
14Data classification: Public 09/19/2007Information Systems
Where We Moved From…
THE IS SITUATION AS OF SEP. 2005 …
382
# uniqueapplication
690
# applicationinstances
11
# SAPenvironments
633
# Master data bases
Historically F-M has operated in a very decentralized manner from both a business and technology perspective. This has resulted in a very fragmented application landscape.
Technology Proliferation
ProcessProliferation
Master DataProliferation
… AND THE IMPACT ON THE BUSINESS
High IS costs, high complexity to manage, low IS effectiveness
Stifled innovation and poor capability to follow business growth strategy
Business Continuity Risks, Compliance
Lack of consistent, common, accurate, business measurement
Limited ability to serve the business and improve customer satisfaction
Lack of integration and visibility across the supply network
4
5
2
3
1
6
See the Appendix for details
In 2005 IS was not representing an adequate lever to enable the priorities set by the new managementIn 2005 IS was not representing an adequate lever to enable the priorities set by the new management
15Data classification: Public 09/19/2007Information Systems
The IS Situation as of Sep. 2005
Federal-Mogul currently uses approximately 633 different master data bases:
MASTER DATA FILES
CUSTOMER
#81
PRICING
#67
PART
#76
SUPPLIER
#55
INVENTORY
#54
ITEM
#84
LOCATION
#14
ORDER
#64
FIN. ACCT
#47
EMPLOYEE
#48
PRODUCT
#43
Back
Master Data ProliferationMaster Data Proliferation
16Data classification: Public 09/19/2007Information Systems
The IS situation as of Sep. 2005
• Federal-Mogul operates multiple distinct order to cash processes/systems that differ by business and geography
• The diversity is a result of a historically autonomous business unit alignment, with a decentralized approach to IS (i.e, IS was a friend at the BU level)
• System platforms have developed as non-integrated enhancements within themselves. Roll-outs within the Business Units are based on proprietary knowledge
• Information reporting above the business unit level is difficult due to inherently different system logic and lack of drill down capabilities (i.e., IS was a Foe at the corporate level)
Back
Process Proliferation (Order To Cash)Process Proliferation (Order To Cash)
17Data classification: Public 09/19/2007Information Systems
Align Investments and Teams
Path to Global Profitable Growth
Focus investments on achieving the goal
Align organizational structures
Develop and enforce a strong governance model
Global Profitable GrowthGlobal Profitable Growth
18Data classification: Public 09/19/2007Information Systems
IS Investment
Time
Cost Savings
InfrastructureStandardization
Hardware Consolidation
1.E-mail2.Desktop Environment3.PCs4.LAN/WAN5.Knowledge Systems 6.L.Notes ,Sharepoint
1. Server Consolidation
2. Data Center Consolidation
3. Regional Help Desk
Business ProcessStandardization
InformationIntegration
1.HR & Finance Processes
2.Order Fulfillment processes
3.Bid to cash processes
1.Common product customer codes
2.Comprehensive Global Information repository
3.Real Time business intelligence
Roadmap to the Global Enterprise
Business - IS Value Map
Revenue Enhancement and SG&A reduction
19Data classification: Public 09/19/2007Information Systems
SAP as the New Systems Backbone
ONE SAP FOR ONE FEDERAL MOGUL
SAP offers “best in class”
functionalities
We already used it (and paid for it)
Most Competitors and Customers do the same
SAP is the perfect base to build a Corporate environment that spans multiple regions of the world, has diverse business units and is oriented to have an organization and business processes that
adapts quickly to emerging business needs.
