A comparative study of ERP implementation Trupti Dave Oriental College of Management, F-50/29, South T T Nagar, Bhopal.

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1 Trupti Dav/ Elixir Mgmt. Arts (0) - Availabl onlin at (Elixir Intrnational Journal) Managmnt Arts Elixir Mgmt. Arts (0) - A comparativ study of ERP implmntation Trupti Dav Orintal Collg of Managmnt, F-0/, South T T Nagar, Bhopal. ARTICLE INF O Articl history: Rcivd: Jun 0; Rcivd in rvisd form: 0 July 0; Accptd: 0 July 0; Kywords Entrpris Rsourc Planni (ERP), Information Systms, Crunchi numbrs. AB STRACT Th advnt of ERP Systms, markd a nw bginni in th Information Systms arna. It has brought about in rality th much sought aftr ida of providi comptitiv dg to organizations with th hlp of Information Systms. Though worldwid, svral companis hav xtndd thir ERP systms to covr th ntir supply chain, most of th Indian companis ar still laggi bhind. Th rsarch work carrid out, was a Study basd rsarch work whr a comparison and analysis of cass was carrid out in such organizations whr ERP has bn implmntd. Th basic objctiv of th study was to compar ERP implmntation projcts of tn succssful companis and find critical issus rlatd to various Pr-implmntation, Implmntation and Post implmntation phass. Th rol of Information Systms in ffctiv managmnt of organizations has bn sinc a lo tim. From mrly crunchi numbrs, to hlpi taki stratgic dcisions, Information Systms hav com a lo way today. Entrpris Rsourc Planni (ERP) systm, a trm coind by Gartnr Rsarch firm in th bginni of s, was on such IS application that markd th bginni of a nw ag of ntrpris wid computi. 0 Elixir All rights rsrvd. Introduction Th volution of ERP took plac slowly and gradually from th 0s. In th 0s, vry fw companis could afford to own a computr. Thrfor, both manufacturi and invntoris wr handld on th basis that companis must hold nough stocks to satisfy customr dmand, and that customrs would ordr what thy had ordrd in th past. In th 0s and 0s, whn computrs bcam small and affordabl, attntion was focusd on Matrial Rquirmnts Planni (MRP) and Mastr Production Schdul (MPS). MRP startd as a systm for planni raw matrial rquirmnts basd on th MPS. Soon it dvlopd into Manufacturi Rquirmnts Planni (MRP II), which usd th MRP systm as th basis and addd schduli and capacity planni activitis. In th arly s MRPII was furthr xtndd into Entrpris Rsourc Planni (ERP), incorporati all th MRPII functionality, in addition to Financ, Supply Chain, Human Rsourcs and Projct Managmnt functionality. What is ERP Entrpris Rsourc Planni (ERP) systm is a businss managmnt systm that compriss intgratd sts of comprhnsiv softwar, which can b usd, whn succssfully implmntd, to manag and intgrat all th businss functions within an organization. Bnfits of ERP Th bnfits of implmnti an ERP ar many fold. In gnral, systms hlp companis rplac old and fragmntd lgacy systms, intgrat data and applications, provid gratr accss to information, adopt bst practics in organizational procsss, link mploys, partnrs and customrs, improv on tim dlivry, rduc worki capital, lowr invntory lvl and lad to bttr rsourc managmnt. In th manufacturi sctor, ERP implmntation has rducd invntoris anywhr from to prcnt (Gupta, 000). Th Pitfalls of ERP Although ERP systms hav crtain advantags, thy hav som disadvantags also du to th tight intgration of application moduls and data, hug storag nds, ntworki rquirmnts and traini ovrhads. ERP projcts ar larg, costly and difficult and thy rquir larg invstmnt in capital and staff and managmnt tim. Implmntation of an ERP projct is painful, and customization is costly and timconsumi. Rsarch Objctivs Th major objctivs of th prsnt study wr to idntify th major issus involvd in th ERP implmntation phass and compar in around tn diffrnt organizations. Th study has bn carrid out with a viw to find answrs to th followi spcific qustions that had mrgd in this ara:-. What ar th major issus in ERP implmntation projct s Pr implmntation phas and compar agst th tn slctd companis.. What ar th major issus in ERP implmntation projct s Implmntation phas and compar agst th tn slctd companis.. What ar th major issus in ERP implmntation projct s Post Implmntation phas and compar agst tn slctd companis.. What ar th possibl ERP xtnsions and compar how companis ar implmnti xtnsions by analyzi th tn slctd companis. Rsarch dsign Th ffort of this study was ssntially a non-xprimntal Study rsarch. Slction of cas for study As pr th rsarch objctiv, th prsnt study involvs studyi ERP implmntation projct of any tn organizations. Tl: 0 addrsss: drtruptidav@yahoo.co.in 0 Elixir All rights rsrvd

