strengthening silverstone projects
DESCRIPTION
By: Eric Holmes and Karene Zencker (Feb. 2012)This case is fictional. Authors reserve all rights.TRANSCRIPT
Strengthening Silverstone Projects
OCULUSEric Holmes | Jun Suzuki | Vitalijus Vasiliauskas | Anas Wakhani | Karne Zencker Management Consultancy 18th February 2012
Our RoleOculus ConsultingResearch and Consulting Advice
GoldrockIT systems, Management and Outsourcing
SilverstoneFast Growing, Multinational, Generic Pharmaceutical Firm
Agenda1. Current Situation Key Assumptions Lean and SAP Key Success Factors
2. Risks Short, Medium & Long Term Why do SAP & Lean projects fail?
3. Success Stories 4. Recommendations
Current Situation
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Key Assumptions Silverstone s Goals Maintain High Quality Minimize Production Costs
SAP and Lean Implementation Efficient use of Time and Resources Requires Client Commitment
Goldrock s Current Problems Delayed Projects, Lack of Trust Scope Creep with Lean Training Project
Key AssumptionsSAP implementation is halfway finished Initial Lean implementation complete
http://www.alpeconsulting.com/i/presentation_alpe_consulting_eng_2011.pdf
Risks1 2 3 4
Risk Evaluation MatrixLIKELIHOOD LOW HIGH Project delay Deterioration of working relationship with Silverstone Opportunity costs Internal Conflict within Goldrock
IMPACT
LOW Lawsuit from Silverstone HIGH Reputational damage Lose future clients
Lean Training Project failure Lose of Silverstone as a client Financial penalties
Why Do SAP/Lean Projects fail?According to researchers, up to 30% of all SAP implementations and Lean projects fail to meet the buyer's expectations (Forrester/Sourceforconsulting). The Reasons: Underestimation of costs and lead-times Change management not considered Insufficient sponsorship from management Poor communication Lack of understanding among workers Lack of consultant s expertise Mismatch between projects and organizational goals
Key Success Factors & Success Stories1 2 3 4
Key Success FactorsBesides IT and technical aspects, SAP and Lean demand business skills. Examples of successful SAP and Lean implementation
SAP Success Stories Capgemini: Enabled rapid growth through acquisition for
West-Ward Pharmaceuticals Consultant selection process, expertise
Ready-to-Run SAP solutions, 4 years working relationship between consultants and company.
Accenture: Enabled Global Expansion of MetsoSupport, expertise, long-term relationship (partner approach)
Tata Consultancy Services: Partnered with ABB Work as a team to make that happen : there were no
differences between ABB teams and TCS consultants, it was like one family.
Lean Success Stories Lasater Institute: Bank of America - A Lean Six Sigma
Deployment Success Lean is part of the company culture thanks to senior
commitment, a robust internal training program, aggressive and ongoing external recruiting, and results that excite everyone in our company. Bourton Group: Lean success at Siemens Transform processes and restructure the business to make
best use of engineers, Increase levels of ownership and accountability, Demonstrate significant and early return on our client s investment.
Recommendations
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Recommendations Evaluate Monetary Costs of Delays Renegotiate Contract Hire Lean subcontractors Redefine roles and responsibilities Reschedule training projects
Conduct Goldrock s Lean training sessions together with SAP Design Schedule Buffer
Customer Relationship ManagementRebuild Relationship with Silverstone Inform Silverstone s Directors of the lack of cooperation from employees. Define Gate Keepers and Spokespeople Win-Win deal for Silverstone and Goldrock by hiring specialized Lean trainers Silverstone HR departments hire Lean Trainers Goldrock Pays and Supervises
Lean Trainers Characteristics & SkillsGlobal Presence Specific Knowledge in the pharmaceutical industry Successful Track Record Flexible Training Duration according to employee type Communication vertical and horizontal within Silverstone Ease resistance to change
Increase MotivationMotivate Top Management and All Divisions Distribute Lean training and responsibilities to upper management along with operations staff Use KPI s and competitions among worker groups Salary based incentives for workers
Global Region Team
Silverstone PersonnelCountry by Country
Current Training Schedule28 Week Duration
Proposed Training Schedule16 Week Duration
Assuming Trainee Groups of 15 People
Result
12 Week Time Reduction 32% Cost reduction
Thank you
Lean TrainingLean Training Consultants:Tunnell (www.tunnellconsulting.com) Kaizen Institute (www.kaizen.com) The Lean Group (www.theleangroup.co.uk) MCP (www.mcpeurope.com)
