Podcast
Questions and Answers
Guru had raised doubts about whether ABC's employees can smoothly switch to an ______-based organizational environment.
Guru had raised doubts about whether ABC's employees can smoothly switch to an ______-based organizational environment.
ERP
Pre-packaged ERP software systems are built around industry-specific 'best ______'.
Pre-packaged ERP software systems are built around industry-specific 'best ______'.
practices
The success of a pre-packaged ERP system depends on the organization's ability to adjust its existing business processes to the 'best practices' rules ______ in the ERP software.
The success of a pre-packaged ERP system depends on the organization's ability to adjust its existing business processes to the 'best practices' rules ______ in the ERP software.
pre-configured
Guru engaged two experts, Nathan Das and Aakash ______, to assist with the ERP project.
Guru engaged two experts, Nathan Das and Aakash ______, to assist with the ERP project.
Das and Kamble were known for their consulting services to ______ sector companies.
Das and Kamble were known for their consulting services to ______ sector companies.
ERP computer terminals in MC, PRP and RO locations were spread out in remote ______ locations.
ERP computer terminals in MC, PRP and RO locations were spread out in remote ______ locations.
The cost of each VSAT link along with its router was ______ per year.
The cost of each VSAT link along with its router was ______ per year.
Desktop computers compatible to install ERP professional licenses were suggested to be purchased for ERP ______.
Desktop computers compatible to install ERP professional licenses were suggested to be purchased for ERP ______.
The SaaS model gained success in catering to the resource planning requirements of small and medium ______.
The SaaS model gained success in catering to the resource planning requirements of small and medium ______.
The SaaS model required the user organization to pay a monthly ______ fee.
The SaaS model required the user organization to pay a monthly ______ fee.
The monthly subscription fee for SaaS-based ERP deployment for each developer user was ______.
The monthly subscription fee for SaaS-based ERP deployment for each developer user was ______.
The recommended subscription fee for each professional user was ______.
The recommended subscription fee for each professional user was ______.
Users accessed their data through ______ browsers in the SaaS model.
Users accessed their data through ______ browsers in the SaaS model.
Information related to mining stock and accounting of MCs and PRPs was maintained by the respective ______.
Information related to mining stock and accounting of MCs and PRPs was maintained by the respective ______.
Copies of these files were physically dispatched to ROs by the ______ employee at the MCs.
Copies of these files were physically dispatched to ROs by the ______ employee at the MCs.
Once the information was verified at ROs, an employee from each RO traveled to the ______ for attending weekly update meetings.
Once the information was verified at ROs, an employee from each RO traveled to the ______ for attending weekly update meetings.
To purchase mineral ore from ABC, a customer was required to place an order at least ______ days ahead of the desired delivery date.
To purchase mineral ore from ABC, a customer was required to place an order at least ______ days ahead of the desired delivery date.
An advance of ______ percent of the transaction amount was required to confirm the purchase order.
An advance of ______ percent of the transaction amount was required to confirm the purchase order.
Once the mineral batch(es) were picked up by the customer from the warehouse, CO was required to raise a final ______.
Once the mineral batch(es) were picked up by the customer from the warehouse, CO was required to raise a final ______.
Based on these details, the customer paid the remaining balance to CO via check or online ______ account transfer.
Based on these details, the customer paid the remaining balance to CO via check or online ______ account transfer.
The entire sales process currently took a month, which was significantly more than that taken by its ______.
The entire sales process currently took a month, which was significantly more than that taken by its ______.
The extracted ores were sent for processing to the ______.
The extracted ores were sent for processing to the ______.
Ore is mined at MC and transported to ______.
Ore is mined at MC and transported to ______.
Information on quantity of mined ore is recorded at MC and that of processed ore is recorded at ______.
Information on quantity of mined ore is recorded at MC and that of processed ore is recorded at ______.
Customer picks up the material from ______.
Customer picks up the material from ______.
RO verifies information on mined, processed, warehoused and dispatched ore and reports to ______ on a weekly basis.
RO verifies information on mined, processed, warehoused and dispatched ore and reports to ______ on a weekly basis.
The output from these processing plants was then stocked at their corresponding ______.
The output from these processing plants was then stocked at their corresponding ______.
