The three Australia and New Zealand subsidiaries of this
global company faced increased competition due to the entry
of new competitors. It was necessary to improve the customer
level of service and reduce the cost of production and administration.
The business is highly seasonal and presents complex scheduling
problems. The existing information systems were not Year 2000
compliant. In addition, it was necessary to start integrating
the organization and services of the three companies, which
had been operating independently.
Our principal led the project as financial systems director
of the company.
Our plan was to review the economic drivers and identify
the benefits stemming from the implementation of SAP R/3 integrated
with manufacturing optimization application, I2 Technologies
Rhythm as well as other products; and to design a business
model for the integration of services and materials management
within the 3 companies. We created and trained a project team
and started the re-design of the core business processes and
the organization of sales and services. Mornington designed
the SAP configuration and developed the integration points
with I2. There was also a need for a client/server infrastructure;
the software was implemented.
The company resolved its year 2000 problem. The business
units are gaining benefits in reduced operational costs and
improved flexibility. Scheduling optimization benefits in
higher plant throughput and lower cost of materials are starting
to materialize and will grow in the 12-24 months following
implementation, as the algorithms are fine tuned. Delivery
time and unit costs will decline, reinforcing the competitive
position of this manufacturer.