2 Trupti Dav/ Elixir Mgmt. Arts (0) - Th critria on th basis of which th organizations wr slctd ar as follows:. Thos organizations which hav implmntd an ERP from SAP.. Thos organizations which hav had a succssful ERP implmntation.. Thos organizations which hav implmntd ERP at last - prior to this study (in ordr to analyz th bnfits of ERP implmntation and do othr post implmntation analysis), and,. Thos organizations which ar prsnt in and around Indor, Bhopal. Rsarch Tools Th Schdul of intrviw and th Qustionnair for intraction with th ERP projct Champions and/or IT hads of th slctd Organizations was prpard aftr an xtnsiv rviw of litratur on ERP and its rlatd issus. Th Qustionnair, though com to all, had spcific qustions for various issus rlatd to ERP implmntation. : Godrj Hrshy Foods & Bvrags Limitd (GHFBL) Th Hrshy Company, North Amrica s ladi chocolat and confctionry manufacturr, and Godrj Bvrags and Foods Ltd., on of India s largst confctionry and food company and an associat of Godrj Industris Limitd, cam togthr to manufactur and distribut confctionry, snacks and bvrags across India in April 00. This joint vntur was namd as Godrj Hrshy Foods and Bvrags Ltd. ERP at GHFBL Sinc - Godrj Foods and bvrags Ltd was usi MFG PRO at plant lvl and Had Offic. Aftr th JV with Hrshy, in 00, th nw born ntity Godrj Hrshy Foods and Bvrags Ltd, in a pursuit to samlssly intgrat across national boundaris, dcidd to rvamp th IS systm. Hrshy which opratd on SAP worldwid, dcidd to implmnt SAP in th company in ordr to provid uniformity worldwid. This was th main rason for abandoni MFG/PRO and implmnti SAP. Thr was also a nd to provid connctivity to C&F agnts and distributors, which was not prsnt arlir. In cas of GHFBL, both, th pr-valuation scrni and th packag valuation stags wr skippd bcaus th packag, that is, SAP was chosn dirctly, as it was alrady prsnt in Hrshy. Th implmntation partnr chosn for th projct was Simns India. GHFBL dcidd to go for a big-ba SAP implmntation which would tak shortr implmntation tim and would not nd maintnanc and rvision of lgacy softwar. In cas of GHFBL, a blu print of procsss was prpard by Simns on th basis of th as is procss dfind by th company popl. Ths wr mappd with th SAP procsss. Fiv moduls: MM, PP, SD, FI/Co and PM wr slctd for implmntation. Nw Hardwar and ntwork wr installd on a larg scal. Around 0 C&F Agnts and around 00 Distributors wr connctd through VSAT and th no of usr licnss purchasd was around 00. Slctd Tam Ladrs wr first providd traini in diffrnt functional moduls, by som mploys from Simns. Ths tam ladrs furthr providd nd usr traini at diffrnt sits for thir rspctiv moduls. Tst cass wr mad for systm ovrloads, usrs ntri invalid data, tc and tsti was carrid out. In Sptmbr 00, whn MFG/Pro was stoppd, th closi stock, assts, liabilitis tc wr filld up in various tmplats and snt to th Had Offic to b fd in th SAP systm. On th Sptmbr 00, SAP wnt liv in all th thr plants, Bhopal, Chittoor, Nalagad and Had Offic Mumbai alo with th C&F Agnts and distributors in a Big Ba mannr. Th SAP implmntation projct at GHFBL was thus compltd in, costi around Cror. : EICHER TRACTORS Eichr Motors Limitd disinvstd th businsss of Tractors & Eins to TAFE Motors and Tractors Limitd (TMTL) in Jun 0, 00. Tractors and Farm Equipmnt Limitd (TAFE) is a part of th Chnnai basd Amalgamations group, a US$ Billion light inri group with divrs intrsts in Tractors and thir aggrgats, Disl Ein, Automobil Componnts, Einri Tools, Paints, Plantations tc. TAFE producs tractors in th to 0 HP ra in a varity of modls. ERP Projct at Eichr Tractors: Prior to ERP, Eichr Tractors had svral hom grown solutions basd on Oracl in various dpartmnts such as Matrials, Financ tc. Ths wr not intgratd with ach othr. Du to lss data transparncy and fragmntd data, thr wr infficincis arisi. Thr was a nd to put into plac a mor robust systm that would handl all this data inconsistncy. Th Eichr Tractor plant at Faridabad and Bhopal had quit similar products and thr was a nd to intgrat plants also so as to hav mor coordination and data transparncy. Th othr rason for implmnti an ERP was th nd to link to th supplirs as wll as customrs for incrasi organizational