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Atlanta Oracle Application User’s Group August 18, 2000

Atlanta Oracle Application User’s Group August 18, 2000. Agenda. United Parcel Service Overview Oracle Implementation Scope Application / Hardware Specs. Current Statistics Project Benefits Learning Experiences. United Parcel Service Overview.

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Atlanta Oracle Application User’s Group August 18, 2000

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  1. Atlanta Oracle Application User’s GroupAugust 18, 2000

  2. Agenda • United Parcel Service Overview • Oracle Implementation Scope • Application / Hardware Specs. • Current Statistics • Project Benefits • Learning Experiences

  3. United Parcel ServiceOverview • UPS is the world's largest express carrier and package delivery company • Headquartered in Atlanta, Georgia • Service more than 200 countries and territories around the globe • Fleet of 261 jet aircraft in service or on order

  4. United Parcel ServiceOverview • UPS is the ninth largest airline in North America. • UPS employs 327,000 people globally • 292,000 U.S. • 35,000 International • UPS had annual revenues of $27.1 billion in 1999 and delivered 3.28 billion parcels and documents last year.

  5. United Parcel ServiceOverview • Over 1.7 million customers • 1,713 operating facilities • 150,000 vehicles

  6. Oracle Applications Implemented • Accounts Payable • Domestic U.S. - 1998 • Purchasing • Domestic U.S. - 1998 • General Ledger (Shell Only) • Domestic U.S. - 1998 • Workflow • Domestic U.S. - 1998

  7. Oracle Applications Implemented • Financial Analyzer (OFA) • Domestic U.S. - 1999 • International - 2000 • Application Desktop Integrator (ADI) • Domestic U.S. - 1999 • Tutor • Domestic U.S. - 2000

  8. Oracle Applications to be Implemented • General Ledger • International - 2000 • Domestic U.S. - 2001 • Project Accounting • Domestic U.S. - 2000 • Accounts Payable • Europe - 2001 • Purchasing • Europe - 2001

  9. Applications Technology • Oracle Version 11.03 NCA Apps • Self Service Purchasing 3.0 • Oracle 8.05 Database • Sun Solaris 2.6.1 O/S • Windows NT workstations

  10. HardwareSpecifications Primary Database Server Sun E6500 18x400MHz CPU 9GB Memory 72GB Internal Disk Forms Servers (2) Sun E6500 16x336MHz CPU 5GB Memory 88.2GB Internal Disk

  11. HardwareSpecifications Forms Servers (Continued) Sun E4500 8x400MHz CPU 4GB Memory 72GB Internal Disk Web Servers (2) Sun E6000 8x167MHz CPU 1.5GB Memory 88.2GB Internal Disk

  12. HardwareSpecifications Web Servers (Continued) Sun E3000 2x167MHz CPU 1.5GB Memory 10.5GB Internal Disk Standard Workstations Pentium 166mhz or > / 32 MB Ram or >

  13. Business Volumes Web system users 14,000 Financial Service Center Users 172 Requisitions per day 689 Purchase orders per day 948 Invoices per day 13,254

  14. System Features/Goals • Quality at the source • Online purchasing via web • Online approval and receipts via workflow • Automated sourcing • Automated matching of P.O.’S and invoices • Extensive use of EDI • One A/P site (financial service center) • Cost benefits of a paperless system • More effective supplier management

  15. Quantifiable Benefits • Reduced processing cost by 50% • Shorter cycle times • Inventory reductions • Reduced A/P staff by 50% • Key entry • Exception processing - < 10% • Consistent purchasing processes and approval limits

  16. Intangible Benefits • Improved data accuracy and speed of retrieval • Ability to handle volume increases • Facilitates consistent supply chain management • Enables a focus on exceptions and root causes

  17. Lessons Learned • Ensure that IT is closely involved during design and takes part in requirement definition. This will eliminate rework. • Devote whatever resources/time is necessary to cleanse and normalize legacy data prior to converting into your new system. • Triple the amount of time anticipated for system testing.

  18. Lessons Learned • In large installations, plan to replicate data off the production box for querying and remove the queries from the application menus. They are not optimized and will cause performance issues. • Establish system performance benchmarks prior to deployment and validate performance at each stage of deployment. Use as Go/No Go criteria

  19. Lessons Learned • Maintain a ratio of at least 3:1 inside employees vs. consultants during design, build, and testing phases of the project. • Change management is as critical as proper design to the success of the project. Ensure project backing from the upper levels of all departments. This will greatly improve your chances for success.

  20. Lessons Learned • Maintain a ratio of at least 3:1 inside employees vs. consultants during design, build, and testing phases of the project. • Change management is as critical as proper design to the success of the project. Ensure project backing from the upper levels of all departments. • Utilize Tutor to develop procedures and training curriculum.

  21. Lessons Learned • A solid ERP system combined with effective business processes will provide the information flows necessary to manage procurement through a “Total Cost of Ownership” concept.

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