The implementation of SAP R/3 was initially considered successful in Ohio due to increased production and shorter cycle times leading to monetary benefits. However, closer examination reveals issues with the implementation approach. There was little employee involvement, most received only basic training on their tasks. High employee turnover meant few remained with experience transitioning from the old to new system. While processes were documented, extensive training did not reach all levels. The success began to falter once key managers left. Ultimately, the Ohio plant differed greatly from the more customized North Carolina plant in its standardized production and may not provide an appropriate model for implementation.
The document provides an overview of the Aditya Birla Group, a large multinational conglomerate based in India. It describes the Group's global operations and industries, including being the world's largest producer of viscose staple fibre and Asia's largest integrated aluminum producer. It also discusses the Group's success in employing over 100,000 people across 25 nationalities and generating over 50% of its revenues from international markets.
This document discusses Tata Steel's implementation of an ERP system from SAP. It describes some of the problems Tata Steel was facing with its previous systems, such as being unfriendly to customers and focused more on processes than customer demands. Tata Steel implemented SAP ERP to integrate its various business processes, improve information transparency and decision making, and increase regulatory compliance. The implementation occurred in phases and resulted in significant cost savings and other benefits for Tata Steel such as reduced inventory costs and improved customer communication. Tata Steel plans to continue expanding the scope and capabilities of its SAP ERP system.
Munjal eSystems was established in 2002 as a division of Hero Corporate Services Limited (HCSL) to start a practice for Microsoft Dynamics Navision. It began with 3 consultants and 1 customer implementation. By 2007, the practice had grown significantly to over 100 employees serving both domestic and international customers. The vision was to be the preferred ERP vendor for manufacturing companies in India using Microsoft Dynamics and provide high client satisfaction. Through domain expertise, successful implementations, and marketing strategies, Munjal eSystems became a recognized leader and Microsoft Gold Partner for Dynamics in India.
Tata Steel is India's largest integrated private sector steel company, founded in 1907. It implemented SAP as its ERP package to integrate its systems, improve decision making and responsiveness to customers. The implementation process took time and faced challenges related to complex product variations, production scheduling, and building acceptance. After implementation, data quality issues were addressed and productivity increased through more efficient processes. The ERP system helped reduce costs, inventory levels, and debts while improving customer service.
Dabur implemented an ERP system called MFG/PRO for its outbound logistics to integrate its distribution network across multiple locations. It later implemented another ERP called BaaN for manufacturing. This led to data inconsistencies and high maintenance costs. In 2005, Dabur migrated to a single SAP ERP system implemented across all business units with help from Accenture to realize operational excellence and integrated decision making. Accenture also helped optimize Dabur's sales, supply chain, and ERP capabilities.
Hershey's implemented an enterprise-wide ERP system called Enterprise 21 to replace its legacy systems and prepare for Y2K. The $112 million project was rushed to meet an aggressive deadline, using a big bang approach. This led to major issues going live, including being unable to fulfill $100 million in orders for Halloween in 1999. Key mistakes included unrealistic timelines, a big bang implementation, integrating systems from multiple vendors, and a lack of oversight. Hershey's has since recovered through a slower, more thorough implementation of mySAP and investments to strengthen its logistics infrastructure.
1. Hershey's implemented a new $112 million ERP system in 1999 that failed, causing a 19% drop in quarterly profits and an 8% decline in stock price as the system caused operational paralysis and prevented processing $100 million in orders.
2. Hershey's cut corners on critical system testing phases to meet an aggressive 30-month implementation schedule instead of the recommended 48 months, likely missing data, process, and integration issues.
3. Lessons from Hershey's failure include the importance of thorough system testing using realistic scenarios and avoiding risky project schedules like go-live during peak seasons without proper employee training.
HP announced a 5% revenue decline in its Enterprise Servers and Storage segment due to issues migrating a North American division to a centralized ERP system. The ERP implementation at HP failed due to poor planning, improper testing, data integration issues, demand forecasting problems, and a lack of contingency planning. As a result, HP lost $400 million in revenue and $160 million spent on the failed implementation. The failure negatively impacted employees, customers, HP's reputation, and market share against competitors like IBM and Dell.
The document provides an overview of the Aditya Birla Group, a large multinational conglomerate based in India. It describes the Group's global operations and industries, including being the world's largest producer of viscose staple fibre and Asia's largest integrated aluminum producer. It also discusses the Group's success in employing over 100,000 people across 25 nationalities and generating over 50% of its revenues from international markets.
This document discusses Tata Steel's implementation of an ERP system from SAP. It describes some of the problems Tata Steel was facing with its previous systems, such as being unfriendly to customers and focused more on processes than customer demands. Tata Steel implemented SAP ERP to integrate its various business processes, improve information transparency and decision making, and increase regulatory compliance. The implementation occurred in phases and resulted in significant cost savings and other benefits for Tata Steel such as reduced inventory costs and improved customer communication. Tata Steel plans to continue expanding the scope and capabilities of its SAP ERP system.
Munjal eSystems was established in 2002 as a division of Hero Corporate Services Limited (HCSL) to start a practice for Microsoft Dynamics Navision. It began with 3 consultants and 1 customer implementation. By 2007, the practice had grown significantly to over 100 employees serving both domestic and international customers. The vision was to be the preferred ERP vendor for manufacturing companies in India using Microsoft Dynamics and provide high client satisfaction. Through domain expertise, successful implementations, and marketing strategies, Munjal eSystems became a recognized leader and Microsoft Gold Partner for Dynamics in India.
Tata Steel is India's largest integrated private sector steel company, founded in 1907. It implemented SAP as its ERP package to integrate its systems, improve decision making and responsiveness to customers. The implementation process took time and faced challenges related to complex product variations, production scheduling, and building acceptance. After implementation, data quality issues were addressed and productivity increased through more efficient processes. The ERP system helped reduce costs, inventory levels, and debts while improving customer service.
Dabur implemented an ERP system called MFG/PRO for its outbound logistics to integrate its distribution network across multiple locations. It later implemented another ERP called BaaN for manufacturing. This led to data inconsistencies and high maintenance costs. In 2005, Dabur migrated to a single SAP ERP system implemented across all business units with help from Accenture to realize operational excellence and integrated decision making. Accenture also helped optimize Dabur's sales, supply chain, and ERP capabilities.