productivity and profits. This wasn t possibl until and unlss a unifid viw of th businss was availabl to on and all. This ld to th top managmnt dcision to implmnt an ERP systm. Th impndi YK problm was anothr rason sn for maki chas to th IT infrastructur. In th ERP slction procss at Eichr Tractors, bgan with th slction of IBM as th implmntation partnr. RFP was cratd by th projct tam which was matchd with th product offris of svral ERP playrs such as MFG PRO, BAAN and SAP. Th main points considrd to valuat and compar th various packags with ach othr wr this such as volum of data to b handld, as of us, th product flxibility, nam and xprinc in th automotiv sctor. On th basis of critria, th company slctd SAP Entrpris.0 as th right solution. Th company chos moduls of SAP.0, FI, MM, PP, QM, CO and SD for implmntation. Eichr slctd th Chnnai offic, whr Enfild Bullt was bi manufacturd, as th Pilot Sit bcaus of its much smallr siz compard to othr sits as wll as th prsnc of Skill Sts at Chnnai sit. At Eichr Tractors th moduls wr configurd at th pilot sit, that is th Chnnai offic and th cha managmnt procss was dvisd, with % of th structur bi rtaind and only % of customization don to th SAP softwar. Eichr pickd up domain xprts from diffrnt filds and diffrnt sits and traind thm at th Chnnai offic. For xampl th VP Manufacturi at Bhopal was th domain xprt in MM modul and was traind for this modul so that h would b th projct champion and guid for th MM modul at th thr plants of Bhopal, Faridabad and Alwar. Similarly a dsignatd Managr from Parwanoo was th Traind Domain

3 Trupti Dav/ Elixir Mgmt. Arts (0) - xprt for PP modul and a dsignatd managr from Pithampur, Indor was to b traind as th domain xprt for SD modul. Ths domain xprts thn provid traini to slctd managrs at ach sit and thus th usr traini was don in a vry systmatic mannr. Th first rollout of SAP.0 was don in Chnnai plant in Dcmbr, whras th rst sits implmntd th softwar almost in a Big Ba stratgy, with Faridabad goi liv in April, Alwar goi liv in May and Bhopal goi liv in Jun. Th complt procss of ERP slction and implmntation thus took around which was justifiabl, sinc it involvd purchas and traini of around 00+ usr licnss. Accordi to th projct stimats, th ERP projct was implmntd bfor tim and it quit complid to th budgt as wll. Th ERP data hlps in providi BI capability as wll; though SAP has inbuilt BI facility som amount of off SAP BI is also prformd by Eichr Managrs. Eichr Tractors is furthr considri implmnti svral othr applications such as Data warhous, Advancd planni and schduli systm, supply chain managmnt softwar basd on this ERP data. : Lupin Limitd Lupin Limitd, hadquartrd in Mumbai, India has succssfully positiond itslf as a Transnational Pharmacutical Company, with a wid global footprint. Th Company dvlops and markts a wid ra of quality, affordabl gnric and brandd formulations and APIs in multipl markts across th world. Th ERP Projct at Lupin Prior to th advnt of ERP in Lupin thr wr various applications runni in its oprations spanni across fiv plants and 0 dpots. Du to this, thy wr faci a problm of lack of connctivity within th contact points. Thy wr not worki onlin and it usd to tak almost tn days to gt th th nd sals figur collatd, compild and prsntd to th markti had. Th first ERP systm slctd had th localisd vrsions, whrin, vry location kpt on vrifyi it as pr its own rquirmnts. Howvr, this ERP projct fald du to th lack of a cntralisd cohsiv stratgy. To acquir a cntralisd control, in 00-0, th company dcidd to go for a biggr and bttr ERP. Packag slction Th two options availabl to Lupin wr, first of all an in hous ERP dvlopd by its tam of IT spcialists, and scondly, buyi a off th shlf ERP product from a wll known company. Th first option was problmatic sinc in-hous customizd ERPs do not adhr to bst practics and involv constant twaki hadachs. Thrfor Lupin wnt with th scond option. Aftr studyi various products availabl in th markt, Lupin optd for SAP's ERP solution basd on th followi paramtrs. Tchnical support offrd by thm and. Th dgr of customisation that can b achivd in trms of complyi with th taxation rquirmnts and accounti standards to suit Indian conditions. Th implmntation partnr was PWC which is now known as IBM, which was slctd on th basis of its xprinc and past succssful ERP implmntation projcts. Aftr zroi in on th product to b chosn, th nxt stp was to crat a RFP documnt. Th