Influential Leadership in Program / Project Management. Multi-workstream Focus March 2018
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1 Influential Leadership in Program / Project Management Multi-workstream Focus March 2018
2 Agenda Business Situation EPMO Involvement What are we trying to solve Kick-off planning and leader buy-in Kick-off results Program results and current status 2
3 Business Situation Unisource & xpedx merger 150+ warehouses Multiple systems ERP WMS 3
4 What are we are trying to solve? There are 3 major work streams currently in progress: VOS NetOps WMS All these projects are centered around streamlining warehouse operations and systems and use very similar IT and Operations resources. A sound NetOps and systems strategy will lead to optimal real estate plan that can be executed efficiently. The goal of this effort is to define the end state vision, identify interdependencies and resource constraints, establish rules of engagement, develop a macro level timeline, provide direction to real estate team, avoid rework or unnecessary work and institute an overall governance structure. This will ensure that we maximize the value out of these projects and optimize sequencing of events, timing and use of constrained resources. 4
5 Expected outputs of this meeting 1. Alignment on Data management strategy Rules of engagement End state vision Governance going forward 2. Develop plans as follows Identify any open questions and conflict areas Plans for 1-6 months (Confirmed) 7-12 months (Proposed) months (Tentative) 5
6 What do the project teams want? Detailed Combined Project Plan Description Overall timeline Identify constraints Decisive priority by market Clarity of decision process and decision rights Vision of end state Resource Analysis Program Leadership Synergies / Control Costs Capacity (IT and Ops) Available vs. Needed Skills required Ownership of each work-stream Overall Program Tracking Governance / Communication Monthly Refresh How can we be sure that we maximizing synergies? How can manage and control costs? Other Inventory reduction Stocking Strategies Space Utilization 6
7 Observations Project Data / Information Description Extensive data and plans by individual projects Lack of one coordinated file with all relevant data Need of one comprehensive plan to ensure all interdependencies are identified Comparison of timelines is critical Broader, holistic view of data is needed Limited information regarding cost / benefit Interdependencies Compare Location priorities, Identify conflict times, determine changes needed Multiple variables in each work stream Resource allocation weighed against Project overlap Prioritization Need to set guidelines or rules of engagement to define priorities 7
8 Project Data Management Strategy Real Estate Net-Ops VOS WMS [Facility #] [City] [State] [Territory] [GM] [Region] [Lease Expiration Date] [Legacy] UWW Xpedx VOC [Approach] Analysis Consolidate - Chalkline Conversion - MAX to VOS Exit Stay [NetOps Market] [Hub/Spoke Future] [Labor] Union Non-Union [Customer Mandated Account Move] e.g., Epson TX to OR [System] MAX VOS [Wave] 1-10 [VOS Conversion Qtr] [VOS Instance] NU MA SW PC [Current WMS status] MAX SFD DLOC DLOC-Paper RP [Chalkline] Yes No [Rollout Priority] 1-10 [DLOC Sub-phase] A-Z [Execution Quarter] 8
9 Project Data Management Strategy Example Review Excel file 9
10 Proposed Rules of Engagement VOS schedule is the baseline calendar On a case-by-case basis, where it makes sense with regards to timing, scheduling, and change, Net-Ops can go before VOS Okay to have Net-Ops consolidated facilities as chalk line DLOC follows VOS for MAX locations For current SFD sites, DLOC can be implemented at any time per local, functional and resource constraints Sequence actions for a site with awareness of people / cultural impact due to multiple changes e.g., DLOC implementation immediately after VOS change for a facility NetOps recommendations for locations and timing are preliminary NetOps strategy drives real estate actions Stay and/or consolidate recommendation = Lease for extended # of years depending on market Exit recommendation = Leaving when a lease is up or negotiating to terminate a lease early 10
11 Proposed end state vision 2020 Comments on end state vision End state vision is still fluid and will be tweaked as we learn more Goal is to define the end state vision as of today knowing fully well that this will be adjusted as we learn more granular features of the model and other implementation challenges 11
12 Proposed end state vision 2020 * 3623 Greenfield, fixed 25 hubs ~90 markets (2020) ~25 hubs ~115 buildings (includes ~25 hubs) All locations on VOS (2018) All locations on DLOC (2019) *Canada, Mexico, and MDCs are not in scope 12
13 Governance going forward (1 of 2) Objectives Stakeholders Cadence Maintain, de-conflict, and update master plan Ensure resource constraints are identified and resolved in accordance with rules of engagement Set and execute meeting cadence and agenda Risk analysis Report monthly status to stake holders Exec Sponsors 2 SVP s Functional Leaders Project Leaders Real Estate Leader Program Manager- EPMO Project Leaders Working Meeting: 1 hr every other week Functional Leader and Executive Sponsor Meeting: 1 hr every month Monthly update sent before the monthly meeting (example attached) These meetings could replace some other meetings that are in place 13
14 Governance going forward (2 of 2) The governance of this project is based on 3 key elements Staggered Approach Description It is difficult to project all the projects and implementation schedules over the next ~3 years, hence a staggered approach is suggested, 1-6 months (Confirmed) 7-12 months (Proposed) months (Tentative) Rolling Schedule Schedule will be updated on a rolling basis every month Will ensure that we have the latest view on future projects Ability to course correct for any changes Decision Making Agile decision making is critical for success Exec sponsors- have final decision authority Decisions to be made will be brought up in the monthly meeting Ad hoc meetings with appropriate management level if decision cannot wait for the monthly meeting 14
15 Planned Agenda Morning Session (8-12 noon) Afternoon Session (1-4 pm) Comments from SVP Sponsors Open questions- resolution What are we trying to solve? Planning (1 st draft) Expected output 1-6 months (Confirmed) What do the project teams want? Observations: Data, interdependencies, priority setting Project updates (20-min each) ERP Conversion Network Optimization WMS Project data management strategy Rules of engagement End state vision Governance going forward Open questions 1 hr 1 hr 1 hr ½ hr 7-12 months (Proposed) months (Tentative) Resource planning Training requirements 2-2½ hr 15
16 Forward Looking View Confirmed 1-6 Months 2017 January February March April May June VOS VOS Wave 2 (3 locations) Tulsa LaVergne Houston Huntington WMS Little Rock Baton Rouge Garner Southborough Livonia NetOps New England (Closing Windsor, Middletown, and Wilmington into Enfield) Indianapolis, Pittsburgh, Fresno, Portland, SLC Shreveport, Minneapolis Albany, Syracuse, Buffalo, Charlotte, Maryland, St. Louis Real Estate Indianapolis (IN067), Omaha, Fresno Ann Arbor SLC, Pittsburgh Irving, Louisville Indianapolis (IN036); Market area expires earlier16
17 Forward Looking View Proposed 7-12 Months 2017 July August September October November December VOS VOS Wave 3 (6 locations) VOS Wave 4 (9 locations) Billings Sioux Falls Morton St. Louis Omaha Des Moines Joplin WMS Livonia Pittsburgh Memphis Lansing Independence Shepherdsville El Centro Lenexa Wichita NetOps Upstate NY, Charlotte, Maryland, Michigan, Florida, St. Louis Real Estate Pittsburg (KS) Topeka Huntington, Spokane Valley, Tallahassee Joplin, Sacramento Kent, Albuquerque El Centro, Lemoyne, Middletown 17
18 Forward Looking View Tentative Months 2018 January February March April May June VOS VOS Wave 5 (13 locations) VOS Wave 6 (21 locations) Sparks Albuquerque Charlotte Fairbanks WMS Vegas Austin Medford Santa Rosa Shreveport Birmingham Anchorage Ashland Lubbock Salt Lake City Knoxville Salem Lynchburg NetOps Upstate NY, Charlotte, Maryland, Michigan, Florida, St. Louis Real Estate Livonia, Oklahoma City Sioux Falls, Wichita, Farmington Lubbock Columbia (MO) Houston, Garner, Baton Rouge, Southborough, Billings, Omaha, Des Moines, Lansing, Morton, Wichita, St. Louis, Columbia, Windsor, Miami, Richmond, La Palma, LA, Denver, Jacksonville, Orlando, Tampa, Boise, Des Plaines, Jessup, Roch Hills, Brooklyn Park, Joplin, Charlotte, Little Ferry, Binghamton, Columbus, Philly, Memphis, Spokane, Norfolk 18
19 Forward Looking View Tentative Months 2018 July August September October November December VOS VOS Wave 7 (18 locations) Complete Windsor Topeka Fenton Valley View Depew Liverpool Indianapolis Erie WMS Albany Portland Grand Rapids Columbia Port Huron Oklahoma City Steven s Point Livonia Fresno DFW NetOps Kent, Spokane Valley, Yakima, Binghamton, Little Ferry, Omaha, LA, Santa Rosa, Denver, Connecticut, SLC, Gresham, Baton Rouge, San Antonio Real Estate Appleton, Erie Shreveport, Ashland Yakima Rochester Ogden, Hebron 19
20 Key open questions How do we manage resources? IT Operations How do we prioritize markets for VOS, WMS and NetOps conversions? Within a market optimization and decisions? 20
21 Resource planning Identify all the key working resources Pooling of resources Resources stay where they are from an organization perspective Right resource deployed at the right time for the right project?????? 21
22 Key open questions How do we manage resources? IT Operations How do we prioritize markets for VOS, WMS and NetOps conversions? Within a market optimization and decisions? 22
23 What criteria should we use to prioritize markets for conversions? Revenue Ease of conversion Need from the business Synergy Operating cost benefits?????? 23
24 Key open questions How do we manage resources? IT Operations How do we prioritize markets for VOS, WMS and NetOps conversions? Within a market optimization and decisions? 24
25 Optimization and decisions within a market We have the necessary tools, programming and expertise to manage this- Need to confirm Will be dictated by prioritization from the previous discussion 25
26 Session II Working session Work through the schedule and validate locations as suggested 1-6 months- Confirmed 6-12 months- Proposed List the key working resources for resource planning Resource allocation guidelines Training requirements Content Tools Deployment program / delivery 26
27 Resource Conflict Guidelines Support VOS conversion first, then DLOC Change Capacity at least 6 weeks of steady state before next major change ex: VOS then DLOC or VOS then consolidate If possible, leverage outside resources for RP Gap analysis to allow all internal team VOS / DLOC focus If possible, utilize outside agencies for VOS Data Conversion to speed up conversion process2 27
28 Basic Project Elements (DRAFT) Cost estimate Cost Tracking Plan Benefits quantified CER status Execution Readiness Ongoing project span of control VOS n/a Wave dependent WMS Done on ind. Project basis? Done on ind. Project basis? 3 NetOps Done on ind. Project basis Done on ind. Project basis Done on ind. Project basis 7-10 Real Estate Done on ind. Project basis Done on ind. Project basis Done on ind. Project basis
29 Program results Xx locations converted to ERP XX locations up on WMS XX Realestate operations completed 29
30 Key Take-aways Clear goals and endstate Clear prioritization Clear communication pathway Clear and impartial issue discussion and resolution planning Control the problem before the problem controls you 30
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