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ERP Project Implementation

ERP Project

Ceylon Biscuits Limited

J.D.U Indumini

MS19806150

Ceylon Biscuits Limited

CBL

Overview

  • Ceylon Biscuits Limited (CBL) is the one of the leading, largest and fastest growing conglomerates in Sri Lanka.

  • It is a market leading manufacturer and marketer of leading local, regional and global consumer brands in biscuits, confectionery, cereal, organic fruit products and other categories in Sri Lanka with a remarkable global export presence

History

History

The CBL was commenced its operations in July 1968 by supplying schools with high protein nutritional biscuits to replace the glass of milk and bun given to school children to supplement their mid-day meal.

Current Position

Current position

  • Ceylon Biscuits can offer diverse of products to the food market in Sri Lanka.

  • Many leading brands in biscuits, confectionery, cereal, organic fruit products and many other categories globally.

  • The company products are exported to over 33 international destinations under its own brand names as well as on buyer’s brand names.

Stakeholders

Subsidiary companies of CBL

Currently. the CBL has 8 subsidiaries operating in Sri Lanka and overseas namely;

• CBL Foods International (Pvt) Ltd.

• Ritzbury Lanka (Pvt) Ltd

• Rizbury India (Pvt) Ltd

• QSoft (Pvt) Ltd.

• Cecil Food (Pvt) Ltd

• Ceylon Biscuits India (Pvt) Ltd. - This factory is at Patiala; India

• Soy Foods (Lanka) Ltd.

Core Functions In CBL

Core Functions

  • Marketing & Sales
  • Supply Chain Management
  • Accounting & Finance
  • Human Resources

Marketing and Sales

Marketing and Sales

• Product line

• Determining the price of products

• Promoting products to customers

• Selling products

• Creating a sales forecast

Supply Chain Management

SCM

• Making the product(manufacturing/production)

• Buying raw materials (purchasing)

Accounting & Finance

• Recording raw data such as Numbers collected from sales, manufacturing and other operations, without any manipulation, calculation, or arrangement for presentation about transactions (including sales), raw material purchases, payroll, and receipt of cash from customers

Accounting & Finance

Human Resources

HR

• Recruit

• Train

• Evaluate

• Compensate employees

Requirement of having ERP in CBL

Requirement

  • Using various types of systems (separate systems)was a time-consuming process

  • To build effective communication and commitment and also effective and quality decision making

  • To gain higher ROI faster by reduce time and costs
  • To enable managers to access accurate data from any location, including foreign counties.

  • To improve quality of their products, increase sales volumes, improve profit margins, reduced product development time, reduced manpower for routine operations and improve market share in Sri Lanka and other countries

Benefits of ERP

Benefits of ERP

• Integration among different functional areas to ensure proper communication, productivity and efficiency.

  • Minimize costs by improving process and product standardization, efficiency and adaptability

  • Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced)

  • The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level

• Improving market share in Sri Lanka and other countries

Process Optimization

BPR

Optimizations of the process are,

• Specifically increase the flexibility of the company’s common

database regarding customer service

• All the transactions, or documents, are electronically linked

• Managing, sharing, controlling, and evaluating the data

required to manage a company’s human capital are simplified

• lead to more accurate product cost calculations

Gap Analysis

Gap Analysis

  • Simply this is the process through which companies create a complete model of where they are now, and in which direction they want to head in the future.

  • Requirement analysis and mapping of the requirement to the functionality available in the product took a considerable amount of time

  • A majority of the requirements were mapped to standard processes available in the product however any gaps between the requirement and the functionality available in the system were document to be forwarded for Business Process Re engineering

Re-engineering

BPR

  • involves human factors.

  • The users were made to understand and were able to be convinced such that their traditional approach to performing a task could be done in a different way.

  • Roles are identified and responsibilities are assigned by the project team

Proposed Method for ERP Implementation

ERP

Implementation

CBL is using SAP system as their ERP solution. When implementing their ERP solution, they have considered two options.

  • Choose the big bang strategy and implement all the modules in the company at once.

  • The phased wise implementation

Analysis

Porter’s Five Forces Model

• Threat of New Entrants - product differentiation

• Bargaining Power of Suppliers - different suppliers for its different geographic locations

•Bargaining Power of Buyers - innovation and differentiation

•Threat of Substitute Products or Services - market research

• Rivalry Among Existing Firms

ROI

Returns on Investment

  • CBL will address several conditions such as business needs, business service levels, and business process costs. .

  • Unmet needs would be addressed, business service levels would improve, and business costs would decline.

  • Begin to occur in the form of reduced business process costs.

Steps of Implementation

Implementation

Diagram

Diagram of illustrating the new ERP

Success

For Success Implementation

  • The involvement of senior management to the implementation of the ERP system

  • CBL ensure that the company have right resources

  • Doing pre-planning well

  • CBL match the objectives of the company with the objectives of the implementation

  • CBL ensure that the management of the project reflects the business

  • Update a document day by day including all the information of implementation of CBL.

Future Direction of ERP

Contact

Info

  • CBL is improving response time of SAP application by using linux platform
  • CBL will look for implementing enterprise scale BI solution with the intention of simple data visualization

  • CBL is having a goal to design and architect a cloud-based analytics platform that could serve as the base for future data and AI scenarios.

Conclusion

  • CBL hope to have aggressive plans to expand their business to other countries in the globe as easy as plug and play.

  • Successful ERP implementation will bring them a great advantage for their business process
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