discussions and dbats hld btwn th hads of all functions ld to th prparation of a documnt of currnt procsss. This was followd by prparation of a blu print documnt to map in SAP. Approval from th cor tam ld to configuri th systm, whr ach of th procsss was tstd indpndntly. Lupin implmntd moduls of SAP : Payroll, SD, MM, PM, QM, FI-CO, PP and HR. Th initial invstmnt was of th ordr of Rs cror, which includd aspcts lik upgradation of ntwork, hardwar installations and cost of implmntation. Bfor th SAP ERP (vrsion.c) roll out, all disjoind systms and locations wr brought onlin in trms of connctivity. Lupin slctd th big ba approach for th implmntation, whr th lgacis wr cut off and all th functions wr movd on th ERP systm from day on. SAP was implmntd across six factoris and 0 dpots, in a rcord tim of svn and twnty fiv days. Undr th big ba approach, all moduls of SAP wr flaggd off across multipl locations at prcisly th sam tim. Th systm wnt liv on st April 00. A formal notic was issud to all usrs to stop th ntry of any nw information into th lgacy systm as on April st. No nw vnts wr allowd to b rcordd into th lgacy systm, and it was just maintaind as a historical archiv for futur rfrnc. : Tata Intrnational Establishd in, Tata Intrnational is an intrnational markti company with a global turnovr of US$ 0 million in It is a tradi company with businss lins that includ lathr, inri and pharmacutical products. Tata Intrnational is a mmbr of th Tata Group - India's bst known industrial group, with an stimatd turnovr of US $. billion (quivalnt to. % of India's GDP). Bsids its tradi hous profil th company has staks in mins, a fiv star hotl, distributorships, trailr and railway wagon manufacturrs and IT vnturs; it has customr support facilitis for Tata vhicls, dsign studios for lathr, and warhouss dottd across th world. ERP at Tata Intrnational In of Tata Intrnational thr wr a numbr of lgacy systms alrady in plac in locations includi Sals, purchas and manufacturi. Th most important rason for implmnti an ERP was to intgrat locations and provid a unifid vision to th managmnt. In cas of Tata Intrnational, Tata Tchnologis did th formal valuation for about. But, th packag studid and valuatd was only SAP. This was bcaus of SAP s rputation and its past track rcord of succssful ERP implmntations. Th company s IT tam valuatd SAP. Th sarch for validation was don by Tata tchnologis and IBM, th implmntation partnr for SAP implmntation. In Tata Intrnational, th implmntation Stratgy usd was Big Ba. Bcaus of this th implmntation tim was approximatly from August 00 to July 00. Thr wr moduls implmntd in Tata Intrnational: Matrial Managmnt (MM), Production Planni (PP), Sals and distribution (SD), Financ and Control (FICO), Quality Managmnt (QM) and Businss Warhous (BW), whr BW is th inbuilt data warhous providd by SAP.0. At Tata intrnational, th ERP projct was handld xtrmly succssfully. It was compltly on tim implmntation and th Complianc with stimatd budgt was also mor than 0%. This was a rsult of ffctiv projct managmnt and usr traini and support. Th critical succss

4 Trupti Dav/ Elixir Mgmt. Arts (0) - factors for th succssful SAP implmntation wr Top managmnt support, ffctiv projct managmnt and propr traini and ducation of nd usr. : Dainik Bhaskar Bhaskar Group is a ladi nws srvics group in India with a stro prsnc in th Mdia Industry, Entrtainmnt, Printi, Txtils, Fast Movi Consumr Goods, Oils, Solvnts and Intrnt Srvics. Its Mdia businss includs ownrship of Print Mdia, Radio Stations and TV channls. Dainik Bhaskar (Hindi: ) is a Hindi-lauag daily nwspapr of India. It was startd in yar from Bhopal, th capital city of Madhya Pradsh. Its currnt ditor is Ramsh Chandra Agrawal. ERP at Dainik Bhaskar In Dainik Bhaskar, bfor 00 thr wr all Foxpro basd applications. In 00 Dainik Bhaskar implmntd SAP.0 Sals and Distribution modul with th hlp of Sapphir Infotch, a Dlhi basd company. From 00 till 00, Dainik Bhaskar usd th Sap SD modul alo with othr applications such as Tally for Financ. It was in 00 that th nd to intgrat all th functional dpartmnts and all th cntrs, and provid a com platform was flt and thus th ida of implmnti a complt ERP packag cam into th pictur. On th basis of vndor xprinc and maturity of products, two nams wr finalizd: Oracl and SAP. Aftr conducti a dp analysis followd by prsntations mad by th two companis, SAP was chosn for its mor appropriatnss