Hershey's implemented an enterprise-wide ERP system called Enterprise 21 to replace its legacy systems and prepare for Y2K. The $112 million project was rushed to meet an aggressive deadline, using a big bang approach. This led to major issues going live, including being unable to fulfill $100 million in orders for Halloween in 1999. Key mistakes included unrealistic timelines, a big bang implementation, integrating systems from multiple vendors, and a lack of oversight. Hershey's has since recovered through a slower, more thorough implementation of mySAP and investments to strengthen its logistics infrastructure.
1. Hershey's implemented a new $112 million ERP system in 1999 that failed, causing a 19% drop in quarterly profits and an 8% decline in stock price as the system caused operational paralysis and prevented processing $100 million in orders.
2. Hershey's cut corners on critical system testing phases to meet an aggressive 30-month implementation schedule instead of the recommended 48 months, likely missing data, process, and integration issues.
3. Lessons from Hershey's failure include the importance of thorough system testing using realistic scenarios and avoiding risky project schedules like go-live during peak seasons without proper employee training.
HP announced a 5% revenue decline in its Enterprise Servers and Storage segment due to issues migrating a North American division to a centralized ERP system. The ERP implementation at HP failed due to poor planning, improper testing, data integration issues, demand forecasting problems, and a lack of contingency planning. As a result, HP lost $400 million in revenue and $160 million spent on the failed implementation. The failure negatively impacted employees, customers, HP's reputation, and market share against competitors like IBM and Dell.
Hershey, a leading chocolate manufacturer, needed to replace its legacy systems to address Y2K issues and enable more efficient operations. It implemented SAP, Siebel, and Manugistics software in a big bang approach over 30 months. However, the system went live during their busiest season, and they were unable to fulfill Halloween orders, which significantly hurt sales and profits. Key lessons learned were that enterprise software requires business process change, adequate testing is needed, and careful timing of go-live is important. After upgrades and improvements, Hershey now has near 99.96% inventory accuracy and can fulfill orders within 24-48 hours.
1. ENGAGED executive sponsorship
2. EXPERIENCED implementation team
3. REALISTIC scope and expectations
4. COLLABORATION among implementation partners
5. DETAILED DEFINITION of business value
6. LEADERSHIP through organizational change
ERP Implementation Failure with example of Hershey and HPSamanway Bera
Enterprise resource planning or ERP implementation failure explanation with an example of Hershey and HP and general solution on the basis of that ERP implementation.
This document provides an overview of enterprise resource planning (ERP) systems, including their history and evolution. ERP systems integrate internal and external management of information across an entire organization, including functions like finance, manufacturing, sales, and customer relationship management. The document discusses leading ERP providers like SAP, Oracle, and Infor. It also examines factors that can cause ERP implementations to fail, such as employee resistance, lack of management commitment, unrealistic expectations, and extensive customization. The document analyzes FoxMeyer's failed ERP implementation in the 1990s as a case study, highlighting risks like unrealistic scope, poor execution, and a challenging environment. Lessons are provided around planning, implementation, testing, and change management
ERP Project: Implementation Failure in HPGunjan Kalita
Hewlett Packard implemented an ERP system in 2004 to consolidate multiple legacy systems, but the project failed due to technical and process issues. This led to delayed orders, lost revenue of $160 million, and loss of market share. HP learned that ERP implementations require careful planning, testing, change management, and contingency plans. In 2005, HP successfully implemented a new ERP system from SAP after addressing the lessons from the prior failure. The new system integrated business processes and helped HP better manage its global supply chain.
The document discusses drivers of ERP system performance success. It identifies that people, not just technology, drive ERP success. Key drivers include managing ERP as an investment, successful change management, measuring performance, empowering super users, and collaboration between IT and business teams. High performing organizations adopt best practices like executive oversight, continuous ROI measurement, and broad ERP training.
Tata Steel is India's largest integrated private sector steel company. It implemented SAP ERP across its 46 locations in 8 months, becoming one of the largest SAP implementations in India. The implementation improved customer focus, credit control, inventory management, and responsiveness. It resulted in significant cost savings, increased productivity, and improved data quality and decision making. Tata Steel saw reductions in manpower costs, inventory carrying costs, and overdue outstanding amounts.
This document summarizes an ERP implementation case study at Rolls-Royce. It describes how Rolls-Royce used over 1,500 legacy systems that were difficult to manage. It implemented SAP ERP in partnership with EDS to integrate its systems. The implementation involved overcoming cultural, business, and technical challenges. A pilot program demonstrated new roles and processes. After an initial period with problems, the full system went live over 2 weeks with risks of hardware or priority issues. The ERP implementation provided Rolls-Royce improved information and supply chain integration.
A study on issues related to implementation of an Enterprise Resource Plannin...Rishi vyas
Dabur India Ltd implemented several ERP systems over time to integrate its fragmented systems and address data inconsistencies between departments. It first implemented the Baan ERP system in 1999 to automate manufacturing. This faced challenges with Dabur's sourcing practices. It then implemented the MFG/PRO system in 2001 to automate outward logistics, seeing benefits in sales and collections. In 2006, Dabur fully shifted to SAP ERP across all business units for centralized management. SAP improved Dabur's sales forecasting, supply chain management, and strategic decision making, helping it grow its leadership position in FMCG. Dabur's next challenge is linking SAP with its HR and payroll systems.
The document is a presentation by Softweb Technologies Pvt. Ltd. promoting their ERP software solutions. Softweb provides customized ERP software for various industries including tea, jute, hospitality, and manufacturing. They highlight problems customers face with separate software programs and lack of access to business information. Softweb's solutions integrate different business processes on a single platform to provide real-time information and control costs. They have over 100 customers that have replaced legacy systems and seen benefits like increased inventory accuracy and reduced operational costs.
Co-operative Bulk Handling Limited (CBH) is an Australian company that handles over 10 million tonnes of grain annually for 5700 grower shareholders. To improve efficiency and integrate operations across its many sites, CBH implemented SAP ERP software on IBM servers and storage. This provided a centralized system for managing logistics, finances, and other operations. The new system improved processing speeds by 90% and reduced administrative costs. It also enabled enhanced reporting and decision making capabilities for managers and customers.
