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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Keda thus established itself not only as a leader in market share and revenue but also as a product and management innovator. As Zhu put it: Success or failure hinged on the key users, since they dictated the future workflow. We used kedq struggle with machine press production, where delays were common. Resistance started to surface once again. When top management demanded changes, they were accepted. In recruiting departmental representatives, Zhu made sure to involve vital representatives, such as Use outside these parameters is a copyright violation.

Page 10 9B11E Of course, forced compliance was not the only way Keda dealt with issues. Some reasoned that if they were required to work with the project team and had to be away from their offices for five months, and their departments continued to function normally, then they should probably all quit since that proved Authorized for use only by Tianyu Chen implementatio ISYS at San Francisco State University from Sep 01, to Dec 21, Riamb, the vendor of the current MRP-II system, had ceased providing maintenance support, making urgent the need for a replacement system.

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.

Indeed, when the system went online, workflow and operations changed dramatically, and users in some departments were unsupportive of the ERP initiative.

To retain its leadership position and continue growing, Keda needed to continue innovating in terms of product development, business management and operations, and it needed to be more informed about production, sales and, most importantly, customers.


At that time, Dr. By implementing ERP, Keda was strategically positioned to reap the benefits of computerization. Zhang offered one example: Why reinvent the wheel? Page 3 9B11E Before ERP deployment, due to the mess in material management, the cost of a product was unclear and costing was based on experience. For example, materials for production now had to be checked in to and out from the warehouse, before taking it to the production plant. Key users were also responsible for specifying the data model.

Each ERP system module was assigned an owner from the associated department, who was fully responsible for the workflows and operational details of that module.

CH became a listed company on the Shanghai Stock Exchange in Now, inventory management was centralized so that resources could be shared and better managed. A mere five months after forming an implementation team, Keda had successfully deployed SAP as its enterprise resource planning ERP solution, and the system was quickly paying for itself through more efficient inventory management.

Page 2 9B11E management. In other words, country-specific culture was exploited to attain project success. Tax ID No Also, we tried to pick those who were deemed indispensable by the departments.

Keda IT specialists would then implement the requirements. Vendors presented their proposals over a three- day period. The sheer amount of data was one issue, and the data model was another.

Because departmental managers had to work longer hours to keep their department afloat, they would be compensated with bonuses. If senior managers would not even attend these meetings, then we knew their so-called support for the implementatoin would remain superficial and that project implementation would be difficult.

We had new designs and new production orders every day, and these placed a lot of pressure on implementatiln Purchasing Department and its manager. Implementation was relatively smooth and speedy. Fan Zhu came on board as the new head of the IT department. Since operational experience was needed in this specification, we assigned this responsibility to the key users.


The key users were at the core, the consultants acted as coaches, and the IT officers provided task support to users and consultants. For example, when faced with a decision on whether to compete for orders for a line of polishing machines in foreign markets, Keda could not meaningfully assess cost and profitability potential — the final quote was based on a hunch. In particular, is the vendor experienced in implementing similar systems in companies like Keda? Although a global vendor might be more experienced, a local vendor might be more suitable in a cultural context.

Kedawas utterly satisfied with the outcome of the SAP project. Fortunately, since end users were responsible, they had no excuses.


For instance, as Tian, the person-in-charge of the materials management MM module, recalled: Vendor assessment kedaa conducted as the ERP project kicked off. Consensus could not be reached every time. It would support complex operational processes across multiple production plants. For instance, we could have developed in-house our own ERP system, but that would not be very smart. We invited both local and foreign software vendors to visit our company for detailed assessments.

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To expedite the entire inplementation, an aggressive big-bang approach was sal. Product details Share this page: Satisfying the former needs would likely ensure smooth operation in the short term and hence ease the pressure Zhu would face from senior management. This encouragement took the form of campaigns with explicit incentives to promote computerization in corporations. To continue successfully, Keda needed to rethink its IT, urgently. Exhibit 3 illustrates the team composition and assignment of responsibilities.