accordi to th mdia industry and th SAP ECC.0 vrsion was slctd for implmntation. Th initial implmntation partnr, Sapphir Infotch was abandond and Simns subsidiary, Simns Information Systms Limitd (SISL) was takn up as th implmntation partnr. Th implmntation stratgy chosn was Big Ba. Four moduls wr slctd for implmntation at Dainik Bhaskar: MM, MAM, MSD and FICO. Th implmntation duration was approximatly right from th vndor slction till th goi liv stag. At Dainik Bhaskar also, traini phas was vry wll plannd and schduld. A cor tam was mad which consistd of 0 popl, from th Had Offic that is, Bhopal and popl from Jaipur. Th Traini sssions startd in July 00 with two moduls: MAM and SD traini conductd at Jaipur offic and two moduls: FICO and MM traini don at th Bhopal Had Offic. Ths cor tam rprsntativs furthr providd traini to th nd usrs at th othr cntrs. CASE : L & T CASE EQUIPMENT LTD. With mor than US$ billion in rvnu, Larsn & Toubro Limitd is India s largst inri and construction colomrat and is on of India s top fiv ntrpriss. It has divrsifid intrsts in IT, cmnt and lctrical businss. L&T is a subsidiary of L&T and is a 0:0 joint vntur btwn L&T and CNH Amrica LLC (CNH Amrica LLC is a wholly ownd subsidiary of CNH Global N.V., USA), which has manufacturi facilitis worldwid. It is th world s largst manufacturr of loadr backhos. ERP Projct at L&T : Th ERP adoption and implmntation at L&T was a rsult of th dcision takn by parnt company L&T. Prior to ERP, L&T, th parnt company of L&T, had svral applications such as payroll, supplirs' accounti, invntory and costi systms, all dvlopd in Cobol, for a vry lo tim. Th parnt company, L&T, has bn a fully ddicatd SAP softwar customr sinc th arly s, starti with a mainfram basd ntrpris rsourc planni (ERP) softwar prdcssor of today s mysap ERP solution. Th dcision of implmnti SAP at L&T was du to adoption of SAP by svral othr L&T group companis In cas of L&T, a dp analysis of th SAP moduls and th functional rquirmnts ld to th slction of six moduls for implmntation: Matrials managmnt (MM), Projct planni (PP), Sals and Distribution (SD), Financ and Control (FICO), Quality Managmnt (QM) and SM. Th implmntation of SAP.0 B was don in L&T in yar 000 with th hlp of L&T Infotch, th implmntation partnr. Th implmntation was don with a Big-Ba stratgy and thrfor took lss tim, approximatly. This systm was latr on upgradd to SAP. in th yar 00. In 00 accss was givn to dalrs through Intrnt. L&T dosn t hav a propr CRM packag as yt, but thy hav customr rcords and srvics, markt analysis, dvlopd inhous. Thr ar also planni to link Supplirs with th ERP systm in th futur. : CROMPTON GREAVES Crompton Gravs (CG) is part of th US$ bn Avantha Group, a colomrat with an imprssiv global footprint. Today, Crompton Gravs is on of India's largst privat sctor ntrpriss. It has divrsifid xtnsivly and is agd in dsigni, manufacturi and markti tchnologically advancd lctrical products and srvics rlatd to powr gnration, transmission and distribution, bsids xcuti turnky projcts. ERP at Crompton Gravs Bfor 000, Crompton Gravs was worki on sparat applications for sparat dpartmnts lik Markti and Purchas; mad on Oracl. In ordr to ovrcom infficincis of th lgacy systm, thr was a nd to intgrat functional ara s information systms at th last, and simultanously improv ovrall organizational productivity and fficincy by intgrati all th offics. Rspondi to th YK problm was also on th agnda, which was also asily achivd by implmnti an ERP solution. Aftr studyi svral products and compari th offri to th company RFP, in April 000, SAP.h was implmntd in th company. Th implmntation partnr was PWC. Thr ar moduls of SAP implmntd at CG: Sals and Distribution, MM, PP, FI and CO.CG has also implmntd a Data Warhous Cognos, dvlopd by TCS. Th Srvrs ar stationd at th Mumbai Had Offic and th backup of all th data is takn at Chnnai vry day. : VA TECH HYDRO INDIA PVT. LTD V A TECH HYDRO India Pvt. Ltd. is a 0% subsidiary of VA TECH HYDRO, Austria - a ladi global supplir of lctro-mchanical quipmnt and srvics (''Watr to Wir'') for hydro powr plants. VA TECH HYDRO has an xprinc of mor than 0 yars and has xcutd larg numbr of hydropowr projcts across th glob and is ladr in Hydropowr businss worldwid. Thy hav Gnrator Manufacturi unit at Mandidp nar Bhopal (M.P.). Thy manufactur Hydro Gnrators upto 00 MVA, Thrmal Gnrators upto 0 MVA, Automation, Control Equipmnt and SCADA systm.