Hindustan Unilever Limited (HUL), a leading Indian consumer goods company, implemented SAP solutions to streamline its business operations, integrate processes internally and with business partners, and meet the demands of modern retail. The two-phase implementation included SAP ERP, SAP NetWeaver Process Integration, and other SAP solutions. SAP NetWeaver PI allowed HUL to integrate legacy systems with SAP and exchange data seamlessly both internally and with partners regardless of their IT systems. This improved supply chain efficiency and HUL's ability to respond to customer demands.
The presentation is about ERP Implementation failure case study of the Famous Choclate manufacturing brand Heshey's. What went wrong and what could have been done? is explaind!
A Successful ERP Implementation in an Ethiopian CompanyMayuree Srikulwong
My students' presentation of a paper "A Successful ERP Implementation in an Ethiopian Company" by Boltena et. al. (2012). It provides a summary of ERP implementation successful case study of a company in Ethiopia.
John I. Sommer has over 30 years of experience in IT management, project management, and quality assurance. He has held roles such as ERP Manager, SAP Project Manager, Director of IT, and Quality Coordinator. Sommer has extensive experience implementing and managing SAP systems, and has managed multi-million dollar IT departments and projects. His background includes experience in manufacturing industries with systems like SAP, ERP, and quality management systems.
Tata Steel implemented an ERP system to address issues with its outdated IT systems. It developed a strategy to adopt SAP, designing the system to handle its complex products, flexible planning needs, and production scheduling. It took a big bang approach, implementing all modules within 8 months across 46 locations. Benefits included cost savings, improved customer service, better decision making and compliance.
ERP implementation Failure at Hershey Food CorperationOlivier Tisun
Hershey Foods implemented an ERP system in 1999 that led to major problems. The key issues were:
1) Modules were simultaneously implemented instead of sequentially, leading to integration problems.
2) Training and testing were inadequate.
3) Peak season was chosen for the implementation.
4) Top management lacked IT expertise and did not properly oversee the project.
5) Problems were exacerbated by the looming Y2K issue and demand from retailers.
The failed implementation resulted in delivery delays, lost revenue, and excess inventory. Hershey later took steps to stabilize the systems and implement improvements.
ERP-Case Study- Changes before and after implementing ERP in a companyAniket Maithani
The following presentation contains a case study aboout the changes occuring in a company, before and after adopting ERP. The LIVE DEMO example is based on simple ERPAL Drupal Distribution.
Rolls Royce implemented an ERP system upgrade with five critical factors for success: clear goals, good coordination/communication, thorough customization history management, preparation for system requirements, and redefined business/IT roles. The case study examined Rolls Royce's global ERP system to embrace standards/processes through continuous upgrades. It concluded the complex project assessed effects across Rolls Royce's whole business, equivalent to ten companies, enabling radical changes to respond to increased market orders.
Hershey Foods Corporation implemented the final phase of its enterprise-wide information system in 1999 which caused problems with customer service, warehousing, and order fulfillment. These issues were exacerbated by recent growth and shipping capacity constraints, resulting in sales and earnings falling short of expectations for the year. The rushed implementation of the system and failure to properly test it led to disruptions during Hershey's busy season.
Submit the solutions to each of the following 3 problem assignme.docxpicklesvalery
Submit the solutions to each of the following 3 problem assignments in one MS Word document.
Assignment # 1
A ski repair shop at a resort in Colorado sells replacement poles each season. The shop needs to develop a forecast of next season’s sales so that they can place an order for poles with their supplier well in advance of the beginning of the season. Sales data for the past five years are shown below. Compare the forecasts given by the following models.
Year: 1 2 3 4 5
Sales (units): 350 375 355 375 390
Develop forecasts using:
1.
a. A 5 year moving average.
b. A weighted moving average model with weights of 0.2, 0.2, 0.1, 0.3, and 0.2 for years 1 through 5 respectively.
c. An exponential smoothing model with year 1 forecast of 380 and α= 0.3.
Assignment # 2
Togo makes riding lawn mowers and tractors. The company’s expected quarterly demand is given below in the chart. The company will have 300 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Below is other critical data:
Production cost per unit = $225
Inventory Carrying cost per quarter per unit = $50 (based on ending inventory)
Hiring Cost per worker = $450
Firing cost per worker = $800
Beginning # of workers = 50
Each worker can produce 110 units per quarter
Complete the tables and calculate the cost of the two plans
LEVEL Plan
Quarter
Demand
Regular Production
Ending Inventory
Workers Required
Hire
Fire
1
5000
2
9000
3
7000
4
9000
Total
30,000
3
CHASE PLAN
Quarter
Demand
Regular Production
Ending Inventory
Workers Required
Hire
Fire
1
5000
2
9000
3
7000
4
9000
Total
30,000
Assignment 3
Calculate the processing load, available capacity, and develop the load profile for the stereo speaker subassembly. Two employees work the assembly process for 40 hours each.
a. Complete the load chart
b. Prepare a load profile chart from this data.
c. As the planner, what concerns do you have and what changes would you make if any?
Part Name: Stereo speaker
Processing Time =
20 minutes
Week
Week
Week
Week
Week
Week
Week
Week
1
2
3
4
5
6
7
8
Planned Order Releases
220
190
210
270
210
190
240
200
Processing Load (hours)
Available Capacity (hours)
Note: Begin Simulation Exercise per instructions. For the Access Code refer to the Week 4 - Overview Announcement/email posted Monday, November 27th. (Due Day 7- Week 6-see grading rubrics)
JOURNAL OF EMERGING TECHNOLOGIES IN ACCOUNTING American Accounting Association
Vol. 12 DOI: 10.2308/jeta-51253
2015
pp. 169–188
Using Process Mapping to Reveal Process
Redesign Opportunities during ERP Planning
Marianne Bradford
North Carolina State University
Gregory J. Gerard
Florida State University
ABSTRACT: The objectives of the Elizor Case are to give students experience with
business process analysis by req ...
Hershey, a leading chocolate manufacturer, needed to replace its legacy systems to address Y2K issues and enable more efficient operations. It implemented SAP, Siebel, and Manugistics software in a big bang approach over 30 months. However, the system went live during their busiest season, and they were unable to fulfill Halloween orders, which significantly hurt sales and profits. Key lessons learned were that enterprise software requires business process change, adequate testing is needed, and careful timing of go-live is important. After upgrades and improvements, Hershey now has near 99.96% inventory accuracy and can fulfill orders within 24-48 hours.