SAP guarantees continuous evolution
It is the industry leader in global ERP applications, including automotiveIt is the industry leader in global ERP applications, including automotive
20Data classification: Public 09/19/2007Information Systems
Program Everest
GOAL, APPROACH AND PHASES
Phase 0
Phase 1
Phase 2
Phase 3
Global Model Design for the core corporate processes (Finance, Sales, Material Management)
APS Distributions Centers
Solution Extension (pricing,
rebates, commissions,
warehouse management, …)
Manufacturing
• Solution Design and Prototype
• Implementation
Asia Pacific
Deployment in some selected facilities (SPG Japan, Wuhan, Quingdao, …)
Goal
Implement common, global business processes utilizing SAP as the ERP application for the entire corporation
Approach
Roll-Out
Pilot
Design
Conceived to manage complexity, minimizing costs and risks
Launched in late 2005, it represents one of the biggest investments of the corporationLaunched in late 2005, it represents one of the biggest investments of the corporation
21Data classification: Public 09/19/2007Information Systems
Program Everest: The Challenge
THE CHALLENGE BEHIND PROGRAM EVEREST
A quantum leap for the business
A quantum leap for the IS function
Homogenize business practices
Reduce complexity, manage risks, ensure compliance
Increase efficiency and effectiveness
Improve Business Control
Reduce complexity and costs, increasing the service level
Demonstrate the capability to successfully manage a complex program
Provide the ability to manage and govern the new platform
Managing Program Everest means to manage a huge change both from a business and a IS perspectiveManaging Program Everest means to manage a huge change both from a business and a IS perspective
22Data classification: Public 09/19/2007Information Systems
Strong Governance Model
Focus Resources on the Goal
• Strong management and governance over a smaller number of projects drive improved performance
• Manage the demand for IS services
• Measure performance and particularly on-time delivery
23Data classification: Public 09/19/2007Information Systems
IS Organization
Responsible to understand• Business Unit and Product Strategies• Business Plan• Tactical business requirements and IS
support needs
IS Business Unit Leaders report directly to the CISO and sit on the staff of the Leader for each Business Unit
24Data classification: Public 09/19/2007Information Systems
Business Leadership
Information Systems
Bu
siness E
xperts
Local
Leadership
Key U
sersSu
pp
ort
Co
re
IS Roles:
Central Team (Everest Core Team, Business Unit Manager and PEGs, Security, Infrastructure)
Deployment Local SAP consultants
Support Organisation (T-Systems, Change Board, Security, Legacy Systems )
Business Roles:
Business Experts (BPOs, BPLs, SMEs, Central Functions, e,g. Finance)
Local Leadership Team (Site Director and his direct reports)
Key Users* (from deploying site and future deployment locations)
Cen
tral
Tea
m
Executive
Committee
* Resourcing business activities (testing, training, data validation) with key users from future deploying sites will accelerate those deployments and decrease resource strain on currently deploying site
Everest Program Organization
Deployment
25Data classification: Public 09/19/2007Information Systems
Execution
Path to Global Profitable Growth
Focus investments on achieving the goal
Global Profitable GrowthGlobal Profitable Growth
26Data classification: Public 09/19/2007Information Systems
Program EverestGlobal Business Organization
27Data classification: Public 09/19/2007Information Systems
Our Achievements
PROGRAM EVEREST RESULTS
• Everest is now supporting a significant portion of the F-M business
BusinessCoverage
1
• New, common and integrated processes are now in place
New Integrated Processes
2
• A unique, cleansed, consistent and centrally managed repository is available
Master Data3
• Several legacy applications have been switched off
• A new, unique and standard system architecture is now in place
TechnologyPlatform
4
• A complex program organization is now capable to manage quickly different streams in parallel
• A single organization is supporting all our users
ISOrganization
5
Success of the initiative evaluated from different perspectivesSuccess of the initiative evaluated from different perspectives
28Data classification: Public 09/19/2007Information Systems
Business Coverage
CURRENT EVEREST BUSINESS SCOPE
9
Countries
APS BE Kontich (CH Geneve)
APS IT Verona
APS IT Mondovì (R&M)
APS ES Madrid (Espana)
APS ES Barcelona (Iberica)
APS FR Boulogne (Gif)
APS UK Bradford
APS DE Marienheide
APS CZ Kostelec
SPG Japan
21
Locations
10
Legal Entities
719
SAP Users
10
Business Units
Business Units
See the Appendix for details
The F-M Business currently supported by Everest is significant after only 18 monthsThe F-M Business currently supported by Everest is significant after only 18 months
29Data classification: Public 09/19/2007Information Systems
Integrated Process
EVEREST PROCESS COVERAGE
To support the different business models, different “solution sets” were implemented inside Everest: Large CDC, Medium LDC, Small LDC, Local Commercial Agency, “Light” Manufacturing Facility
Solutionsets
A wide range of processes (OTC, PTP, SCE, FIN) are supported by Everest
A unique degree of integration is ensured within SAP and with other external applications
ProcessScope andIntegration
A significant degree of sophistication and automation was introduced to improve the core business processes, especially in the SCE and OTC area
Degree ofsophistication
The Everest solution enabled to manage in the same environment a full set of integrated business processesThe Everest solution enabled to manage in the same environment a full set of integrated business processes
30Data classification: Public 09/19/2007Information Systems
Master Data
MASTER DATA REPOSITORY
All relevant master data are stored in the same environment (with a single naming convention) and shared by the business across the different countries and business units
A common,
sharedrepository
