RE-DESIGN BUSINESS PROCESSES AND ENGAGE EMPLOYEES TO BEST UTILIZE ERP SOFTWARE CAPABILITIES
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Change Solutions Group worked with a manufacturer of video conferencing systems to optimize the use of a newly implemented ERP software, addressing challenges like low user engagement and integration issues across departments. They engaged in a phased approach to streamline processes, improve collaboration, and enhance customer satisfaction, leading to significant improvements such as increased on-time shipments and reduced manufacturing costs. The project resulted in more efficient order management, quicker processing, and better utilization of the ERP capabilities.
RE-DESIGN BUSINESS PROCESSES AND ENGAGE EMPLOYEES TO BEST UTILIZE ERP SOFTWARE CAPABILITIES
- 1. Change Solutions Group, LLP Helping Leaders Achieve Their Vision © 2008 Change Solutions Group, LLP Page 1 www.ChangeSolutionsGroup.com TM RE-DESIGN BUSINESS PROCESSES AND ENGAGE EMPLOYEES TO BEST UTILIZE ERP SOFTWARE CAPABILITIES Client This client is a manufacturer and distributor of custom engineered and fabricated video conferencing systems and equipment. The company was an early developer of video conferencing technology and was experiencing rapid growth, driven by market demand and new acquisitions. Business Challenge The client had just completed the implementation of a commercial Enterprise Resource Planning (ERP) software system. The client's management team selected an outside system integration firm and asked them to conduct an accelerated, six-month implementation of the new ERP system. As a result of this approach, there was minimal involvement and training of the day-to-day users of the new system. Employees continued to rely on departmentalized legacy systems, and prior business practices and work processes were not revised to take advantage of the new ERP capabilities. Almost a year after system implementation, several key departments had not migrated activities to the new ERP system. As a consequence, engineering, sales, and manufacturing were becoming less integrated and customer satisfaction was falling, due to inaccurate and late equipment deliveries. Change-Solution Change Solutions Group was engaged to work with company leadership, department managers, and employees, to streamline business practices and work processes and better utilize the new ERP software capabilities. This work was performed in four phases of activity: Phase 1 – Conduct a broad-based business analysis across departments / functions to define a company-wide Value Stream Map and prioritize critical core processes, based on impact to customer service. Phase 2 – Form, train and facilitate several cross-functional teams, to document critical business processes and procedures. This includes an assessment of the current “As-Is” business processes, identifying improvement opportunities, and the design of new “To-Be” process flows. Identify Improvement Opportunities & Estimate the Benefits • Decrease total inventory investment • Decrease inventory reserves & write-offs • Decrease manufacturing & material costs and increase margins • Clarify and align goals, objectives and priorities • Integrated organization charters • Define roles & responsibilities • Improve 3-way communications • Increase cross- department teamwork • Define accountability for results $$$ Non Quantified Quantified Tangible Intangible • Improve utilization of Oracle applications • Improve management & organization effectiveness • Improve customer satisfaction
- 2. Change Solutions Group, LLP Helping Leaders Achieve Their Vision © 2008 Change Solutions Group, LLP Page 2 www.ChangeSolutionsGroup.com TM Phase 3 – Conduct departmental workshops to (1) guide the selection of improvement opportunities, (2) estimate potential benefits, (3) develop implementation action plans, and (4) define key performance indicators. Phase 4 – Guide and coach three Customer-Focused, Business Process Improvement teams in the full implementation of these action plans. These core business processes include: Configuration and Pricing of New Products, Management of Engineering Change Notices, Management of Customer Orders. Initiated Customer-Focused, Process Improvement Work Teams in Critical Areas of the Business Results The client not only achieved their objectives for the redesign of several core processes that directly impact customer satisfaction, but they also achieved a higher level of understanding and collaboration by the employees responsible for these cross-functional business processes. Simplified the Order Entry process from the Customer perspective, making it easier for them to define their specific needs and desires. Simplified the product configuration rules, pricing schemes and discount structures. All customer orders received, booked and confirmed within 24 hours. Decreased the number of engineering changes during product fabrication by 60%. Reduced in-process, fabrication rework and inventory obsolescence by $1.5 M / year. Improved on-time customer shipments from 70% to 90%+ by fully utilizing the new ERP capabilities to plan production capacity and schedule the fabrication of customer orders. Business Process Improvement Develop Work Team Charter Analyze "As Is" Process Develop "To Be" Process Define Improvement Targets Develop Action Plans Implement Action Plans Benefits Tracking Validate Business Analysis Findings Identify Improvement Opportunities