1. ENGAGED executive sponsorship
2. EXPERIENCED implementation team
3. REALISTIC scope and expectations
4. COLLABORATION among implementation partners
5. DETAILED DEFINITION of business value
6. LEADERSHIP through organizational change
ERP Implementation Failure with example of Hershey and HPSamanway Bera
Enterprise resource planning or ERP implementation failure explanation with an example of Hershey and HP and general solution on the basis of that ERP implementation.
This document provides an overview of enterprise resource planning (ERP) systems, including their history and evolution. ERP systems integrate internal and external management of information across an entire organization, including functions like finance, manufacturing, sales, and customer relationship management. The document discusses leading ERP providers like SAP, Oracle, and Infor. It also examines factors that can cause ERP implementations to fail, such as employee resistance, lack of management commitment, unrealistic expectations, and extensive customization. The document analyzes FoxMeyer's failed ERP implementation in the 1990s as a case study, highlighting risks like unrealistic scope, poor execution, and a challenging environment. Lessons are provided around planning, implementation, testing, and change management
ERP Project: Implementation Failure in HPGunjan Kalita
Hewlett Packard implemented an ERP system in 2004 to consolidate multiple legacy systems, but the project failed due to technical and process issues. This led to delayed orders, lost revenue of $160 million, and loss of market share. HP learned that ERP implementations require careful planning, testing, change management, and contingency plans. In 2005, HP successfully implemented a new ERP system from SAP after addressing the lessons from the prior failure. The new system integrated business processes and helped HP better manage its global supply chain.
The document discusses drivers of ERP system performance success. It identifies that people, not just technology, drive ERP success. Key drivers include managing ERP as an investment, successful change management, measuring performance, empowering super users, and collaboration between IT and business teams. High performing organizations adopt best practices like executive oversight, continuous ROI measurement, and broad ERP training.
Tata Steel is India's largest integrated private sector steel company. It implemented SAP ERP across its 46 locations in 8 months, becoming one of the largest SAP implementations in India. The implementation improved customer focus, credit control, inventory management, and responsiveness. It resulted in significant cost savings, increased productivity, and improved data quality and decision making. Tata Steel saw reductions in manpower costs, inventory carrying costs, and overdue outstanding amounts.
This document summarizes an ERP implementation case study at Rolls-Royce. It describes how Rolls-Royce used over 1,500 legacy systems that were difficult to manage. It implemented SAP ERP in partnership with EDS to integrate its systems. The implementation involved overcoming cultural, business, and technical challenges. A pilot program demonstrated new roles and processes. After an initial period with problems, the full system went live over 2 weeks with risks of hardware or priority issues. The ERP implementation provided Rolls-Royce improved information and supply chain integration.
A study on issues related to implementation of an Enterprise Resource Plannin...Rishi vyas
Dabur India Ltd implemented several ERP systems over time to integrate its fragmented systems and address data inconsistencies between departments. It first implemented the Baan ERP system in 1999 to automate manufacturing. This faced challenges with Dabur's sourcing practices. It then implemented the MFG/PRO system in 2001 to automate outward logistics, seeing benefits in sales and collections. In 2006, Dabur fully shifted to SAP ERP across all business units for centralized management. SAP improved Dabur's sales forecasting, supply chain management, and strategic decision making, helping it grow its leadership position in FMCG. Dabur's next challenge is linking SAP with its HR and payroll systems.
The document is a presentation by Softweb Technologies Pvt. Ltd. promoting their ERP software solutions. Softweb provides customized ERP software for various industries including tea, jute, hospitality, and manufacturing. They highlight problems customers face with separate software programs and lack of access to business information. Softweb's solutions integrate different business processes on a single platform to provide real-time information and control costs. They have over 100 customers that have replaced legacy systems and seen benefits like increased inventory accuracy and reduced operational costs.
Co-operative Bulk Handling Limited (CBH) is an Australian company that handles over 10 million tonnes of grain annually for 5700 grower shareholders. To improve efficiency and integrate operations across its many sites, CBH implemented SAP ERP software on IBM servers and storage. This provided a centralized system for managing logistics, finances, and other operations. The new system improved processing speeds by 90% and reduced administrative costs. It also enabled enhanced reporting and decision making capabilities for managers and customers.
Hindustan Unilever Limited (HUL), a leading Indian consumer goods company, implemented SAP solutions to streamline its business operations, integrate processes internally and with business partners, and meet the demands of modern retail. The two-phase implementation included SAP ERP, SAP NetWeaver Process Integration, and other SAP solutions. SAP NetWeaver PI allowed HUL to integrate legacy systems with SAP and exchange data seamlessly both internally and with partners regardless of their IT systems. This improved supply chain efficiency and HUL's ability to respond to customer demands.
The presentation is about ERP Implementation failure case study of the Famous Choclate manufacturing brand Heshey's. What went wrong and what could have been done? is explaind!
A Successful ERP Implementation in an Ethiopian CompanyMayuree Srikulwong
My students' presentation of a paper "A Successful ERP Implementation in an Ethiopian Company" by Boltena et. al. (2012). It provides a summary of ERP implementation successful case study of a company in Ethiopia.
John I. Sommer has over 30 years of experience in IT management, project management, and quality assurance. He has held roles such as ERP Manager, SAP Project Manager, Director of IT, and Quality Coordinator. Sommer has extensive experience implementing and managing SAP systems, and has managed multi-million dollar IT departments and projects. His background includes experience in manufacturing industries with systems like SAP, ERP, and quality management systems.
Tata Steel implemented an ERP system to address issues with its outdated IT systems. It developed a strategy to adopt SAP, designing the system to handle its complex products, flexible planning needs, and production scheduling. It took a big bang approach, implementing all modules within 8 months across 46 locations. Benefits included cost savings, improved customer service, better decision making and compliance.
ERP implementation Failure at Hershey Food CorperationOlivier Tisun
Hershey Foods implemented an ERP system in 1999 that led to major problems. The key issues were:
1) Modules were simultaneously implemented instead of sequentially, leading to integration problems.
2) Training and testing were inadequate.
3) Peak season was chosen for the implementation.
4) Top management lacked IT expertise and did not properly oversee the project.
