Company Background, Current Situation, and ERP Project
Current Systems and Requirements for ERP System
Big-Bang vs. Phased In Approach
Conclusion and Questions
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
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
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 : “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.
Which do you Choose?
2. What factors made you choose your implementation choice and why?
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