Lesson learned from 90-days IFS implementation in mining start-up

New ERP solution for Northland –
Implementation of IFS Applications

Patrick Harlin, IT-manager
Northland Resources
Östen Westman, Project manager
Novacura

Agenda





Northland Resources – short background
Goals for new solution
Implementation of IFS Applications
Experiences and lessons learned

Northland Resources – A new company
in rapid change
 Canadian idea that transformed a wet bog
to a mine within 24 months
 Total investment approx. 1.2 billion USD
 From 70 till 250 employees in 12 months
(Long term number will be 400-500 employees)

Europe’s new iron ore producer

…..och november 2011

7

11

11

Kaunisvaara Projektöversikt
inkluderande Pellivuoma

10

27

First delivery

25 feb 2013

12

17

Effects of rapid buildup

Rapid buildup of organization and construction at the same time

Company lifecycle phases and IT

”Loop of systems acquisitions”

No history = Unclear requirements definition and no
history considerations

Reasons for the late ”heart change” =
change of business solution
 Transformation from ”Project” to ”Operation”
 Both organization and operation needed a new
focus
 IFS Applications offered the flexibility needed for
the start up of the operations

 Usability
 Different types of clients, access to information,
role based interfaces

 ”Total Cost of Ownership” – TCO
 Aprox. 1 million USD lower TCO over 5 years

Timeline – new solution


SAP implemented in 2010 to replace old finance solution:




Northland selected future maintenance solution during Q4 2011




Solution included Finance and Purchase
Scope included Equipment, Preventive Maintenance, Work Order and Inventory and
IFS Applications,8 was selected

In Q2 2012 - Northlands management initiated a process review


The goal was to synchronize Northland needs and address existing issues:
 High level definition of Northland system map
 Transition from “project” to “operation”
 Implement common and cross-functional processes for critical areas such as:



Purchase Requisition – Purchase Order – Invoice – Payment
Fault Report – Prepare Work Order – Execute Work Order – Report Work Order

 Create a foundation for future development




A Total Cost of Ownership analysis between current solution compared with
a new solution from IFS was executed:




Processes & Business analysis

Over a 5 year period Northland would lower the cost with more than 1 Million USD
using a an IFS Applications based solution compared with an integrated solution
between SAP and IFS Applications

Investment approved by board and agreement signed by the end of June
2012 and the project was initiated immediately with technical installations

System overview Northland
Production process
Mining

Contract

Enrichment

Process and
control system

Distribution
Logistics

Business Performance

Finance

Purchase

Inventory

Project
Document
SHEQ

HR

Maintenance

Invoicing

Goals for the project
 Common business solution for Northland
 Common processes for all companies in the Northland group
 Finance – Purchase – Inventory – Maintenance – Project

 Long term integration with critical solutions (future needs)
 SURPAC/CAT Minestar – Mine planning
 ABB 800xa – Crusher and enrichment
 Currently on-going

 Savage – Logistics
 Intelex – health, Environment and Safety
 Trix – Technical Document Management

 Support for mobile devices
 Touch applications and bar code readers
 On-going

 Development of long term strategy for the new solution
 When the project started many of the critical roles and resources where
not hired yet

High level project plan - 2012



Agreement signed
Installation




Pre-study Finance




Suppliers, equipment objects, parts
etc.
Test

In each area and cross functional

Training based on work instructions





Migration

Final solution tests




WS & configurations

Configuration of processes and
creation of work instructions

Migration of data to IFS




Pre-study
Finance

Planning the switch from SAP to
IFS

Workshops and configuration of
solution




Inst

Databases TEST and PROD

Train.

Northland key users

Go-live – Monday December 3rd
Go-live support


Adjustments of configurations
Go-live support

Jun

Jul

Aug

Sep Oct

Nov

Dec

Jan

How did Northland do it? –
Resources, time and cost
 Project organization
 IFS (4 persons)





Project Manager/Inventory/Purchase
Finance
Project
Technical

 Northland (7 persons)







Solution management/Project Manager/Maintenance (external)
Finance (2 persons)
Purchase (1 person)
Inventory (1 person)
Maintenance (1 person)
Project (1 person)

 Implementation
 July 2012 – January 2013

 Total cost external consulting resources (excluding travel cost)
 2,5 milj SEK = approx. 385 000 USD

Results
 160 users active in new solution
 15 users in old solution

 New finance solution
 Tough timing of the ”heart surgery”

 New integrated purchase process including scanning and
interpretation of invoices
 Focus on operations

 New maintenance solution
 Focus on asset life cycle

 New inventory solution
 Control from day 1

 Integration to QlikView updated
 New budget process and follow up for 2013

What does it look like?






8 companies
63 projects
>1000 equipment objects and parts
Full event history for production

Thank you for your attention!

www

www.northland.eu

30

Lesson learned from 90-days IFS implementation in mining start-up

More Related Content

What's hot (19)

Viewers also liked (20)

Similar to Lesson learned from 90-days IFS implementation in mining start-up (20)

More from IFS (20)

Recently uploaded (20)

Lesson learned from 90-days IFS implementation in mining start-up