5) Problems were exacerbated by the looming Y2K issue and demand from retailers.
The failed implementation resulted in delivery delays, lost revenue, and excess inventory. Hershey later took steps to stabilize the systems and implement improvements.
ERP-Case Study- Changes before and after implementing ERP in a companyAniket Maithani
The following presentation contains a case study aboout the changes occuring in a company, before and after adopting ERP. The LIVE DEMO example is based on simple ERPAL Drupal Distribution.
Rolls Royce implemented an ERP system upgrade with five critical factors for success: clear goals, good coordination/communication, thorough customization history management, preparation for system requirements, and redefined business/IT roles. The case study examined Rolls Royce's global ERP system to embrace standards/processes through continuous upgrades. It concluded the complex project assessed effects across Rolls Royce's whole business, equivalent to ten companies, enabling radical changes to respond to increased market orders.
Hershey Foods Corporation implemented the final phase of its enterprise-wide information system in 1999 which caused problems with customer service, warehousing, and order fulfillment. These issues were exacerbated by recent growth and shipping capacity constraints, resulting in sales and earnings falling short of expectations for the year. The rushed implementation of the system and failure to properly test it led to disruptions during Hershey's busy season.
Submit the solutions to each of the following 3 problem assignme.docxpicklesvalery
Submit the solutions to each of the following 3 problem assignments in one MS Word document.
Assignment # 1
A ski repair shop at a resort in Colorado sells replacement poles each season. The shop needs to develop a forecast of next season’s sales so that they can place an order for poles with their supplier well in advance of the beginning of the season. Sales data for the past five years are shown below. Compare the forecasts given by the following models.
Year: 1 2 3 4 5
Sales (units): 350 375 355 375 390
Develop forecasts using:
1.
a. A 5 year moving average.
b. A weighted moving average model with weights of 0.2, 0.2, 0.1, 0.3, and 0.2 for years 1 through 5 respectively.
c. An exponential smoothing model with year 1 forecast of 380 and α= 0.3.
Assignment # 2
Togo makes riding lawn mowers and tractors. The company’s expected quarterly demand is given below in the chart. The company will have 300 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Below is other critical data:
Production cost per unit = $225
Inventory Carrying cost per quarter per unit = $50 (based on ending inventory)
Hiring Cost per worker = $450
Firing cost per worker = $800
Beginning # of workers = 50
Each worker can produce 110 units per quarter
Complete the tables and calculate the cost of the two plans
LEVEL Plan
Quarter
Demand
Regular Production
Ending Inventory
Workers Required
Hire
Fire
1
5000
2
9000
3
7000
4
9000
Total
30,000
3
CHASE PLAN
Quarter
Demand
Regular Production
Ending Inventory
Workers Required
Hire
Fire
1
5000
2
9000
3
7000
4
9000
Total
30,000
Assignment 3
Calculate the processing load, available capacity, and develop the load profile for the stereo speaker subassembly. Two employees work the assembly process for 40 hours each.
a. Complete the load chart
b. Prepare a load profile chart from this data.
c. As the planner, what concerns do you have and what changes would you make if any?
Part Name: Stereo speaker
Processing Time =
20 minutes
Week
Week
Week
Week
Week
Week
Week
Week
1
2
3
4
5
6
7
8
Planned Order Releases
220
190
210
270
210
190
240
200
Processing Load (hours)
Available Capacity (hours)
Note: Begin Simulation Exercise per instructions. For the Access Code refer to the Week 4 - Overview Announcement/email posted Monday, November 27th. (Due Day 7- Week 6-see grading rubrics)
JOURNAL OF EMERGING TECHNOLOGIES IN ACCOUNTING American Accounting Association
Vol. 12 DOI: 10.2308/jeta-51253
2015
pp. 169–188
Using Process Mapping to Reveal Process
Redesign Opportunities during ERP Planning
Marianne Bradford
North Carolina State University
Gregory J. Gerard
Florida State University
ABSTRACT: The objectives of the Elizor Case are to give students experience with
business process analysis by req ...
The company is experiencing rapid growth and needs more space and storage for equipment, employees, and data. A data warehouse is proposed to analyze collected client data in real-time and provide accurate results. The warehouse would support business intelligence through OLAP to improve strategies and decision making. Expanding to additional floors is recommended to accommodate more employees and growth. Operations involve collecting various data on customers and businesses through surveys, websites, and other means. Limited operations occur overseas through outsourcing to reduce costs and increase revenue.
Analyzing data quickly for the most relevant information allows you to make informed decisions at the time they matter most: In the moments before a promising prospect turns into a lost opportunity. But the sheer volume of data involved in making business decisions continues to grow exponentially by the day. In addition, the ability to access pertinent information quickly depends on how the data in your Oracle E-Business Suite (EBS) is structured, and whether it is complete, consistent and correct.
View the original Blog post: http://www.eprentise.com/blog/r12/you-cant-find-it-if-its-not-there/
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Ensure your data is Complete, Consistent, and Correct by using eprentise software to transform your Oracle® E-Business Suite.
Success and Failure Examples of ERP ImplementationSunidhi Kumari
The document discusses an ERP implementation success case study of Pantaloons Fashion & Retail Limited which implemented SAP retail solutions to integrate operations and saw benefits. It also covers an ERP implementation failure case study of Overstock.com which rushed implementation of an Oracle system in 6 months, encountered major issues, and had to restate financials. The document also discusses how CRM can be used as an ERP module and its applications and benefits for customer management in the apparel industry.
Impact of ERP on Organizational Functions in Retail SectorProjects Kart
The business environment has changed more in the last five years than it did in the previous five decades. Winning in today’s business climate requires more than just providing high-quality, low-cost products to customers, when and how the customers want them. The ability to respond to new customer needs and seize market opportunities as they arise, without compromising on the profitability of the firm is critical for the success of any organization. Competitive pressures frequently force manufacturers to decrease prices in spite of the fact that their internal costs continue to rise. Enterprises are continuously striving to improve themselves in the areas of quality, time to market, customer satisfaction, performance and profitability. Making informed business decisions in this manner would enable organizations to accomplish their business growth and at the same time enable them to utilize the information to competitive advantage. To make it possible for the companies to execute this vision, there is a need for an infrastructure that will provide information across all functions and locations within the organization and this is the Enterprise Resource Planning (ERP) solution available in the market today.
