1. Dow Chemical ERP Training
Importance of Scheduling
Hahki [1998]; Schaaf [1999]

2. Dow Chemical ERP Adopted SAP R/2 mainframe system in early 1990s
Merged with Union Carbide
Migrated to SAP R/3
Supply-chain
Performance management
E-commerce

3. Dow Chemical ERP history
Adopted PeopleSoft HR & Payroll modules in Europe
Large outsourcing contract with Andersen Consulting in 1996
550 Andersen & Dow IT personnel to support application development

4. Business Process Reengineering
BPR needed for ERP led to retraining needs
In late 1990s adopted training program
50 thousand employees
900 sites around the world
80% delivered on-line over 3 years
Payback expected in 17 months

5. BPR Transition Elements
Preliminary design
Pilot projects
Full-scale implementation
Interrelated activities
Project scheduling

6. Dow Chemical Training Program
What needed to be done
Designed program to accomplish it
Measures against objectives at every stage
Measurement continued through operation of the training program
Rolling computer technology upgrades
Firm able to deliver enterprise-wide training

7. Owens Corning ERP Implementation
Koch [1999]
Hammer & Stanton [1999]

8. History 1992 – massive reengineering effort
1997 ERP installation encountered problems
March 1997 major SAP installation applied over a weekend
Folded 16 customer service centers into 1
Rest of 1997 spent rebuilding system
Repairing damaged customer relations

9. Need for Integrated Processes
Departmental & regional managers retained power
Didn’t cooperate with ERP
Rejected ERP or tailored for local needs
Top executives responded
Reorganized company into cross-functional teams headed by process owners
Standardized order fulfillment processes
Motivated acceptance of ERP

10. Benefits Inventory turns increased 50%
Administrative costs reduced 20%
Logistic savings $50 million/year

11. Learning 7% of original budget allocated for training
Turned out to cost 13% of final ERP budget
Common to underestimate training