sap-erp implementation report 2014

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ERP Implementation Methodology 2014 Beltexco Ltd(Subsidiary of MIDAS Safety) Company: Beltexco Ltd(Subsidiary of MIDAS Safety) Submitted to: Sir Faisal Masood Course: ERP Implementation Methodologies Group Members: Shiza Kokab Iqbal Iqra Saleem Ahsan Ilyas

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Page 1: SAP-ERP implementation Report 2014

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Company: Beltexco Ltd(Subsidiary of MIDAS Safety) Submitted to: Sir Faisal Masood

Course: ERP Implementation Methodologies Group Members:

Shiza Kokab Iqbal

Iqra Saleem

Ahsan Ilyas

Page 2: SAP-ERP implementation Report 2014

ACKNOWLEDGEMENT

First and foremost, I Thank the Almighty God for sustaining the

enthusiasm with which I plunged into this endeavor.

I avail this Opportunity to express my profound sense of sincere and deep

gratitude to many people who are responsible for the knowledge and

experience I have gained during the Project Work.

We are heartily thankful to our ERP Implementation teacher, Sir Faisal Masood whose encouragement, guidance and support from Initial to the final level enabled us to develop this Report of ERP Implementation. With

his dedicated lectures we were able to practically Understand and apply what we have learned in the classes.

Also it’s a pleasure to mention the name of our very cooperative contact person Mr. Amir Ali who did his best to make us understand this project efficiently as he is MRP controller in Beltexco Ltd(the company on which

we researched)

Page 3: SAP-ERP implementation Report 2014

Letter Of Transmittal

Respected Sir Faisal Masood:

This is the report which you commissioned on 20 November, 2014 on the

topic “Research about the implementation of SAP-ERP in the company

Beltexco Ltd”. This report includes the information of “ERP

implementation phases & their deliverables”. The company implemented 9

modules of SAP-ERP & now after implementation of extended ERP

solutions like BI (Business Intelligence) and SAP-ARIBA (ERP acquired by

SAP) it is in “Evolution Phase”. I have also discussed the details in the

report.

I hope you will find this report satisfactory.

Yours sincerely

Shiza Kokab Iqbal(Head of the group)

Page 4: SAP-ERP implementation Report 2014

EXECUTIVE SUMMARY:

This report is about the practical observation of ERP-implementation

in industry so we chose “Beltexco Ltd” as a company to explore the facts

about the ERP implementation life cycle.

Beltexco Ltd is the subsidiary of MIDAS Safety which is the top most

safety glove manufacturers & ISO 9001: 2000 certified. MIDAS Safety

is located in Canada.

SAP-ERP ECC 6.0 is implemented in this company & 9 modules of SAP-

ERP they implemented. Also they implemented extended ERP solutions

like BI & SAP-Ariba which shows that they are in “Evolution Phase”.

Almost 90% we found that they implemented SAP-ERP solution just as

theoretical concepts but somewhere they differed which was according

to the company needs & must be followed for the company sake.

So this implementation was Pakistan’s largest SAP-ERP

implementation in terms of expense according to this company. The

management was so powerful that to do “Organization Change

Management” was not critical indeed & it had been successful.

According to us, there some answers in the questionnaire were not

seem to be appropriate but all other facts were strongly handled that

reduced the chance to harm the project.

Page 5: SAP-ERP implementation Report 2014

Table of Contents RESEARCH OBJECTIVE:........................................................................................................................ 6

Our Methodology: .......................................................................................................................... 6

Interview with contact person: ........................................................................................................... 7

Introduction....................................................................................................................................... 7

Analysis:......................................................................................................................................... 7

ERP LIFE CYCLE PHASES: .................................................................................................... 7

Adoption ................................................................................................................................... 7

Recommendation................................................................................................................. 8

Acquisition................................................................................................................................ 8

Recommendation................................................................................................................. 8

Implementation .......................................................................................................................... 9

Recommendation............................................................................................................... 12

Use & Maintenance .................................................................................................................. 12

Recommendation............................................................................................................... 12

Evolution .................................................................................................................................. 12

Recommendation............................................................................................................... 13

Conclusion ................................................................................................................................ 13

Page 6: SAP-ERP implementation Report 2014

RESEARCH OBJECTIVE:

1. To study and explore ERP life cycle of an organization. That includes all the

phases:

Adoption

Acquisition

Implementation

Use and Maintenance

Evolution

Retirement

2. Observe the gaps (if any) which found in needs of the organization and the

available ERP systems.