Getting Your ERP Right focuses on some of the less technical but most important concerns when implementing an ERP system. The document discusses (1) how the human element is the most important factor in ERP success and companies must address employee resistance to change and business unit conflicts, (2) the key differences between on-premise and SaaS ERP solutions and how the best option depends on company size and needs, and (3) the top three mistakes made which include letting the ERP dictate workflows instead of the other way around, limiting the ability to change due to outdated systems, and having data siloed across multiple systems.
The document discusses an ERP failure story at Hershey, a leading chocolate manufacturer. Key reasons for the failure include implementing ERP during a peak business period, which disrupted normal operations and diverted attention away from core activities. This led to losses in profits and sales as the business faced uncertainties and the ERP implementation was not completed properly. Choosing a less busy time period may have avoided these issues for Hershey.
This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as integrated software that helps businesses manage important operations like production planning, purchasing, inventory, customer service and order tracking. The document discusses how ERP systems evolved from earlier material requirements planning systems of the 1970s-80s. It also outlines key considerations for selecting, implementing and managing a successful ERP project, such as choosing a vendor, assessing total costs, avoiding common mistakes, and providing change leadership.
12 tips for successful implementation of erp in a manufacturing companyMRPeasy
If you are a manufacturing company thinking about implementing a new ERP/MRP system, these quick tips will be extremely useful and will help you to avoid the common pitfalls.
1. The document discusses the next-generation Enterprise Resource Planning (ERP) system called SAP S/4HANA. It is SAP's biggest innovation since SAP R/3 and offers real-time data processing and analytics capabilities.
2. SAP S/4HANA signals a move away from traditional transaction-focused ERP towards giving users active decision support in real time. It is built on SAP's in-memory database HANA and offers a personalized user experience.
3. The history of SAP leading to the development of SAP S/4HANA is discussed, including the introduction of HANA in 2011 and the release of SAP S/4HANA in 2015.
Enterprise Resource Planning (ERP) software enables different departments and processes within an organization to integrate and share information. ERP systems are widely used in the Philippines to improve productivity, flexibility, collaboration, and preparedness for problems. Major companies in the Philippines like Starbucks have implemented ERP systems from vendors like Oracle to manage supply chain operations and other business processes. While Oracle Cloud ERP provides benefits like streamlined reporting, it also has disadvantages such as needing improved performance and search functionality.
SAP Business One Distribution Success StoriesVision33
Take a look through at our customer success stories and find out why more and more companies within the wholesale distribution sector choose SAP Business One.
The document outlines the top five reasons for small to medium-sized businesses to deploy their enterprise resource planning (ERP) solutions in the cloud. The key benefits include: improved cash flow due to minimal start-up fees and low monthly subscriptions; anytime, anywhere access for finance and operations staff; continuously updated systems to ensure 100% compliance; quick and easy implementation; and built-in data backups and disaster recovery plans for peace of mind.
This document discusses why emerging companies are increasingly deploying top tier ERP systems sooner than later. It notes that the realities of doing business in today's global, fast-paced marketplace require integrated solutions with broad capabilities. While top tier ERP was once seen as too complex for smaller companies, the document explains how tools, rapid implementation methodologies, and flexible deployment options have made them affordable and manageable for emerging companies. It provides examples of how some emerging companies have implemented top tier ERP successfully.
This document discusses the strengths and weaknesses of enterprise resource planning (ERP) systems. It analyzes the high costs of ERP software, implementation, training, and consultants. Several hidden costs are also examined, including integration, customization, data conversion, analysis, and replacement of staff. Common causes of ERP project failures include lack of change management and training, poor planning, underestimating skills and resources. Overall, ERP can integrate financial and customer information, standardize processes, and reduce inventory, but success depends on staff skills and experience with the system.
The document discusses Cisco's implementation of an ERP system to replace its legacy applications that could no longer support the company's rapid growth. Cisco selected Oracle's ERP software and implemented it over 9 months on budget and on schedule. Key factors for the success included high-level support, cross-functional team involvement, limited customization, and addressing issues promptly during testing. The new ERP system provided centralized and scalable systems to support Cisco's continued expansion.
The document discusses how business process reengineering (BPR) can be enabled by information technology (IT). It provides a generic model for BPR and describes how IT can automate, integrate, and disintermediate processes. An example is given of how the apparel manufacturer TAL Group transformed its supply chain through IT investments like enterprise resource planning. This integrated TAL, its customers like JC Penney, and suppliers into a synchronized value network, improving inventory management, sales, and margins.
The document discusses ERP implementations at several food companies. It describes how Cadbury implemented SAP ERP in 2005 but faced initial problems that led to excess inventory. Similarly, Hershey rushed its ERP implementation in 1999 in 2.5 years instead of the recommended 4 years, which caused order fulfillment issues and a $150 million loss in sales. The key lessons are to avoid squeezing timelines, use a phased approach, thoroughly test systems, and avoid go-lives during busy periods.
This document provides an introduction to business process reengineering (BPR) and enterprise resource planning (ERP). It defines BPR as fundamentally rethinking and redesigning business processes to achieve dramatic improvements in areas like cost, quality and speed. The objectives of BPR include reducing costs and time, improving customer service and reinventing business rules. ERP software aims to integrate all departments and functions across a company onto a single system. It discusses the benefits of ERP including lower costs and better data access, as well as challenges such as high implementation costs and potential inflexibility.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
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For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
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1. Case Analysis Project – Why ERP?
Read the book Why ERP? By Jacobs and Whybark and prepare written answers to the following
ten questions.
1. What is the objective Dan Bragg has in mind for the implementation of SAP R/3 at
McDougle's Furniture in North Carolina?
Dan Bragg is the IT person in the Ohio plant and likemost IT people believe SAP is an IT
solution, not a management solution. His expectation is the system in Ohio can just be
“transplanted” to the North Carolina system. But the plants are not the same. The business in
Ohio is considerably less complicated than the North Carolina plant. See the Figure below for a
comparison between the two plants.
