INTRODUCTION:
Brow Furrowed and J.K Puri (the executive director of optimization) sat back at the Delhi office to solve the complexity of issues they faced such as
• deregulated oil and gas sector in India,
• unfamiliar with competitive environment,
• Not using IT in a proper way.
He had been charged with the responsibility of placing the informational infrastructure properly which would give the Indian oil corporation the increase in competitiveness it needed in order to operate within the rapidly expanding and deregulated oil and gas sectors in India. Further there was an urgent need to revamp company’s aging and often ailing systems and the top management have finally decided to approve IT re-engineering in the corporation which included enterprise resource planning system.
CASE BACKGROUND & SALIENT FACTS
The project named as ‘Project Manthan’ was planned to be implemented in two phases. The first phase involving 99 sites and the second phase involving 500 sites over a period of eight years which is to be completed by December 2004. By the month of July 2003, sixty-six phase 1 sites have already been completed. Then there was the problem which occurred due to the operation of SAP R/3 system. The response time had slowed down considerably which resulted in long queues of road truck tankers at various points. At a point the users were complaining that the original procedures had been faster compared to the system at present, which resulted in problem occurring twice in many months.
As this was going on, Puri recognized his would lead to serious business and organizational implications. The customers were not receiving the front end transactions on time and they were threatened to compromise. Puri at a point felt that pausin...
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...system. Although they used so many information-technology systems step by step, such as Terminal documentation module, Plant documentation module, FMS, MMS, OMNIS, and so on, those systems were lack of commonality, consistency, and communicability. Those systems cost them a large amount of money and time. Not until they started using the Enterprise Resources System, did they have a huge improvement.
The truth is they still had a plenty of challenges to deal with when using ERP system, but Puri, the executive director of optimization, found alternatives and solutions for every single problem. The biggest problem is the poor response time while using SAP R/3 system. The efficiency of the technological system is vital. Without efficiency, they would get a large number of dissatisfactions and disappointments from customers. That is the main issue they need to overcome.
First the story of the Standard Oil Company briefly describes the limits of power. When Rockefeller was trying to take over the market he formed the “South Improvement Plan. When this occurred the public grew very angry with the price of trains, so nobody went on the railroads and Rockefeller eventually got the bill, until prices changed. This is an example of how the consumers, make the company run and when nobody wants to buy your product the individual must adjust. Another example would be when the Standard Oil Company was primarily the only oil company and was forced to split into thirty nine different independent companies. This shows that one business cannot control the entire market and interventions will need to be done accordingly so that a company does not have all the power.
Imperial Oil ltd. Limited (Esso) is a Canadian public corporation that produces crude oil and natural gas. Currently the headquarters are based out of Calgary, Alberta employing over 5000 people, with Exxon Mobil owning 69.6 percent of the company. Imperial Oil ltd. was previously located in Toronto and has recently moved all main facilities over to the Calgary, Alberta headquarters.1 Esso was incorporated in London, ON in 1880 and became a land mark in the development of crude oil and natural gases.1 Its retail business consists of service stations and "On the Run Express and Tiger Express-brand" convenience stores. Esso also owns a 25% portion of Syncrude, which are the world’s largest oil sands.1
Being presented with the problems in the implementation of the SAP ERP system, it is evident that Novartis Pharmaceuticals requires a comprehensive action plan that resolves key issues and the underlying problem. Refer to Exhibit A for a graphical representation of the action plan.
Ziff Davis, an American publisher and internet company, wrote a small document on the top 5 reasons ERP systems fail and how to fix those reasons. The document makes an interesting point of “failure is often a perception, rather than a quantifiable measure of outcomes (Ziff Davis 2),” meaning companies may think they have failed by their perception, when in actuality they didn’t proper measure their outcomes or potential outcomes. The first reason the document goes over is “setting unrealistic expectations at the outset. (3)” The document claims that a company is eager and excited to implement the system without fully defining business requirements and goals (3). This ties back with that perception and measurement dilemma. The company perceived everything was going to be well with the implementation, but failed to measure out goals and requirements. Ziff Davis goes into the fact that companies fail to realize “the level of resource commitment the project will take (5)” and that “Done properly ERP can and will transform your business by automating and re-engineering its beating heart: its business processes. (4)” Again these point out to that perception and measurement factor. Another reason the document goes over is “Not involving key stakeholders (6)”. Ziff...
