top 5 erp comarison

1. KEDA CASE STUDY -
ANALYSIS
Group 1 :
Anjali Jain
Debamita Chowdhury
Dipti Gawand
Maulik Doshi
Aditya Chauhan

2. Company Overview
• Keda Industrial was founded in 1992 by Lu Qin with an initial capital of CNY 90,000.
• The company started as a small manufacturer of ceramics machinery in Shunde,
Guangdong province.
• Keda modeled its business after European market leaders and enjoyed rapid growth in the
local Chinese market through the 1990s.
• In less than a decade, Keda was recognized as one of China's top 500 national machinery
manufacturers and as a top 10 building materials machinery enterprise in the world.
• By the early 2000s, Keda had surpassed most of its competitors to become a world leader
in building materials machinery, second only to SACMI of Italy.
• Keda Industrial became a listed company on the Shanghai Stock Exchange in 2002.
• Keda's business as a whole relied on several key business functions, such as research and
development (R&D), purchase of raw materials and parts, inventory management,
production, logistics, and sales and marketing.
• Each of these areas functioned autonomously, giving rise to a freewheeling corporate
culture where non-standardized processes were adapted on the fly, and problems were
resolved in an ad hoc manner.

3. Challenges faced by KEDA
• Duplicated Process --> Redundancy and Heightened Cost
• Inefficiency to make strategic decisions due to fragmentation of information
• Lack of Integration ---> Suffering to face local and foreign competition
• Pressure from Chinese Government Agencies for innovation
• Inventory Management
◦ Inability to properly assess the cost and profitability of orders
◦ Inability to meet the making demand due to suboptimal usage of
resources
• Rapid Growth --> Expanded Product Offering ---> Multiple Plants ---> Outgrow
of MRP II
• Maintenance Support Ceased by BRB IT Co by MRP vendor

4. NEED OF
THE HOUR -
RETHINK IT

5. Drivers for ERP
Lack of integration between
business units: Keda's silo-
based model led to duplication
of tasks, redundancy, and
heightened costs. It also
prevented managers from
making timely, well-informed
decisions.
Competition from local and
foreign companies: Keda
needed to continue innovating
and be more informed about
production, sales, and
customers in order to retain its
leadership position.
Pressure from Chinese
government agencies: The
Chinese government was
encouraging innovation in local
enterprises, and Keda's ERP
undertaking could be seen as a
reaction to this call.
Difficulties with inventory
management: Keda's low
volumes and high
customization across an
increasingly diverse product line
made it difficult to keep track
of the many unique, individual
parts.
Suboptimal use of company
resources: Keda was
producing only six machine
presses per month, which was
well below the quantity
demanded by customers. This
represented a significant
opportunity cost for the
company.
Outgrowing of the MRP-II
system: Keda's expansion into
multiple plants and the demise
of its MRP-II system vendor
forced the company to rethink
its IT.

6. Computerization at Keda:
• Keda's first attempt at computerization began in 2000, but there was no overarching direction or roadmap.
• In 2003, Dr. Fan Zhu came on board as the new head of the IT department. He believed that success required
defining clear objectives and expectations, and then constructively aligning initiatives with the company's
strategic goals.
• Zhu ordered a halt to all ongoing IT projects and refocused his employees' efforts on developing a
comprehensive five-year computerization plan.
• The plan included implementation projects for enterprise resource planning (ERP), product data management
(PDM), office automation (OA), manufacturing execution systems (MES), customer relationship management
(CRM), and supply chain management (SCM) solutions.
• Each of these projects would be completed in phases. A key element of the plan was to develop a centralized,
unifying, shared platform on which all of the business applications would run.
• The plan provided detailed analyses of each project, including objectives, expected investments and benefits,
feasibility in terms of factors such as staffing and technology requirements, risks, and alternative solutions.
• According to the plan, the ERP implementation project was a priority. Time was critical.

7. Choosing an
ERP Vendor:
• Keda decided to purchase an ERP system from
a third-party vendor rather than developing one
in-house.
• Keda considered 20 software vendors, both
local and global.
• Keda invited vendors to visit the company to
demonstrate their software packages and
discuss implementation issues.
• Keda also visited existing clients of these
vendors to confirm that the vendors' claims
were accurate.
• Keda short-listed nine vendors and asked them
to submit proposals.
• Keda selected SAP as the winner because of
its sophisticated and feature-rich ERP solution,
its proven track record of successful
implementations (more than 35 years of
experience and more than 40,000 client
implementations), and the fact that it was used
by Keda's major competitor, SACMI

8. ASSEMBLING THE
IMPLEMENTATION
TEAM:
• Zhu assembled a strong team of users (Production, material &
financial planning), consultants, and IT officers to ensure the
success of the ERP implementation project.
• Key users were essential to the project, as they dictated the future
workflow.
• Zhu made sure to involve vital representatives from each
department, such as departmental managers and essential
operational staff.
• All members of the team had a clear idea of their roles and
responsibilities in the project.
• Top management provided overall project direction and made
critical decisions.
• Departmental representatives oversaw the business process
redesign and system design aspects (strategic & Tactical decision
making).
• The IT department provided all necessary technical support.
• Each ERP system module was assigned an owner from the
associated department who was fully responsible for the
workflows and operational details of that module.
• Zhu created a reward system to resolve the issue of resistance
from departmental managers.

9. Implementing SAP
• The ERP implementation project at Keda cost CNY10 million.
• The project took 5 months to complete.
• The project involved 100 key users.
• The project was supported by the chairman of the board, who
attended five meetings related to the project.
• Staff training was conducted for 1,000 users.
• The system was tested for 2 months before it was rolled out to all
users.

10. • The ERP implementation project at Keda was a major
undertaking, involving the modification and streamlining of
operations and workflows in many departments, as well as
adjustments to the organization structure.
• Key users were responsible for writing the specific requirements
for the system, which included describing the inputs and
outputs.
• Keda IT specialists then implemented the requirements.
• Key users were also responsible for specifying the data model.
• Much work was put into effecting these changes, such as data
preparation and renumbering stock codes.
• Disagreements arose between different module owners and
between module owners and consultants, but these were
generally resolved through compromise.
• Implementation was relatively smooth and speedy, taking only 5
months.
• Top management support was critical throughout the
implementation process.
• Staff training was conducted in parallel with system testing,
which saved time and allowed users to identify potential
malfunctions and gaps.
• Through testing, users also picked up important skills in using
the system.

11. Going LIVE
• The ERP system was rolled out in August, during the low season to minimize business
disruptions.
• A big-bang approach was adopted, which meant that the entire system was implemented at
once.
• This approach was risky, but it allowed Keda to get the full functionality of the system
immediately.
• There were some problems with the system immediately after cutover, but these were
resolved quickly.
• Some users were resistant to the new system, but this was overcome by replacing the
managers who were not supportive.
• Within months of going live, the ERP implementation effort was a great success.
• Data accuracy improved significantly.
• Market responsiveness, stock holding costs, product delivery time, and monthly financial
reconciliation all improved.
• Production capacity increased dramatically.
• Decision quality improved due to improved information dissemination.
• Keda was able to focus on controlling costs and make better decisions about which
products to sell.

12. Future of ERP:
Keda had successfully implemented SAP, but it had not yet fully
capitalized on the benefits of the system.
Keda needed to improve productivity and decision-making by
using the centralized data and processes that were now possible.
ERP was an enabling technology that could be used to build
other systems, such as customer relationship management,
business intelligence, and supply chain management.
These systems could be used to enhance customer
management, optimize decision-making, and coordinate
vendors.
To Keda, ERP was a beginning rather than an end.

13. THANK
YOU