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PAK ELEKTRON LIMITED
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PAK ELEKTRON LIMITED:
CONVERTING SYSTEMS TO ERP
PROBLEMS & CAUSES (CONTD.)
SHORT TERM PROBLEM 2: CASH FLOW CRISIS
CAUSES:
1. The estimated implementation period had extended beyond the proposed two years
2. Poor budget forecasting and planning
3. Unable to pay their long term loan and therefore increasing their interest payments and lowering their cash available for operations
Alternatives
EXECUTIVE SUMMARY (CONTD.)
EXECUTIVE SUMMARY
1) Improve effectiveness of enterprise resource planning
- Alternative 1: Hire an alternate employee who can fill the CIO`s position
- Alternative 2: Improve effectiveness of enterprise resource planning
- Alternative 3: Improving the training facility
- Recommendation: Alternative 3
- Improve poor project management by improving training facility
Decision Criteria
- PEL is a manufacturer of consumer appliances for energy companies in Pakistan
- Recommendations to PEL`s ERP manager Iftikhar Ahmed
- Short term problem 1: Poor project management
- Short term problem 2: Cash flow crisis
- Long term problem: Lack of experienced staff
Alternatives
PROBLEMS & CAUSES (CONTD.)
- Costs Associated with implenting the information technology 40%
- Time associated with implementing Oracle 25%
- Positive impact on improvements of information accuracy 20%
- Risk associated with implementing the updated ERP software 15%
GROUP 8
3) Improving the training facility
``Those with the skill set commanded a higher salary than that of existing staff. Thus, change in salary structures and skill set requirements also caused some of the old staff to leave.``
LONG TERM PROBLEM : LACK OF EXPERIENCED STAFF
CAUSES:
1. Cash flow problems within the organization
2. The increase in demand by local software houses for developers
The change in skill set requirements
ANEEQA FARID
SAIRA MAHMOOD
KANIZ SHAIKH
THANK YOU
PROBLEMS & CAUSES
Questions
SHORT TERM PROBLEM 1: POOR PROJECT MANAGEMENT
CAUSES:
1. The resignation of Atif Ameen
2. CIO`s prolonged absence
3. Lack of visual Pro expertise
Solution
Alternatives
ALTERNATIVE 3:
Improving the training facility