The PD employee kept track of information on incoming and outgoing material and reported to ______ daily.
The PD employee kept track of information on incoming and outgoing material and reported to ______ daily.
ABC had managed its operations using manual and ______-based systems.
ABC had managed its operations using manual and ______-based systems.
The FA department used a desktop-based financial accounting system installed on three stand-alone ______ computers.
The FA department used a desktop-based financial accounting system installed on three stand-alone ______ computers.
Embarking on a risky project such as ______ implementation presented a giant leap for ABC.
Embarking on a risky project such as ______ implementation presented a giant leap for ABC.
ERP systems emerged as disruptive technological systems at the beginning of the ______ century.
ERP systems emerged as disruptive technological systems at the beginning of the ______ century.
These software systems provided the opportunity for organizations to centrally manage their ______ and processes using real-time information.
These software systems provided the opportunity for organizations to centrally manage their ______ and processes using real-time information.
Failure of ERP projects is not uncommon when firms overlook key factors such as ______ and stakes associated with ERP projects.
Failure of ERP projects is not uncommon when firms overlook key factors such as ______ and stakes associated with ERP projects.
In a developing nation scenario, poor infrastructure facilities, cost affordability and cultural barriers add more challenges to ______ initiatives.
In a developing nation scenario, poor infrastructure facilities, cost affordability and cultural barriers add more challenges to ______ initiatives.
Guru and Rai studied ERP-related IT investments made by ABC’s ______.
Guru and Rai studied ERP-related IT investments made by ABC’s ______.
One of their closest competitors, XYZ Mining Co, was using a custom-designed ______ system.
One of their closest competitors, XYZ Mining Co, was using a custom-designed ______ system.
The cloud option facilitated the load balancing of the ERP server capacity based on ______ patterns.
The cloud option facilitated the load balancing of the ERP server capacity based on ______ patterns.
The pricing plan in this type of deployment is ______.
The pricing plan in this type of deployment is ______.
Private cloud hosting costs include components such as virtual machine costs, database storage costs, and data ______ costs.
Private cloud hosting costs include components such as virtual machine costs, database storage costs, and data ______ costs.
The estimated cost for inbound and outbound data transfer is approximately US$______ per month.
The estimated cost for inbound and outbound data transfer is approximately US$______ per month.
The private cloud option might not face major IT ______-related challenges.
The private cloud option might not face major IT ______-related challenges.
ABC had the practice of storing all information in ______ format in paper files.
ABC had the practice of storing all information in ______ format in paper files.
The first step in data migration was ______.
The first step in data migration was ______.
Two full-time data-entry operators were required to accomplish the data ______ tasks.
Two full-time data-entry operators were required to accomplish the data ______ tasks.
Flashcards
What is a Mining Center (MC)?
What is a Mining Center (MC)?
A mining center (MC) is a location where ore is extracted.
What is a Processing Plant (PRP)?
What is a Processing Plant (PRP)?
A Processing Plant (PRP) is a facility where extracted ore is transformed into a usable product.
What is a Regional Warehouse (RW)?
What is a Regional Warehouse (RW)?
A Regional Warehouse (RW) is a storage facility that holds the processed materials after they leave the Processing Plant.
What is a Regional Office (RO)?
What is a Regional Office (RO)?
Signup and view all the flashcards
What is the Corporate Office (CO)?
What is the Corporate Office (CO)?
Signup and view all the flashcards
What is the information flow?
What is the information flow?
Signup and view all the flashcards
What is the material flow?
What is the material flow?
Signup and view all the flashcards
What is a manual and paper-based system?
What is a manual and paper-based system?
Signup and view all the flashcards
What are the challenges of implementing pre-packaged ERP systems?
What are the challenges of implementing pre-packaged ERP systems?
Signup and view all the flashcards
What does it mean to adjust business processes to 'best practices' in an ERP system?
What does it mean to adjust business processes to 'best practices' in an ERP system?
Signup and view all the flashcards
What is the key to successful ERP implementation?
What is the key to successful ERP implementation?
Signup and view all the flashcards
What are the benefits of hiring management consultants for ERP implementation?
What are the benefits of hiring management consultants for ERP implementation?
Signup and view all the flashcards
How can management consultants help with the ERP implementation process?
