Assingment Of ERP(kedas case study) Sumitted To Sir.imran taseer Submitted By Irsalan akram Class Bba(6.

b)

1. Q:-Over and synopsis ANS:-This case study of keda industrial company Ltd and in 1992 by founder of this company is
lu qin, with initial capital only 90,000 in Chinese (CNY) or in us dollars is $13,500 this is a small manufacturing company and produce ceramics machinery located in shunde in Guangdong province. This method firstly used in European side companies. keda enjoyed rapid increase the share in local market in chine as a market leader in 1990s. After keda include list of most 500 national companies in china and top 10 building machinery producer in world wide. And by early in 2000s keda is world best leader building machinery company and 2 nd is sacmi company. keda register in shanghai stock exchange in 2002. In 2009 report show that keda revenues double as compare to the previous year. By 2010 keda is 2000 employees and offering ceramics machinery, stone processing, building processing, energy resource management and also provide comprehensive plant design and technical consulting services to industrial client according the nature of the keda product. Keda focused on whole keys business functions. Such as R&D (research and development),raw material management or inventory management and production that comprised many assembly line and workshop process, logistic, and sale and marketing. These functions giving rise to a freewheeling corporate culture where non-standardized processes were adapted on the fly and problem were resolved in an ad hoc manner. This flexible culture used keda to achieve the pursuit of perfection through and endless innovation in the global market. In 1999 keda produce first 3200 ton pressing machine in local market in chine. In 2003 the company set up the Chinese doctoral work station and invited post doctoral scholars to word on research project on such topic as the supply chain projects and human resources management. keda not established as the market share and revenue but also as a product and management innovator. However Keda Company not all the side achieved the positive outcome. keda decentralized culture and freewheeling entrepreneurial culture they base on business performance. On the other hand managers low information about the all the departments related after on the result of manager could not make the plan for betterment of the company holistic decisions. Now in that days trend of the continued growth but keda have not enough knowledge about the production sale or most important customer zhu provide the information in the entire step for make a good decision and also face the maintained of the material in individual is not easy before the ERP system.

MRP 2 system in 2003 is not very help full because satisfy later will need to proactive direction of future development of the company and MRP 2 failed reason is behind that is employees not handle expertise of this software working zhu implementation of ERP system because ERP the variety way of functions such as customer relationship inventory management, supply chain management and lead to batter decision making in all levels.

Q2. ERP Projects are expensive and risky. Why did Keda decide to implementation ERP Project? ANS:-ERP software system is very useful but on other hand this software is more expensive
and small firm not is afford but these types software used lot of multinational firm and also in these days Pakistani firm use this software like engro chemicals industry and Pakistan state oil company. This software praise is 30,000 to 50,0000000rs. Zhu believed that customized and existing system is better, cheaper, as compare to the others.

Reasons of implementation of ERP

I. II. III. Lack of integration Lack of departments information Lack of inventory management

1. Lack of integration:This era is continue growth because keda company compete with local and foreign competitors and keda needed information to continue innovating in the term of product development, business management and all operational management related and also keda company more information about sale or most importantly of the customer. Zhu explained put the managing enterprise, and keda most important task to provide the need information for every decision making step of the way of the way of good decision making process. 2. Lack of departments information:Keda managers has lack of information about the internal department after they facing the result of this problem manager could not timely, well-informed and holistic business decisions, 3. Lack of inventory management:Keda low volumes and high customization across an increasingly diverse of product line and it make more difficult to handle the keep track of the many unique individual parts and zhu

explained that before the ERP system development the cost of the product is unclear and keda company take costing decision on the based on the past experience. And company not completely clear what the profit or lose obtained after the sale of the products.

