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Erp case study
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2. Agenda
Company Background, Current Situation, and ERP Project
Current Systems and Requirements for ERP System
ERP Implementation
Big-Bang vs. Phased In Approach
Conclusion and Questions
3. Company Background
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World’s largest manufacture of storage devices
Largest producer of server and PC hard drives in 1996
Revenue of $4.4 billion
Purchased Digital Equipment Corp. (DEC) storage business
in October 1994
Competitors – Seagate, IBM, and Western Digital
Outsource production of hard drives
4. Current Situation
Legacy systems
Material requirement planning (MRP) system maintained
separate databases and transactions had to be manually
consolidated
Delays in obtaining updated information
Acquisition of DEC caused implementation issues
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5. ERP Project – Started April 1994
Worldwide Ask Replacement System - WARP
Three project teams
Steering committee – VP’s of Finance, IS, Logistics,
Manufacturing, Purchasing, Sales, and Rep. from PW
Core team – 16 managers from department and business
units
Project team (100 Members) – Members from IS and
business unit key employees
Teams analyzed and improved business process
Selected Oracle, HP, and Price Waterhouse to assist with
ERP implementation
Oracle 7 Database, Oracle Financial, and Manufacturing
Modules
Expected implementation in Summer of 1995
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6. Problems with the ERP Implementation
Acquisition of DEC slowed implementation process of ERP
System
Project was more complex with the acquisition of DEC
Duplicate systems, processes, and artifacts
Project was put on hold – Project teams focused on the DEC
acquisition (October 1994)
ERP was restarted in January of 1995
Project team had to redo a large part of the original ERP
implementation in order to take into account the DEC
acquisition
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7. Quantum’s Current Systems
Nine different legacy systems that could not share
information
Legacy system kept each division’s transactions in separate
functional and business unit databases
Information was manually consolidated, since databases
could not share information
Gathering faxes, emails, and written information took four
days
Closing the books took seventeen days
Inventory availability could not be confirmed and delivery
could take days or weeks
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8. Quantum’s Requirements for ERP System
Sales people to take and confirm an order in real time.
Sales have to be able to confirm a delivery time and follow
up to ensure that order was delivered in real time
Ability to access current inventory and to reserve that order
for the customer in real time
ATP (Available To Promise) – ability to confirm and allocate
inventory
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9. ERP Implementation
Phased implementation:
Like the name implies means
that modules are
implemented one at a time or
in a group of modules –often
at a single location before
moving on to more locations.
The installation of phase one could be
the implementation of finance,
controlling, accounts receivable,
accounts payable, and purchasing
modules.
Phase two could be to include
materials management, production
planning, and quality planning
modules.
Following phases mean the
deployment and implementation of
remaining modules over a period of
time.
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“Phased” and “big-bang” are the two primary approaches used to
implement ERP systems.
10. Big-Bang Implementation
Big-Bang Implementation: “everything is
changed at once!” Once an ERP solution has been
chosen to meet organizational needs –the system
goes from a test version to being the actual
system used to capture transactions in only a
matter of days.
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11. ERP Implementation:
Consideration Factors
Organizational size and complexity. This includes
factors related to the type of product that organization sells
and the size and complexity of the customer
The organizations hierarchy and controls. Flat
organizations with loose controls would have more difficulty
deploying a phased implementation because its difficult to
maintain commitment throughout the process. Organizations
that have extensive hierarchy and tighter controls have the
necessary mechanisms in place to sustain a phased
approach
Extent of the implementation: based on the number
of modules and the degree to which the organization
changes those modules.
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14. Which do you Choose?
1. BIG BANG
Or
Phased-In
Implementation?
2. What factors made you
choose your
implementation choice and
why?
Additional Questions:
3. What are a few benefits
that could be gained from
the implementation of your
ERP choice? Be specific!
Add value when writing the
case study by looking up
information about the
Quantum online and
include any finding in
your answers
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