Keda's ERP Implementation - Group 20

ERP:
KEDA'S SAP IMPLEMENTATION

Submitted by
Samrudhi Fatale 1901034
Garima Gupta 1901035
Sushmita Verma 1901050
Company Overview
 Began as a small manufacturer of ceramics machinery located in Shunde

 In less than a decade - China’s top 500 national machinery manufacturers, top 10 building materials
machinery enterprise in the world & by the early 2000s, become a world leader in building materials
machinery
 Product offering- spanning industrial machinery for ceramics, stone processing, building materials processing
and energy resource management
 Offers comprehensive plant design and technical consulting services to industrial clients
 Key business functions- t (R&D), purchase of raw materials and parts, inventory management, production
that comprised many assembly line and workshop processes, logistics, and sales and marketing
 Each of these areas functioned autonomously- non-standardized processes & problems were resolved in an
ad hoc manner but has given flexible culture which led to many innovations
 Innovation had been essential to the firm’s success in the market throughout
 Invested more than CNY45 million to set up a state-of-the-art ceramic engineering R&D testing center
 Established itself not only as a leader in market share and revenue but also as a product and management
innovator
Drivers for ERP
 Disconnected business units often duplicated identical processing tasks- resulting in redundancy and
heightened costs.
 Very little information flowed between departments- managers could not make timely, well-informed, holistic
business decisions & act strategically- therefore lacking in competing from local and foreign companies
 To retain its leadership position and continue growing, Keda needed to continue innovating in terms of
product development, business management and operations, and it needed to be more informed about
production, sales and, most importantly, customers
 Pressure from Chinese government agencies to innovate to catch up with foreign firms
 Poor inventory management- low volumes and high customization across an increasingly diverse product
line made it difficult to keep track of the many unique, individual parts
 Struggled to meet demand- due to production delays as resources and facilities were not being optimally
utilized, reusable materials and parts were often scrapped
 Need for expansion & diversifying produt portfolio
Computerization at Keda
 A comprehensive 5 yrs computerization plan with

short term & long term goal was developed KEDA'S COMPUTERIZATION PLAN
 Company's status quo analysis was done to
identify existing problems, business requirements
and develop shared objective across
departments
 One of the highlighted task was to integrate the
organization structure to break departmental
boundaries and streamline data flow
 IT blueprint was developed that included project
implementation for ERP, PDM, OA, MES, CRM &
SCM solutions
 The key element of the plan was to develop a
centralized shared platform on which all business
application would run
Choosing an ERP vendor
 A balance between risk and benefit was struck by

finalizing 20 vendors both local and global
 The vendors were invited to visit Keda, to introduce to
the company's need and to demonstrate how their
software packages could satisfy company's need
 Keda also visited vendors clients to verify if all the claims
made by vendors were true. It also helped Keda
understand the problems incurred in implementation
stage
 On basis of above activities, 9 vendors were shortlisted
and request for proposal(RFP) was made
 RFP described the exact problems of the company and
a standardized response form to allow easy comparison
 SAP emerged as winner, as it offered solution which
were sophisticated and feature rich
Assembling the Implementation Team
 There were three main roles: the key users, the consultant
and the IT officers
 In recruiting departmental representative, Zhu involve
representatives such as departmental
managers, essential operational staff, who possessed
comprehensive understanding of the department
 Each ERP module was assigned an owner from
associated department, responsible for workflow and
operational details of the module. They also provided
training to others in department
Implementing SAP
 Challenges:
1. Operations and workflow in many departments had to be modified & streamlined
2. Organisation's structure to be adjusted to accommodate ERP system
3. New Data model had to be devised to support all operations & workflow which was much time consuming
4. Disagreements over to changes- 1. between different module owners & 2. module owners and consultants
 Top management was continuously involved- Board chairman himself was present in several meetings &
Implementations that helped the implementation
 Staff training was conducted in parallel with system training that saved time & the users were able to identify
potential malfunctions & gaps
Going Live
Before ERP roll out (system deployment) was executed, production delays or suspensions was foreseen.
However, due to lack of alternative & Top management's agreement, it was implemented. Following
were the practical scenarios faced
 work became more tedious. For example, materials for production now had to be checked into and
out from the warehouse
 pressure on the Purchasing Department and its manager increased due to new design & new
production orders everyday
 Even after system rollout, some users were not completely satisfied with system operations and
interfaces
Future of ERP
Following were the benefits after ERP implementation-

 Information was much more transparent
 Data accuracy improved from 85% to 98% (estimated)
 Improved cost analysis
 Improved productivity and decision making
Future Scope of ERP at Keda were:
1. Enhance customer management by implementing ERP in:
 customer relationship management
 business intelligence
 supply chain management
2. optimize decision-making
3. coordinate vendors
THANK YOU

Keda's ERP Implementation - Group 20

Uploaded by

Copyright:

Available Formats

Keda's ERP Implementation - Group 20

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Keda's ERP Implementation - Group 20

Uploaded by

Copyright:

Available Formats

ERP:

KEDA'S SAP IMPLEMENTATION

 Began as a small manufacturer of ceramics machinery located in Shunde

 A comprehensive 5 yrs computerization plan with

 A balance between risk and benefit was struck by

Following were the benefits after ERP implementation-

You might also like