------------------------------------------------- Case Study ------------------------------------------------- Keda 's SAP Implementation Company Overview Keda Company Logo Keda was founded in 1992 as a small manufacturer of ceramics machinery in Shunde, China. At that time, the ceramics industry was mostly dominated by Europe. Hence, Keda modeled its business processes after them and enjoyed rapid growth in China during the 1990s. And so, with a successfully tested and proven business model provided, Keda flourished. In less than a decade, It became one of the top 500 national machinery manufacturers and a top 10 materials machinery enterprise in the world. It officially became listed in 2002 with a total reported revenue of …show more content…
As the multiple plants under Keda were not linked, very little information flowed between them. Timely and ------------------------------------------------- holistic business decisions are affected as a result. ------------------------------------------------- d. Keda was very much unable to meaningfully assess cost and profitability potential. This got worse as time ------------------------------------------------- passed. ------------------------------------------------- e. Inventory management problems with Keda finding it difficult to keep track of its own products and stocks. Keda 's IT Dept in the Early Years * Keda’s first attempt in computerization began in 2000. With no overarching direction, roadmap and needs addressed to the company. The needs were addressed as they emerged with no overall strategic goal in mind. To the company, the dept was just created “for the sake of being created”. * Their IT department than had no real projects aimed to make the Company more efficient. * Keda 's initial IT infrastructure eventually made the need to upgrade and reinforce it more evident. In-house vs. Outsource In-House After KEDA deciding to implement computerization, what was their plan? Which one was the priority project in the plan/blueprint? * KEDA worked out a six-month plan / IT blueprint which
The company did not perform as well as they should have been able to. There were multiple areas where problems arose, such as the technical architecture of the IT system, relying only on the 3rd party, Qdata, to monitor their IT infrastructure, keeping out of date manuals, and not maintaining their emergency procedures.
This portrays illustrates that the company ignored importance of the mission and goals that were currently in effect for of the departments currently in effect, the needs of employees which they are serving, evaluation of each department’s organizational structure, development of staff, and relationships among departments and the recommendations for change that they proposed.
The types of technology required for a system this large should have been made much earlier in the facility design process. Delaying this decision resulted in several instances of rebuilding facilities to support more weight, provide more ventilation, and larger payload handling.
CDS has become Europe most profitable home ware businesses; it was originally founded in 1960s. The company has moved from making industrial mouldings mainly in the aerospace sector, and some cheap home
Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)
The IT folks couldn’t communicate properly with the business about their ideas and strategy that confused the business and made them reject the ideas that were actually worth trying.
Keda's business heavily relied on key business functions - such as R & D, purchase of raw materials, inventory management, production - that comprised mainly of assembly line and workshop process, logistics and S&M.
They also didn’t appear to honor any form of schedule or business ethics because they were charging direct labor time to the project while working on other projects. Functional management appeared to lack leadership and direction across the whole unit.
The USAA gradually emerged as a leader in the use of IT in the insurance industry because of the vision provided by its leaders, who deployed and upgraded appropriate IT systems for meeting the specific requirements of its members. McDermott upon his arrival decided the company wasn’t functioning to its potential with the high staff turnover as well as the paperwork which was impeding the employees to have the good information when needed.
Whirlpool thought they were ready to go live with SAP until September 18, 1999. Whirlpool seemed to be making all the right moves, like dispatcher assignment, having centralized pricing, and vendor interfacing. Even the best laid plans don’t always work. Everything seemed to be going smoothly at first because there were only 1000 system users, once 4,000 users were on the system, performance deteriorated which lead to 4-8 weeks delivery delays to which some customer cancelled their order and went with a competitor. Whirlpool should never have gone live until they realized what impact the red flags
Tasks: What should Alison do? o Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization Identify the functions and forms of inventory What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation) Provide training programs for current and new hiring employees 1
Although enterprise resource planning (ERP) projects are considered to be a risky investment for any organization, Keda had quite a number of reasons on why it decided to embark on ERP. The introduction of the Keda's silo-based model, as a way of encouraging a decentralized decision-making process, was actually affecting the performance of the Keda business. This was mainly due to the duplication of the identical processing tasks from different business units.
Inventory management has two very different, but effective methods: Vendor managed inventory, and consignment inventory. A company may choose to utilize either of these two methods to manage inventory. If a company is able to manage inventory, they will be better able to work the company's capital to the fullest extent. The following paper will identify the differences between the two as well as identify what type of company is best suited for each method.
Lack of project management clarity: the planning activity had lot of material but lacked content, clear action items and lack of consensus on the milestones. The difficulties in the project only increased with time and a more performance driven style would have kept things on track if introduced early on.
Such isolated framework could not synchronize the inter-department processes and hence hampered the productivity, speed and performance of the overall organization. These led to issues such as incompatible exchange standards, lack of synchronization, incomplete understanding of the enterprise functioning, unproductive decisions and many more.