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.
For example, materials for production now had to be checked in to and out from the warehouse, before taking it to the production plant. We did a rough assessment and we did foresee the possible problems immediately after cutover, such sapp delay or even suspension of production.
There was no way the IT department alone could do that. The senior executives had no choice but to replace him.
Keda also offered comprehensive plant design and technical consulting services to industrial clients. The vice general manager of Keda had a large backlog of other information technology projects, and implementatioh wanted to carefully evaluate the ERP project to determine what had gone right, what had gone wrong, and what Keda had achieved through simple luck.
He also made sure all members had a clear idea of implementagion roles and responsibilities in the project. Rather, needs were addressed as they emerged. Because departmental managers had to work longer hours to keep their department afloat, they would be compensated with bonuses. By the early s, Keda had surpassed impllementation of its competitors to become a world leader in building materials machinery, second only to SACMI of Italy www. When working out the plan, we focused on how much investment was needed and in what kinds of systems, what our objectives were, what hindrances ipmlementation company faced, why we needed computerization, and what problems we were targeting to solve.
After one month, he could not cope anymore and decided to bypass the ERP system. Fortunately, since end users were responsible, they had no excuses.
Problems surfaced immediately and quickly translated into production delays. A key element of the plan was to develop a centralized, unifying, shared platform on which all of the business applications would run see Exhibit 1. Others were doing it, so we decided to jump in as well. Recent years had seen China encouraging innovation in local enterprises, in an effort to catch up with foreign firms.
Zhang described another example: Zhu also took a proactive role in visiting existing clients of these vendors: Page 9 9B11E Work did not stop at cutover. Zhang explained the top management involvement: To Keda, ERP was a beginning, rather than an end. Kedawas utterly satisfied with the outcome of the SAP project. In particular, opposition to technological changes might be especially pronounced in the Chinese context due to feared loss of both status and discretion and the use of unrecognized performance metrics.
Click here to sign up. Now, inventory management was centralized so that resources could be shared and better managed. 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.
InKeda had introduced three of the 10 most innovative new machinery products in the world.
Zhang offered one example: At the same time, selected key users were responsible for preparing operating manuals for all users. We spent a lot of time taking stock and renumbering stock codes so as to ensure data accuracy in the new system.
Keda IT specialists would then implement the requirements.
As a jmplementation, Keda enjoyed improved market responsiveness, decreased stock holding costs, a significantly better product delivery time and faster monthly financial reconciliation.
When our ERP system first went online, some felt that work became more tedious. The critical issue was balance. Vendors presented their proposals over a three- day period.
KEDA’S SAP IMPLEMENTATION | Denil Patel –
According to the plan, the ERP implementation project was a priority. As Zhu put it: Inthe company set up a Chinese national enterprise post-doctoral workstation and invited post-doctoral scholars to work on research projects on such topics as supply chain management and human resource management. If senior managers would not even attend these meetings, then we knew their so-called support for the project would remain superficial and that project implementation would be difficult.
When a new person is promoted to a new position he will have no conflict of interest with the new system, and will therefore be willing to comply. Page 5 9B11E Enterprises need to be clear about their core businesses and competencies.
When top management demanded changes, they were accepted. Very little information flowed between departments; as a result, managers could not make timely, well-informed, holistic business decisions.
Page 3 9B11E Before ERP deployment, due to the mess in material management, the cost of a product was unclear and costing was based on experience. Page 10 9B11E Of course, forced compliance was not the only way Keda dealt with issues. Top management support was critical throughout the implementation.
On the other hand, if they were interested — and they should be given that this is a CNY10 million project! Zhang explained the reasoning for rolling out the new system in August: This responsibility was given to the key users, who were tasked with writing the specific requirements for the system by describing the inputs and outputs.
Each of imolementation projects would be completed in phases. Keda Industrial implementatkon symbol implemenattion Resistance mainly stemmed from the redistribution of power. Senior executives promptly replaced him.
My account New to us? 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.
Within months of going live, the ERP implementation effort was clearly a great success.
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