In this TMA we will discus many ideas and facts about Whirlpool Europe and about the ERP systems;
What is the ERP system?
What are the benefits of the ERP?
The reasons to applying this new system.
-The impacts of applying the ERP system on the competition.
The benefits of the ERP for the Whirlpool case study.
What are the costs of implementation?
Factors about saving costs and benefits.
The ERP system.
First of all we will talk about the ERP system, many companies moved to use the cross- functional clientserver network applications, which involved installing enterprise resource planning ( the ERP) this new software focuses on supporting the business processes involved in the operations of a business instead of focusing on the information processing requirements of business functions.
Whirlpool had many benefits from applying this new system. I will discus in this TMA how they applying that system, and why they choose to deal with it.
Reasons to applying this new system
The company tries to reduce the inventory, which were 51 days, to 12 days. These 51 days were distributed approximately like this:
days for reserved and allocated units.
days were spending in transit
and 3 days in obsolete.
So, the company wants to apply the ERP system to make their supply chain more efficient in short time. So they start reducing the time that they were use it in transit, in allocated, and in reserved and in obsolete units.
Another reason to use the ERP system is that the information could not be easily shared across functions or organizations, and usually all their works were often inconsistent and ...
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...in transit will reduces, so they can serve their customers faster.
- The flow of information between the branches in the 12 countries will be easer and they can present the right information to the suppliers, customers, managers and other branches in a limited time.
- The company could make some improvements on its products and they could increases the quality and the efficiently of their products.
- The company could offers the requirements of the customers at the right time, which mean that they would sell all their products if they offered it on the time of orders.
- Flexibility in transformation the information between the branches.
- Finally, they will increased customers satisfaction.
References: Whirlpool case study
B202 materials, Block 3 and 4.
Reading: (O'Brien).
Increase in customer satisfaction- constant supply of the products ensures there is no deficit and creates a clientele base that has a well structured and satisfied market.
They want the quality of their products to remain high so that the loyalty of their customers remains strong and growing. The company continues to grow based on their constant innovation and distinction of their products in today’s market.
...e company’s competitiveness. Satisfied customers can help a business gain more customers through word of mouth. Ensuring excellent and consistent service and products will help the business perform better. Tim’s must embrace technology in its human resource management, bookkeeping, as well as its Marketing activities. This will improve efficiency, and reduce man hours considerably. Tim should consider investing more money into the business to allow him expand on product offering, which will help attract new customers.
Organization: The Company should improve its general organization for it to improve its service production (Paul, Donald, and James 123). The company should improve its general operations that will ensure that products are delivered almost instantly to customers.
A system integrated approach would improve the business process and hence enable the different functions to share information. It was clearly identified that the ERP deployment would benefit the company through all these elements. In the case, benefits of ERP adoption were not quantified but improved cost and better pricing strategy were discussed to justify the ERP project financially. It can be interpreted that ERP, leading to improved cost analysis, cost control, less redundancy, optimized production and better pricing, would result in low costs and hence higher profit for the company. Financial justification for the ERP adoption can also be inferred through the fact that it would lead to resolution of several problems which the company faces
The communication strength of the company believes in improvement in the existing product and requirements for the new product.
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
ERP is a huge resource managing tool used by companies today. Some systems preform general ledger, accounting and order management for the company. ERP systems are a great asset and greatly improve a company, so a company should defiantly look into implementing ERP systems! However, Gartner estimates that 75% of all ERP projects fail. Why is there so much of a high failure rate? This paper will take an in depth look at reasons to why ERP systems fail.
Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall quality of our design, manufacturing, administrative, and support organizations.
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
...l for enterprise resource planning implementation¡±, Proceedings of the 7th European Conference on Information Systems, Vol. 1, pp. 273-97.
Another way to look at or understand ERP is cars have dashboards so the driver can get to where he or she wants to go. Airports have control towers to make sure everything and everyone gets to where they need to be. All of your typical individual machines have control panels so you can make them do what they are supposed to do”. Jones, W (2006, 01). Roadmap to Fusion: Engaging Oracle Consulting on the path to your next business platform.
“From early on the ambition of ERP-systems has been used to integrate all transaction systems within the one system which combines all information and practices across full organisation, and gives proper information for decision-making in real-time” (Bjorn-Andersen & Johansson 2007)
... need for this one human interaction with the system is what makes it vulnerable to errors and redundancy and the need to get it right is paramount. So the production plan is created bases on the sales order and this is shared with purchasing so that any unavailable material can be ordered. This shows how the MRP links the production with purchasing as well as accounting. Using this information links and sharing properly in the ERP can result in significant cost savings because companies are beginning to see its SCM as part of a larger process than just customers and suppliers.
It provides significant efficiencies in cost and delivery in exchange for minimal customization and represents a shift of operational risks from the consumer to the provider.