5 0 Trupti Dav/ Elixir Mgmt. Arts (0) - ERP at V A Tch Hydro In 00 V A Tch Hydro took up th dcision of implmnti SAP. Th dcision was only du to th parnt company which was alrady runni SAP. Also, thr was a nd to improv control of Information rsourcs and ovrcom infficincis of lgacy systm. At V A Tch Hydro, moduls of SAP wr chosn for implmntation: MM, PP, SD, and FICO. Th company initially implmntd SAP R/ in around. Latr on it upgradd to SAP R and latr to R. Th implmntation was don in a phasd mannr rathr than in a big-ba mannr. V A Tch Hydro chos Simns India as th implmntation partnr bcaus of its succssful SAP projcts in othr companis. Th SAP systm is alrady bi usd to gt connctd to th supplirs and vndors through Purchas Ordr gnration. Som vndors can accss drawis through rgistrd login ids and passwords. This is don though an intrnt sit. Th othr applications which ar bi considrd for th futur in collaboration with SAP ar: Advancd Planni and Schduli Systm, Data Warhous and Businss Intllignc. : RANBAXY Ranbaxy Laboratoris Limitd, India's largst pharmacutical company, is an intgratd, rsarch basd, intrnational pharmacutical company, produci a wid ra of quality, affordabl gnric mdicins, trustd by halthcar profssionals and patints across gographis. ERP at Ranbaxy In, Ranbaxy was th first Pharmacutical Company to opt for an ERP. It was a crucial tim for th company sinc it had now ntrd USA, th world s largst pharmacutical markt, with products undr its own nam. Th growi businss and incrasd nd to rduc costs and improv fficincy and productivity, ld to th nd to stramlin all functions and intgratd thm togthr to provid a unifid vision of th Company. At Ranbaxy, a cor implmntation tam comprisi of Functional hads from diffrnt locations, studid various products and thir pros and cons. Thy also took dmo of products to gt a fl of th systm. All this xrcis ld to choosi of SAP as th most appropriat packag. Th Implmntation Partnr chosn was IBM. Th implmntation stratgy usd at Ranbaxy was Gradual phas in and not Big ba. This was bcaus of th shr siz of th Company. Th moduls implmntd includd Financ(FI), Costi(CC), Matrials(MM), Production and Production Intgration(PP &PI) and Sals and Distribution (SD). Th implmntation procss bgan in April-May. Crtain lgacy systms wr kpt intact in Financ and Sals and Distribution as wll as in Procurmnt and Warhousi. This was don ithr bcaus SAP didn t hav th rquird functionality or bcaus xisti systms providd som uniqu faturs which wr considrd to b important for th company s ovrall prformanc. Sinc SAP was also nw to th Pharma industry, - ABAP programs had to b writtn and a fw ABAP consultants wr hird almost for two yars right from th commncmnt of th ERP projct. Th tam siz at Ranbaxy, was of 0-0 popl who colocatd at a sil location and undrwnt th traini. Two typs of traini wr providd: fundamntal ERP systms ducation and tchnical traini in th usag of th ERP softwar.it took two yars to rollout at major locations. Th pilot implmntation was at Muhali in April followd by Dwas plant in May. : PROCTER AND GAMBLE Proctr & Gambl (P&G) is a highly succssful consumr packagd goods company (with around $0 billion in sals rvnu). P&G Hygin and Halth Car Limitd is on of India's fastst growi Fast Movi Consumr Goods Companis that has in its portfolio P&G's Billion dollar brands such as Vicks & Whispr. With a turnovr of Rs. 00+ crors, th Company has carvd a rputation for dlivri high quality, valu-addd products to mt th nds of consumrs. ERP at P&G P&G startd its rlationship with SAP in, aftr which it quickly initiatd a rgional implmntation of th R/ mainfram application. In, P&G startd to switch all of its rgional ERP applications to R/. Th major cha cam in whn P&G mbarkd on a harizd global SAP dploymnt stratgy to support its stratgic mov to standardizd global businss procsss. As a nominatd global account of SAP, P&G has bnfitd from a particularly clos rlationship with SAP, which mans accss to ral product xprts. P&G dcidd to cntraliz businss procsss whrvr possibl. Howvr, du to th shr scal of P&G s businss, multipl SAP production instancs would b invitabl, potntially ladi to data intgration and synchronization problms that could chall th vision of a globally intgratd supply chain. Thrfor, P&G