...isks associated with the project Most importantly the ERP system implementation for the SDCS can fail due to the scalability of the Project (180 schools) and the difficulty to customize the system for a large amount of users in different locations. It is not just about turning the software on, but about training users on how it works. This is a key risk when implementing the ERP in the SDCS where teachers, nurses, HR, etc. lack of expertise in this technology. Users have to be given enough training and support through consultants in order to successfully adapt. In more detail: Lack of alignment of the ERP system with the actual school processes. ERP system alone cannot improve the school performance unless the operational processes are restructured. A system testing prior to the implementation phase should be performed. Loss of control over the project: Project team has to have experience in a project of this type and magnitude to develop the right software and have the technical implementation knowledge. Ineffective project costing and time management: A project of this magnitude involves large expenses in hardware, software, implementation costs, consulting fees and employee training costs. An ERP system generally has a wider scope and may cause a significant number of changes within an organization. Scope and complexity are important risks for which the implementation plan has to be very detailed. Changes in staff relationships: Employees...
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...An Enterprise Resource Planning (ERP) system is a highly complex system and is usually associated with high costs. The implementation is a long process and may take years to complete, furthermore, the process can be delayed and disrupted by inadequate planning and execution. It is not surprising that the biggest issue in ERP is the failure of a successful implementation. Hence, a company has to understand and consider the success factors of a successful implementation before deciding on implementing an ERP system. Top management commitment The support from top management is critical. An active and committed committee who are directly involved in the implementation process would remind their employees of the importance of the implementation of the ERP system, as compared to if it were delegated to other departments. The top management must also be willing to allocate resources for the implementation of the ERP system. The presence of strong leadership in implementing the system would aid in the employees’ acceptability of the new system in the future. Users’ acceptance will be discussed in the next point. The involvement of top management could be in the form of being in a steering committee as well. A steering committee is responsible for the organization’s operating policies and procedures. A good steering committee would try to solve all problems faced in the process of ERP implementation instead of diverting it to other departments. If this were the case, the problems will...
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...1. Why did Tektronix implement ERP in stages? How should a company decide on implementing in stages or going big-bang? Tektronix implemented the ERP in many waves. Each wave delivered a specific functionality for a particular division or geographic region. The concept of waves was important: * implementing in waves allowed to obtain regular feedback * flexibility in scheduling – e.g development at MBD took much longer than anticipated – but due to the wave concept there were no major delays in the whole project * easier to gain overall acceptance – it is able to show already first benefits * implement together what is similar allows a more smooth process * frequent victories kept the team moral high and ensured that the Board continued to support the high cost and long timeline of implementation * start with an area that effects all divisions or the division with the lowest complexity a continues learning process. * Roll out started with one country (US) after that was successful with key region in Europe and than in larger waves that were implemented more or less together Big bang implantation only for smaller companies with lower complexity or in strongly centralized organization. With a big bang implementation the company looses some of the flexibility of the wave approach and faces higher risks. 2. How did Tektronix manage the risks of ERP implementation? Project steering committee In order to make...
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...Chapter 1 – Written Essay 1 Title: Case: Rolls Royce’s ERP implementation Author: Jessica Cedeno Date: January 2015 Abstract: Rolls Royce’s is a global company with multiple divisions all over the world. It operates in all global markets, civil aerospace, defense aerospace, marine and energy. Roll Royce’s outsourced their IT department to a contractor name Electronic Data Services (EDS), they were responsible for overseeing all the existing IT structure for RR. Due to the number of legacy systems that Roll Royce’s had, they decided on SAP/R3 an ERP platform consisting on 12 modules would be implemented in it aerospace division. Due to company culture and business processes RR faced many challenges for the implementations. Lots of changes had to be made within the company in order to successfully implement the ERP system. Rolls Royce’s ERP Implementation Rolls Royce, is one name to come to mind when dealing with well recognized, powerful, yet elegant engines. Unlike Volvo and Saab which have been in the market of powerful machines for many years, Rolls Royce has been the one to manage to be ahead of the game in the engine industry by creating each and every machine a masterpiece of their own. In the late 1900’s, Rolls Royce underwent a crucial implementation of a new, yet challenging system that the organization has seen itself since the early years of the company. Such implementation was needed to continue ruling the world of engines, technology and to continue...
