ERP CASE : ROLLS ROYCE

SUBMITTED BYANUJ GUPTA (PGDISEM 05)

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INTRODUCTION

Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization. embracing finance/accounting, manufacturing, sales and service, custom relationship management etc. ERP systems automate this activity with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Electronic data interchange (EDI) and WWW facility: the attainment of integrated supply chain, flexibility and responsiveness ERP system as a packaged software has the advantages of reduced cost, rapid implementation, and high system quality Customisation is a crucial, lengthy, and costly aspect in the successful implementation of ERP system ERP systems have the following characteristics: An integrated system that operates in real time (or next to real time), without

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Contd..

ERP systems do contain certain modules that were not originally used within MRPII such as computer aided design (CAD), distribution resource planning (DRP), tool management systems (TMS), and product data management (PDM)

ERP systems offer companies the following three major benefits: Business process automation. Timely access to management information.

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Examples

While companies such as Cisco Systems, Eastman Kodak, and Textronix have reaped the expected benefits of ERP systems, many businesses are discovering that their ERP implementation is a nightmare. FoxMeyer Drug, a $5 billion pharmaceutical company, recently filed for bankruptcy. Dell Computers spent tens of millions of dollars on an ERP system only to scrap it because the system was too rigid for their expanding global operations ERP software is very adaptable but not very malleable

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QUESTIONS
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What is the organization background and overall problem(s) in this case? What are the factors affecting the problem(s) related to this case? What role do different players (decisionmakers) play in the overall planning, implementation and management of the information technology applications?

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Rolls-Royce Plc

Founded in 1906, by Charles Rolls and Henry Royce worlds second-largest maker of aircraft engines major businesses

Marine propulsion Energy sectors Defense contractor

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IT Perspective

Rolls Royce currently uses a number of systems, approximately more than 1500 systems The company used a system known as CPA for monitoring financial transactions which included pipeline inventory, inter-site transport Rolls Royce used a CAD system that supported in the process of altering the file formats MERLIN (Mechanized Evaluation of Resources, Logistics and Inventory ): a system designed to manage scheduling Corporate Cost Accounting (CCA)

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The Problem

Too many individual systems that have trouble interfacing with each other because each of them had different file formats There was no legacy system Data redundancy and data accuracy was a major area of concern Out dated systems often had problems in compatibility to the new manufacturing environment

The company had problems establishing direct online communication with customers and 4/26/12 partners due to multiple systems

The roles played by various players in the IT implementation process is not only highly complex but also varied Customer relationship management. Pre-implementation attitudes and organisational readiness for implementing an ERP system Forming partnerships and selecting IT systems provider

Training people to accept change, and getting 4/26/12 to do business in a totally new way. them

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Emerging Technologies Other Options

Executed in 2003 , advanced phase of ERP solution Vanilla Form followed for Reporting SAP R3 Vs Oracle E- Business Suite Other Competitors IBM Full Economy Model INFOSYS Highly Focused Sept 2005 : RR Deploys SSA Global Solutions For Improved Business Performance

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Lessons Learnt

3 phase of pilot project launched Team Coordination Proper Management Team Utilizing Existing System Plant Maintenance Risk Register Maintained Identifying Opportunity

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THANK YOU !!
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