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    Keda's SAP Implementation

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    mathangi
    This document summarizes Keda's implementation of an SAP ERP system. Keda is a leading building materials company in China that previously had siloed business functions and a decentralized decision-making structure. It implemented SAP to integrate operations, improve information flow, manage multi-plant inventory more effectively, and optimize resource utilization. The implementation involved assembling a project team, choosing SAP as the vendor, and doing a "big bang" go-live during low season. While initial problems occurred, production increased significantly after go-live. The summary concludes that Keda now needs to fully leverage the ERP system to further improve productivity, decision-making, and customer service.

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    Keda's SAP Implementation

    Uploaded by

    mathangi
    211 views7 pages
    This document summarizes Keda's implementation of an SAP ERP system. Keda is a leading building materials company in China that previously had siloed business functions and a decentralized decision-making structure. It implemented SAP to integrate operations, improve information flow, manage multi-plant inventory more effectively, and optimize resource utilization. The implementation involved assembling a project team, choosing SAP as the vendor, and doing a "big bang" go-live during low season. While initial problems occurred, production increased significantly after go-live. The summary concludes that Keda now needs to fully leverage the ERP system to further improve productivity, decision-making, and customer service.

    Original Description:

    IT case implementation of SAP

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    This document summarizes Keda's implementation of an SAP ERP system. Keda is a leading building materials company in China that previously had siloed business functions and a decentralized decision-making structure. It implemented SAP to integrate operations, improve information flow, manage multi-plant inventory more effectively, and optimize resource utilization. The implementation involved assembling a project team, choosing SAP as the vendor, and doing a "big bang" go-live during low season. While initial problems occurred, production increased significantly after go-live. The summary concludes that Keda now needs to fully leverage the ERP system to further improve productivity, decision-making, and customer service.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    211 views7 pages

    Keda's SAP Implementation

    Uploaded by

    mathangi
    This document summarizes Keda's implementation of an SAP ERP system. Keda is a leading building materials company in China that previously had siloed business functions and a decentralized decision-making structure. It implemented SAP to integrate operations, improve information flow, manage multi-plant inventory more effectively, and optimize resource utilization. The implementation involved assembling a project team, choosing SAP as the vendor, and doing a "big bang" go-live during low season. While initial problems occurred, production increased significantly after go-live. The summary concludes that Keda now needs to fully leverage the ERP system to further improve productivity, decision-making, and customer service.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7
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    Keda started as a small ceramics machinery manufacturer and grew to become a leading building materials company. However, its decentralized structure and siloed business functions led to inefficiencies. It adopted an ERP system to integrate processes, improve information flow and decision making, and help it better manage inventory and pricing with its low volume, customized products.

    Keda lacked information flow between departments, had duplicative tasks, faced growing competition and pressure to computerize from the government. Its existing MRP system could not support multi-plant operations and was no longer supported by the vendor.

    Keda halted other IT projects, identified problems, chose SAP as the ERP vendor, assembled an implementation team with module owners, conducted training and planning in parallel, and did a big bang go-live during low season.

    ESITS Assignment

    Kedas SAP Implementation


    Group No. 5, Section B
    Henielene
    V Mathangi 2015PGP413
    Prabha
    Simmy
    Sowmya
    Vartika

    Company Overview (Case Facts)

    Keda began as small manufacturer of ceramics machinery

    Currently a leading company in the building materials industry

    Sales orders were characterized by significant customization, low volumes and high margins

    Key business functions included R&D, inventory management, production, logistics etc. which
    functioned autonomously

    Silo based model of decentralized decision making and free wheeling entrepreneurial culture

    Reasons behind adoption of ERP

    Lack of information flow prevented managers from making well informed decisions

    Disconnected business units often lead to duplication of identical processing tasks resulting in
    redundancy and increased costs

    Growing Competition in the market meant Keda had to keep innovating

    Pressure from Chinese government agencies to promote computerization

    Low volumes & high customization of products made inventory management difficult

    Pricing of the product was unclear

    Resources were not optimally utilized which lead to production delays

    Current MRP-II system could not support Kedas multi-plant operations

    Moreover, MRP-IIs vendor had ceased maintenance support for the system

    Roadmap of ERP adoption


    Beginning

    Vice General Manager halted all other IT projects


    Focused efforts on comprehensive five year computerization plan

    Identification of problems, collection of data from various levels of management, prioritization of objectives
    Integrated organization structure was the primary objective
    Identification
    Preparation of IT blueprint to develop a centralized, shared platform beginning with ERP
    & Planning

    Due to lack of time and IT expertise, decision to get a external ERP vendor
    Selected SAP after careful process of screening and evaluating different vendors
    Choosing ERP
    SAP supported multi-plant operations & was also implemented by their competitor
    Vendor

    Main Roles: Key Users, Consultants & IT officers; Top Dogs from various departments were involved,
    Each ERP module was assigned an owner & Project team was to work as an integral unit
    Assembling
    A system of reward & punishment was also put into practice
    the Team

    Implementation of SAP
    Problems
    Adjustments required in the
    Organizational Structure
    Sheer Amount of data & the Data Model
    Major disagreements between module
    owners & Consultants
    Modification and Streamlining of
    operations & workflow

    Going Live
    Big Bang implementation in the low season
    (August, September, October)
    Initial productions delays were as
    expected
    Replaced managers who tried to bypass
    the system
    Chinese culture of workers following
    higher authorities

    Solutions
    Top management support
    Key users were asked to write down the
    specification
    Consultants recommendations were
    adopted
    System training and System Planning
    conducted in parallel

    Results after Going Live


    Production increased to 30 presses per month
    from 6 presses per month
    Pricing of the products were easily done
    Data Accuracy for production planning &
    inventory management improved from 85% to
    98%
    Improved decision quality
    Better product delivery time, Faster monthly

    Current Problems & Future


    Recommendations

    Currently company needs to further improve productivity & decision making

    After successful implementation of ERP it needs to move on to the stage of ERP exploitation

    It needs to fully utilize all the modules offered by the system to make maximum gain out of it

    Capitalize on the centralized data & processes to integrate different functions in order to
    provide better customer services

    Thank You..!

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