erp case rolls royce

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ERP CASE : ROLLS ROYCE

SUBMITTED BY-

ANUJ GUPTA (PGDISEM

05)


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INTRODUCTION

Enterprise resource planning (ERP) systems integrate internal and externalmanagement information across an entire organization. embracingfinance/accounting, manufacturing, sales and service, custom relationshipmanagement etc.

ERP systems automate this activity with an integrated software application.

Their purpose is to facilitate the flow of information between all business functionsinside the boundaries of the organization and manage the connections to outsidestakeholders.

Electronic data interchange (EDI) and WWW facility: the attainment of integratedsupply chain, flexibility and responsiveness

ERP system as a packaged software has the advantages of reduced cost, rapidimplementation, and high system quality

Customisation is a crucial, lengthy, and costly aspect in the successfulimplementation of ERP system

ERP systems have the following characteristics:

1) An integrated system that operates in real time (or next to real time), withoutrelying on periodic updates.


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Contd..

ERP systems do contain certain modules that were

not originally used within MRPII such as computer

aided design (CAD), distribution resource planning

(DRP), tool management systems (TMS), andproduct data management (PDM)

ERP systems offer companies the following threemajor benefits:

1) Business process automation.

2) Timely access to management information.


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Examples

While companies such as Cisco Systems, EastmanKodak, and Textronix have reaped the expectedbenefits of ERP systems, many businesses arediscovering that their ERP implementation is anightmare.

FoxMeyer Drug, a $5 billion pharmaceuticalcompany, recently filed for bankruptcy. DellComputers spent tens of millions of dollars on anERP system only to scrap it because the systemwas too rigid for their expanding global operations

ERP software is very adaptable but not verymalleable


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QUESTIONS

1. What is the organization background andoverall problem(s) in this case?

1. What are the factors affecting theproblem(s) related to this case?

1. What role do different players (decision-makers) play in the overall planning,implementation and management of theinformation technology applications?


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Rolls-Royce Plc

Founded in 1906, byCharles Rolls and HenryRoyce

worlds second-largestmaker of aircraftengines

major businesses

Marine propulsion

Energy sectors

Defense contractor


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IT Perspective

Rolls Royce currently uses a number of systems,approximately more than 1500 systems

The company used a system known as CPA for

monitoring financial transactions which includedpipeline inventory, inter-site transport

Rolls Royce used a CAD system that supported inthe process of altering the file formats

MERLIN (Mechanized Evaluation of Resources,Logistics and Inventory ): a system designed tomanage scheduling

Corporate Cost Accounting (CCA)


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The Problem

Too many individual systems that have troubleinterfacing with each other because each of themhad different file formats

There was no legacy system Data redundancy and data accuracy was a major

area of concern

Out dated systems often had problems incompatibility to the new manufacturingenvironment

The company had problems establishing directonline communication with customers andpartners due to multiple systems


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The roles played by various players in the ITimplementation process is not only highly complexbut also varied

Customer relationship management.

Pre-implementation attitudes and organisationalreadiness for implementing an ERP system

Forming partnerships and selecting IT systemsprovider

Training people to accept change, and gettingthem to do business in a totally new way.


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Lessons Learnt

3 phase of pilot project launched

Team Coordination

Proper Management Team

Utilizing Existing System Plant Maintenance

Risk Register Maintained

Identifying Opportunity


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THANKYOU !!

erp case rolls royce

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