Agenda Company Background, Current Situation, and ERP Project

Current Systems and Requirements for ERP System

ERP Implementation

Big-Bang vs. Phased In Approach

Conclusion and Questions

Company Background

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World’s largest manufacture of storage devices

Largest producer of server and PC hard drives in 1996

Revenue of $4.4 billion

Purchased Digital Equipment Corp. (DEC) storage business in October 1994

Competitors – Seagate, IBM, and Western Digital

Outsource production of hard drives

Current Situation

Legacy systems

Material requirement planning (MRP) system maintained separate databases and transactions had to be manually consolidated

Delays in obtaining updated information

Acquisition of DEC caused implementation issues

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ERP Project – Started April 1994

Worldwide Ask Replacement System - WARP Three project teams

Steering committee – VP’s of Finance, IS, Logistics, Manufacturing, Purchasing, Sales, and Rep. from PW

Core team – 16 managers from department and business units

Project team (100 Members) – Members from IS and business unit key employees

Teams analyzed and improved business process Selected Oracle, HP, and Price Waterhouse to assist with ERP

implementation Oracle 7 Database, Oracle Financial, and Manufacturing

Modules Expected implementation in Summer of 1995

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Problems with the ERP Implementation

Acquisition of DEC slowed implementation process of ERP System

Project was more complex with the acquisition of DEC Duplicate systems, processes, and artifacts Project was put on hold – Project teams focused on the DEC

acquisition (October 1994) ERP was restarted in January of 1995 Project team had to redo a large part of the original ERP

implementation in order to take into account the DEC acquisition

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Quantum’s Current Systems

Nine different legacy systems that could not share information

Legacy system kept each division’s transactions in separate functional and business unit databases

Information was manually consolidated, since databases could not share information

Gathering faxes, emails, and written information took four days

Closing the books took seventeen days Inventory availability could not be confirmed and delivery

could take days or weeks

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Quantum’s Requirements for ERP System

Sales people to take and confirm an order in real time. Sales have to be able to confirm a delivery time and follow

up to ensure that order was delivered in real time Ability to access current inventory and to reserve that order

for the customer in real time ATP (Available To Promise) – ability to confirm and allocate

inventory

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ERP Implementation

Phased implementation:

Like the name implies means that modules are implemented one at a time or in a group of modules –often at a single location before moving on to more locations.

The installation of phase one could be the implementation of finance, controlling, accounts receivable, accounts payable, and purchasing modules.

Phase two could be to include materials management, production planning, and quality planning modules.

Following phases mean the deployment and implementation of remaining modules over a period of time.

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“Phased” and “big-bang” are the two primary approaches used to implement ERP systems.

Big-Bang Implementation

Big-Bang Implementation: “everything is changed at once!” Once an ERP solution has been chosen to meet organizational needs –the system goes from a test version to being the actual system used to capture transactions in only a matter of days.

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ERP Implementation: Consideration Factors Organizational size and complexity. This includes

factors related to the type of product that organization sells and the size and complexity of the customer

The organizations hierarchy and controls. Flat organizations with loose controls would have more difficulty deploying a phased implementation because its difficult to maintain commitment throughout the process. Organizations that have extensive hierarchy and tighter controls have the necessary mechanisms in place to sustain a phased approach

Extent of the implementation: based on the number of modules and the degree to which the organization changes those modules.

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Phased Implementation

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Big-Bang Implementation

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Which do you Choose?

1. BIG BANG

Or

Phased-In Implementation?

2. What factors made you choose your implementation choice and why?

Additional Questions:

3. What are a few benefits that could be gained from the implementation of your ERP choice? Be specific!

Add value when writing the case study by looking up

information about the Quantum online and

include any finding in your answers

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Questions?

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