Enterprise information systems project implementation:A case study of ERP in Rolls-Royce

8/8/2019 Enterprise information systems project implementation: A case study of ERP in Rolls-Royce

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Enterprise information systems projectEnterprise information systems project

implementation:implementation:

A case study of ERP in RollsA case study of ERP in Rolls--RoyceRoyce

Presented by:-

Neeraj Pandey (09609076)

Shashank Jindal (06503852)

Shradha Boolchandani (09609016)



IntroductionIntroduction

y The paper takes an in-depth look at the issues behind the process of ERP implementation via a case study methodology.

y It is essential for today¶s organization to compete based on all

competitive objectives.

y

In order to achieve such simultaneity in performanceobjectives, some organizations have decentralized their

operations by global outsourcing of activities.

y Integrated supply chain is required which can be possible

through with the help of information technology.

y Information systems such as manufacturing resource planning

(MRPII) and enterprise resource planning(ERP) are the tools

for effective supply chain.



Enterprise Systems (ERP)Enterprise Systems (ERP)

y A tremendous success

Enable firms to more efficiently

x Integrate data

x More timely reports needed for decision making

x Improved processes lead to more

efficient operations

One of the most profitable softwareimplementations



Enterprise resource planningEnterprise resource planning

y ERP aims to integrate business processes through the supportof an integrated computer information system.

y ERP uses Internet technologies to integrate the flow of

information from internal business functions as well as

information from customers and suppliers.

Benefits

Business process automation.

Timely access to management information.

Improvement in the supply chain via the use of Ecommunication

and E-commerce.



vital task vital task

Function

Modules

Functions are defined as actual physical tasks that are performed

within a company

Modules can be considered as pieces of software that help to

provide the functions, different ERP vendors have differentmodules that perform the functions.

when implementing an ERP System is to understand the difference between functions and modules



Implementation of ERPImplementation of ERP

The term ERP stands for enterprise resource planning,however it is not good enough to just plan resources requiredto run the enterprise, they need to be managed as well.

An organisation must assess itself, to see if it is ready for ERP.It must determine if it is ready for the competitive businessenvironment of today and then strengthen its position for

tomorrow¶s changes.(Some of the companies that implementERP systems do not realise the full benefits that the system).

ERP implementations involve, in truth, broad organisationaltransformation processes, with significant implications to theorganisation¶s management model, organisation structure,management style and culture, and particularly, to people.



Systems, applications and products in dataSystems, applications and products in data

processing processing Five former IBM employees originally founded systems,

applications and products in data processing (SAP) inMannheim, Germany in 1972

SAP¶s first product known as R/2 was built and launched in1979 and was developed for a computer mainframe

enviornment. SAP reinvented and developed their product further by

developing a business solution for the client/server architecture environment, this became known as R/3 and wasreleased in 1992.

In the 1990s SAP and its R/3 solution would go on to

become the dominant ERP solution, and also becomeone of the worlds biggest software houses.

SAP R/3 uses a programming language called advanced business application programming (ABAP).



RollsRolls--RoyceRoyce² ²case studycase study



Company backgroundCompany background

y Rolls-Royce returned to the private sector in 1987 and acquired

Northern Engineering Industries in 1989. This acquisition

allowed Rolls-Royce to consolidate its capabilities in the area

of industrial power. A further acquisition was made in 1995

when Rolls-Royce bought the Allison Engine Company in the

United States, thus enlarging the company¶s presence in aer propulsion and industrial gas turbines.

The situations before ERP

Rolls-Royce used over 1500 systems before the ERP project was

started, many of which were developed internally by Rolls-Royceover the last two decades.They did not provide accurate, consistent and accessible datathat was required for good and timely decision-making and

performance assessment.



Major Manufacturing systemMajor Manufacturing system

y MERLI N- Mechanised Evaluation of Resources, Logistics and

Inventory

y IBIS- inventory based instructing system

y

CCA- corporate cost accounting(for financially monitoring)y Rolls-Royce also had a range of individual systems for

controlling and monitoring commercial, financial and

procurement functions, these systems had problems interfacing

with each other, as they had different databases and file formats.

y The legacy systems did not allow Rolls-Royce to establish

direct, on-line communication with customers, partners and

suppliers.



IT at RollsIT at Rolls--RoyceRoyce

y In 1996 Rolls-Royce formed a partnership with electronic dataservices (EDS).

y EDS were chosen because of their substantial experience

within the aerospace industry.

The implementation project

The ERP project consists of a management team of specialists

from the external outsourcing company EDS. EDS also have the

specialised talents of SAP consultants.

Staff having vital knowledge of cross functional business were

also part of team.



Problems in implementationProblems in implementation

y The project implementation problems can be grouped intothree areas

Cultural problems Business problems

Technical problems



Business process model of R ollsBusiness process model of R olls--R oyceR oyce

9 principal business processes



Phase IPhase I

y The ¿rst phase of the project was a short intensive study to set

the scope of the project and provide an outline plan and

costing.

Phase II

A detailed plan was created and a prototype system wasinstalled.

The projects core structures were identi¿ed.



Project ChangesProject Changes

y To give the line organisations more time to prepare, train

and clean up data.

y To provide an additional 5 months period for pilot

running and early development of the system.

y To provide additional time for the completion of other

pre-requisite projects being managed by BPF.

Speci¿cally the deployment of product data manager

(PDM) and shop Àoor data manager (SFDM) on which

SAP is critically dependent.y To provide additional time for resolving dif¿culties with

successful use of SAP at RR Allison.



Phase IIIPhase III

y Too large

y Divided into two µwaves¶

y Concerned with the physical implementation of

the system and its architecture.



Wave IWave I

y had the ultimate aim of providing new capabilities for gas

turbine operations.

Wave II

was concerned with implementing engine assembly, spares,

logistics and human resource elements within the project.



Changes to the existing systemChanges to the existing system

y Suite 1

Plan the supply chain

Master schedule key programmes

y Suite 2

Plan and schedule the factory

Schedule the shop

y Suite 3

O perate the factory



The ERP PilotThe ERP Pilot

y business principles

y processes

y procedures

y role de¿nitions and behaviors

y software, hardware and data transfers

The implementation of ERP has created two

new roles at Rolls-Royce: MRP controllers

Capacity owners



Project risksProject risks

y The possible failure or inability to align goals throughconÀicting directions within the organisation.

y The non-delivery or non-availability of reliable IThardware and infrastructure both before and during

implementation.y The possible failure of providing inadequate and

ongoing support after implementation, from both Rolls-Royce and EDS.

y The resistance of change to new process methods by

management and supervision.y Management and supervision may treat the project as

merely an IT implementation, rather than change in process methods.



ConclusionConclusion

y Rolls-Royce has a large complex business process and

the project has had to assess the effects throughout the

whole business.

y Rolls-Royce has understood the business, cultural and

technical dif¿culties of such a large project, and has

developed a solid core implementation team.

y Immediate bene¿t that will be achieved by the system

will be the ability to promise and then deliver to the

customer on time.y The sustainability of enterprise information systems

(EIS) during the post-implementation period needs to be

looked into.

Enterprise information systems project implementation:A case study of ERP in Rolls-Royce

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