...Module Title: Logistics Coursework Title: Enterprise-wide systems and Supply Chain Management Professor: Fotis Missopoulos Student: Liridon Xhakaliu Abstract Most large corporations have adopted some form of ERP system. The purpose of this paper is to understand the benefits and challenges of Enterprise Resource Planning (ERP) systems. These benefits and challenges have a direct impact on the performance of the business. Another crucial thing that has to be well thought-out while implementing the ERP system is how to gain competitive advantage; however, in order to create this competitive advantage companies must be well coordinated and in order to implement the system successfully companies must involve, supervise, recognize and retain everyone who will work closely with the system. Furthermore, this essay examines companies that have failed to implement the ERP system successfully; as well as it emphasizes the results of a Croatian company (PLIVA, pharmaceutical Company) after implementing the SAP software and its benefits it gained. Nevertheless, even though the implementation of an ERP system is long and expensive the potential benefits is very high; it can lead to enhanced performance and satisfied workforce which guides to enhancing profitability and gain competitive advantage. Introduction Nowadays the competition is higher than ever, along with the fast development of new information...
Words: 2796 - Pages: 12
...Module Title: Logistics Coursework title: Enterprise-wide systems and Supply Chain Management Professor: Fotis Missopoulos Student: Marigona Bajrami November 2012 Abstract Nowadays, the implementation of new technologies is considered as a need for companies in order to succeed in a high competitive business market. In this regard, the Enterprise Resource Planning (ERP) systems provide support and benefits within many business processes of companies. The implementation of ERP has been successfully adopted by numerous companies all around the world. This paper focuses on the benefits that ERP systems provide in supply chain management of companies and how it affects their performance. Generally, based on the literature review different benefits and challenges are discussed. Nevertheless, a case study of an engineering company known as MAE will be examined to identify the benefits that the company has gained with the implementation of ERP systems and how the implementations has affected their business performance. Table of context: Introduction...............................................................................................................................4 Literature Review..............................................................................................................5-8 Case Study.................................
Words: 2174 - Pages: 9
...internal and external pressure to implement a new ERP system. Need of being on board to be ahead As a growing established company Keda faced many issues which provoked them to look for a new ERP solution. I see five main reasons for Keda’s motivation to implement a new ERP system. * Making the decision making process more effective and efficient was a must do. With the new competitors making their way into the market Keda realized that they were falling back. Not been able to determine the cost of production, delaying important decision because of data not been readily available was some of the main reason they were falling behind the competitors which derived them to implement a new ERP. * At this time being one of the most innovative companies was rewarded by the Chines government. It was also an unofficial call by the government to all the big cooperation’s as a strategy to keep up with the international competition. * As the company was growing so did its inventory the number of where houses and also the number of inventory that is wasted and not managed properly. The ERP system was thought as a solution for this problem. * Keda was one of the most resourceful organization but the resources was not utilized properly. Compared to Japanese 90% utilization rate Keda’s was 24.6%. * Manufacturing Resource Planning (MRP II) the Legacy system at Keda could not support its expanding operations and the vendor of the system has also terminated the maintenance support...
Words: 1045 - Pages: 5
...Benefits of an ERP Implementing an ERP is certainly a costly and risky affair which demands that an organization understands the benefits of such systems before undertaking this process. Below is a brief look at some of the potential benefits that are associated with a well implemented ERP. Efficiency The use of an ERP system enhances efficiency within an organization. This is because the ERP system eliminates some of the manual processes that exist within an organization. Through such a system, data access and storage are made more efficient, and many processes within an organization are integrated. Different databases that were previously disconnected are replaced by a single system, and information can be entered or accessed from one system. Better reporting The use of an ERP system leads to improved reporting, where different reports are generated using this system. This is particular crucial for those organizations that deal with large volumes of data. Enhanced communication For large institutions/organizations, the use of ERP system leads to enhanced communication across carious departments. These systems also facilitate collaboration among the employees across various departments given that many processes are integrated in one location. Data security and integrity One of the requirements of using ERP systems is to use more accurate and relevant data. These systems help improve on the data integrity across various departments within an organization. This depends...
