Mike & Jerry’s Ice Cream Corp ERP Implementation by the Ben Team (Team Members: Randy Knebel, Lenart Collier, William Alex) CIS 521 Professor Anvari June 9, 2007

Company Introduction Mike & Jerry’s Ice Cream Corp started as a small company with a few stores. The company grew as their product line and the popularly of the product grew. The company could no longer keep up with the demand using a single store model. The company incorporated and set up two Operation centers. The West Coast center is located in San Francisco, CA and serves as the headquarters. The East Coast center is located in Charlotte, NC.

Mission Statement We are in the business of manufacturing and selling to retail stores high-quality gourmet ice cream, to include international retail. We value the quality of our products and the relationships with our customers. We consider our employees to be the most critical resource.

Current Problems The Two Operation Centers work autonomously with minimal interaction with each other due to the geographical separation. The company culture contributes to several inefficiencies to include: The information gathered at each Operation Center is not effectively shared with the other Operation Center Duplication of Effort Investment in Duplicate Information Systems/Technology Maintenance of Dual Information Systems/Technology

Current Problems Each Operation Center has implemented their own business processes resulting in inconsistencies. The company is faced with the challenge of not being to able to integrate the business activities of the two Operation Centers. The solution should enable the company to optimize its resources.

Business Case Measurable Organizational Value (MOV): Define Feasibility and Assess Risk: Feasibility: Based on Resources Based on available Budget Risk: The system does not work The system is not accepted by the stakeholders of the organization

Business Case MOV: Desired area of impact - Strategic; penetration of new markets, increased market share Customer; customers have more choices of better products transaction processes are more efficient or effective Financial; increased profit, increased margins Operational; lower costs, increased operational effectiveness, improvements to supply chain

Business Case Measurable Organizational Value (MOV): Desired value of the project – Better; to improve the quality of communication and the effectiveness of communicating the weekly, monthly, quarterly and yearly results up the management chain through the implementation of an ERP system. Do more; to expand market share nationally and create new markets globally. Faster; improve efficiency and reduce cycle times through streamlining the supply chain processes. Cheaper; reduce costs across the board to improve the profit margin.

MOV Specific Metric Reduce Supply waiting times by 10%. Reduce Supply management costs by 25%. Reduce Management meetings by 15%. Obtain a new customer base globally of 1 million. Increase the profit margin by 9%. Increase Stockholder's equity by 7.5%.

Summarized MOV Timetable Schedule for Increasing Customer Base. Schedule to Recouping cost of the ERP System. MOV Measurement Year 1 Year 2 Year 3 Year 4 Year 5 Total Customer Base* +10% 50% Return on Investment +5% +15% +20% +25% 90% * Includes both nationally and globally located customers.

ERP Implementation: Project Preparation Business Blueprint Realization Implementation Plan Project Preparation Business Blueprint Realization Final Preparation Go Live & Support Continuous Improvement

ERP Implementation: Project Preparation Sizing and Blueprinting Purpose of Implementation Plan Project Preparation Sizing and Blueprinting Functional Development Final Preparation Go Live & Support

ERP Implementation: Crafting a Solution Vision Develop a Project Plan Project Preparation Crafting a Solution Vision Develop a Project Plan

ERP Implementation: Sizing and Blueprinting Justify Cost of Investment (MOV) Address Current Legacy Systems: Up Grade, Consolidate, Decommission Identify New Technology Solutions: ERP System Data Warehouse Decision Support System (DSS) Executive Information System (EIS) Evaluate New IT Solutions at an Enterprise level perspective using SAP Stack Vendors

Current System (As-Is) Utilizing Obsolete Systems. Functional Areas are located in Different Geographical Regions. Functional Areas are utilizing different Applications specific to their specific organization.

Current System (As-Is) Non-Uniform Systems in the Enterprise Functional Area West Coast East Coast Manufacturing In-house package Same In-house Package (Different version) Sales CORESense Multi-Channel Retail Software Marketing InterlinkONE Shipping Receiving Purchasing Aestiva Procurement

Current System (As-Is)

Transition

To-Be

Identify New Technology Solutions: Selection Criteria for ERP System/Company

ERP Implementation: Functional Development Use a Top Down Approach. View all Aspects of the Organization. Conducted Joint Application Design (JAD) Sessions to seek Feedback from all Stakeholders. Restructured Organization Chart of the Company Developed Comprehensive Testing Procedures for the ERP System that is being Implemented.

Original Organization Chart Second Facility Main Facility Original Organization Chart Charlotte, North Carolina San Francisco, California Headquarters CEO East Coast VP West Coast VP Accounting R & D manufacturing manufacturing Financing sales sales Human Resources marketing marketing shipping shipping IT receiving receiving purchasing purchasing IT

Restructured Organization Chart Second Facility Main Facility Restructured Organization Chart Charlotte, North Carolina San Francisco, California Headquarters CEO East Coast VP West Coast VP R & D CIO Accounting manufacturing manufacturing IS Manager sales sales Financing marketing marketing shipping shipping Human Resources receiving receiving purchasing purchasing IT IT

ERP Implementation: Final Preparation Develop Deployment Plan: Upgrade Legacy Systems. Consolidate Duplicate Legacy Systems. Decommission Obsolete Legacy Systems. Implement New Systems. Integration of New Systems into ERP System. Integration of Legacy Systems into ERP System.

ERP Implementation: Go Live & Support Implement ERP System using the Deployment Plan as the Roadmap. Ongoing Maintenance to ensure system is optimized. Assess Performance of the ERP system on an ongoing basis to determine if the system is fulfilling the expectations of the MOV.

Justification and Benefits to the Organization ERP Combine all company data into a central location. Backup systems to protect data and processing. Provide collaboration, training, scalability, and integrity.

Justification and Benefits to the Organization Data Warehouse Provide a history of the company’s data and information. Internal and external data will be collected product sales and the stock market, weather and other conditions Data marts will provide the needed information to groups. User tools will be provided with training classes.

Justification and Benefits to the Organization Data Mining tools Customer retention: To identify customer characteristics Direct marketing: To identify the best way to use a mailing list Trend Analysis: Investigating the difference between average purchases over month, years

Justification and Benefits to the Organization Executive Information System (EIS) Used by management to get a quick and top level overview of the company. Supports graphic tools that can be used to generate presentations and reports. Allows the managers to communicate with others.

Conclusion Questions