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...Change Management: Best Practice Strategies for ERP Implementation By: Andrew Handoko 1601226176 LC11-LEC BINUS UNIVERSITY 2015 ABSTRACT The implementation of Enterprise Resource Planning (ERP) systems, have become more complex and crucial in information systems infrastructure within large organizations. However, most of these large companies deal with common people issues. Their potential users across different departments of organization resist the implementation process for some reasons. Enterprise units are being lack of communication from top management to functional units within implementation project. As a result, companies are struggle for ERP systems practice as well as to get rid of worker’s social problem and infrastructure’s transitions from old system to a new system. Ultimately, a successful ERP implementation projects are less about technology and more focus on people and process. Change Management is the best practice for “critical success factor” in ERP implementation literature. The purpose of this research is to have a better understanding about how change management is essential to be a part of ERP implementation process. This paper describes the main success factor of Change Management in order to create a successful ERP implementation and how should organizational change be managed. KEYWORDS Change Strategies, Enterprise Resource Planning, Resistance, Organizational Change, ERP, Implementation Strategies, Business Process, Change Management ...
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...EXECUTIVE SUMMARY I. Importance of selecting the correct ERP software a. Strategic fit b. Cost vs. benefit to actual (clearly defined) business needs c. Severe long term impacts on company operations II. What this paper covers d. General ERP system overview e. Components f. Best practices OVERVIEW OF ERP The term ERP (Enterprise Resource Planning) was first used in 1990 to refer to a type of business software that integrated information from numerous departments within a company (Garača, 1). ERP systems are among the most important business information technologies that emerged during the last decade (Ghosh, 1). Because ERP software can encompass such a large range of applications it can be thought of and used in many different ways. In the last 30 years the manufacturing industry has been involved in a continuation of the ongoing improvement of information systems that started with MRP (materials resource planning) which incorporated MPS (master production scheduling), then moved to MRP II which brought in capacity planning, and is now centered around ERP. Where MRP II failed, ERP aims to connect suppliers and customers to the manufacturing environment (Gupta). Current ERP software now has the capability of connecting functions of all its individual departments together and inter-linking the department specific applications into one large network. By inter-connecting information from departments such as accounting, manufacturing...
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...Implementation of Enterprise Resource Planning (ERP) systems in textile companies of Pakistan The term ERP originally implied systems designed to plan the utilization of enterprise-wide resources. Although the acronym ERP originated in the manufacturing environment, today’s use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization’s business or charter. Business, non-profit organizations, non governmental organizations, governments, and other large entities utilize ERP systems. ERP systems aimed to manage efficiently all aspect of enterprise-wide data. Application of ERP systems are not only used in manufacturing industries but also services industries like banks financial institutions, hospitals, airlines etc. In early 1950s, when world manufacturing industry was booming and becoming global, the manual planning was becoming very difficult. Next was the stage of mass customization of products where the variability in manufacturing highly increased and added tremendous burden on planning. It became very difficult to manage and plan the material flow in the production systems. Even the best production planners and managers could not get hold of the management and material aspect of the manufacturing. Then the Material Requirement Planning (MRP) systems were introduced in 1970s. These are IT systems; combination of software and hardware, used to manage and plan materials...
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...2010 Case study for ERP Implementation For a leading manufacturing company Embee Software Pvt. Ltd 2010 SNAPSHOT Industry Manufacturing industry Business Challenges Business processes were not streamlined Availability of unreliable data Poor security Lack of inventory management Company overview: Our client belongs to the manufacturing industry standing as one of the fastest growing organizations in the Kolhapur region. There major Products are Manufacturing Graded Cast Iron and S.G. Iron Automotive Components, Casting, pattern Design, Engineering and Manufacture. With the strength of over a 100 in their workforce, our customer required software to integrate its business activities and gain efficiency internally. Business challenges: Streamline business processes and adopt best practices. Better quality reporting to enable intelligent business decisions. Improve information sharing within and outside the company leading to ambiguous data Unreliability of data due to manual processing Need more security with more control points Compiling and analyzing profitability of each order. Finance and HR operations were not integrated Embee Solution ERP Implementation Business Benefits Process integration Smooth access to data across the organization Reduction in production costs Enhanced efficiency Technology Challenges Inventory Management and control over stock movement Vendor performance management Production planning...
