Enterprise Resource Management Case Study: Keda's SAP Implementation

Keda’s SAP Implementation Case Study
In order to retain its leadership position and continuing growing in the ceramics machinery industry, Keda refocused itself using a five year computerization plan, including the implementation of an Enterprise Resource Planning (ERP) system. Embarking on an ERP initiative was the correct issue for the organization to focus on considering the positive outcomes resulting from implementing SAP’s system.
Keda could not afford not to implement an ERP system if it was to retain its leadership position and continue growing. Its silo-based business units often duplicated processing tasks, resulting in unnecessarily high costs. Furthermore, business decision-making and strategy were hampered by communication

Keda needed to better understand its production, sales, and customers. Inventory management was less than optimal and pricing was difficult because the costs of goods sold were not clear for products manufactured. There was significant opportunity loss due to production delays and inefficient management of facilities. Lastly, Keda’s antiquated Manufacturing Resource Planning (MRP) system did not support multi-plant operations and the maintenance contractor for the system was no longer providing service.
Keda did consider other alternatives to implementing a third-party’s comprehensive ERP system. It considered continuing to address IT projects reactively as they arose. Also, it briefly considered developing a comprehensive in-house customized ERP system, but Keda was short on time and expertise. Another choice was to implement a hybrid system, supplementing the in-house system with third-party solutions. Either way, if the choice was made to implement a comprehensive ERP, the decision had to be made whether to execute it all at once or in phases (Wylie

In this example, top management did remove problem managers, preventing them from compromising the success of the change initiative. For example, a worker in inventory management who was used to having a decentralized inventory for his workshop objected to the new centralized inventory. As a display of resistance, he took it upon himself to shut down his workshop. As a result of his rebellion, he was fired. This situation could have easily derailed the success of the project, but because leadership quickly fired him, this set an example that these types of incidents would not be tolerated. Ultimately, the action increased the likelihood of success of the change