SAP enabled the centralized management of our master data, to ensure consistency, stewardship and flexibility
CentralizedManagement
The data migration task represented a critical task for Everest in terms of:
- management of high volumes of data
- ensuring the proper cleansing activities
Migration
11 K
Customers(Sold-To)
117 K
Materials
5 K
Vendors
3 K
Contracts
912 K
Source Lists
> 12 M
Pricing & Discounts
They are the cornerstone of the system as they drive the process behaviorThey are the cornerstone of the system as they drive the process behavior
31Data classification: Public 09/19/2007Information Systems
Technology Platform
INFORMATION SYSTEM ARCHITECTURE
Everest brought a drastic simplification of our application map
We switched off several applications, stopping their maintenance costs
The IBM Mainframe (POPIMS) Platform is no longer needed to support the Business
SAP has been interfaced with several different application to ensure reporting and extended supply chain capabilities
ApplicationArchitecture
Infrastructure
Architecture
Together with the introduction of the new SAP based application layer, also our technology infrastructure made a quantum leap towards innovation and standardization
We integrated several components to build a sophisticated architecture
20
MigratedApplications
13
Switched OffApplications
>10
InterfacedApplications
New SAP Data Center
New Global Network (Nexus)
New RF Technology
New Xerox Printers
We introduced a sophisticated, lean architecture based on our new SAP backboneWe introduced a sophisticated, lean architecture based on our new SAP backbone
32Data classification: Public 09/19/2007Information Systems
IS Organization
OUR IS ORGANIZATION EVOLVED TO MANAGE COMPLEXITY
ProgramEverestOrganization
From …One Project TeamOne single streamOne Prime ContractorStrong presence of external consultants in the key positionsA new, not consolidated methodology to run the project8 months to manage the 1st roll-out
… To> 10 Project Teams6 parallel streams4 Consultancy CompaniesF-M internal resources in key management positionsA Standard and run-in approach to manage the deployment phase5 months to manage the UK roll-out
Service DeliveryOrganization
More than 700 users in 9 countries are now supported by the same organization (powered by Dell and T-Systems), adopting a global procedure and ensuring local business (language and time) coverage
Our infrastructure team (located in Southfield and Manchester) is committed to a 7x24 availability of our network and data center and support the other components of the Everest technology (RF, printers, desk-tops)
We increased our ability to manage the project and the maintenance cycleWe increased our ability to manage the project and the maintenance cycle
33Data classification: Public 09/19/2007Information Systems
Managing the Change
Organizations
Work Together
Business, functions, and employees can leverage a world wide dimension
and face the market as a Corporation
• Build Knowledge• Spread Corporate Culture• Share Experiences
Processes
Work Together
Design and implement uniform and lean business processes, oriented to
customer (internal or external) loyalty
• Reduce Lead Time• Improve Change Readiness• Increase Customer Service
Data
Work Together
Data is unique, updated real-time, and aligned
• Increase Data Availability and Accuracy
• Improve Analysis Capabilities• Accelerate Decision Process
Systems
Work Together
Move to a system environment, with specialized, flexible modules
• Reduce System Costs and Investments
• Improve Customer Support• Faster Deployment of New
Solutions
34Data classification: Public 09/19/2007Information Systems
Concurrent Change - Desktop & Networking
Federal-Mogul 2006 F-M DESKTOP & NETWORKING STRATEGY
Legacy desktop and network technology platform was unnecessarily complex, with redundant components and poor system integration performance.
Migration to Microsoft products providing seamless, integrated technology platform for the desktop and network.
• Eliminate redundancy & overlapping expense
• Part of broader strategy that facilitates enterprise mgmt.
TARGET BENEFITS
Office Productivity Tools
File & Print Exchange &Outlook
Collaboration Services
Microsoft AD Network
Messaging
Personal Productivity Services
Collaboration Services
Conferencing
File & Print E-Mail
Network & Directory Platform
• New features & collaboration based services
•Alleviate user frustration
•Raise the workforce capability
We increased our ability to accelerate deployments of Program Everest by standardizing and simplifying many components of the overall IS solution
We increased our ability to accelerate deployments of Program Everest by standardizing and simplifying many components of the overall IS solution
35Data classification: Public 09/19/2007Information Systems
Business Priorities and Trends - Emerging & Developing Technologies
Source: Strategies For Profitable Growth - SAP 2004
Automotive suppliers will continue to focus on the integration of internal and external operations. A number of new and emerging technologies are helping to drive that trend. These include:
36Data classification: Public 09/19/2007Information Systems
Way Forward
“Ex-e-cu-tion (ek si kyoo shun), n. 1. The missing link. 2. The main reason companies fall short of their promises. 3. The gap between what a company’s leaders want to achieve and the ability of their organizations to deliver it. 4. Not simply tactics, but a system of getting things done through questioning, analysis and follow-through. A discipline for meshing strategy with reality, aligning people with goals, and achieving the results promised. 5. A central part of a company’s strategy and its goals and the major job of any leader in business. 6. A discipline requiring a comprehensive understanding of a business, its people and its environment. 7. The way to link the three core processes of any business - the people process, the strategy and the operating plan - together to get things done on time. 8. A method for success discovered and revealed in 2002 by Larry Bossidy and Ram Charan in Execution: The Discipline of Getting Things Done”