dsignd a clvr thr-tir data modl (s Figur ), as a fundamntal buildi block to facilitat businss procss harization across multipl SAP instancs. All businss mastr data is rigidly standardizd and managd globally by on ddicatd organization. This mastr data is maintaind on on spcializd R/ systm th Global Data Clint (GDC) and has provd fundamntal to P&G s succss. This standardizd mastr data undrpins a numbr of sparat but fully standardizd R/ transaction-procssi systms. Th top dcision support layr of th pyramid is highly ffctiv by virtu of th tight intgration with th transactionprocssi layr within th data modl. P&G uss Businss Information Warhous (BW) for supply chain oprational rporti and som managmnt dcision support, but th bulk of th financial managmnt rporti is handld through its intrnally dvlopd corporat data warhous (basd on Oracl). BW bcam much mor important as furthr mysap applications, such as Advancd Plannr and Optimizr (APO) and Entrpris Buyr Profssional (EBP), wr subsquntly dployd. P&G implmntd sil global SAP R/ instancs for ach of financ, HR and capital managmnt to support its global

6 Trupti Dav/ Elixir Mgmt. Arts (0) - businss procss stratgy. Figur dpicts th main ERP systms against th thr-layr data modl. Th cntral financ systm handls th closi of th books across all oprations, but production costi is dployd at plant lvl, to dfin standard costs by plant. All mploys ar managd globally through th SAP HR systm. Som payroll for plant oprations is still handld through local systms. Howvr, P&G will pay all staff for ky countris (includi th Unitd Stats) through its shard srvic cntr usi SAP Payroll within on yar, and hav plans to progrssivly mov th othr countris to this modl. Around 0 prcnt of ordr managmnt is handld sparatly by two larg in-hous-dvlopd mainfram applications that ar linkd to th SAP systms. Figur shows th GDC rfrnc systm, which also synchronizs mastr data for non-sap systms. SAP s Application Link Enabli (ALE) middlwar was slctd to driv mastr data synchronization but, at th tim, this was vry much an mrgi tchnology. Mastr data synchronizations tak plac at rgular intrvals of minuts, on hour or on day, accordi to businss nd. Th GDC systm carfully validats all mastr data for uniqunss, and filtrs individual data to th right transaction systms. ALE is also usd to link som transactions across SAP instancs. As a consqunc of this pragmatic instanc stratgy, P&G has dployd sparat SAP production systms, basd on Unix and th Oracl databas. Around of ar rlativly small systms (not shown in Figur ), with fwr than 0 concurrnt usrs ach, to srv sparat small businss units or spcific lauags (.g., Japans, Koran, Russian). Howvr, th largst rgional logistics systm has mor than,00 concurrnt (,0 rgistrd) usrs and mor than.tb, vn aftr data archivi. It has bn a pionr in implmnti Information tchnology for achivi maximum bnfits and has bcom th ladr in IT nabld infrastructur. It has implmntd all th xtnsions includi SCM systms and Data Warhous. Th famous channl partnrship btwn P&G and a rtailr (Wal-Mart) has bn vry wll known and has bn a rol modl showi th ffctivnss of IT nabld organizations worki in collaboration to maximiz bnfits. Both P&G and Wal Mart ar major playrs in thir industris. Thy found a way to lvrag on information tchnology by shari data across thir mutual supply chains. Th rsulti channl has bcom mor fficint bcaus channl activitis ar bttr coordinatd. Thr ar rducd nds for invntoris with incrasd sals by focusi on slli what th customrs want. : Bridgston Foundd way back in, in Japan, Bridgston is a tyr manufacturr with yars of xprinc. Today Bridgston is globally th No. tyr and rubbr manufacturr and it slls its tyrs and products in mor than 0 nations, mployi mor than,000 popl. ERP Projct Th main rason for implmnti an ERP systm was thus businss procss rlatd, that is, to improv th control of information rsourcs by intgrati functional ara s information systms. ISCC was slctd th ERP projct consultant at Bridgston. Sinc PRISM was availabl on IBM Ac 00, th hardwar platform that was most rliabl, it was slctd in May. Bridgston didn t mploy a on product ERP solution, but it was a cas of Bst of Brd implmntation. In Novmbr, Bridgston signd up with PRISM and startd th procss of Hardwar, Softwar and