Altec Industries, Inc'

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Altec Industries, Inc. Oracle Implementation OAUG
November 2006
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Outline

• Altec Industries, Inc.
• Key drivers
• Implementation
• Approach
• Timeline
• Priorities
• Team
• Change Management
• What are we doing today?

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WHO IS ALTEC?

• FOUNDED IN 1929 - FAMILY OWNED S CORP
• MARKET LEADER FOR MOBILE UTILITY EQUIPMENT
• FOCUS ON FOUR MARKET SEGMENTS ELECTRIC UTILITY,
  TELECOMMUNICATIONS, TREE CARE INDUSTRIES, LIGHTS
  AND SIGNS
• 120 PRODUCTS
• PRODUCTS IN OVER 120 COUNTRIES

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TEAM ALTEC

• TEAM ALTEC
• All Associates
• All Resources

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Corporate Values

• Vision To be recognized by customers as the
  preferred supplier in all markets we service
• Customer First
• Enjoyment of work
• Family
• Financial stability
• Integrity
• People are our greatest strength
• Quality
• Spiritual development
• Teamwork

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Corporate Culture

• Privately held, but managed very much like a
  public business
• Key non-family officers
• Outside board of directors
• OMC - Operations Management Council
• Very financially oriented
• Actual vs. plan closely monitored
• Every plant/division is a profit center
• Monitor interim financial data on daily basis

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Altec Navigator

• Altec NAVIGATOR is a strategic, Team Altec
  initiative to improve our business processes and
  replace our legacy information systems

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Altec Navigator Key drivers

• Mainframe systems were a strategic weakness for
  Altec
• Lack flexibility to respond to changes in
  business
• Lack functionality
• Not integrated
• 4 year backlog
• Technology is not mainstream
• Technical risk
• Resource risk

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ALTEC NAVIGATOR History

• October, 1999
• Strategic planning project completed
• Umbrella strategy adopted
• August, 2000
• Cross functional team selection completed
• Oracle approved as the umbrella vendor
• December, 2000
• Planning project completed
• Implementation plan approved
• February, 2001
• Project kickoff

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Implementation Team

• Altec
• Executive sponsors
• Active Information Services Council
• 16 full time operations associates
• 10 full time equivalent operations associates
• 13 Information Services technical associates
• Deloitte Consulting
• Core Services - Applications Service Provider

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IMPLEMENTATION PRIORITIES

• 1. RISK
• 2. COST
• 3. SPEED

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Risk Management
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Phased Implementation Timeline

• Phase I Financials
• Go Live September 1, 2001
• Phase II Sales, service and manufacturing
• First Go Live December 1, 2002
• Completion May 2006
• Phase III Rollout additional business units
• First Go Live February 1, 2006
• Target completion 2007
• NOTE Phase II and II include additional New
  Functionality roll outs

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Phase I

• Phase I Financials
• AP
• AR
• GL
• ADI
• Discoverer
• Tutor for training documentation

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Phase II

• Phase II / III Sales, Service and Manufacturing

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Phased Implementation Challenges / Benefits

• Challenges
• First Go Live sites ready for new functionality
• Changes in the business and overall structure
• Patches and upgrades
• New user training
• Benefits
• Continued validation of system setups
• Lessons learned from each Go Live site
• Additional user community to assist with Go Live
  support / testing

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New Functionality Identification and
Implementation Process

• Customer driven. RCI / External customer driven
  / Change Request
• Team driven. Opportunities identified and tested
  with operations. Annual Team meeting.
• Cost / Benefit Analysis of each major
  opportunity
• Full Risk Assessment for Major Projects
• Formal Process - Project Management
• Requirements
• Design
• Testing
• Training
• Implementation

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New Functionality

• Phase II / III New Functionality (implemented)
• Fixed Assets Invoice Preview
• Service Quoting Customer Snapshots
• iStore Forecasting on iSupplier
• Lot Control
• ACH
• Navigator Education (NET)
• ACH
• Slotting Functionality
• Operations Portal
• Service Portal

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2006 Go Live Schedule and Targeted New
Functionality
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Process Review

• End to end review and audit of required Oracle
  processes and controls for an operation,
  including
• Required tasks for order processing from receipt
  of order to invoicing and identification of who
  is responsible for each step. Outputs
• Process flow chart
• Documentation of recommended changes
• Follow up on recommended changes from previous
  process reviews
• Identification of additional training and RCI
  events needed
• Audit of key inventory management reports and
  identification of who is responsible for review.
  Output
• Matrix of inventory related action items needed
  based on review of each report, outline of who is
  responsible for ongoing review of each report and
  auto scheduling of reports for these associates

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Process Review

• Recommended frequency
• 6 months after go live
• Follow up based on findings and management
  requests
• Recommended participation
• Plant manager, engineering, procurement, sales,
  materials, scheduling
• Accounting
• Management at other locations for training (NET
  SIGNUP)

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Training

• 2005 Total User Training hours (12 months)
  6314 hours
• 2006 Total User Training hours (10 months)
  7200 hours

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Training Statistics

• 86 Oracle users with some formal training
• GOAL 100
• Navigator Certificates of Achievement - 25 of
  users
• Users attending three or more training classes
• Users providing Go Live support
• Users providing formal training
• Additional user participation needed for training
  and support
• NET (Navigator Education and Training) live
  February 2006

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Project Management Office PMO
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System Dashboards
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Projects Dashboard
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2007 Go Live Schedule and Targeted New
Functionality
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ALTEC NAVIGATOR KEYS TO SUCCESSCritical
Success Factors

• Active Executive Sponsorship and COMMITMENT
• Organization dedicated to embracing change
• Dedicated, EMPOWERED full time A Team of Altec
  associates
• Plan
• Effective project management
• Dont modify the software, learn it
• Interfaces can kill you
• Use consultants wisely

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Altec Navigator Best Practices for Realizing the
Full Benefits of an ERP System - Change Management

• Use the business case as a management tool - set
  targets and manage to them
• Set realistic expectations
• FOCUS on long term capabilities, not just going
  live
• Balance changes on people, processes and
  technology
• Teach and motivate people to use the new tools
• Use the implementation team as leaders in
  continuous improvement
• Build and maintain commonality in systems
  throughout the organization

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QUESTIONS ?