Ans: Jean has failed to consider a fundamental rule of “business as usual”. The manager level employees of all departments are cautious about status quo being maintained. In addition to this, Jean has also failed to account the need for cross functional team. The repercussions of which will be in the form of increased pressure on him in making sure users of the software package implemented have right kind of expertise and qualifications to use.
...l for enterprise resource planning implementation¡±, Proceedings of the 7th European Conference on Information Systems, Vol. 1, pp. 273-97.
...introduction of their new production system. Although, obviously, as the originators of the approach Toyota had much to learn and no doubt made mistakes, this illustrates the time that can be required to successfully implement a JIT system in a large company. Moreover you can reflect on the management time/effort/cost that was consumed in the development and implementation of their JIT system.
After General Motors (GM), Toyota Motor Corporation is the second largest automotive maker around the globe; although, Toyota ranks in first place in profit, revenue and net worth. Toyota was established by Kiichiro Toyoda in 1937, as a by-product of Sakichi Toyoda's Toyota Industries Company, to produce Toyota automobiles. Headquartered in Bunkyo Tokyo, Japan (as well as Toyota, Aichi); Toyota offers pecuniary services with their Toyota Financial Services division. Toyota Industries, along with Toyota Motor Corporation, make up the Toyota Group. The Toyota Group consists of Daihatsu Motors, Scion, Lexus, Fuji Industries, Yamaha Motors, Isuzu Motors and of course, Toyota Motors. Toyota Motor Corporation operates globally with the automobile industry, which includes 522 worldwide subsidiaries (Toyota, 2010) (Sagepub, n.d.).
“An Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”.( Haag, Cummings, Phillips, S, M, A (2007). Mangement Information Systems. New Yory, NY: The McGraw-Hill Company Inc..)
The purpose of this Project Management Plan (PMP) is to define the approach to be taken by the AMP Canada case study implementing SAP in 1 year time with the vendor – SAP business partner. The issues identified were: The team implementing the new system were required to meet both functional and systematic requirements thus affecting the implementation of the new system. - The staff were not well trained in the new system. - The user requirements were not taken into consideration thus affecting the purchasing orders, poor management of inventory, the manufacturing and finance department were not integrated.
When there is a growth there will always be hurdles and challenges. There were two major challenges for SAP America, one is within the organization (or) internal challenge, the other challenge is external (or) challenge from competitors. The autonomy of regional office led the company to have different approached for same problem, thus results in providing same solution 4 times for 1 problem. Thus seems that SAP America is not acting as a single company. Resource Utilization is also a key challenge to the company, as the training and development service offered by the company is not utilized up to the mark in one part of the region, however it is utilized more in other regions.
So with the much help from SAP ERP system, we have NRG-C bars in the market for sale. So it’s safe to say SAP if properly installed, implemented and right data integrated can ease its system users in their day to day business process and also help them in taking strategic business decision.
Information system can replace the previous manual handling operations to save a lot of time and labor costs.
SAP implementation is a huge undertaking for any company, big or small. The one thing that every company wants to see during and after this implementation is benefits to their business. The biggest result they are looking for is a tangible or measurable benefit as these are easily identifiable and make the task of proving the reason for the hefty investment in SAP much easier. The question becomes how does a company go about seizing the benefits of SAP? There are several keys to seizing this benefit and those include discovering the hard dollar benefits, avoiding common pitfalls in a SAP implantation, and finding the intangible benefits.
The largest world supplier oil company is Saudi Aramco. It is the most profitable company on the earth. Since it is the most powerful oil company, it has a great impact on the world economy. As a result, a strong international relationship was built with the Kingdom of Saudi Arabia. In addition, the strong developing of international relationship with other industrial countries resulted in massive contributions to the politics, economy, and many different aspects. In 1933, Saudi government bestowed oil concession to California Arabian Standard Oil Company (Chevron). The main factor for this grant was to explore the oil in the eastern region of the Kingdom of Saudi Arabia. After discovering a huge amount of oil, part of the grant was sold to other American oil companies in order to cooperate with each other to do more exploration and to deal with such a big job. In 1948, all these American companies were incorporated into Arabian American Oil Company (Aramco) shared 50% of its profits with Saudi government. Furthermore, the company’s shares had been acquiring by Saudi government to gain 100% of its ownership. In 1988, the name changed to Saudi Aramco. The Headquarter of Saudi Aramoc is located in Dhahran, a city in eastern region of Saudi Arabia. Saudi Aramco produces 10 million barrels of oil each day. The history of Saudi Aramco went through three major periods: exploring oil, interconnecting with the USA, and contributing to other many universal events.