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EXECUTIVE SUMMARY
KEDA industrial Company Ltd. has surpassed many of its competitors to become a world leader in
building materials machinery. The key success factor of KEDA has been the level of innovation
being done in the organization (as shown in figure 1.1). To sustain the level of success achieved and
keep innovating the way they have been doing has made ERP necessary.
The case is an example of all the considerations taken while implementing the ERP system in an
organization. Transition to an ERP system is a cumbersome task and needs reshuffling and shaking
every process occurring in an organization. While the obvious benefits of an ERP is clearly seen,
there are hidden disadvantages as well.
KEDA managers had to take various strategic decisions at different phase of ERP implementation
which are mentioned below:
1.
2.
3.
4.
Are existing problems identified can be eliminated using the ERP system?
Whether to develop a customized ERP system in-house or to outsource it?
Who would be the vendor and what software will be used?
What would be the composition of the ERP formulation team? What role does each
department play? And who will act as a negotiator in case of conflicts?
5. What would be the type of implementation, Big-bang or phased?
6. What would be the break-even period for the ERP project? Is integration to other DSS
possible and feasible? Is core efficiency increasing?
7. Is the same ERP system being used by any other organization in the same industry?
BUSINESS
Set up a Chinese national enterprise postdoctoral workstation
OPERATIONS
IDENTIFY THE
PURPOSE OF ERP
IMPLEMENTATION
MAKE CHOICES
(VENDORS,
SOFTWARE,
VERSIONS)
PLAN THE
IMPLEMENTATION
TESTING AND
TRAINING
ASSEMBLE THE
IMPLEMENTATION
TEAM
MAKE FURTHER
INTEGRATION (with
CRM, SCM, BI, etc.)