Topic North Carolina Ohio
Products Custom Furniture Standardized Models
Time to Completion Up to 8 Months Less than 8 hours
Current System MRP + Tweaked Add-ons ERP
Flexibility Required Immense None
Processes Immature-Not documented Mature-Well documented
Employees Stable High Turnover
Salaries Above Market Below Market
Talent Artisans Minimum Training
Wood Custom Hardwoods Plywood, Composition
Type of Customer Upscale, Custom Wal-Mart; Kmart
Type of Plant Creative Assembly
Forecasts Multiple by Department Tied to Vendors
Time of Forecasts Nothing Concrete Several Months in Advance
2. What is Mr. McDougle's objective for the implementation of SAP R/3 in his furniture factory
in North Carolina?
Initially, Billy thought Mr. McDougle only wanted to integrate the financial portion of the two
plants but now his objective is to be able to have consolidated systems for both plants.
Financially this would be much more economical from a cost standpoint. He believes it is easy
and simple to implement SAP for both plants.
3. Does Billy want to implement SAP R/3 at the North Carolina furniture plant?
Not really! Billy does not believe the SAP R/3 is the correct system for the North Caroline plant.
The North Carolina plant has been in the McDougle family for several generations and
produces a line of very fine handcrafted furniture for residences and offices. Located in the
Smoky Mountains, they were able to take advantage of the local hard woods from the area
but they also have to order materials from overseas. Those items have a much longer lead-
time. Their customers are both residential and commercial with high quality and custom
designs. The company has grown slowly but they have managed their growth to keep a
constant work force. Their employees are local labor, very experienced and highly skilled.
2. They treat their employees well and pay better than market wages to their people. They use
the “apprentice” system, hiring local students from shop classes to see if they will work into
permanent employees. The atmosphere of the plant is one of informality with everyone
helping each other out when needed. The system is flexible to match their way of doing
business.
The SAP system has a huge number of details just to handle the day-to-day transactions, it is not
very flexible, and the installation is also difficult. He is overwhelmed by the amount of
decisions required just to “program” the system with all the options. It would require
changing how they do business. His concern centers on starting the implementation only to
discover the system does not fit their circumstances. The Ohio plant set up is very different
from the North Carolina plant. The system “integration” is the reason for the complexity.
Data is only entered once but used by many people so everyone has to agree on what data is
entered, how it is entered, and how it is used. The North Carolina plant has added “tweaks”
to their current program to allow for customization and changes during the production
sequence. These changes would be difficult with and ERP system and Billy does not see how
the ERP software will fit with their way of doing business. For an ERP implementation to be
successful, a business must change their way of doing business, recognizing the new business
processes using a cross functional approach.
The consultant Billy spoke with described plants where R/3 implementation would not be
recommended. Companies with very little experience with formal information systems,
lacking discipline and training to develop people to use R/3, had changing information
system requirements, and/or were dependent on a great deal of flexibility for success would
not be good candidates for a successful implementation. The North Carolina plant is “0 for
4” for success.
4. What would his objectives be if he did want to do so?
Flexibility was his top concern. His objective would be to start small, with just one module to
begin with. Consolidating the accounting programs would force the North Carolina plant to
clean up their data, get good processes in place, and have good definitions to work with. Also,
keep the current MRP system so business is not adversely affected.
5. Why was the implementation of SAP R/3 successful in Ohio?
From the wording of the question, it seems the consensus is the ERP implementation in Ohio was a
success and from a monetary standpoint, this would appear to be true. However, there are other factors
to consider when labeling an implementation “successful”. Based on an article “The 12 Cardinal Sins of
ERP Implementation”http://rockfordconsulting.com/the-12-cardinal-sins-of-erp-implementation.htm there
are issues, sins, and time-proven approaches for implementations. First is High Employee Involvement,
workers know their jobs and should be involved in the implementation phase as much as possible, this
fosters ownership and buy-in. Second is a Comprehensive and Systematic Approach, which addresses all
parts of the ERP system. This includes the development of an IT strategy, requirements, definitions,
proper research of software and hardware, education and training of all employees, and resistance to
change to name a few. Third is Adequate Resources in terms of technical and administrative resources to
allow employees breathing room. Be sure to understand the entire cost of implementation. Fourth is
Extensive Education and Training at all Levels. This includes all employees involved with the new system,
including upper and middle management.
3. The first approach of employee involvement was a miss.Few of the Ohio employees knew the system
inside and out. It was an “IT” and management implementation. This can be seen from the high turnover,
the employees were “told” what to do, and with the high turnover, there were few employees left from the
“old” way of doing business. It was a comprehensive system but it was an IT implementation with little
education and less training, along with no effort to eliminate any resistance to the new system. On
adequate resources, the company did make sure to choose the right system and so far, the company has
benefited monetarily with improved production and shorter cycle times. The fourth approach of extensive
education and training only happened for high-level management. Additionally, once the Accounting
Manager left, their “success” began to falter.Employees were not included in the training except for their
specific tasks. Given these results, I am not sure I would conclude the Ohio plant was a success.
However, from a business standpoint, it might be considered successful because of shorter cycle times
and increased business.
From this standpoint, in order to see why the implementation of SAP R/3 was successful in Ohio,
a review of the operation of the Ohio plant helps. The Ohio plant operates on a “just-in-time”
basis. Trucks unload raw material almost all day long at one end of the plant and trucks are
taking away completed orders at the other end of the plant by close of business. Most of the
orders go through the plant in hours. Their goal is to use the same truck that delivered the raw
materials to pick up the finished goods at the other end of the plant.
Their plant uses mostly plywood, composition board, some solid wood, hardware, and a little bit
of finishing material. Almost all material comes in pre-finished, cut to standard lengths and
widths. This makes assembly fast, with little custom work required. They have approximately 30
vendors and ship between 450 – 500 standard desk models a day. The same goes for the shelving
units. The vendors do all the cutting and finishing. Packaging is done with cardboard, strapping,
and boxing for shipment. Also included are assembly instructions. Only a couple of days’ worth
of inventory are kept on hand. Ohio McDougle uses computer controlled machines and
automated conveyors in production. Billy also noticed there were few workers on the floor, since
most of the work was programed by the back office.
Customers provide forecasts several months into the future, broken down by model. They are
even tied into some of the vendors systems. The product lines only change by about 15 to 20% a
year. Their biggest accounts are with Wal-Mart, Kmart, and Office Depot. However, they have a
very high turnover in personnel, there are no master artisans. They learn the job quickly and
work for lower wages but once they get some training, other companies hire them. This accounts
for the high turnover. Additionally they have mature processes in place, with documentation
available throughout the plant. Larry McDougle does not use the system except on rare
occasions and all questions are referred to senior management, not to any of the line workers.