Words: 572 - Pages: 3
...Analyzing SAP ERP's success in TISCO The critical success factors of ERP systems mainly include proper implementation and usage. Beside this there are several other factors that decide the regular functioning of ERP in organizations. While many organizations have not incurred the necessary benefit in terms of money and other measures there are lots who have witnessed multiple profits. Studying them will help in understanding the critical success factors for ERP implementation. They will help in deciding ERP success. TISCO PROFILE This company founded and established in the year 1907 is known to be one of the leading steel giants in the country offering multiple products and successfully running many subsidiary corporations. Being a large entity does not stop things from being subject to scrutiny and internal audit. They are regularly implemented with the help of committees who report to the selected members from the senior management. The company is dedicated to providing laudable services to the stakeholders improve on the quality and as thrive for innovations and improvements constantly. BACKGROUND TATA steel is India’s largest integrated private sector steel company that started its corporate journey in the year 1907. Backed by captive iron ore and coalmines, Tata Steel runs state-of-the-art Cold Rolling Mill complex at Jamshedpur, Eastern India. The enterprise has undergone a modernization programme costing $2.3 billion, resulting in production of steel at...
Words: 4650 - Pages: 19
...Tutor: Date: Enterprise Resource Planning An Enterprise Resource Planning (ERP) is software that is used in the management of a business’s activities. It makes it possible for an organization to use a system of applications that are integrated in the management of its activities. The software enables the integration of each and every aspect of operation within the organization including manufacturing, storage/inventory control, sales and marketing etc. The Enterprise Resource Planning software consists of several modules available to a given enterprise based on its needs and the level of technical capability within the enterprise. Each of the said modules is designed for a specific area of the enterprise such as marketing, distribution, product development etc (Nathan 60). No matter which module that an organization has decided to purchase, there are several factors that an organization wishing to successfully implement an ERP should consider (Leon 66). In explaining the success and failures of implementing an ERP system, we are going to take a look at two companies, one that has successfully implemented its ERP system and the second one that was not so successful in its implementation of the same. Starting us off, we will look at how Pratt and Whitney, a large Canadian aeronautics company that successfully implemented its ERP system known as SAP R/3. The implementation of this system took two and a half years to complete. Due to the expansive nature of the company...
Words: 1057 - Pages: 5
...Human Resource Information Systems Abstract Over the past several years and maybe even decades, human resource managers have realized the need to upgrade their information systems. As they make the conversion to Human Resource Information Systems (HRIS), the mangers encounter the challenges that others before them have seen. Although there are many resources of knowledge, tools and options, the managers face a long conversion process. Even with the tools at hand, the conversion process may fail. Working with the public sector, this paper will show how issues can be avoided and the conversion can be successful. Human Resource Managers of the public sector have the most to gain from closely examining outcomes of past projects since research suggests that only 18 percent of information systems projects ended successfully (when compared to private sector segments retail: 59%, financial: 32%, and manufacturing: 27%) (Goldfinch, 2007). Summary As the workplace becomes more technologically advanced, all departments must keep up with technology. Technology can increase the efficiency of a company. Human Resource Information Systems (HRIS) has kept up with technology to improve the effectiveness of the human resources department and its systems, programs, policies, procedures, activities, and legal statistical documentation in its functions. This project will provide insight into the formation of the HRIS in the public sector and other organizations and how it can be...
Words: 1267 - Pages: 6
...smartphones, to place orders and conduct business. 5. Briefly explain the differences among smart, credit, charge, and debit cards. A credit card, such as Visa or MasterCard, has a preset spending limit based on the user’s credit history, and each month the user can pay all or part of the amount owed. A charge card, such as American Express, carries no preset spending limit, and the entire amount charged to the card is due at the end of the billing period. The smart card is a credit card–sized device with an embedded microchip to provide electronic memory and processing capability. Debit cards look like credit cards, but they operate like cash or a personal check. 6. Identify the key elements of the technology infrastructure required to successfully implement e-commerce within an organization. 7. What is the Secure Sockets Layer...
Words: 652 - Pages: 3
...Raymond Braselman Cisco Systems Case 1. Cisco’s management was very reluctant to significantly alter the structure of their IT system, even though the system was consistently failing. There were a few reasons for this reluctance. First, Pete Solvik, the CIO of Cisco at the time, was hesitant to even consider an ERP system in the first place, because he believed that each functional silo of Cisco should decide which applications it utilized (while also using common architecture and databases to accommodate the disparate systems, which complicated matters). Then, this attitude became pervasive among other managers, because most were concerned that implementing a large scale ERP system would disrupt business operations too drastically for such an implementation to be practical. 2. Once Cisco’s managers realized that their IT system needed a major overhaul, they became very focused and dedicated. One of the first aspects that led to the implementation’s success was convincing the Board of Directors of the need for an ERP system and to commit to the project, setting a “tone at the top” that established the project as a company-wide priority. This led to Cisco being able to develop an implementation team comprised of experts. From the beginning, Cisco leveraged the experience of others, and eventually prompted KPMG to become involved, not only during the actual implementation, but also throughout the drafting of the RFP and the consideration of different vendors...
