Keda, a manufacturer of large-scale machinery in China, had successfully deployed an enterprise resource planning (ERP) solution that was paying for itself. Before ERP implementation efforts began, Keda estab- lished a set of selection criteria by which all possible so- lutions would be judged. This was significant. Keda’s SAP – Download as Powerpoint Presentation .ppt /. pptx), PDF File .pdf), Text File .txt) or view presentation slides online.

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Help Center Find new research papers in: They sp to accept and adapt. When a new person is promoted to a new position he will have no conflict of interest with the new system, and will therefore be willing to comply.

While anxiously working through the technical problems and trying to circumvent production delays, Zhu once again had top management reassurance: In that case, key users would demand endless changes, causing major delays in the project.

InSsp had rolled out the first 3,ton pressing machine in China.

Since operational experience was needed in this specification, we assigned this responsibility to the key users. Before ERP it was very difficult to trace price paid for materials purchased, but after ERP, price analysis could be done conveniently.

Staff training was conducted in parallel with system testing. There was no way the IT department alone could have achieved so much. Much work was put into effecting these changes. Reproduction of this material is not covered under authorization by any reproduction rights organization. The arrangement was for the head of each module to work together with the IT department, with the marketing manager representing the marketing department, the purchasing manager representing purchase department, etc.

A key element of the plan was to develop a centralized, unifying, shared platform on which all of the business applications would run see Exhibit 1. In particular, opposition to technological changes might be especially pronounced in the Chinese context due to feared loss of both status and discretion and the use of unrecognized performance metrics. For example, as Zhu commented: It was not clear how much profit or loss resulted from the sale of a product, nor which part of the product or the production process contributed to that profit or loss.

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ERP is an enabling technology. Implementation was relatively smooth and speedy. For example, when faced with a decision on whether to compete for orders for a line of polishing machines in foreign markets, Keda could not meaningfully assess cost and profitability potential — the final quote was based on a hunch. Page 3 9B11E Before ERP deployment, due to implrmentation mess in material management, the cost of a product was unclear and costing was based on experience.

In brief, top management would provide overall project implementatikn and make critical decisions; consulting support would be provided by personnel from Digital China; project managers would be assigned from both Keda and Digital China; departmental representatives would oversee the business process redesign and system design aspects; and the IT department would provide all necessary technical support.

Recent years had seen China encouraging innovation in local enterprises, imple,entation an implemenntation to imlpementation up with foreign firms.

Such a comprehensive technology plan had many complexities. Within months of going live, the ERP implementation effort was clearly a great success. After one month, he could not cope anymore and decided to bypass the ERP system.

ERP served as the core on which systems, such as customer relationship management, business intelligence and supply chain management, could be built to enhance customer management, optimize decision-making and coordinate vendors, respectively. 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.

The vendors were invited to visit Keda, to be introduced to the needs of the company, to demonstrate how their software packages would satisfy those needs, iplementation share their past experiences and to discuss other implementation issues see Exhibit 2 for some of the main selection criteria.

Top management support was critical throughout the implementation. Each vendor offering was rated according to strategic alignment goals. At the time, the global ceramics machinery industry was dominated by European companies.

Thinking back to this time sa, one member of the IT department recalled: At one point, their computers were moved to our office, and we literally worked together. We had over 30, products. Disconnected business units often duplicated identical processing tasks, resulting in redundancy and heightened costs. By conducting system training and system testing in parallel, time was saved, and users were able to implemenfation potential malfunctions and gaps.

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Fortunately, senior management was supportive. Also, we tried to pick those who were deemed indispensable by the departments. Exhibit 3 illustrates the team composition and assignment of responsibilities. The critical issue was balance.

My account New to us? We invited both local and foreign software vendors to visit our company for detailed assessments.

It requires a well established structure and system Reusable materials and parts were often scrapped, and precious machine time of key facilities was often wasted, idling at times. After visiting several enterprises, we observed something very interesting.

After all, this would be a senior management decision, and if anyone really got punished this way, to serve at the Use outside these parameters is a copyright violation. Senior executives promptly replaced him.

Keda’s SAP Implementation | The Case Centre, for students

Very little information flowed between departments; as a result, managers could not make timely, well-informed, holistic business decisions. It was producing only six machine presses per month, grossly below the quantity demanded by customers. When working out the plan, we focused on how much investment was needed and in what kinds of systems, what our objectives were, what hindrances impplementation company faced, why we needed computerization, and what problems we were targeting to solve.

Then everything else is easy, and can be solved by an increase in resources. Zhu also took a proactive role in implemrntation existing clients of these vendors: