Transcript Slide 1

PRESENTED BY ULF LUNDIN
ON BEHALF OF
JOACHIM MAGNUSSON
TOYOTA MATERIAL HANDLING EUROPE
The TOYOTA Way
• Core Values
– Challenge
– Genchi Genbutsu (getting to the source)
– Kaizen (continuous improvement)
– Respect
– Teamwork
TOYOTA MATERIAL HANDLING EUROPE
The TOYOTA Mission
• To be the first choice partner for all customers looking for
materials handling solutions and to be widely recognised for
our innovative products and services as well as our respect for
society.
To build trust and confidence with customers by delivering
outstanding quality products and services which add real
value to their businesses.
To respect the expectations and ambitions of employees,
stakeholders and suppliers through a never ending search to
improve
TOYOTA MATERIAL HANDLING EUROPE
About TOYOTA -TMHE
• We are the worlds largest manufacturer of Materials
Handling Equipment ( Fork Lift Trucks) and manufacture
in Sweden, Italy and France.
• We cover sales, service, leasing, training +++
• We Run Movex 9.7 and M3 7.1 on System i 570 at V6.1
• We have a hot standby replicated using Vision software
• The usual Connective Systems (MEC, STREAMSERVE etc.)
• We intend to move to SAN as we upgrade to V7.1 of the
operating system and we will also move to M3 10.1.
• We had been outsourced
• We are now SMARTsourced!
TOYOTA MATERIAL HANDLING EUROPE
TMHE Starting Position
• Outsourced – Application and Hardware
– hosted and managed by a major provider
• …So we have experience and know how this all works
– Zero flexibility – a very tight contract
– Difficulty in managing change in the IT delivery in order to meet the
demands and needs of the TMHE business
– High, Very high, Cost
– Lack of confidence in Application skill sets
• We ran a separate Application Support policy with another specialist vendor
• Contract was due for renewal!
TOYOTA MATERIAL HANDLING EUROPE
What we wanted to achieve
Helpdesk
TOYOTA MATERIAL HANDLING EUROPE
How do we keep to the core values
– A Taskforce group was established
– Analyse what we do and don’t like about Now - Create RFI/RFP
– New partner MUST meet main objectives
•
•
•
•
•
•
•
•
reduced cost – at least 25% saving
CHALLENGE
increased FLEXIBILITY in the Service delivery area
FLEXIBLE and TRANSPARENT price structure
REAL KNOWLEDGE about TMHE’s processes, infrastructure,
ERP standards and integrations ( Know M3!)
GENCHI GENBUTSU
Work TOGETHER with TMHE
TEAMWORK
Acknowledge that TMHE needs control
RESPECT
Innovation and continual improvement
KAIZEN
A stable and competent partner
- Our Core Values
TOYOTA MATERIAL HANDLING EUROPE
How did we do it?
RESPECT – we scored the potential vendors fairly
ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Weight Supplier Supplier Supplier Supplier Supplier
RFP - Criteria
factor
A
B
C
D
E
Scope scenarios
5
Service Level Agreement
6
Follow up on KPIs
2,5
Financial terms and conditions
2,5
Management
2,5
Technical requirements
6
Business Continuity and Disaster Recovery
6
Security
2,5
Human Resources and technical competences
6
Company
2,5
Quality Assurance
10
Transition project
2,5
Prices
40
Presentation
6
Transition-in
20
Risks
30
Totals
0
0
0
0
0
TOYOTA MATERIAL HANDLING EUROPE
How did we do it?
GENCHI GENBUTSU – we spent time getting
to the very core of what we wanted and
constructed a good and fair contract
Sourcing Solution &
Services Agreement TMHE
The Master
Agreement
Master
A. Technical
System Services
B. Technical
Appl. Services
C. Continuity Service
D. Responsibility Matrix
E. Service Levels
F. Charges
G. Configuration
Items X10
Schedule
H. Roles & Governance
Schedule X10
I. ExoSeries Services Terms
J. Op5 AMP & SMP Terms
TOYOTA MATERIAL HANDLING EUROPE
Appendix 1:
TMHE Standard terms
Appendix 2:
TMHE Roadmap
Appendix 3:
Guideline Change Request
and Purchase Order
Sourcing Solution & Services Agreement TMHE
The Master Agreement
explains important
terms and conditions
agreed upon.
5. Service
The Master
Agreement
Operations
Fore details, see
next slide..
TOYOTA MATERIAL HANDLING EUROPE
Sourcing Solution & Services Agreement TMHE
4. Background and Executive summary
The Company has a requirement to provide support to their internal organisation making sure that the
IT support they provide meets with the TOYOTA business requirements.
For many years, the Company has elected to use external providers to manage various aspects of the
IT operation of their systems. In particular, the Company has used external resources to manage
aspects of their main business system applications – the main platform IBM System i, the Movex 9.7
application, the M3 application and the associated peripheral systems.
Since May 2010, the external operation of these systems has been placed into the hands of existing,
significant and long serving providers to TMHE – the Service Providers iStone in partnership with Essist
the Service Providers.
4.
The Service Providers mission is designed to cover three main phases:
Background
PHASE 1 - Transition out:
& Executive
PHASE 2 - On-going Support
summary
PHASE 3 - Transition back
As of the Effective Date, the Parties confirm that phase 1 (Transition out) has been completed and
fulfilled and approved by the Company.
