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Erp case study

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    Erp case study Erp case study Presentation Transcript

    •  
    • Agenda
      • Company Background, Current Situation, and ERP Project
      • Current Systems and Requirements for ERP System
      • ERP Implementation
      • Big-Bang vs. Phased In Approach
      • Conclusion and Questions
    • Company Background
      • World’s largest manufacture of storage devices
      • Largest producer of server and PC hard drives in 1996
      • Revenue of $4.4 billion
      • Purchased Digital Equipment Corp. (DEC) storage business in October 1994
      • Competitors – Seagate, IBM, and Western Digital
      • Outsource production of hard drives
    • Current Situation
      • Legacy systems
      • Material requirement planning (MRP) system maintained separate databases and transactions had to be manually consolidated
      • Delays in obtaining updated information
      • Acquisition of DEC caused implementation issues
    • ERP Project – Started April 1994
      • Worldwide Ask Replacement System - WARP
      • Three project teams
        • Steering committee – VP’s of Finance, IS, Logistics, Manufacturing, Purchasing, Sales, and Rep. from PW
        • Core team – 16 managers from department and business units
        • Project team (100 Members) – Members from IS and business unit key employees
      • Teams analyzed and improved business process
      • Selected Oracle, HP, and Price Waterhouse to assist with ERP implementation
      • Oracle 7 Database, Oracle Financial, and Manufacturing Modules
      • Expected implementation in Summer of 1995
    • Problems with the ERP Implementation
      • Acquisition of DEC slowed implementation process of ERP System
      • Project was more complex with the acquisition of DEC
      • Duplicate systems, processes, and artifacts
      • Project was put on hold – Project teams focused on the DEC acquisition (October 1994)
      • ERP was restarted in January of 1995
      • Project team had to redo a large part of the original ERP implementation in order to take into account the DEC acquisition
    • Quantum’s Current Systems
      • Nine different legacy systems that could not share information
      • Legacy system kept each division’s transactions in separate functional and business unit databases
      • Information was manually consolidated, since databases could not share information
      • Gathering faxes, emails, and written information took four days
      • Closing the books took seventeen days
      • Inventory availability could not be confirmed and delivery could take days or weeks
    • Quantum’s Requirements for ERP System
      • Sales people to take and confirm an order in real time.
      • Sales have to be able to confirm a delivery time and follow up to ensure that order was delivered in real time
      • Ability to access current inventory and to reserve that order for the customer in real time
      • ATP (Available To Promise) – ability to confirm and allocate inventory
    • ERP Implementation
      • Phased implementation :
      • Like the name implies means that modules are implemented one at a time or in a group of modules –often at a single location before moving on to more locations.
      • The installation of phase one could be the implementation of finance, controlling, accounts receivable, accounts payable, and purchasing modules.
      • Phase two could be to include materials management, production planning, and quality planning modules.
      • Following phases mean the deployment and implementation of remaining modules over a period of time.
      “ Phased” and “big-bang” are the two primary approaches used to implement ERP systems.
    • Big-Bang Implementation
      • Big-Bang Implementation : “everything is changed at once!” Once an ERP solution has been chosen to meet organizational needs –the system goes from a test version to being the actual system used to capture transactions in only a matter of days.
    • ERP Implementation: Consideration Factors
      • Organizational size and complexity. This includes factors related to the type of product that organization sells and the size and complexity of the customer
      • The organizations hierarchy and controls. Flat organizations with loose controls would have more difficulty deploying a phased implementation because its difficult to maintain commitment throughout the process. Organizations that have extensive hierarchy and tighter controls have the necessary mechanisms in place to sustain a phased approach
      • Extent of the implementation : based on the number of modules and the degree to which the organization changes those modules.
    • Phased Implementation
    • Big-Bang Implementation
    • Which do you Choose?
      • BIG BANG
      • Or
      • Phased-In Implementation?
      • 2. What factors made you choose your implementation choice and why?
      • Additional Questions:
      • 3. What are a few benefits that could be gained from the implementation of your ERP choice? Be specific!
      • Add value when writing the case study by looking up information about the Quantum online and include any finding in your answers
    • Questions?