Jon Reich Senior Consultant, HGP Asia Workshop: Challenges with MES Implementation HGP Asia Knowlegde Day 2017 Jon Reich Senior Consultant, HGP Asia

4th HGP Asia Knowledge Day www.hgp.ag

Today the workshop will focus on: Implementing complex manufacturing operations management systems presents a unique set of challenges Today the workshop will focus on: Challenges to MES implementation Specific challenges posed by implementing MES in Asia How we can consider and address these challenges Workshop format: Open, interactive www.hgp.ag

Who Comes to an MES Knowledge Day …and Why? How many people here have been involved with MES implementation? How many people here have been involved with MES operation? How many people from… IT? Quality? Business? Why did you come today? What do you hope to learn? www.hgp.ag

Implementation Challenges Common Challenges for IT Projects Lots of research done into ERP and other large IT system implementation projects. Common challenges identified: Business process and organization Scope Change management Senior management commitment Compliance Skills and expertise Cost System technical limitations Employee retention Technology planning Implementation strategy Testing Implementation time User involvement and training Integration and compatibility Validation Maintenance costs Vendor management Project management www.hgp.ag

Implementation Challenges What Do You Think? Select the top 3 challenges you see to MES Implementation and Operation IT Business Quality www.hgp.ag

Implementation Challenges Solving the Puzzle www.hgp.ag

Implementation Challenges Why Software Project Fail (KPMG Study) PEOPLE & PROCESS www.hgp.ag

Implementation Challenges Asia Specific Challenges Across European countries study showed national culture impacts success of ERP system adoption “Negative impact” in countries with: High tolerance for uncertainty and ambiguity Masculine cultures Unequal power distribution ERP User Satisfaction study in Taiwan user-related factors Consultant’s domain knowledge Consultant's project management Training System understanding Feeling of user involvement www.hgp.ag

Implementation Challenges Asia Specific Challenges What is your experience with MES implementation challenges here in Singapore? www.hgp.ag

Implementation Challenges Asia Specific Challenges Language and culture Cost Customer support Local consulting companies not able to provide experienced support Misalignment of local user requirements with global solution In 2004 a published study on ERP implementation in China concluded: Systems are designed for rule-based, mature economies rather than relation-based governance systems like China www.hgp.ag

Implementation Challenges Case Study – MES in Biotech Plant Situation Analysis HGP Solution Customized MES solution was implemented in Singapore for a biologic plant Global MES solution with intention to meet business requirements from various sites using standard features of MES solution Objective was to have a MES solution implemented concurrently with the new product / process setup Project took approximately 2 years to complete Rough journey with many deviations found during validation phase (> 200 deviation) Vendor GMP experience was weak System was highly customized, changes made were not fully documented Project management (both client and vendor) was not effective Implementation of effective and rigid project management processes Development and agreement over mutual expectations (global and local) Implementation of a cultural awareness program www.hgp.ag

Implementation Challenges Case Study – MES Training & Knowledge Mgmt. Situation Analysis HGP Solution Commissioning of a new solid dosage production site Increasing throughput time Increasing flaws in operations Increasing effort for batch record review Handover from original project team into operations was inadequate MES was being used as a control mechanism for operator activities, leading to over-complex batch records and non-value added steps Review by exception was not implemented Training level for MES and automation was insufficient Implementation of a site-wide training and awareness program for MES Implementation of a knowledge retention program – and rewarding of knowledge sharing Creation of on-site MES Experts Group and local MES Forum Enablement and facilitation of cross- site collaboration www.hgp.ag

Implementation Challenges Take Home Learnings It’s all about PEOPLE and PROCESS….and Project Management! MES implementation is not purely an IT project, it is a business process transformation change and impacts the entire organisation Process optimisation studies should be completed improve processes and workflows Use experienced Consultants Use experienced Project Manager www.hgp.ag

Contact Jon Reich Senior Consultant E jon.reich@hgp.ag T +65 8481 1470 HGP ASIA PTE LTD 110A Telok Ayer Street Singapore 068 579 +65 6636 5101 / 5901 info@hgp.ag ww.hgp.ag Jon Reich Senior Consultant E jon.reich@hgp.ag T +65 8481 1470 www.hgp.ag