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...Memo To: John P. Bilbrey From: cc: Michele G. Buck Date: April 5, 2015 Re: 1999 ERP Implementation Failure Since the ERP implementation failure in 1999 there have been many things blamed as causes. Instead of focusing on the implementation issues, this memo will focus on the choices made on the assessment and vendor selection process and how the failure could have been mitigated. Understanding these issues will help us avoid failure in the future and assist with successful product management. Background Hershey differentiated themselves by pricing the products low which means that large quantities need to be sold. In order to make that possible, Hershey needed a top notch logistic and supply change systems as well as prepare for Y2K in a project labeled Enterprise 21. As part of that project in 1996, Hershey’s decided to upgrade its patchwork of legacy IT systems into an integrated ERP environment. Hershey’s chose SAP’s R/3 ERP software, Manugistic for supply chain management (SCM) software, and Seibel for customer relationship management software. Hershey’s decided to implement new software so that they could share product data with retailers. They went with SAP for the ERP and Siebel and Manugistic for the other portions because they were all considered some of the best in their areas. Manugistic had been used previously with the existing mainframes so that prior relationship probably entered into the decision making. Schedule Feasibility The decision...
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...on Information Technology, Volume 11, Issue 2 edited by Mehdi Khosrow-Pour © 2009, IGI Global IGI PUBLISHING ITJ 4874 implementing “Customized” Erp in nine Months and within Budget Avimanyu Datta, Washington State University, USA Cisco systems: ExECutivE suMMary This case illustrates the importance of vendor selection, top management support, and team structuring in implementing a complex ERP system. While most organizations choose the de-facto brand as their product, Cisco and its consulting partner, KPMG, went against this perception and selected Oracle who was a newcomer in ERP business. For Oracle this was a golden opportunity to enter a market dominated by SAP and get its ERP modules litmus tested by an industry leader. Cisco on the other hand agreed to help Oracle to market its latest releases to potential customers, in lieu of the successful implementation. Oracle even allowed changing some of its modules to fit Cisco’s purposes. The implementation team comprised the best people from Cisco, KMPG and Oracle. To have the customized ERP up and running in nine months the team blended the robustness of sequential life cycle model with the flexibility of the iterative prototyping. [Article copies are available for purchase from InfoSci-on-Demand.com] Keywords: Cisco; Contract Negotiation; ERP Implementation; Information Systems Project Management; Oracle; Systems Development Lifecycle; Top Management Support orGanization BaCkGround Cisco Systems, Inc. was...
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...This case talks how ERP system was implemented at Bombardier. It takes us through the roller coaster journey with regards to logistical, tactical and personnel challenges faced by the company in order to achieve cost savings and better efficiency. Prior to ERP, Bombardier’s aerospace division had several bottlenecks with respect to inventory management and lack of integration between its legacy systems. As a strategic move, after a failure of an earlier ERP project, a new project called BMIS was envisioned. Highlights of BMIS project: • Vision: Functional councils of Methods, quality, Work and material planning, procurement created for role and direction determination. • Team: Best employees from various functions along with BTS (Business transformation services) with an employee to consultant ratio of 10:1. • Implementation strategy: Progressive and phased approach, beginning with Mirabel plant near Montréal. • Procurement function restructure: improvement of inventory visibility and anticipated substantial savings in product costs($ 22 million) and procurement overhead($7.1 million) • First Rollout challenges: lack of documentation, system functionality, substandard training material, tight training schedules and lack of role clarity during training. • Go Live: Power users and super users supported the move initially. Later on, if support staff was not able to resolve issues, the legacy systems were used to conduct business. • Stabilization: The project did not...
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...The Avery Berkel ERP Implementation Due to universal company expansion policy; clientele base escalates to insurmountable volumes, financial matters go way out of hand for the top level management to handle and employees become such a huge task for the company to supervise and coordinate. Every company has a challenge to have visibility to management, overcome competition hurdle and have a strong commitment to its workforce. Hence, the introduction of Enterprise Resource Planning soft wares frequently referred to as (ERP’s) which forms the basis of decision-making processes within a company (Akkermans A. Helden K 35). These kind of information systems permits amalgamation of all manufacturing and related applications for an entire enterprise (Violet 301). The introduction of ERP in company per se is not a problem; the problem lies in its implementation and integration with the old system. A botched up ERP implementation process may cost a company great losses in terms of revenues and time. This paper will endeavor to bring into limelight the best practices in ERP implementation process, issues will be elaborated using real case study whereby a COSMOS ERP of OSM suite called COSbatch was used. Avery Berkel is a multi national manufacturing company, its hub is in the United Kingdom but it has sixteen (16) subsidiary companies across the globe. “Its world-class products range from retail scales and supermarket systems, to sensitive scientific balances, industrial weighing...
