Background

Sandvik Mining and Construction (SMC) is one of the world’s leading providers of equipment and solutions for mineral exploration, surface and underground mining, bulk materials handling and environmental restoration. They also offer solutions for many applications in the construction industry, including surface rock excavation, tunnelling, demolition, recycling and road rehabilitation.

Sandvik had commenced the rollout of an ERP application based on a Global Template for Finance, Sales, Distribution, Service and Manufacturing. The implementation in Australia was to be the foundation and the impetus to rationalise a number of legal entities, operating under the Sandvik banner into one legal entity on the new Infor System 21 (Aurora).

Business Challenge

Having cutover to the new system, the Australian implementation was less than optimal in a number of areas including data integrity, user training, reporting and system performance.

This had a significant impact on Sandvik’s ability to effectively service customers, manage its revenues and report to their Global parent. It was also impossible to merge the other legal entities and achieve significant savings. A newly appointed CIO realised the issues were bigger than the capabilities within the company and sought external assistance from CMC.

Results

CMC provided ERP Strategic Consulting to review the situation and to develop a Program Plan to stabilise the existing System 21 (Aurora) operation and proceed with the conversion of the other legal entities.

The recovery program comprised 3 streams of work with multiple projects contained within each stream:

Foundation Projects
Projects considered to be essential so that future rollouts were built on a stable model that was consistent with Global and Regional standards and to ensure minimum disruption to the business.

Get Ready Projects
A group of projects that could be run concurrently to prepare each legal entity and site, as well as putting in place some essential central tools and resources for the actual implementation phase.

ERP (Aurora) Implementation Projects
The conversion of each entity to System 21 (Aurora) in a program of scheduled projects.

CMC provided a transitional Program Manager to oversee the commencement and ongoing management of the 45 individual projects, until Sandvik appointed their own full time Program Manager. CMC also provided a Senior Project Manager to set up a Project Management Office (PMO) and to undertake the key Foundation Project of cleaning up and stabilising the existing base System 21 Aurora and to provide support through the implementation. The project was completed on time and on budget giving Sandvik a stable ERP implementation on which to roll out.