Problem Statement
How could company overcome the problem of inefficiency, data inconsistency, and poor operations management?
Overview
The project is theimplementation of the enterprise's resources planning system (ERP). The ERP is the one of most integrated software that allowstransforming the business process from manual to automated process. However, we can gain abetter understanding by alook at behind the processes and systems that we had some years back before the ERP. So, before ERP the business process wasrunning independently, the information was not sharedwithanother related department that would be necessary to be shared.
Furthermore, business processes include Accounting & Finance, Human Resources Management, Customer Relationship management, inventory and order management, supply chain and procurement management. Indeed, the Enterprises Resources Planning (ERP) enable thecompany to integrate all these information in the software that would enhance the operations efficiency, and increase productivity, and would also help in decision-making processes.
Similarly, the ZAG Inc.[1] is the manufacturer paper company that produce abroad range of paper products that are used for doingdense packings, paper bags, paper glasses, and copies, books, and files as well. However, the company has been suffering many problems in many departments including accounts and finance, operations management, inventory management, supply, and procurement management, whereas company had anoutdated system that has many systematic errors, and was not customizable, and user-friendly.
Meanwhile, the company has no consistency in arranging the data that could be used for thedecision-makingprocess and help in improving the operational efficiencies to increase the productivity in the company. On the other hand, the company’s second major problem was inventory and material management, since, it did not have proper record make appropriate purchasing of the material that increased the caring cost, inventory management cost, and increased the slow moving inventory as well that grasped theenormous amount of money.
Implementation of ERP System Harvard Case Solution & Analysis
Meanwhile, the company also has problems in the supply chain management and procurement as well. Whereas, it has no proper maintained information of the suppliers to benefit from the economies of scale. On the other hand, the company also has accounts maintenance problems, since many accounts were maintained manually in an outdated system. Meanwhile, there were many mistakes in the system, and thesystem was not user friend, and customizable to reverse accounting periods and make some amendments. Furthermore, due the outdated system, and unmaintained accounting data, company has no knowledge about expenses of each department
Identifying and Defining Project
The project is the implementation of the ERP system in the company that would start on 1st Jan 2017 and would be completed on 30 May 2017. Meanwhile, the implementation of the project would be six months in the company. Furthermore,the project would be completed within the six-monthperiod. Meanwhile, the project would enable thecompany to bring the operational efficiencies. Indeed, the company could make decisions regarding its inefficiencies.
Furthermore, the company would be able to access the real-time data at any time, and project, forecast sales and prepare cash budget as well on a daily basis. Furthermore, it would enable thecompany to manage the internal and external operations that are interrelated with company’s core operations. Since the supply chain processes and procurement processes would increase. Because the company would be able to make purchasing decisions collectively rather than individually......................
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