Case Study : Metalcorp Recyclers

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Case Study Metalcorp Recyclers

• Introduction of JDE Financial Distribution
  modules and ASP . NET technology using a point of
  purchase software development and integration
  into JDE via web methods.

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A vertically integrated business
Recycling Over 1 million tpa of ferrous scrap
100,000 tpa of non-ferrous Supply 500,000 tpa to
Smorgon Manufacturing Domestic and export sales
Manufacturing EAF production technology Laverton
700,000 tpa of billet, rod, bar wire Waratah
300,000 tpa of billet mining products
Distribution Value-added distribution1.9
million tpa of long and flat products Major
consumer of HRC for distribution and tube
making Over 30,000 customers and 140 distribution
centres
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Background

• Smorgon acquired MCR in 2000
• Integrated with existing Scrap recycling business
  in 2001in Melbourne
• Development of point of purchase software
• Scrap Sites in Australia 39
• Largest sites NSW Queensland with 12 sites
• Melbourne Adelaide feed direct into Steel Mill
  at Laverton and Steel Mill in Newcastle

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JDE Modules Used Financial General
ledger Accounts Payable Accounts Receivable Fixed
Assets Distribution Sales Purchasing Item
(Transfers, Adjustments Reclassification) Stockt
aking
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Other Features
EDI Sales Orders created from weighbridge
system JDE Transport Freight rate set up to
include voucher for freight component of Purchase
as well as scrap vendor Vendors created at
Weighbridge System, JDE mod to create vendors in
address book. Evaluated receipts processing
running nightly voucher match program. Modified
remittance advice showing product purchased and
weight Account Statement which acts RCTI for GST
purposes.
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What was done from Melbourne

• Set up of branches, items, users, locations
• Conversion of vendors, customers, financials
• Ongoing expert support
• Coordination of all activities

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Metalcorp RecyclersWeighbridge System (WBS) JD
Edwards (JDE)Implementation Project
Project Objective Replace all existing
Weighbridge and back office systems across MCR
nationally, with a redeveloped, centralised
Weighbridge System JD Edwards XE System that
operates under a common model across the Group.
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WBS user group

• Representation for each region
• Cross section of job functions
• Worked together to make decisions

JDE user group

• Representation for each region
• Predominantly financial people
• Convert six independent systems

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Requirements methodology

• User requirements
• Ownership - MCR
• User group What we want, how it will work
• Project team What is technically viable
• Two workshops held
• Common business processes
• User requirements
• Functional requirements

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Project Risks

• Scope creep (new Yards were purchased during the
  project)
• Surprises (re organise Tasmanian operation into
  Victoria administration)
• Hitting dates (over run by five months)
• Project ownership (different State and pre
  occupied)
• Resourcing (project members left the project
  before hand over was complete costs)

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Weighbridge System

• Sales
• Purchasing
• Cash Payments
• Adjustments
• Transport Scheduling
• Bin Control
• Mill Returns
• Real-time reporting

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Technical Design Objectives

• WBS and JDE are centralised
• All Clients are Thin
• Can be accessed from any PC
• WBS to operate Independently From JDE
• Interface to be simplistic / User friendly

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System Architecture
WBS Frontend
JDE Batch mgt
Oracle
SQL db
WebMethods Interface
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Development lifecycle

• User Requirements
• Conceptual Workshop
• Development
• Look and Feel Testing
• Unit Test
• System Integration Test
• Stress and Volume Test
• User Acceptance Test
• Deployment

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WBS JDE Interface

• As simple as possible
• Utilise existing interface (Batch Management)
• WBS and JDE are not reliant on each other

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Problems encountered

• Management of expectations was poor
• Massive clean up required in legacy system
• Training was in effective due to heavy demand on
  employees to return to work (held offsite)
• Project ownership from the business was poorly
  represented
• Local issues were not exposed until after go live
• Go live support was insufficient
• Reporting requirements was delegated to a junior
  ineffective

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More problems encountered.

• Payment of cheques/WBS cash module
• Account and Cash Vendors are treated very
  differently in JDE and WBS
• Branches to review pending txns
• Each branch manager/admin person must review and
  approve all transactions before being sent to
  JDE
• Use of computers
• People generally need to get used to using PCs
• Importance of timely updating of information in
  systems
• Any system is only as good as the quality and
  timeliness of the information that goes into it
• Management of master files by SBS
• In most cases, changes to master file data will
  need to be made by SBS (Vendors, Customers,
  Items, etc)
• Pricing implications throughout systems
• The system revolves around pricing If you get
  it right, half of the battle is won
• WBS forced password changes
• People now need to remember passwords. In
  addition to this, these password will be forced
  to change over time

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Questions?

• Thank you for your interest
• Stephen Cate Smorgon Steel 0418 848 120
• Patrick Harper Rapid Software Solutions Pty Ltd