Our Methodology:

We first understood what are the phases of ERP implementation & what are the deliverables in every phase then we prepared questionnaire according to our research needs & then sent to the contact person for the answers.

The contact person is a key employee in the company “Beltexco Ltd” on which we researched.

ERP Life

Cycle

Framework

Page 7: SAP-ERP implementation Report 2014

Interview with contact person:

The Contact person “Mr.Amir Ali(MRP controller)” is in the circle of father of the

group member “Ms. Shiza Kokab Iqbal” so it is not difficult for her to gain knowledge

about the company.she sent questionnaire on October 31,2014 and received answers

on November 10 ,2014.

Introduction:

For more than 30 years, Midas Safety has been protecting the Working Hands of the

World. Our total focus is on hand protection and Midas Safety range of products is one

of the most diverse in the industry.

All production facilities are ISO 9001: 2000 Certified and all products are fully tested

against all applicable standards. Midas Safety is vertically integrated to control our use

of natural resources like cotton and natural rubber and our state-of-art Spinning Mill

provides yarns to our knitting facilities.

Beltexco Ltd is a subsidiary of Midas Safety involved in Manufacturing/Processing of

Synthetic & Natural Rubber Gloves.

MIDAS Safety is the Top most Safety Gloves Manufacturer in the world & SAP-ERP ECC

(Enterprise Central Component) 6.0 is implemented in the company. It was Pakistan‘s

largest implementation of SAP ERP in terms of expense.

They mostly focus on exporting their safety gloves across the globe especially in Europe.

Analysis:

ERP LIFE CYCLE PHASES:

Adoption phase:

(Description: In this phase, company analyze, “Are we ready for ERP

Implementation”)

Q1.What is your ERP vision statement?

Ans.

Pre Implementation:

To have a centralized enterprise system which will integrate all the business functions together so that the top management can be benefited with the real time reporting in all the areas without any interdependencies.

Page 8: SAP-ERP implementation Report 2014

Post Implementation:

To have a centralized & a group wide common processes & centralized reporting for the analytics which will help in long term strategic goals.

Recommendations:

No recommendations.

Q2. Rank the following ERP goals and objectives related to your organization? (1 being

the highest rank)

1. Business growth

2. Cost leadership

3. Customer service/ satisfaction

4. KPI monitoring (Key Performance Indicator)

5. Paperless environment/ automation

Recommendations:

No recommendations.

Q3. Please rank the following factors to check ERP readiness assessment:

(1 being the highest rank)

1. Well-defined business processes

2. IT infra-Structure

3. Organizational culture

4. Affordability/Commercial

5. Employees skill sets

Recommendations:

No recommendations.

Q4. How much time is taken for decision to implement ERP?

Ans. 6 to 12 months

Recommendations:

No recommendations.

ACQUISITION PHASE:

(Description: In this phase, “companies select their ERP and consultant”)

Q1. System requirement specifications (SRS) document the desired functionality

requirements of an ERP from all the concerned departments. Did you prepare a formal

SRS or not?

Page 9: SAP-ERP implementation Report 2014

Ans. Yes we prepared the documentation (AS-IS).

Recommendations:

AS-IS document is may be advanced because of the company quality but AS-IS

document is not the substitute of the SRS document. It will be better for them to make

proper SRS document.

Q2. How many ERP products you evaluated? (Please give the list)

Ans. Oracle, SAP, Siebel

Recommendations:

No recommendations.

Q3. Please rank the following ERP product evaluation criteria?

(1 being the highest rank and others will rank according to the priority)

1. Flexibility Scalability

2. Functionality

3. Cost Support and maintenance

4. ERP used by your competitors

5. Availability of Skill set in the market

Recommendations:

No recommendations.

Q4. Did you take demos from ERP vendors? If yes, then from how many vendors? Please

give the list.

Ans. IBM, Siemens, Abacus, Siddat Haider

Recommendations:

No recommendations.

Q5. What solution did you choose generic or vertical ERP (industry specific)? Why?

Ans. Generic ERP to enjoy the wider options of functionality.

Recommendations:

No recommendations.

Q6. Which consultant company did you choose? Why and what is the main reason?

Ans. IBM because they have a proven track record of successful implementation.

Page 10: SAP-ERP implementation Report 2014

Recommendations:

No recommendations.

IMPLEMENTATION PHASE:

(Description: In this phase, “Configuration of ERP and its implementation”)

Q1: What was your implementation strategy? Is it big bang/Phased and why?