Q3. What are the major processes of implementing a standardized ERP system?
1st. There were three main roles: the key users, the consultants, and the IT officers. The key users were at the core, the consultants acted as coaches, and the IT officers provided task Support to users and consultants. Success or failure hinged on the key users, since they dictated the future workflow. Because Zhu believed that ERP was about people more than technology, once the ERP solution vendor was on board, Zhu focused on assembling the rest of the project team, which was a painstaking process. And assembling team cache all those people the create in the organization and also this team provide the guide line to employee about his or her job responsibility

2nd.

Q4.Leadership plays an important role in the success of ERP project. Which leadership best practices did the Keda managers engage in? Ans:-Zhu put in managing the enterprise, our most important task is to provide the needed
information for every decision maker every step of the way in the decision making process.
With this strategy in mind, Zhu decisively ordered a halt to all ongoing IT projects and refocused his employees efforts on developing a comprehensive five-year computerization plan. This plan would address both short-term needs and long-term strategic goals to propel Keda forward. Ranked high on Kedas wish list was an integrated organization structure that would break departmental boundaries and replace them with streamlined data flows and integrated business processes. By imposing standardized processes and procedures, the new system would provide improved management control and information quality (e.g., availability, accuracy and timeliness).

Ranked high on Kedas wish list was an integrated organization structure that would break departmental boundaries and replace them with streamlined data flows and integrated business processes. By imposing standardized processes and procedures, the new system would provide improved management control and information quality (e.g., availability, accuracy and timeliness). The result of the six-month planning process was an encompassing IT blueprint that included implementation projects for enterprise resource planning (ERP), product data management (PDM), office automation (OA), manufacturing execution systems (MES),

customer relationship management (CRM) and supply chain management (SCM) solutions. Each of these projects would be completed in phases.

Q5. What are the main challenges faced by Keda in each stage of its ERP project? What factors contributed to the projects success in the face of these challenges?
1. ANS:- This lack of integration was especially taxing in the face of competition from local and foreign companies that challenged Keda on many fronts. To retain its leadership position and continue growing, Keda needed to continue innovating in terms of product development, business management and operations, and it needed to be more informed about production, sales and, most importantly, customers. As Zhu put the managing t enterprise, our most important task is to provide the needed information for every decision maker every step of the way in the decision making process. 2. 2nd challenge faced by Keda and similar enterprises related to inventory management. Kedas low volumes and high customization across an increasingly diverse product line made it difficult to keep track of the many unique, individual parts. Zhu explainedthe ERP deployment, due to the mess in material management, the cost of a product was unclear and costing was based on experience. It was not clear how much profit or loss resulted from the sale of a product, nor which part of the product or the production process contributed to that profit or loss. That made pricing our products difficult, too.but after the implementation of ERP produce more machine in same time. 3. 3rd The companys single production plant mode could no longer cope with the highly diversified business lines and production functions, prompting Keda to open multiple plants in 2004.

Q6. Are the particular strategies adopted by Keda in its ERP project generally applicable to all ERP implementations? ANS:-

Q7. Culture plays an important role in any project implementation, and perhaps especially for an ERP implementation because the ERP concept originated in a western culture setting. How were Kedas cultural characteristics leveraged in bringing about project success? ANS:Q.8. what are the benefits Keda will get after the implementation of ERP Project?
1st. 2nd. ERP system is low time consumption and accuracy level is better as compare to the previous systems. Information was much more transparent after system rollout. Before ERP it was very difficult to trace price paid for the materials purchased, but after the ERP, price analysis could be done conveniently. As result of the keda enjoyed improved market responsiveness, decrease stock holding cost, a significantly better product delivery time and faster monthly financial reconciliation Keda Company continues struggle before the ERP implementation company only 6 units produce in per month but after the implementation of ERP system the company do the work very efficiently in the same time and produce 30 units per month. ERP implementation effort was clearly a great success. Data accuracy including that for production planning and inventory management was estimated to have improved from 85% to 98 %.
New person is promoted to a new position he will have no conflict of interest with the new system, and will therefore be willing to comply. Then everything else is easy, and can be solved by an increase in resources.

3rd.

4th.

5th.