5. Service
The Master
Agreement
When considering the creation of this Master Agreement, the Service Providers took careful
Operations
consideration of the TOYOTA core values – Challenge, Kaizen, Genchi, Genbutsu, Respect and
Teamwork and as a result, the Parties have matched these to its own core values as well as Code of
Conduct, and accommodated any differences to effect a material connection in the flow of the
connection between the Company and the Service Providers.
As a result, the Parties feel that the Sourcing Solution in the Master Agreement can deliver Services to
the Company that is particularly flexible, adaptive, responsive, respectful, fair and capable of continually
improving over time.
The Parties have also taken time to consider that circumstances will change over time and a
fundamental part of the flexibility of this Master Agreement is in the transparency of the pricing, the
capability to accept change on either a temporary or permanent basis, or the in-built, pre-agreed
charging mechanism that removes any restriction to just getting the job done.
Clearly there is a need to go into some detail when embarking on an agreement of this type and this is
duly covered in the Master Agreement but the Service Providers will strive always to look at change and
TOYOTA MATERIAL HANDLING EUROPE
improvement of the Services with an open mind and pragmatic approach.
Sourcing Solution & Services Agreement TMHE
Responsibility matrix
Description of activities – System operations – Daily operations
111
Responsibility112
matrix
113
114
5. Service
The Master
Agreement
115
Operations
116
Monitor for alerts 24x7:
-Hardware error logs.
-System Software.
-Network Connectivity.
-System Log Files.
-System processes.
-Database alerts using file space thresholds (increments)
-Application alerts
Log alerts during monitoring window using incident and problem
management procedures.
Assign problems to the next escalation level as required.
Perform first level problem determination and fix where possible
following documented procedures.
Escalation of major incidents outside of normal working hours.
Responsibility
Essist
Exceptions
O
O
O
O
Not project
specific workload
O
117
Issue and reset expired system passwords according to approved
security procedures.
Document application procedures and alerts that affect operations.
118
Perform second level problem determination and fix where possible.
119
Assign problem to third level support as required
O
120
Management of major incidents and escalation to Helpdesk.
O
121
Participate in business continuity testing
TOYOTA MATERIAL HANDLING EUROPE
CUST
O
O
O
Results
–
–
–
–
–
–
–
–
–
–
New partner from old
Essist providing Infrastructure skills and 2nd line support
iStone providing Application skills and 2nd line support
Essist and iStone ‘Joined at the hip’ with Essist Remote Monitoring
and 1st line Helpdesk – Pune
IBM and Lawson providing 3rd line
Transition-in plan (including recovering H/W to Mjölby) was
faultless!
Some issues with Essist integration in early days, now resolved
Took too long to get the contract straight but
the result is very flexible and fair to both
parties
Transition-Out plan was a very nice touch
Not Locked In. Continual Improvement plan (KAIZEN)
TOYOTA MATERIAL HANDLING EUROPE
What
are
the
benefits
– Flexibility - Capabilities and Resources
• The ability to scale up AND scale down at very short
• Add or drop new services on-demand
Assigned
to, total
Assigned
– Quality in Services
•
•
•
•
•
At Last! We have Application aware 1st line support
Triage at 1st line is excellent (See Chart)
System and Network support by specialists
Application support by different specialists
Integration and connected system specialists
Application
29%
Tech Company
0%
platform
11%
Helpdesk
60%
– Availability
• 24 x 7 x 365
– Control
• TOYOTA is in control
• Internal controls with Essist and iStone coordinated through dedicated Service Manager
Status, total
Processing (assigned)
– Savings
Pending
7%
– Development
TOYOTA MATERIAL HANDLING EUROPE
Closed (solved)
0%
1%
• Service is inexpensive but definitely NOT cheap
• Achieved cost savings objective … and some!
• Forward plans and strategy incorporate the
Service because it is so integrated into TOYOTA and
‘Aligning the IT with the business requirements
Closed (not solved)
Closed
92%
What are the recommendations
– Look around.
• It is not always the big boys that have all the answers
– Tailor what YOU want, not what the vendor has to offer
• It is a competitive market out there and some new services are emerging
– Don’t lock yourself in to long deals
• Flexibility, Flexibility, Flexibility
• The vendor must earn the right to be your
partner, not just expect it because of a
rigid, long term contract
– Application, Application, Application…
• (many know the systems but fewer know the application)
– Don't miss your integration and connected systems
• Often more to consider then you aware of…
– There is no management without processes and measurement
• Use a framework - CoBit, ITIL
• Regular meetings and defined responsibilities.
• Invest in your Service Manager role
TOYOTA MATERIAL HANDLING EUROPE
Q&A
TOYOTA MATERIAL HANDLING EUROPE
The ‘Quote’ from Magnusson
"The question I am asked most is;
'Why the Essist model and not the IBM, Logica or Lawson model?'
Although there many good reasons, the one that stands out most
is that the Essist model allows them to become part of my team,
a team that I control and I can include in the wider Toyota IS IT strategic direction.
Too many other options simply take away that control and with it the
flexibility that the IT department needs in order to meet with the ever
changing business requirements.“
Joachim Magnusson
IT Manager
TOYOTA MATERIAL HANDLING EUROPE