Navy Enterprise Resource Planning (ERP): The Journey Continues

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An update on Navy Enterprise Resource Planning (ERP) Program at the 2013 Sea-Air-Space Exposition. Also providing background as to how the program was implemented.

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Navy Enterprise Resource Planning (ERP): The Journey Continues

  1. 1. Navy ERP: The Journey Continues! presented by: CAPT Kurt Wendelken NAVSUP Assistant Commander for Enterprise Logistics Engineering! Ready. Resourceful. Responsive!!
  2. 2. What Is An ERP? Enterprise Resource Planning (ERP) ! Integrates management of information across an entire organization— embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. Ready. Resourceful. Responsive!! 2
  3. 3. What Is Navy ERP? + Business Rules Policy + People Organizations Not just an IT system! Ready. Resourceful. Responsive!! 3
  4. 4. Navy ERP Evolution NAVAIR Navy ERP 1.0 October 2007 2013 2011 2009 Fully Deployed 2007 2005 2003 2001 1999 Single Supply Solution March 2010 Pilots Converged Pilots Launched Ready. Resourceful. Responsive!! DoD Business Environment Driving Navy to ERP 4
  5. 5. Providing An Enterprise View! NAVY S BUSINESS N8 NAVAIR FMO/FMB NAVSUP N4 NAVSEA SPAWAR* N9 ONR/SSP* Ready. Resourceful. Responsive!!
  6. 6. Common Business Processes! Ready. Resourceful. Responsive!!
  7. 7. End To End Functionality! • Standardized Finance & Accounting • Budgeting Capabilities • Automatic Financial Reporting Finance • Planning • Procurement • Inventory Management Materials Management Supply Chain Management Pgm Management Workforce Management • Earned Value Management • Work breakdown structure • Total visibility of programs • Time and Labor Data • Training Management • Personnel Data Management • Wholesale & Retail Supply • Enterprise-wide forecasting • Business to business procurement Ready. Resourceful. Responsive!!
  8. 8. Challenges! ! ! Modifying Processes! ! ! ! Meeting Leadership Information Needs! ! ! ! Governance! ! Converting Data! ! ! Managing Data Volume! ! ! Standardizing Data! ! ! Training! ! ! Managing Interfaces! ! ! Working Failed Transactions! ! ! Managing Change! Ready. Resourceful. Responsive!!8!
  9. 9. What Worked! •  Senior Level Commitment •  Well-defined Transition Plan •  Local Ownership of Training •  Centralized War Room •  Understanding and Preparing Data Ready. Resourceful. Responsive!! 9
  10. 10. Total Asset Visibility Total Visibility of Warehouse/Ship/Air Station Inventory Ready. Resourceful. Responsive!! 10
  11. 11. Global Sourcing Before ERP After ERP Ready. Resourceful. Responsive!! 11
  12. 12. Inventory Reductions Before ERP After ERP Ready. Resourceful. Responsive!! Ready. Resourceful. Over $200M Saved in POM 12 Responsive!! 12
  13. 13. Now What? •  Navy ERP Program Sustainment •  Finalizing approach to harness data from the system to inform Navy decision making •  Possible future decision about expanding functionality Ready. Resourceful. Responsive!! 10
  14. 14. Next Stop: ERP Sustainment •  ERP Program Office/NAVSUP/SPAWAR sustainment partnership •  Increase enterprise organic sustainment capabilities •  Re-invest sustainment savings in projects to support: –  Reduction of custom system objects thru increased business process standardization –  Increase use of already deployed functionality –  Increase retirement of legacy systems Ready. Resourceful. Responsive!! Sustainment Through Continued Innovation 11
  15. 15. The Future: Data! •  Analysis of large data sets driving productivity/innovation •  •  •  •  •  Data is being used to help companies: Make better management decisions Move to high-accuracy planning Precisely tailor products or services Reduce fraud Every block of stone has a statue inside it and it is the task of the sculptor to discover it Michelangelo Ready. Resourceful. Responsive!! 15
  16. 16. Navy ERP Data! •  Navy ERP already contains a substantial amount of data •  Multiple Efforts Underway to: •  Extract •  Analyze •  Present •  Efforts will benefit: •  Navy Auditability •  Cost/Execution Analysis •  Supply Chain Optimization •  Reliability Ready. Resourceful. Responsive!! 16
  17. 17. Key Take Aways! •  Navy has implemented a world-class ERP •  We now have SYSCOM-wide business processes •  Navy ERP enables auditibility/FIP-FIAR compliance •  Sustainment will bring future legacy reduction/system improvements •  Data from Navy ERP will great enhance Navy business processes and readiness Ready. Resourceful. Responsive!! 17
  18. 18. Questions?! Ready. Resourceful. Responsive!!

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