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

April 13, 2023

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ENTERPRISE INFORMATION SYSTEMS PROJECT IMPLEMENTATION: A CASE STUDY OF ERP IN ROLLS ROYCE

PRESENTED BY:

Shraddha Das -09609112

Arjun Agarwal -09609113

Nikhil Kumar -09609132

Amal Abraham -09609186

Key Issues behind the process of ERP Implementation

Business, Technical & cultural issues in the implementation

Assesses the benefits from the project both “Tangible and

Intangible”

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OBJECTIVES

Aim to integrate business process through the support of an Integrated computer Information system.

MRPII model forms the core of ERP.

Uses Internet technologies as well as information from customers & suppliers for integrated purpose.

Companies gain a competitive advantage from the way they implement the system and then exploit the resulting data.

ENTERPRISE RESOURCE

PLANNING(ERP)

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Business Process automation

Timely access to management Information

Improvement in supply chain via use of E-commerce.

Rapid growth in late 1998`s and 5 major players-

SAP AG $5 BILLION ORACLE CORP. $2.4 BILLION PEOPLE SOFT $1.3 BILLION J.D.EDWARDS $.97 BILLION BAAN CO. $.75 BILLION

BENEFITS

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BENEFITS: Drastic decline in Inventory. Reduction in Working Capital. Information about Customer Needs & Wants. Manage Enterprises of Suppliers and alliances for better Supply chain for competative advantage in the market.

DISADVANTAGES: Large dollar investments for setup, implementation and maintenance even for small ERP projects. High level of expertise needed for implementation. Lack of understanding of strategic benefits of ERP implementation (follow the crowd mentality). Is it really worth it?

IMPLEMENTATION OF ERP

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A BRIEF INTRODUCTION-ROLLS ROYCE

SITUATION BEFORE ERP

Implemented 1500 systems before ERP project.

The major ones:

1)MERLIN-Mechanised Evaluation of Resources, Logistics and Inventory.

2) IBIS-Inventory Based Instructing System.

3) CCA-Corporate Cost Accounting.

Major communication & coordination problems among systems.

IT REVOLUTION AT ROLLS-ROYCE

In 1996 Rolls-Royce formed a partnership with Electronic Data Services (EDS) for the development of the company’s IT systems.

EDS was chosen because of its substantial experience within the aerospace industry & world leader in IT outsourcing.

Projects implemented:

1) CFBU-Customer Focused Business Units.

2) OBU-Operational Business Units.

IMPLEMENTATION PROBLEMS

Cultural problems.

Resolving full appreciation of the system.

Business problems.

Working practice adjustment.

Technical problems.

Accuracy of data.

ERP IMPLEMENTATION MODEL

April 13, 2023ENTERPRISE INFORMATION SYSTEMS PROJECT IMPLEMENTATION: A CASE STUDY OF ERP IN ROLLS ROYCE

11MODIFICATION MADE TO

LEGACY SYSTEM

Suite 1

Plan the supply chain

Master schedule key programmes

Suite 2

Plan and schedule the factory:

Schedule the shop

Suite 3

Operate the Factory

SUIT IMPLEMENTATION DIAGRAM


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THE ERP PILOT

The purpose of the pilot was to demonstrate:

business principles

processes

procedures

role definitions and behaviours

software, hardware and data transfers

Creation of New Roles:

MRP controllers

Capacity owners


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THE ERP PILOT

Initial problem Experienced:

User authorisation problems

Transaction problems occurred from the first MRP run

Route cards were unavailable

Values between the systems were incorrect, so comparisons were made on the values from the legacy system with those on the new system


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THE INITIAL PROBLEMS EXPERIENCED ON ‘GOING

LIVE’ WERE:

User authorization problems

Work was temporarily halted on the shop floor, as route cards

were unavailable.

Transaction problems occurred from the first MRP run so

comparisons were made, between the old and new systems,

and corrections were made.

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THE ‘GO LIVE

As the main ‘Go Live’ of the new system was planned, the most difficult part of the cut over process was in transferring the data from legacy systems.

In order for this process to be successful the data must be kept in a ‘stable’ state for a period of roughly 10 weeks.

The next step during the ‘Go Live’ process involved running the MRP system to initialize the whole system.

Immediately after the ‘Go Live’ the existing legacy systems was switched to view only mode.

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PROJECT RISKS

The non-delivery or non-availability of reliable IT hardware and infrastructure both before and during implementation.

The resistance of change to new process methods by management and supervision.

Inadequately educating the workforce to operate the new system properly.

Possible failure to cut over to the new system through an inability to load data.

Possible failure to give ERP adequate priority due to the number of existing and ongoing business improvements.

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SUMMARY

Rolls-Royce has a large complex business process. They decided to make radical changes to their business, in response to:

Increased orders from the market place

ERP has become a standard solution world-wide within the Aerospace and Defense industry.

They developed a solid core implementation team. This team used the specialist skills of consultancy specialists and took into account the needs of both the managerial and end-user.

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Activities that were vital to the overall success of the project:

Training senior management, particularly the executive group, who are responsible for the overall direction of the company and are not technically orientated.

Managing effective relationships and leading teams in both technical and non-computer based environments.

Shop floor communication with line workers was an exercise that occurred during the implementation of suite 3. This required line workers to attend workshops to learn new PC skills in order to book work.

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SUMMARY

CONCLUSIONS

The future of this project will eventually lead to the need for a Data Warehouse.

The full benefits of the project will not be fully experienced or achieved until the system becomes executive and has a period of stability, for at least a whole year.

An immediate benefit that will be achieved by the system will be the ability to promise and then deliver to the customer on time.

Sustainability management of EIS is a very important research dimension that needs to be explored.


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Documents

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