Words: 775 - Pages: 4
...Case Study ERP Implementation Failures ERP systems are an integrated software solution that is typically offered through a vendor as packaged software that supports the organization’s supply chain and other business functions, such as, receiving, inventory management, customer order management, production, planning, shipping, accounting, and human resource management. The use of ERP is very widespread across a multitude of industries. As a matter of fact, a report by Computer Economics Inc. states that, “76% of manufacturers, 35% of insurance and health care companies, and 24% of Federal Government agencies already have an ERP system or are in the process of installing one.” Over 60% of Fortune 1000 companies have implemented ERP systems (Hawkins & Stein, 2004). It is not just large firms that are implementing ERP systems, small and medium size companies are making use of ERP systems as well (O’Leary, 2004). ERP systems have expanded across the globe and many of world’s leading companies consider Enterprise Resource Planning (ERP) systems an essential information systems infrastructure to survive and prosper in today’s economy. There are many advantages to ERP systems. Companies that have successfully implemented ERP systems report improvement in management decision making, improvement in efficiency, improvement in information exchange, improvement in performance and productivity levels and improvement in customer service and customer satisfaction, just to name a few. So...
Words: 1570 - Pages: 7
...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...
Words: 311 - Pages: 2
...Case Study: Integrating ERP Systems in a Decentralized Company Much more in-depth planning should have been undertaken before launching the ERP project. Medical Device Corporation (MDC) should have formed a committee composed of one to two representatives from its various divisions who have expertise on business and IT strategy. This committee would have been able to identify situations the company needed to address in the event of problems transitioning to the new enterprise resource planning system. Had MDC organized the committee, it would have sent the message to the businesses that each division’s input was valued. In the past, each division made individual decisions for their respective business unit. However, headquarters made the decision to implement Oracle as its ERP. Additionally, most of the managers had no experience in IT or employing ERP systems. The company did not take its global markets into consideration and how the new system would affect it. MDC is one of the largest companies in the medical device industry with majority of its revenues coming from overseas markets. Many of MDC units were using nonintegrated systems that were not modernized. The company did not take into consideration how the system upgrade could affect how the overseas systems would communicate with headquarters and other regional sites. The group should have come up with better timelines on how to phase the new system for each division. Since MDC took a hands-off approach to technology...
Words: 1000 - Pages: 4
...Enterprise Systems As a business grows, so does the complexity in keeping all departments running smoothly. Things such as logistics, manufacturing, inventory management and Human Resources are all vital to keep businesses competitive and growing. As this became painfully obvious, technology presented a solution to these issues with the creation of enterprise systems. Businesses soon found that using these systems, they could streamline the management of many of these functions. Further, because these systems collected and managed a plethora of data, tools were also developed to aid in other things like forecasting orders. While these systems had the potential to save money, they also become notoriously known for being incredibly difficult to implement. Through research an analysis, I have determined that implementation of an enterprise system will benefit Wint. Transaction Processing Systems Transaction processing systems process data related to functions such as order processing, purchasing and accounting business functions. It also can be used to query data to display a variety of information such as the status of inventory and account balances. This system is especially important when dealing with large and complex orders. Because this data influences the direction of a business, reports that are error-free and quickly accessible are essential. (123Helpme.com, 2015) Implementation The strongest and most tangible benefit of implementing an enterprise system is an...
Words: 1072 - Pages: 5
...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...
Words: 1224 - Pages: 5
...ON ERP Implementation-Procedures, Issues, Challenges & Failures Introduction An Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity. To be considered an ERP system, a software package should have the following traits: ➢ Should be integrated and operate in real time with no periodic batch updates. ➢ All applications should access one database to prevent redundant data and multiple data definitions. ➢ All modules should have the same look and feel. ➢ Users should be able to access any information in the system without...
Words: 4678 - Pages: 19
