sap-erp implementation report 2014
TRANSCRIPT
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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
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)
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)
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.
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
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
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.
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?
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.
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?
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)
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?
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”.