However, the plant moves like a well-oiled machine, on schedule, using materials just in time,
and shipping products as quickly as they are made. The company had mature, static processes
that lent themselves well to automation.
6. Identify specific examples of other companies where SAP was successful and explain
why. Alternatively, give some general characteristics of firms where SAP might be successful.
4. One example where SAP was successful is Staples Office Supply. They wanted to install an
online kiosk, installed in all 1400 stores. This required connecting the company’s e-commerce
website,, Staples.com with its point of sale (POS) system, order management system, distribution
system and supply chain. This new process came from their strategic plan, using IT to advance
the companies mission. They have mature processes and want to implement additional
capabilities to keep their customers coming back by providing a full range of online services.
Another characteristic, according to Staples is standardization. This makes implementation cost
less. Part of this standardization for Staples is development one common platform.
Another example is Dow Chemical where the SAP implementation was ultimately successful.
They were willing to change, focused on small wins and adjusted their scope when project
difficulties occurred. Additionally they had strong, internal leadership who was vested in making
the project successful. They relied on internal people to design the processes and configure the
system rather than turning this crucial step over to an outside consultant. Use of consultants is
beneficial in explaining what, when, how, and where to install the system but they are not a
replacement for employees who will use this system everyday.
General characteristics where SAP might be successful arefirms with mature processes,
everythingis documented, and everyone knows what to do. Another characteristic is a firm with
substantial computer experience. In addition, when management believes the SAP is a “not a
silver bullet” that will magically fix all their problems but will help them improve their
processes, making them more competitive. They understand training is important and are willing
to do it “right”.
7. What are some specific examples of companies where SAP R/3 was not successful and
explain why?Alternatively, give some general characteristics of firms where SAP might not be
successful.
One example where SAP was not successful is FoxMeyer, a wholesale drug distribution
business. They did not have sufficient management support, inadequate planning by
management, and used an external consultant. Management had unrealistic expectations
concerning the return on the SAP implementation and the culture was not open to change.
Additionally, employees did not express their concerns to management. In reviewing all the
issues the main characteristic they lacked was complete and realistic management support. It
also does not appear there were any strategic goals for this implementation. At the same time,
FoxMeyer tried to install an automated warehouse system, which was an extremely poor
decision by management. Taking on one major implementation is difficult, but two at once is
suicidal. Ultimately not only was the implementation not successful, but FoxMeyer went
bankrupt.
Another example where SAP was unsuccessful was Nike. From all indications, it appears the
major characteristic missing for Nike is management’s buy-in. Nike tried to implement a risky
and difficult strategy by creating a single, giant, integrated database within its SAP ERP system
for every employee in North American and EMEA. This meant getting everyone to agree on
business practices and common data definitions before the software went in. This is an extremely
difficult integration and has contributed to more failures than not. (Koch, 2004) The
characteristic lacking in this example is management understanding and realistic expectations.
5. They did provide support but their expectations were so unrealistic the chance of successful
implementation was very slim. They did not allow sufficient time for the implementation and the
internal training was low. Lack of training leads to individuals who are ill-prepared to
successfully implement and use the system.Even though Nike touts the system as a success, their
production time did not decrease (according to their vendors) and gross margins have only
increased slightly, not significantly for the six year, $500 million dollar implementation.
General characteristics where SAP might not be successful are firms with immature processes,
and little is documentedandonly one person knows the entire system. Another characteristic is a
firm with little or no computer experience. In addition, when management believes the SAP is a
“silver bullet” that will magically fix all their problems but they want it “now” and do not want
to spend the money to do it “right”.
8. What would you have done differently if you had been Billy in this situation?
I am not sure I would have done anything differently in the research portion of the problem. He
tried to gather all pertinent information. However, I do not believe Billy understood the real
question Mr. McDougle was asking in the beginning. Billy thought he was on a fact finding
mission when in fact he was really only doing lip service. Mr. McDougle’s mind was already
made up; he was going to implement the system regardless of what Billy found out. Given this,
Billy was in a no win situation.
The first thing I would have done differently would have been to determine Mr. McDougle’s true
objective before starting on the project. Billy did not ask nearly enough questions, plus he was a
little jaded with regards to the system before he began his research. Another thing I would have
done differently would have been to put together a presentation with all the information gathered
and bring in a consultant to help “sell” the right answer. Since Billy had preconceived notions
about the SAP system, his data was probably viewed as “suspect”; where data from a
disinterested third party might have carried more weight.
9. Is it possible to install a commercial ERP system and still get a competitive advantage from
your information system? Why or why not?
It is possible to install a commercial ERP system and have an operational competitive
advantage. The reason is companies are made of people. The machines assist but they cannot
take the place of individuals who make the final decisions. Even though the systems are the same
when they leave the vendor, a company can choose different modules, different options (there are
8,000 to choose from), and still apply their own business knowledge which is unique to each
business. A firm cannot get a competitive advantage from and ERP system but they can get some
operational efficiencies. Eventually they may be the “norm”, like having email. It is like two
people opening a restaurant, both are excellent chefs, both have a good location, but one is
successful and the other is not. Somehow, one maintained a competitive advantage, while the
other did not. People make the difference!
Companies must define a business strategy that will give them a competitive advantage or, at the
very least, make them competitively equal. Then, analyze their current business processes and
develop their objectives. This will make them successful, not the software itself.
6. 10. What were the three best and three worst things about the implementation of SAP at the
North Carolina plant?
Actually, the three worst things happened more than once,first before the implementation and
second after it. Before the implementation the three worse things were they tried to do the
implementation in a hurry; they did not hire any outside help with the technical decisions;
lastly it was an IT implementation not a business implementation.
The three worst things that happened after the implementation was, the worst thing was what
happened to the people. They were all demoralized and many left the company.
Manufacturing is going crazy; they no longer have the flexibility to make changes like in the
past so costs are going up. Customer service is down because they cannot get any
information from the system.
The three best things about the implementation were Billy got a new job, came to realize there
are situations when ERP will work and he was called back as a consultant to try and get the
implementation back on track. In reality, there were no “three best”, the implementation was
a disaster and the company may not survive.