SAP Integration model for Pharmaceutical industryCustomerSales Order Shipment Credit Management Sales Forecast / Plan Material Availability Check
Sales & DistributionInvoice
Transfer of Requirements Goods Issue to Sales
cGMP and USFDAMaterial Requirements Compliance Production & Operation Cost Purchase Order Goods Receipt Invoice Receipt Goods issue to Process Order Process Order Receipt
Production Planning in Process Ind. Quality Management
Materials Management Quality Management
Accounting Document
Accounts Receivable
Finance & Controlling
Accounts Payable
Vendor
Asset ManagementSource: Seminar SAP Life sciences, by Chandra Shekar CV (Soltius Singapore Pte Ltd)
Sources - 1 Girard K., Austria Farmer M., Business software firms sued over implementation (Nov. 1999): news.cnet.com/Business-software-firmssued-over-implementation/2100-1001_3-232404.html Why Lean and Six Sigma projects fail (Feb. 2010): www.consultantnews.com/article_display.aspx?p=adp&id=6625
Cap Gemini success story, West-Ward Pharmaceuticals: Outsourcing Platform and SAP Enable Rapid Growth through Acquisition for WestWard Pharmaceuticals : www.capgemini.com/services-andsolutions/challenges/infostructure-transformation-services/successstories/ss_westward_pharmaceuticals/ Accenture success story, Accenture Helps Metso Mining and Construction Technology Go Global : www.accenture.com/usen/pages/success-metso-global-sap-platformvideo.aspx?c=tech_smtgpjan_10000007&n=sm_0112&sf2919722=1
Sources - 2 Tata Consultancy Services success story, One Simple ABB SAP Implementation: www.tcs.com/resources/multimedia/Pages/ClientExperience-One-Simple-ABB-SAP-Implementation.aspx Van der Heiden G., De Souza K., Ambrose C., Magic Quadrant for SAP Application Service Providers, Europe (Dec. 2011): www.gartner.com/technology/reprints.do?id=118CLJQU&ct=111215&st=sb Lasater Institute, Bank of America - A Lean Six Sigma Deployment Success : www.lasaterinstitute.com/casestudy/Financial%20Services/Bank%20of% 20America(Lean%20Six%20Sigma).pdf Bourton group, Lean success at Siemens: www.bourton.co.uk/PDF/constructioninfrastructure/Siemens_Energy_Se rvices.pdf
Sources - 3Interview to Sarah James, Marketing Executive at MCP Consulting & TrainingFrom: S James [mailto:[email protected]] Sent: 2012 m. vasario 14 d. 13:50 To: Vitalijus Vasiliauskas Subject: RE: Lean Training Hello Vitalijus, Thank you for your phone call and interest in MCP s Lean Training Programmes. Lean Awareness Workshop for Managers and Team Leaders Aim of the course - The Lean Awareness Workshop aims to raise awareness of Lean Principles and their potential impact on business performance, and how it is sustained Who should attend - Management teams, team-leaders, Objectives - To give the participants an understanding of the Lean Thinking Principles - To demonstrate, through action learning, how the application of the Lean Principles can lead to significant performance improvement - To discuss the roles and responsibilities of management teams during the lean journey - To enable teams to reflect upon the performance of their own business units and to consider possible future actions. Content - Introduction to Lean Thinking and how it relates to your organisation or business unit - Carry out a Lean simulation learn by doing - Discuss the main Principles of Lean Thinking - Putting the Principles into practice an introduction to the Lean Toolkit - How do we sustain the improvements Number of participants - A maximum of 12 is recommended.
Sources - 4Interview to Richard Watson, Lean Specialist at The Lean GroupFrom: Date: 2012/2/14 Subject: Re: Lean Courses To: Vitalijus Vasiliauskas Dear Vitalijus The Lean Group work all over the World and so supporting you in Eastern Europe is not a problem. We tend to work in a minimum of Five Day Blocks when working overseas so that there is a reasonable balance between travel and delivery time. Our daily rate is 1345.00 excluding VAT which if you are in the EU and can provide a VAT number we do not have to charge under the reverse VAT rules, if outside of the EU no VAT is applicable. When working with a new Client overseas we normally charge a refundable deposit equal to five consultant days, refunds of deposits will be made providing that seven working days notice of cancellation/postponement is provided, less of course any non-cancellable expenses incurred, such as flights etc. In addition to our day rate we re-charge all travel and accommodation expenses at cost. Handouts/Materials cost 15 per person for the entire week and Certificates if required are 40 each. I currently have availability week commencing the 27th February, the 5th March and then from the 9th April ongoing. I hope this helps and if you need any more information please don't hesitate to contact me. Very best regards Richard