Ntworki. In th first phas, th Financ, Invntory and Procurmnt moduls wr installd. For Taxation, EXVAT modul dvlopd by DSQ Softwar was connctd with PRISM. In th scond phas Sals and Markti and HR modul calld SAPICS (both dvlopd by DSQ) wr implmntd. By August th procss was finishd. Data Analysis ERP dtails: ERP Vndor: SAP (0%) Implmntation Partnr: Simns India (0%), IBM (0%), L&T Infotch (%), Non (%) No. of Moduls: (0%), (0%), (0%), (%), (%) Pr Implmntation Issus. Rasons sn for ERP implmntation Improv control of Information rsourcs: Avrag=. Intgrat Information Systm: Avrag=. Dvlopmnt of Data Warhous: Avrag =. Support SCM: Avrag =. Ovrcom infficincis of lgacy systm: Avrag =. Implmntation Exprinc. Implmntation Stratgy usd: Big Ba = 0%, Gradual Phas in = 0%. Implmntation Duration. ERP Usag Tim. Latnss of Implmntation Projct On Tim = 0% Month Lat = % Mon lat = 0% Bfor Tim = %. Complianc with budgt 0 Mor than globa lly.. ERP Implmntation problms facd Lack of top managmnt commitmnt and support =. (last valu; Not sn as a problm. Lack of data accuracy =. (sn as a problm in ERP implmntation). How would you dfin a succssful ERP Implmntation? Maintain data intgrity = 0% Systm works without disruption = 0% Usr Accptanc = 0% On tim and within budgt = 0%. How would you rat your Organization s ERP projct succss?. How would you rat th followi Critical Succss Factor for ERP implmntation. Effctiv Projct Managmnt (man =.) = Most critical succss factor Man

7 Trupti Dav/ Elixir Mgmt. Arts (0) - Education and Traini (man =.) = Scond most critical succss factor Top Managmnt Support (man =.) = Third most critical succss factor Ma n. Post Implmntation. Bnfits of ERP Usag No. Bnfit of ERP Usag (0%) = Quickr rspons tim and Bttr rsourc managmnt No. Bnfit of ERP Usag (0%) = Lowr invntory lvls and Improvd on tim dlivry No. Bnfit of ERP Usag (0%) = Improvd intraction with customrs and supplirs. End Usr Satisfaction Vry Satisfid = 0% Satisfid = 0% Som what satisfid = % Top xtnsions = DW (0% organizations hav implmntd) and BI (0% organizations ar usi) P&G and Ranbaxy ar th two organizations which hav implmntd all th xtnsions. Eichr Tractors has also implmntd all th xtnsions xcpt linki with customr. All thr companis hav bn usi ERP sinc past yars or mor. Rfrncs Davnport, Thomas H., (000) Th Promis and Prils of Entrpris Systms, in Davnport, Thomas h, Mission Critical: Ralizi th promis of Entrpris Systms, Units Stats of Amarica, Harvard Businss School Prss: Boston, Massachustts, pp. Shaw, Michal J., (000) Buildi an E-Businss from Entrpris Systms, Information Systms Frontirs,,, - Bos, R.,(00) Customr Rlationship managmnt: ky componnts for IT succss, Industrial Managmnt and Data Systms,,, -. Wills T. Hillman and Wills- Brown A. Hillary (00) Extndi th valu of ERP, Industrial Managmnt and Data Systms,,, -. Davnpor, T.H and Brooks, J.D Entrpris systms and th supply chain, Journal of Entrpris Information Managmnt, Vol No., 00, pp -. Duplaga, E.A and Astani, M, Implmnti ERP in Manufacturi, Information Systms Managmnt, Vol 0 No., 00, pp -. Z, Y, Chia, Rogr H.L. and Yn, D.C Entrpris intgration with advancd information tchnologis: ERP and Data Warhousi, Information Managmnt and Computr Scurity, Vol, No., 00, pp -. Chn, I.J., Planni for ERP systms: analysis and futur trnd, Businss Procss Managmnt Journal, Vol. No., 00, pp -. ERP Extnsion. Advancd Planni and Schduli Plannd for futur Impl-mntd Plannd for futur Futur dirctions Considri Implm-ntd Plannd For futur No Plans Considri Implmntd Implmntd.Data Warhous Considri Implmntd Implmn td Implmnt d Implmntd No plans Implm ntd Considri Implmntd Implmntd.Ecommrc/ EBusinss Plannd Implmntd Plannd No Plans No Plans No Plans Consid Implmn Implmntd Implmntd for futur for futur ri td.linki Customrs.Businss Intllignc.Supply Chain Managmnt No plans Implmntd Plannd for futur Considri Considri Implmntd Implmntd Implmn td Plannd for futur No plans No plans No plans Plann d for futur Considri Implmntd No plans No plans No plans Plannd for Plannd No futur for futur plans Implmn td Plannd for futur Implmn td Implmntd Implmntd Implmntd Implmntd Implmntd Implmntd..Linki Supplirs No plans Implmntd Plannd for futur No plans Plannd for futur Plannd for futur Implm ntd Implmn td Implmntd Implmntd