ERP Implementation in Cadbury

1. ASSIGNMENT
Course
Introduction to ERP
Course Code
BMT210
Faculty
Dr. R. Murugavel
Slot D1

2. ERP IMPLEMENATION IN

3. ERP
ERP – ENTERPRISE RESOURCE PLANNING is
defined as a business management software, typically a suit
of integrated applications that a company can use to collect,
store, manage and interpret data from many business
activities.

4. ERP IMPLEMENTATION
• The different stages in which implementation of
ERP is carried out in any organization is termed
as an ERP Implementation life cycle. Generally,
the steps involved are as follows.
– Pre-evaluation of available packages
– Evaluation of chosen package
– Requirement analysis
– Project planning
– Business process re-engineering
– Training the staff & management
– Testing& Analysis

5. Let’s look at each stage in brief.
• During the pre-evaluation phase, ERP vendors available in
the market are screened based on business requirements.
ERP packages that don’t suit the business requirements are
eliminated.
• During the package evaluation phase, selected package is
evaluated against requirements across departments.
• A detailed requirement analysis is done, involving different
managers from across the departments. Requirement
analysis helps list down all the functionalities required to
ensure efficient processes across the organization.
• Based on the analysis of requirements and functionalities, a
detailed project plan is laid out. This involves senior
management team and ERP experts. Designs are finalized;
key resources to be involved in the project are identified in
various departments; special arrangement is also made to
tackle contingencies.

6. Contd...
• Once the planning is done, business process re-
engineering takes place. Implementing ERP will impact
the job responsibilities of lot of employees. So, new
roles and responsibilities are to be assigned to
employees. Processes are to be re-structured and
integrated with ERP tools.
• Post implementation and integration, staff and
managers are to be trained properly so that they get
good practice. Consultants will help employees to get
hands on experience of the ERP tools.
• At last, the tools that are implemented are tested
rigorously. Issues arising during the testing phase are
fixed and required changes are made.
• Thus ERP Implementation process can be explained.

7. COMPANY
INTRODUCTION
Founder – John Cadbury
Year – 1824
Origin – Birmingham, UK

8. COMPANY’S INTRODUCTION
• Cadbury India is a fully owned subsidy
of Kraft Foods Inc.
• With annual revenues of approximately
$50 billion, the combined company is the
world's second largest food company,
making delicious products for billions of
consumers in more than 160 countries.
• They employ approximately 140,000
people and have operations in more than
70 countries
• In India, Cadbury began its operations in
1948 by importing chocolates.

9. • They employ approximately 140,000
people and have operations in more than 70
countries
• In India, Cadbury began its operations in
1948 by importing chocolates.

10. IMPLEMENTATION PROCESS
• Cadbury’s India was the very first
organisational unit all over the world to
implement ERP in its processes.
• The implementation process in India was
started from scratch as they were the first to
implement that in all over global application
of the Cadbury. They tried to inculpate the
best practises of the company and tried to
build on the strengths the past systems in new
ERP systems

11. ERP IMPLEMENTATION
METHODOLOGY CHALLENGES
• The ERP initiative was to bring about a
complete integration of the major processes in
the business.
• The major processes being procurement
system, finance system, the Human Resources
and other departments.
• These were functioning in a completely
decentralised manner.
• The finance department was the only one
common to all. ERP served as an integrating
system and a solution for their then existing
decentralised model.

12. • The implementation methodology adopted by
Cadbury’s happened in 1995 and they went ahead
using a big bang approach.
• They did the implementation company wise.
• Cadbury had one major expectation from ERP i.e. to
help the management work better than before with
the existing systems in place.
• In order to carry out the ERP implementation,
Cadbury’s had to align with an external vendor. For
ERP partnership with Siemens and for infrastructure
management partnership with IBM.
• They went for a function based big bang approach in
India and then implemented the whole module all
across company in span of 1 year so it can be said as
big bang as whole.

