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Presented By:

Juli Cates Katrina Farris Jacob Farris

Founded in 1903 by William Harley and Arthur Davidson Idea was to take the work out of bicycling By 1920 Largest motorcycle company in the world By 1998 150,818 motorcycles were shipped out

Time for Change

Mid-1980s Brink of bankruptcy Small in comparison with Japanese rivals Development of a corporatewide supply management strategy (SMS) Integration of a software provider

Software Provider Selection: Decision Criteria And Evaluations

Functional Criteria 1. Design & foundation 2. Request definition 3. Documentation 4. Receiving 5. Supply management 6. Project tracking 7. Miscellaneous 8. Interfaces 9. Training 10. Other 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Qualitative Criteria Long-term relationship potential R&D Training approach Implementation/Education/Change management methodology Understanding requirements Enabling SMS Out-of-the-box fit Financial Viability Cost Technical Support Offerings Overall functionality Number of partner providers Architecture compatibility Platform portability Web functionality to go Manufacturing experience

Which factors would you be inclined to weight most heavily?

Functional Criteria Design & Foundation Documentation Supply Management Project Tracking Training Qualitative Criteria Research & Development Training Approach Enabling the SMS Technical Support Offerings Overall Functionality

Comparison of Providers
Provider 1 Attentive to the needs of Harley-Davidson Knowledge of software Match of culture team wearing Harley-Davidson shirts Pros Paid attention to the dynamics of the customers Cons Wanted to sell the fact they wanted to win the job.

Comparison of Providers
Provider 2 Very formal shirt-and-tie approach Major strength in software product Pros Provided walk-arounds where they worked around potential problems. Cons Highest Costs More hierarchical

Comparison of Providers
Provider 3 Recently employed by Harley-Davidson to provide systems in a different functional area. Pros Self-evaluation functionality checklist was 96.8% Functional possibility Cons Not prepared Presentation was a disaster

Which provider would you select? Why?

Provider 2 Highest functionality with a 98.7% fit. Perfect presentation Extremely professional Web-enabled interfaces Provided potential problem scenarios

Critique Harleys change program.

Plan 2003 Predicted Benefits of the SiLK team. SiLK Implementation Phases

Predicted Benefits of SiLK

People Changes in behaviors that affect the way work is done. Reduced non-strategic staff time & tasks Elimination of duplicate data entry Supplier Development Increase in strategic procurement activities Process Changes in methods used to get work done. Reduced procurement cycle time Reduced manual activity Increased supplier integration in procurement process Reduced confusion in supply base caused by sitespecific processes

Predicted Benefits of SiLK Cont.

Technology Changes in tools used to get work done. Data consolidation for decision making Increased supplier access to quality, cost, timing, and demand data Reduced complexity through common tools and systems Reduced system maintenance and obsolescence costs

SiLK Implementation Phases

Phase 1: Transaction Processes/Systems
Requirements/Requisitions/Timing Creating Purchase Documents (Ordering) Receipts/Tracking Invoice Processing

Phase 2: Supplier Information Processes/Systems

Supplier Performance Reporting Supplier Communication and Integration Contact management

SiLK Implementation Phases Cont.

Phase 3: Project-Tracking Processes/Systems
Concurrent Product and Process Delivery Methodology Product Planning Resource Allocation Target Costing Build and Launch Readiness

What is your overall assessment? Did it take too long?

Good process, very elaborate Incorporated all functional areas in the decision process Evaluation time allowed Harley-Davidson to critique themselves as well as all software providers.

Was it too functionally focused?

Being functionally focused was one characteristic of a software provider that Harley-Davidson required. Projected Benefits & Implementation Phases helped focus on functionality.

How might you have done it differently?

We believe the process Harley-Davidson implemented was successful. They applied the concept of self-directed teams from the factory floor instead of letting the high-up managers to make all the decisions. Shorten decision process time

Thank You!