Erp case study

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

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

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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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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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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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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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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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.

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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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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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
14

Erp case study

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