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.

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Some reasoned that if they were required to work with the project team and had to be away from their offices for five months, and their departments continued to function normally, then they should probably all quit since that proved Authorized for use only by Tianyu Chen in ISYS at San Francisco State University from Sep 01, to Dec 21, 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.

Before ERP it was very difficult to trace price paid for materials purchased, but after ERP, price analysis could be done conveniently. Each vendor offering was rated according to strategic alignment goals. Through testing, users also picked up important skills in using the system.

KEDA SAP Implementation by Vishal Joshi on Prezi

Zhang justified the rationale behind these forced compliance actions: Reproduction of this material is not covered under authorization by any reproduction rights organization. The reality was that Keda was out of time. leda

For example, inventory management was previously decentralized and each workshop had its own inventory. After all, this would be a senior management decision, and if anyone really got punished this way, to serve at the Use outside these parameters is a copyright violation.

Data accuracy, including that for production planning and inventory management, was estimated to have improved from 85 per cent to 98 per cent. After one month, he could not cope anymore and decided to bypass the ERP system. The success was all the more remarkable given that an estimated 80 per cent of ERP implementation efforts in China failed.


This dramatic improvement in production capacity is attributed to the ERP information system.


Data was a main issue. To expedite the entire process, an aggressive big-bang approach was adopted. 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.

The vendors were invited to visit Keda, to be introduced to the needs of the company, to demonstrate how their software packages would satisfy those needs, to share their past experiences and to discuss other implementation issues see Exhibit 2 for some of the main selection criteria.

The selected key users then transferred their acquired knowledge and skills to other users. We had a key facility for production [and] someone timed its usage over a week using a stopwatch. We prefer renting or buying existing solutions for anything outside of our core business and competency.

By imposing standardized processes and procedures, the new system would provide improved management control and information quality e. Understandably, he was under tremendous pressure, faced with the dilemma of having to direct resources both to the immediate and emergent needs of the company, and to the development and execution of an overarching computerization plan. Zhang offered one example: We were shocked when we learned that it was only in production At that time, Dr.

Choosing a vendor, however, was not as easy a decision. The chairman of the board himself was present at five meetings, four of which dealt with the progress and status of the computerization project. He also made sure all members had a clear idea of their roles and responsibilities in the project.

Riamb, the vendor of the current MRP-II system, had ceased providing maintenance support, making urgent the need for a replacement system.


Implementation was relatively smooth and speedy. Satisfying the former needs would likely ensure smooth operation in the short term and hence ease the pressure Zhu would face from senior management. After visiting several enterprises, we observed something very interesting. Although successfully implementing a packaged solution was far from guaranteed, Zhu believed that customizing an existing system would be faster, cheaper and of higher quality than building one from scratch: At the same time, selected key users were responsible for preparing operating manuals for all users.

It would support complex operational processes across multiple production plants. In these referrals, vendors would likely put forth their most successful cases, and by comparing real production environments in the industry, we had a much better idea what suited us.

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SAP emerged as the implementaation. Such a goal cannot be attained by simply increasing labor hours. The arrangement was for the head of each module to work together with the IT department, with the marketing manager representing the marketing department, the purchasing manager representing purchase department, etc.

There was no strategic goal. Exhibit 3 illustrates the team composition and assignment of responsibilities. The implementation team was uncertain how open users would be toward the new system. Keda Industrial stock symbol Indeed, when the system went online, workflow and operations changed dramatically, and users in some departments were unsupportive of the ERP initiative. On a more tactical note, Zhu went to great lengths to ensure that the project team worked as an integral unit. Given the huge amount of data and the already heavy workload, imp,ementation rollout was not viable.

In the Chinese context, organizational culture is imposed.

The authors do not intend to illustrate either effective or ineffective handling of a managerial situation.