Ans. Phased because:

the implementation was between different sister concern of the same company

having interdependencies from manufacturing point of view

To reduce the failure risk

Recommendations:

No recommendations.

Q2. How you select power users from your employees?

Ans. People who were having the sound knowledge of business processes were selected

as a power user.

Recommendations:

No recommendations.

Q3. Did you prepare the AS-IS processes during implementation or before?

Ans. Before implementation in a project preparation phase.

Recommendations:

No recommendations.

Q4. To what level you adopt standard ERP functionalities? (Please mention

percentages)(Modifications in ERP according to these departments)

Finance (_95%_)

Procurement (_95%_)

Production (_90%_)

Sales & distribution (_95%_)

HRM (_70%_)

Recommendations:

No recommendations.

Q5. Did you hire OCM team/experts during implementation OR assign your existing

employees in the OCM team from the HR department?

Page 11: SAP-ERP implementation Report 2014

Ans.No, we did not hire any OCM consultant during the implementation. Each

module’s internal consultants were also acting as an OCM consultant.

Recommendations:

If there may be an OCM team from outside also, it will be more better because internal

consultants (Power Users) are in the company so their point might be ignored by their

colleagues.

Q6.How much time did you take to get the sign off on the business blueprint

documents?

Ans.12 Months (this is the duration from AS-IS document till the designing of

TO-BE document)

Recommendations:

No recommendations.

Q7. Did you use a separate system (Quality Assurance) to perform system testing? How

many systems use? (Development, Quality Assurance, Production)

Ans. Yes, we used 3 systems(Dev, Quality, PRD)

Recommendations:

No recommendations.

Q8. What is the number of end-users in your organizations?

Ans. More than 500 Users

Recommendations:

No recommendations.

Q9. How many consultants implemented your ERP?

Ans.8 Consultants (IBM), 6 Consultants (Internal)

Recommendations:

No recommendations.

Q10. How much time taken in ERP implementing period? Did it exceed the project

timelines?

Ans.24 Months

Recommendations:

No recommendations.

Q11. Who were the members in the steering committee? (Mention the designations)

Page 12: SAP-ERP implementation Report 2014

Ans. CEO, Senior Managers, Managers.

Recommendations:

In steering committee, there should be a person “Next to CEO” not CEO himself/herself.

Q12. In which companies& locations, ERP was implemented?

Ans. Beltexco (KHI) and MIDAS (CA)

Recommendations:

No recommendations.

Q13. How long you run your legacy applications in parallel after ERP implementations?

Ans. 6 Months

Recommendations:

No recommendations.

Q14. During system testing, how much difficulties you faced?

Ans. High level of difficulties

Recommendations:

No recommendations.

Q15. In Go live check list of ERP implementation, which components were present?

Master data uploaded

Balances uploaded

Stocks uploaded

Orders uploaded

Recommendations:

No recommendations.

USE & MAINTENANCE PHASE:

(Description: In this phase, “How companies support, maintenance and upgrade of

ERP”)

Q1. How much time your organization take the mandatory support?

Ans. 12 Months

Recommendations:

No recommendations.

Q2. What was maintenance support, is it outsource or internal?

Page 13: SAP-ERP implementation Report 2014

Ans. Both

Recommendations:

No recommendations.

Q3. Have you done or planning any upgrades in ERP? Is upgrading your decision or

imposed by the ERP vendor? (Vender may stop the support for the implemented

version after some time)

Ans. Yes & because of Internal decision

Recommendations:

No recommendations.

Q4. How much ERP satisfied your expectations? [Mention percentage]

Ans. 85%

Recommendations:

No recommendations.

EVOLUTION:

Q.1. Have you done any extended ERP solution after core ERP [For example Business

Intelligence, Customer Relationship management, Supplier Relationship management]

Ans. Yes we implemented SAP Ariba, BI, BO, BOBJ, CRM and IBM Production

Planning Tool.

Recommendations:

No recommendations.

Conclusion:

This experience was so good. Great learning we have, by doing this project. MIDAS

Safety is a big name & we researched on its subsidiary “Beltecxco Ltd” by the answers of

the questions, we determined that the management was so strong. They made their

decisions regarding implementation of ERP by themselves, not imposed by ERP

vendors, which was very good. They didn’t make SRS document in the “Acquisition

phase”. This would have impacted badly on the implementation but they tackled this

project very strongly so that this ignorance was not be so harmful for the ERP

implementation which is very appreciable. Now the company is in “Evolution Phase”.