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Copy of Keda's SAP implementation
Transcript of Copy of Keda's SAP implementation
system of bonuses
Punishment for employees unsupportive for the project work A successful story Keda's ERP implementation Reasons why Keda decided to adopt its ERP system Why adopting an ERP system? Koda's organizational chart and internal issues that brang Koda's vice GM to begin a computerization path. Internal Organization and Context Lack of integration. Due to a heavily compartment status inside organization and to extremely decentralized decision-making, it brought to duplicate activities and costs.
Information flow between departments simply did not work. Internal Keda's issues: Inventory management. The highly customized Keda's production process often needs to use unique parts. Without an ERP that could keep track of these material Keda was unable to calculate costs and profits of its production process.
Under-usage of implants and waste of raw materials and reusable parts Critical issues Ceramics sector and Keda's competitors Competitive Environment A little Chinese ceramic machinary enterprise with high customization product portfolio possibilities but with no inside transfer knowledge system could compete with hi-tech European sector leaders? Actually it couldn't without reviewing whole Enterprise Information System from ERP to ESS A difficult path to follow... In which ways an ERP could resolve Keda's problem? ERP adoption benefit for Keda Increasing in efficiency of Inventory Management process
Optimization in usage of both resources and facility during production process
Savings in time and row material and parts during production
Possibility to control production in different factories
Reducing production delays Internal benefits Introduction an ERP system in Keda make possible to increase customer demand matching and share-value of the company by increasing of productivity (machinery per month) and profits too. External benefits Why Keda decide to embark on an
ERP project? Strategic perspective Relation between business and IT Every IT project to be called successfully needs to be useful to the company business. A problem is that IT projects usually drain a huge amount of resources from business. That's why, to work, IT projects need to be carefully planned, even thus they have usually a mid-long perspective.
ERP introduction would have had a great impact on Keda's processes and that's why IT needed to be aligned to the Company main strategy and had to match the business specific requirements. Organizational perspective More than other kind of project, IT impact quite hardly on organizations.
In Keda's case the ERP project aims to standardize process. This means a better control and information quality on a process but also redesign the as-is processes to catch all or most of the ERP pro's. Implementing the ERP Choosing the ERP vendor Assembling the team Implementing the Erp During the ERP evaluation phase, attention should be paid to the degree the ERP system is able to adjust to the company’s specific requirements and how the future users rate its user friendliness. After had choosing the ERP system, another focus point was to characterize different groups responsible for getting the SAP system up and obviously running. Thematic to deal:
Rules for the assemblage of the team
Structure & competences ERP systems are complex, one person cannot fully understand a single system, much less be able to compare systems effectively
A team, including external consultants, is probably needed to select the best ERP system for a company Instead of building up a big team for in-house information technology development, Keda has adopted an approach to deploy off-the-shelf packages and outsource to experienced vendor and consulting experts. key user the core
IT officers support for the precedence categories
Top Management & Director overall project and involved actively during the entire project of change management Main Role « after visiting several enterprises... » Rules for the assemblage of the team 2 Keda decided to contacted 20 software vendors from both local and abroad before choose the right one. 1 “ERP is about people more than technology”
Zhu focused on assembling the rest of the Project Team
involving vital representatives that possessed a comprehensive understanding of the operations and needs of each department.
USER INVOLUMENT IS A CRITICAL SUCCESS FACTOR
top dogs of the various department must be involved during the assembling of PT
team must included the more indispensible employees of their department
all members must had a clear idea of their role and responsibilities on the project In this way, not only the company can enjoy state-of-the-art technology with a best practice solution for a comparable investment, the risk incurred from the implementation can be mitigated from the experienced consultants and maintenance effort can be leveraged from the software vendor in the long run. Obviously, each solution has strengths and weaknesses. Leading the project 3 Which leadership best practices
did the keda managers engage in? each member is valued by the division leader and, so, by the company. If it’s not sufficient to reach consensus, leaders use punishments (a week serving at the canteen during lunch hours for a week for any employee unsupportive of SAP project work). Inclusion and partecipation of all the employees Issues the divisons managers work togheter in the same office during the day, away from their departements but promoting collaboration and relationships and boosting the SAP project. Affiliance between leaders dr. Fan Zhu shares his program and the SAP project with his top management and, to be sure about their knowledge of the implementation project, made them work in the same office as the IT department. Coaching What were the main challenges faced by keda in each stage of its ERP project? it worked with the senior management but most of the employees didn’t feel as involved to focus entirely on the ERP’s implementation. They preferred to spend time and focus on their responsibilities.The only way to deal with some manager has been to replace all those who didn’t accept the new ERP. Difficulties in involvin’ the departmental managers KEDA had to face a great number of codes, every department had his software modules idea and needs. The priority was given to ERP global functions and functionality. Difficulties in managing the necessary data it taked time for the staff and for the departments to fit with the changes. The production was slower the philosophy of western industries is different from the asian idea of processes. The ERP system wasn’t designed for the asian culture Structure & Competence - Top management provide overall project direction and make critical decisions
- Consulting support provided by Digital China, strategic & tactichal decisions
- PM assigned both from Keda & Digital China, strategic & tactichal decisions
- Deparmental Representatives oversee the business process redesign and system design aspects
-IT departmnent technical support
to Each ERP system module was assigned an owner from the associated department, fully responsible for workflow and operational details. SCHEME NOT POPULAR, LOT OF RESISTANCE
DEPT. MANAGERS WOULD HAVE TIME TO WORK ON THEIR DEPT TASKS ONLY AFTER 5.00 PM
IF THEIR OFFICES CONTINUED TO FUNCTION NORMALLY, WOULD MEAN THAT THEY ARE NOT USEFUL FOR THEIR DEPARTMENT. Solutions
- modified operations and workflow in many deparments
- Adjusted organization structure to accomodate ERP system
- Studied as-is processes
- Designed to-be processes
- Devise a data model to support all the operations and workflow Team assembled underway the ERP implementation
Described inputs & outputs IT Specialist Responsability
Implemented the requirement ..& after all.. - Amount of Data
- Data Model
- Data preparation most difficult task spent lot of time taking stock & renumbering stoke codes data accuracy in the new system
- Balance --> critical issue
- Top management support for the entire implementation
- Director must be involved in the major events, milestones and decision making
- Lack of time --> staff training conducted in parallel with system testing --> users able to identify potential malfuncitons and gaps while users picket up important skills in using the system Issues Major change implies major disagreements
between Balance, a critical issue Different module owners Different module owners & consultants Required consultants’ recommendations almost always What were the critical success factors for this ERP project? Fan Zhu’s involument and attention toward the implementations has been the most important factor of the ERP’s implementation success. His committment helped most of the managers in accepting the project and work for that.
Linked to that, another critical success factor has been the partecipation of most of the employees and the consensus reached by the project.
The IT department work helped the implementation project and made it possible. created by
Andrea De Pascale
Stefano Sacchi Grazie per l'attenzione