1 Mallinckrodt Inc. Information Services Overview and ERP Strategy IS6800 Presentation Mike Cornish Kathleen Delpha Mary Erslon October 2004
Feb 24, 2016
1
Mallinckrodt Inc. Information ServicesOverview and ERP Strategy
IS6800 PresentationMike CornishKathleen DelphaMary Erslon
October 2004
2
Mallinckrodt Inc.
Mission: Sustain breathing, diagnose disease, and relieve pain
Respiratory, Imaging and Pharmaceuticals businesses
3
Mallinckrodt IS – Guiding Principles
4
Mallinckrodt I/S
(110 corp/ 75 sites)
Logistics
(16)
Tech Management
(44)
Order ManagementDistribution
Includes:JD EdwardsEMS,Varsity, etc.OASIS (Nuclear)Pharmacies (Nuc)Elec commerce
Data CenterWANCorporate LANHelp DeskDBA's
Mission:- Provide cost-effective I/S support to North American Mallinckrodt operations- Improve market competitiveness within each business unit through innovative application of technologies- Aggressively pursue standardization/consolidation of operational systems- Enable rapid integration of acquisitions- Provide timely and accurate information to support management decisions- Enable information flow to Tyco Healthcare
Mallinckrodt I/S Organization
Organizational Deliverables & Budget Linkage to Business Unit Management Team Linkage to Due Diligence Teams Cross-Organizational Issues/Policy Staff Recruiting/Development
Corporate
(12 corp/69 sites)
Manufacturing
(9)
Contracts
(9)
Cyborg HR/PRJDE FinancialsLIMS/TurbochromComplaint TrackingSASOracle ClinicalsTech DocsSite I/SPharmaceutical
PurchasingMRPWIPShop FloorKronosMfg Barcoding
Contract setup & pricingMembershipRebatesSales TracingsDistributor ChargebacksEquipment TrackingService / recall
Sr. Director InfraTHC
VP-CIO THC
16 /
Sales Systems
(18)
Sales ReportingData WhseSFACommissionsWeb development
Administration/
(1)
VP-Finance(COO)
THC Canada
(6)
Montreal & Ottowa:Network MgmtServer MgmtDesktop SupportJD Edwards Mfg1 st Level Support: Corporate Applications
VP-CIO THC
5
Major IT Decisions
IT Principles Mallinckrodt business level
IT Architecture Mallinckrodt business level
IT Infrastructure Tyco International (vendor leverage)
Business Application Needs
Individual businesses + Mallinckrodt
IT Investment and Prioritization
Mallinckrodt business level
6
Mallinckrodt Governance
Closest to Federal model Business IT executives work with finance,
“shared services,” business presidents to align with business objectives and minimize side efforts
Monthly operating review meetings “Old” Mallinckrodt, IS and internal operations was “a
hobby” Now – businesses involved in IS metrics because the
root cause of problems is often a system cause!
7
Metrics
• 70 Sites• Total IS Headcount: 185• Approx. Mallinckrodt headcount 11,000• 30 Major software applications• 12 Concurrent major projects (JDE/BPCS)• 250+ Other projects • 6000 Desktops• 5,000+ Help desk calls / month•IS Budget in 2004 is 1.3% of Total Sales
8
IS Budget
IS budget, at 1.3% of total sales, is extremely low (industry avg 3-5%)
Both expenses and head count reduced by half since FY00
Systems consolidation, not “bare bones” Management more focused on internal
operations, standardization, centralization President of one business: “Service is
better than ever”
9
FY05 I/S Budget Analysis
0
10
20
30
40
50
60
70
Corporate Sites Total
FY00FY02FY04FFY05B
• Operating well below 50% of pre-acquisition costs• Source of savings:
• Site consolidation• Leverage of buying power• Aggressive cost management• Implementation of standard systems
0
50
100
150
200
250
300
350
400
Corporate Sites Total
FY00FY02FY04FFY05B
• Operating at 50% of pre-acquisition headcount• Source of savings:
• Site consolidation• Business ownership• Business alignment• Implementation of standard systems
FY05 I/S Expense: 1.3% of sales
Expense Headcount
10
What is ERP?
Software solution that addresses the enterprise needs, taking the process view of an organization to meet the organizational goals, tightly integrating all functions of an enterprise
Facilitates company-wide integrated information systems, covering all functional areas
11
What drives ERP?
Business Business development – new areas, products,
services Ability to face competition Efficient processes required to push the
company into top gear Customer Satisfaction
IT Present software does not meet business needs Obsolete hardware/software difficult to maintain
12
Problems Tackled By ERP Systems
Material shortages Productivity Inventory problems Quality problems Customer Service Cash management
13
Mallinckrodt ERP
Enterprise-wide integration of finance software JD Edwards (JDE) BPCS for manufacturing facilities
Business Planning and Control Systems “TRON” for nuclear facilities
14
Enterprise Resource Planning (ERP)
2001 2002 2003 2004
IS Org formed
TycoAcquisition
O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S
JDE Respiratory
ContractConsol.
Hobart / STLP consol.
O N D J F M A M J J A S
IntegratePlymouthCust svc
IntegrateLPI c/s
IntegrateLF c/s
S&OP
Resp DistTo Atlanta
TJ move
Plymouthrollout
Carlsbadrollout
Juarezsplit
TC- SS integration
TC - Kendall
JDE-LPI
THC Canada – Systems Integration
ContrPolicy
Shift dosageTo Hobart
R&D Process
SpecialtyChem to MBI
GalwaySupply chain
OttawaInterco
Joliet DC
SOX
Irvineclose
Lafayetteclose
LF - JDE
ATL –JDEVarsity
JDE - DRP
BPCS - TJ
TC - USS
BPCS/JDE - Galway
Demo/Loaner/Eval
BPCS LF
Combi-tube Xfer
Trade-Ins
TC - Sherwood BPCS Raleigh
MIMIX Recall
TC - Partner
BPCS - Plymouth
BPCS –Irvine
TRON
Ottawa – sales tax
Microsoft patches / Active Directory
Pharma JDE / BPCS
The only constant has been change….
15
Application Portfolio
BPCS JDE Partner
EDI / WebMethods
Data Whse
Varsity,EMSTRON
Cognos CompTHC Whse
LegacyApplications
ProductFG InventoryNet Requirements
CustomerPricingRebates/chgbacksIndirect Sales
SalesFinancial
Customer/ProductSalesRebates/chgbacks
Contracts
Shop Floor, MPS, MRP,Raw Material Purchasing,BOM
Direct Sales/Pharmacy
Order Management,Distribution, Financials
Contracts/PricingIndirect SalesRebatesChargebacks (dist rebates)
PRMS, Oasis, MapicsCOPS
Field ServiceFactory Service
TESS
Product, CustomersBOMsShipments
InterplantCust Orders, ack, SNsInvoicesInter-Divisional CRPInter-Divisional POs
Indirect SalesChargeback claimsBid Awards
Transportation/ Export
Sales AnalysisSales Force Commissions
CustomersProductsSalesRebates
Customer/ProductSalesRebates/chgbacksContracts
16
Commercial Applications as of 7/04
IrvineJDE
IndianapolisJDE
TijuanaJDE
Respiratory PharmaceuticalImaging
JuarezJDE
St. LouisPRMS (STLP)
ParisCustom
PhillipsburgCustom
MontrealJDE
RaleighJDE
CincinnatiJDE
Maryland HtsOasis
RaleighPRMS (STLP)
GreenvillePRMS (STLP)
MalMerg
PRMS(STLP)
Hobart
OttawaSeibel/GP
PharmaciesJDE/TRON
GalwayJDE
FY05
FY05 FY05
FY05
FY05FY05
FY06
FY06
17
Manufacturing Applications as of 7/04
IndianapolisBPCS
TijuanaBPCS
Respiratory PharmaceuticalImaging
IrvineBPCS
JuarezBPCS
St. LouisPRMS (STLP)
ParisCustom
PhillipsburgCustom
MontrealJDE
RaleighBPCS
CincinnatiBPCS
Maryland HtsMAPICS Raleigh
MAPICS
GreenvillePRMS (STLP)
MalMerg
PRMS(STLP)
Hobart
PlymouthBPCS
GalwayBPCS
FY05 FY05
FY05
FY05
FY05
FY06
FY06
FY06
18
Focus Areas• Internal controls• Operational excellence in I/S and Mallinckrodt businesses• Enable business consolidation via ERP consolidation • Expand supply chain capabilities (VMI / CRP / RFID)• Support organic growth initiative through PLM strategy• Leverage buying power across Tyco via sourcing teams• Proactively explore opportunities for leverage across Tyco