13. • It was completely top management driven.
• Cadbury has a proper MIS now. Data is
entered only once. The entire system gets
updated. One can see the consolidated data
from anywhere and make decisions. From
manual entries it has become a totally
system driven data entry now.
• Cadbury has tried to combine all these
phases into a single phase and implemented
BIG BANG method to implement its ERP
Practises.

14. PHASES OF THE ERP
IMPLEMENTATION
PROCESS

15. Phase 1
• Project Preparation
a) Hire key project members,
b) Install Development system,
c) Train internal IT transfers,
d) Select systems integrator,
e) Project Orientation,
f) Install pre-configured client,
g) Prepare for blueprint phase
• Detailed work plan
• Revised cost estimate

16. Phase 2
• Detailed design & requirements
• Process
• Reporting
• Forms
• Business improvement Measures, Identify
business implications, Project risks
&opportunities, Global application map, Global
template system, Finalize global scope, Revised
capabilities roadmap, Draft change management.

17. Phase 3
• Master data conversion
• Global template configuration
• Exceptions configuration
• Cycle unit testing
• Issues resolution
• Documentation
• Begin global training material preparation

18. Phase 4
• Finalize training program
• End-user training
• Readiness assessment
• Production system prep,
• Finalize cutover plan
• Communicate cutover plan
• Inform external partners as necessary
• Day-in-the-Life (DIL) Tests

19. Phase 5
• Production master data conversion
• Execute cutover plan
• Monitor process & system usage
• On-site support
• Issue resolution
• Communicate on-going support process
• ESC update at end of phase

20. CADBURY’S
ERP IMPLEMENTATION PAINS
• Cadbury has taken a £12m hit on its profits after IT
problems caused too many chocolate bars to be produced.
• Cadburys was left with warehouses full of chocolate bars at
the start of the year, after the rollout of a new SAP-based
enterprise resource planning (ERP) system led to an excess
of chocolate bars building up at the end of 2005.
• The new SAP ERP system is part of project called Probe
,Cadbury is hoping for £500m efficiency savings.
• Cadburys is offering a unique experiment to increase their
employee’s pay packet offering a month’s salary and a
hundred thousand chocolate bars free to choose to what
brand they want, have to get rid of the chocolate some how.

21. CADBURY’S
ERP IMPLEMENTATION GAINS
• Cadbury was on a fast paced growth and could
not continue with the existing systems and the pace
was too slow due to added inefficiencies.
ERP added efficiency and guided the led all the
issues fast paced growth.
• The implementation of ERP brought in a new way
of warehouse management system and brought in
structure to branch offices and the depots.
• While implementing the ERP systems, the company
has built it upon the past strengths of the company
thereby not losing out on its competition.

22. • The initial implementation took time and then the
successive implementations took lesser time and cost and
there is a huge advantage in saving cost while in
the implementation phase itself.
• The reaction from competition does not matter in this
because this is not a change that was advertised to the
market. This is an internal process restructuring and was
a welcome change within the company which badly
needed the change.
• The company also has built in a robust regular feedback
system to monitor the changes and check if they go
according to the initial plan. The entire implementation is
cross functional and hence it is important that there is
a high increase in the efficiency.

23. • The ERP vendor was also selected from
among the best in class vendors which helped the
process occur in a streamlined fashion and
avoided any possible chances of hiccups during
the initial implementation phase.
• They have a portal called vendor connect where
they can see their inventory movement and make
plans accordingly.
• It was considered at low cost and high
result implementation which by itself highlights
the success and the benefits.

25. References
• http://blogs.ramco.com/erp-implementation-life-
cycle
• http://www.webopedia.com/TERM/E/ERP.html
• http://www.scribd.com/doc/39650132/ERP-
IMPLEMENTATION-AT-CADBURY-S
• http://www.erpsoftware-
news.com/2006/06/cadburys_implem.html
• https://en.wikipedia.org/wiki/Enterprise_resource
_planning
• http://www.itbusinessedge.com/cm/blogs/lawson/
kraft-cadbury-deal-means-major-erp-integration-
work/?cs=38891

26. THANK YOU
• SUBMITTED BY
S.MD AADHIL
14BBA0042