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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Rather, needs were addressed as they emerged. Page 9 9B11E Work did not stop at cutover. That made pricing our products difficult, too. The first level of training was provided to selected key users by the consultants. His approach emphasized user involvement as a critical success factor: Such a goal cannot be attained by simply increasing labor hours. Within months of going live, the ERP implementation effort kesa clearly a great success.
On a more tactical note, Zhu went to great lengths to ensure that the project team worked as an integral unit. Thinking back to this time period, one member of the IT department recalled: The implementation team was uncertain how open users would be toward the new system.
Zhang explained the reasoning for rolling out implememtation new system in August: After Zhu reported the opposition and concerns to the director, a reward system was constructed to resolve the issue. Because most prominent ERP systems were originally developed for users in North America and Western Europe in mind, some had suggested that cultural complications might arise in the Chinese setting.
Success or failure hinged on the key users, since they dictated the future workflow. Where were the business managers? Keda struggled to meet demand.
It was not clear how ekda 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.
Fan Zhu came on board as the new head of the IT department. However, one year after the ERP implementation, with exactly the same facilities, we were producing over 30 presses per month.
Page 2 9B11E management. Remember me on this computer.
Satisfying the latter needs, however, would be more proactive in directing the future development of the company, the trade-off being disturbances to business in the short run. There was a lot of resistance to this arrangement. 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.
We notified the Director himself before rollout about possible delays in production, and explained that the ERP rollout represented a fundamental change in how our staff operated. Understandably, he was under tremendous pressure, faced with the dilemma of having to direct resources both to the immediate and emergent needs of the company, and to the development and execution of an overarching computerization plan.
After visiting several enterprises, we observed something very interesting. The critical issue was balance. 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.
As a result, Keda enjoyed improved market responsiveness, decreased stock holding costs, a significantly better product delivery time and faster monthly financial reconciliation.
For instance, after system rollout some users were not completely satisfied with system operations and interfaces, and they requested system modifications to the IT department.
After one month, he could not cope anymore and decided to bypass the ERP system. We had to devise a data model to support all the operations and workflow. In many ways, the challenges had only begun. This is how things work in China.
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, to share their past experiences and to discuss other implementation issues see Exhibit 2 for some of the main selection criteria.
Keda also offered comprehensive plant design and technical consulting services to industrial clients. In China, workers look up to those in authority to provide direction. On the basis of these encounters, Keda short-listed nine vendors to respond to a request for proposal RFPwhich described the exact needs of the company and provided a standardized response form that would allow Keda to quickly compare vendor offerings.
Reusable materials and parts were often scrapped, and precious machine time of key facilities was often wasted, idling at times.
Much work was put into effecting these changes. Keda thus established itself not only as a leader in market share and revenue but also as a product and management innovator. In brief, top management would provide overall project direction 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 kead oversee the business immplementation redesign and system design aspects; and the IT department would provide all necessary technical support.
Disconnected business units often duplicated identical processing tasks, resulting in redundancy and heightened costs. No overarching direction or roadmap was provided for IT projects. View our pricing guide or login to see prices. Resistance mainly stemmed from the redistribution of power. This lack of integration was especially taxing in the face of competition from local and foreign companies that challenged Keda on many fronts. Keda Implemenyation specialists would then implement the requirements.
Keda’s SAP Implementation | The Case Centre, for students
Tax ID No Consensus could not be reached every time. Zhu also took a proactive role in visiting existing clients of these vendors: We had new designs and new production orders every day, and these placed a lot of pressure on the Purchasing Department and its manager.
Computerization is an auxiliary tool that helps [Keda] to achieve its goals and develop its business. As Zhu put it: