ESITS Assignment

Kedas SAP Implementation

Group No. 5, Section B
Henielene
V Mathangi 2015PGP413
Prabha
Simmy
Sowmya
Vartika

Company Overview (Case Facts)

Keda began as small manufacturer of ceramics machinery

Currently a leading company in the building materials industry

Sales orders were characterized by significant customization, low volumes and high margins

Key business functions included R&D, inventory management, production, logistics etc. which
functioned autonomously

Silo based model of decentralized decision making and free wheeling entrepreneurial culture

Reasons behind adoption of ERP

Lack of information flow prevented managers from making well informed decisions

Disconnected business units often lead to duplication of identical processing tasks resulting in
redundancy and increased costs

Growing Competition in the market meant Keda had to keep innovating

Pressure from Chinese government agencies to promote computerization

Low volumes & high customization of products made inventory management difficult

Pricing of the product was unclear

Resources were not optimally utilized which lead to production delays

Current MRP-II system could not support Kedas multi-plant operations

Moreover, MRP-IIs vendor had ceased maintenance support for the system

Roadmap of ERP adoption

Beginning

Vice General Manager halted all other IT projects

Focused efforts on comprehensive five year computerization plan

Identification of problems, collection of data from various levels of management, prioritization of objectives
Integrated organization structure was the primary objective
Identification
Preparation of IT blueprint to develop a centralized, shared platform beginning with ERP
& Planning

Due to lack of time and IT expertise, decision to get a external ERP vendor
Selected SAP after careful process of screening and evaluating different vendors
Choosing ERP
SAP supported multi-plant operations & was also implemented by their competitor
Vendor

Main Roles: Key Users, Consultants & IT officers; Top Dogs from various departments were involved,
Each ERP module was assigned an owner & Project team was to work as an integral unit
Assembling
A system of reward & punishment was also put into practice
the Team

Implementation of SAP
Problems
Adjustments required in the
Organizational Structure
Sheer Amount of data & the Data Model
Major disagreements between module
owners & Consultants
Modification and Streamlining of
operations & workflow

Going Live
Big Bang implementation in the low season
(August, September, October)
Initial productions delays were as
expected
Replaced managers who tried to bypass
the system
Chinese culture of workers following
higher authorities

Solutions
Top management support
Key users were asked to write down the
specification
Consultants recommendations were
adopted
System training and System Planning
conducted in parallel

Results after Going Live

Production increased to 30 presses per month
from 6 presses per month
Pricing of the products were easily done
Data Accuracy for production planning &
inventory management improved from 85% to
98%
Improved decision quality
Better product delivery time, Faster monthly

Current Problems & Future

Recommendations

Currently company needs to further improve productivity & decision making

After successful implementation of ERP it needs to move on to the stage of ERP exploitation

It needs to fully utilize all the modules offered by the system to make maximum gain out of it

Capitalize on the centralized data & processes to integrate different functions in order to
provide better customer services

Thank You..!