SUBMITTED BY

NAME : MAHFUJUR
RAHMAN SUSAN
ID : 2021010004119
SECTION : 2

sunny sakib

OPERATION MANAGEMENT
DATE: 01/10/2021
As the study suggests, SAP would be the best recommended ERP system for Rolls Royce as
SAP has been devoted to provide products that would improve the return and management of
information collected by the organization.

Advantage
 SAP is an integrated computer system that can manage and sustain the entire business
management tasks of an organization. In Rolls Royce, SAP r/3 would be able to handle
business process such as
 Invoice payment,  Production resource management and  Financial account control.
 it is known for its configurable flexibility. The system allows intelligent and quick response
to demand and supply of dynamics across global supply network to serve the purpose of
outstanding performance-based services
 Integration can be the highest benefit of them all. The only real project aims for
implementing ERP is reducing data redundancy and redundant data entry. If this is set as a
goal, to automate inventory posting to G/L, then it might be a successful project. 
 It reduces cost only if rolls Royce company took accounting and reporting seriously even
before implementation and had put a lot of manual effort in it. If they didn’t care about it, if
they just did some simple accounting to fill mandatory statements and if internal reporting
did not exist of has not been financially-oriented, then no cost is reduced.
 No People are accurate, not software. What ERP does is makes the lives of inaccurate people
or organization a complete hell and maybe forces them to be accurate (which means hiring
more people or distributing work better), or it falls.
 After successful implementation, the management evaluated SAP and measures their
performance by finding the following improvements in their business processes.

-Increases customer satisfaction due to the higher availability of products

 Accurate & timely information leads to reduced reconciliations and better management of
the billing process leading to quicker payment and a reduction in accounts receivable (DSO),
number of disputes per order.
 Reduction in sales order processing costs.
 Reduced time to calculate selling price.
 Increased Cash Flow (one-time event).
 Savings result due to access to real-time transaction information by all authorized users
(visibility)
 Reduced distribution costs.
 Reduced order-to-delivery time.
 Reduced delivery-to-invoice time
Disadvantages

 Expensive This entails software, hardware, implementation, consultants, training, etc. Or

they can hire a programmer or two as an employee and only buy business consulting from an
outside source, do all customization and end-user training inside. That can be cost-effective.
 Not very flexible It depends. SAP can be configured too almost anything. In Navision one
can develop almost anything in days. Other software may not be flexible.
 Demands Highly Trained Staff
 Lengthy Implementation Time
 Inter-modules function least understood by business, but high on list of reasons to buy
 Creates internal conflict in organizations
 SAP rolls out new versions every 6 months
 Quite Complicated to Use
SAP systems tend to have complexities that make them quite complicated when used by
beginners.