Keda, a manufacturer of large-scale machinery in China, had successfully deployed an enterprise resource planning (ERP) solution that was paying for itself. Before ERP implementation efforts began, Keda estab- lished a set of selection criteria by which all possible so- lutions would be judged. This was significant. Keda’s SAP – Download as Powerpoint Presentation .ppt /. pptx), PDF File .pdf), Text File .txt) or view presentation slides online.

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This dramatic improvement in production capacity is attributed to the ERP information system.

The key users were at the core, the consultants acted as coaches, and the IT officers provided task support to users and consultants. We spent a lot of time taking stock and renumbering stock codes so as to ensure data accuracy in the new system. Recent years had seen China encouraging innovation in local enterprises, in an effort to catch up with foreign firms. The critical issue was balance. Fortunately, senior management was supportive.

Very little information flowed between implemntation as a result, managers could not make timely, well-informed, holistic business decisions. When a 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.

This encouragement took the form of campaigns with explicit incentives to promote computerization in corporations. The chairman of the board himself was present at five meetings, four of which dealt with the progress and status of the computerization project.

Through testing, users also picked up important skills in using the system. If senior managers would not even attend these meetings, then we impleementation their so-called support for the project would remain superficial and that project implementation would be difficult. This is how things work in China.


Indeed, when the system went online, workflow and operations changed dramatically, and users in some departments were unsupportive of the ERP initiative. The success was all the more remarkable given that an estimated 80 per cent of ERP implementation efforts in China failed.

Thinking back to this time period, one member of the IT department recalled: We had to devise a data model to support all the operations and workflow. Page 2 9B11E management. The more indispensible employees were to their department, the more Zhu wanted them on the team.

In China, workers look up to those in authority to provide direction. Firstly, he Use outside these parameters is a copyright violation. We had new designs and new production orders every day, and these placed a lot of pressure on the Purchasing Department and its manager. In the Chinese context, organizational culture is imposed.

Keda’s SAP Implementation | The Case Centre, for students

ByKeda had more than 2, employees and a implementarion product offering, spanning industrial machinery for ceramics, stone processing, building materials processing and energy resource 1 Liang Zhang et al. You can change your cookie settings at any time but parts of our site will not function correctly without them. Fortunately, since end users were responsible, they had no excuses.

To continue successfully, Keda needed to rethink its IT, urgently.

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It was producing sapp six machine presses per month, grossly below the quantity demanded by customers. Skip to main content. Access this item You must be logged in to access preview copies. We prefer renting or buying implementaiton solutions for anything outside of our core business and competency. Because most prominent ERP systems were originally developed for users in North America and Kedq Europe in mind, some had suggested that cultural complications might arise in the Chinese setting.

Zhang explained the top management involvement: According to the plan, the ERP implementation project was a priority. There was no way the IT department alone could have achieved so much. By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.

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After all, this would be a senior management decision, and if anyone really got punished this way, to serve at the Use outside these parameters is a copyright violation. Data was a main issue. Senior executives promptly replaced him. All fields Reference no.

Zhang described another example: SAP emerged as the winner. He believed that a determined team effort was not only beneficial but essential for project success: On the basis of these encounters, Keda short-listed nine vendors to respond to a request for proposal RFPwhich described the implementatjon needs of the company and provided a standardized response form that would allow Keda to quickly compare vendor offerings.

In these referrals, vendors would likely put forth their most zap cases, and by comparing real production environments in the industry, we had a much better idea what suited us.

For example, inventory management was previously decentralized and each workshop had its own inventory. Not surprisingly, this scheme was not popular. Where were the business managers? No overarching direction or roadmap was provided for IT projects. He was also present for some of the regular project meetings, blueprint design briefing and the project launch ceremony.

For example, materials for production now had to implemenhation checked in to and out from the warehouse, before taking it to the production plant. Kedawas utterly asp with the outcome of the SAP project.