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...ERP Implementation During late 1996, the management of Hershey gave its approval to a project named Enterprise 21, which aimed at modernizing the hardware and software used by the company. The main goals of Enterprise 21 project were to upgrade and standardize the hardware, shift to client server environment from the existing mainframe based environment, move to TCP/IP network, etc. Hershey chose to replace the systems to solve Y2K problem rather than spending huge amounts on solving the date related problems. The new ERP software was expected to help Hershey reorganize its business processes. For this purpose, Hershey selected SAP AG’s R/3 Enterprise Resource Planning suite, along with companion software from two vendors - Manugistics and Siebel. Software from SAP included modules for finance, purchasing, materials management, warehousing, order processing, and billing. Manugistics would provide software for transport management, production, forecasting and scheduling. The software from Siebel was to support Hershey in managing customer relations and in tracking the effectiveness of the company's marketing through a pricing promotions module. IBM Global Services was chosen to integrate the software provided by the three different vendors. By January 1999, some of the modules like SAP financial, materials management, purchasing, and warehousing had been implemented. However, other modules like the critical order processing and billing systems modules from SAP...
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...1. INTRODUCTION ERP has increasingly becoming popular among big and SMEs in today’s world. Tougher competition in the marketplace is generating the need to optimize resources, improve profitability and expand business requirements. Many companies are implementing ERP solutions to improve their day-to-day operations, improve response time on reporting to the Management and enhance capabilities. There are many solutions already established that can meet the specific business requirements of any organisations in any industry, hence choosing the right and the best solutions are essential to avoid wasting money and effort since ERP implementation could be excruciating and costly. Therefore, in order for a company to decide on which solution is the best for their business, they need to identify their existing processes and analyse in depth the existing flaws and their business requirements. This is supported by Travis (1999) who indicated that companies which put on greater efforts in ERP selection will achieve greater success. 2. EXECUTIVE SUMMARY According to Lee, Moon, and Lee (2006), ERP systems can be used as an integration with existing business systems and processes to assist an organization maintaining its competitive advantage. Consistent identification of such ERP changes or upgrades is essential to improve business processes due to robust technology development. Existing systems could expire and should be upgraded from time to time as business grows considering...
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...COMPETITIVE. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM IS A BIG SYSTEM WHICH INTEGRATES, AND AUTOMATES ALL BUSINESS RELATED TO ASPECTS OF THE OPERATIONAL, PRODUCTION AND DISTRIBUTION IN A COMPANY. IN ORDER TO HANDLE ALL COMPLEX BUSINESS PROCESSES, COMPANIES START TO IMPLEMENT ERP SYSTEM TO THEIR SYSTEM (UMBLE, HAFT & UMBLE 2003). IN THE FACT THAT THE SUCCESSFUL IMPLEMENTATION OF ERP CAN BRING GREAT BENEFITS TO COMPANIES TO COMPETE EACH OTHER. THEREFORE, OWNERS SHOULD KNOW IN ADVANCE ABOUT THE CRITICAL SUCCESS FACTORS OF ERP SYSTEM BEFORE THEY APPLY ERP SYSTEM TO THEIR COMPANIES (BRADLEY 2008). THE PURPOSE OF THIS REPORT IS TO DESCRIBE CRITICAL SUCCESS FACTOR FOR ERP IMPLEMENTATIONS IN INDONESIA AND MEXICO SO THAT THE OWNERS KNOW HOW TO INTEGRATE ERP TO HANDLE COMPLEX BUSINESS PROCESSES IN THEIR COMPANIES. THE DISCUSSION PRESENTED ON THESE ISSUES SHOULD BE OF VALUE TO PRACTITIONERS WHO WANT TO IMPLEMENT ERP SYSTEM. THE REPORT STARTS WITH AN OVERVIEW OF ERP AND CRITICAL SUCCESS FACTORS FOR ERP IMPLEMENTATION. IT CONTINUES BY PRESENTING THE CASE STUDY ABOUT A COMPANY IN INDONESIA ,MEXICO; AND CONCLUDES WITH SOME RECOMMENDATIONS ABOUT IMPORTANT THINGS THAT THE OWNERS MUST KNOW BEFORE THEY RUN ERP SYSTEM IN THEIR COMPANIES. OVERVIEW OF ERP IN THE PAST, APPLICATION IN EACH DEPARTMENT FOCUSED ON ITS OWN SECTOR; AND CONSEQUENTLY, THE PROCESS TO ACHIEVE CORPORATE OBJECTIVES HAS BECOME OBSTRUCTED. BUT WITH THE ERP APPLICATION, DIFFERENT DEPARTMENT CAN BE...
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