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erp and related technologies
erp and related technologies
erp and related technologies
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I. Introduction
Orange Electric is the leading electrical manufacturing company in Sri Lanka with commanding market share of more than 70 % in Electrical Switches & sockets market. They are well known for high quality of their products both domestically and internationally.
The company has three state of the art manufacturing plants which manufacture electrical switches, sockets, low voltage circuit breakers and cables. The head office is located at Maharagama and the company has a distribution network which has spread throughout the island. Each of these distribution points, offices and factories are interconnected via a VPN (Virtual Private Network).
Orange Electric is one of the early set of companies to move in to implementing an ERP system in Sri Lanka in year 1999. With the change of business processes the company management has decided to upgrade the system with new functionalities. This was done after analyzing new requirements and future opportunities.
II. Recognizing the problem
There were numerous irregular behaviors observed in the organization after the migration to the new system. Most of those observations were directly related to the business process of the company.
• Daily productivity reduced
It has been identified that after implementing the system there was no delay in physical production of goods. However there is a significant delay in recording the information in the system it terms of
- Entering material issues / receipts
- Production order completing
- Reporting operations
Due to this although the produced goods are there in the warehouses company couldn’t release those to customers using the system, hence manual systems needed to be used which lead to a serious drop in productivity.
• Day to day activities got delayed
o Supplier Payments
o Financial statements
o Purchase receipts
o Invoicing
• Customer complaints increased (internal & external)
Most of the customers and partners complained about the delay in delivery of orders and payments. This was happened due to the delay in recording particular transactions in the system.
• Cultural issues started to arise
o Inter departmental conflicts
Departments are having their own schedules and goals. Due to the delays occur in the process each department started blaming others. Moreover most departments were in a huge conflict with the IT department for implementing such a complex system.
o De-motivation
The staff seems to be de motivated by the system change and most of them still wanted use the old system. Some of the employees complained that they are de motivated because of the complexity of the new system.
III. Define the problem
1. Employees are not attending to training programs
While analyzing above mentioned issues at Orange Electric we have found out that main reason for almost all issues is that end users have not properly been trained on the new system.
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