How can management consultants help with the ERP implementation process?
Signup and view all the flashcards
Sales process at ABC
Sales process at ABC
Signup and view all the flashcards
Sales process time frame
Sales process time frame
Signup and view all the flashcards
Advance payment
Advance payment
Signup and view all the flashcards
Warehouse location
Warehouse location
Signup and view all the flashcards
Final invoice
Final invoice
Signup and view all the flashcards
Remaining balance payment
Remaining balance payment
Signup and view all the flashcards
Competitors' sales process time
Competitors' sales process time
Signup and view all the flashcards
Customer perception of ABC sales processes
Customer perception of ABC sales processes
Signup and view all the flashcards
What is an Enterprise Resource Planning (ERP) system?
What is an Enterprise Resource Planning (ERP) system?
Signup and view all the flashcards
What is digitization?
What is digitization?
Signup and view all the flashcards
What is ERP implementation?
What is ERP implementation?
Signup and view all the flashcards
What are mismatches between organizational processes and ERP systems?
What are mismatches between organizational processes and ERP systems?
Signup and view all the flashcards
What is process standardization?
What is process standardization?
Signup and view all the flashcards
What are the challenges of ERP implementation in developing nations?
What are the challenges of ERP implementation in developing nations?
Signup and view all the flashcards
What is a custom-designed ERP system?
What is a custom-designed ERP system?
Signup and view all the flashcards
Why is it useful to study competitors' ERP investments?
Why is it useful to study competitors' ERP investments?
Signup and view all the flashcards
SaaS ERP
SaaS ERP
Signup and view all the flashcards
Monthly Subscription Fee
Monthly Subscription Fee
Signup and view all the flashcards
Developer Users
Developer Users
Signup and view all the flashcards
Professional Users
Professional Users
Signup and view all the flashcards
SaaS Subscription Cost
SaaS Subscription Cost
Signup and view all the flashcards
Business Process Alignment
Business Process Alignment
Signup and view all the flashcards
Pre-Packaged ERP System
Pre-Packaged ERP System
Signup and view all the flashcards
ERP Management Consultants
ERP Management Consultants
Signup and view all the flashcards
Private Cloud Hosting
Private Cloud Hosting
Signup and view all the flashcards
Data Migration
Data Migration
Signup and view all the flashcards
Manual and Paper-based System
Manual and Paper-based System
Signup and view all the flashcards
Private Cloud Hosting Costs
Private Cloud Hosting Costs
Signup and view all the flashcards
Scalability and Flexibility of Cloud Hosting
Scalability and Flexibility of Cloud Hosting
Signup and view all the flashcards
Data Migration Costs
Data Migration Costs
Signup and view all the flashcards
Fluctuating Usage Costs in Private Cloud
Fluctuating Usage Costs in Private Cloud
Signup and view all the flashcards
Challenges of Migrating from Manual to Digital System
Challenges of Migrating from Manual to Digital System
Signup and view all the flashcards
Study Notes
ERP Implementation at ABC Mining Company
- ABC Mining Company (ABC), a public sector mining company, experienced operational inefficiencies in operations and sales processes
- The company's corporate office lacked an integrated information system, resulting in delays in dispatching orders, stock shortages, and extended machinery repair times
- ABC's top management identified lagging processes as a key concern impacting customer satisfaction and potentially losing market share
- The managing director tasked Raj Guru, General Manager of Production, with implementing an Enterprise Resource Planning (ERP) system
- Guru teamed with Sheila Rai, Senior Manager of Information Technology & Services, to develop the ERP implementation proposal
- The project's complexity was enhanced by ABC's unique practices and status as a public sector company
Setting of the Company
- Raj Guru started working at 6:00 AM on May 15, 2016, aiming to work through late-night hours for ERP initiatives
- Guru worked for 15 years at ABC in various mining projects
- Having rich operational understanding of the requirements, he was entrusted with the ERP initiative
Background of ABC Mining Company
- ABC was established in 1956 by the Government of Odisha, operating as a major mining company exploring and selling iron ore, manganese, and chromite
- Annual revenue reached US$50 million in 2015-2016 with projected growth to US$100 million in the next few years
Business Processes
- Mining Process: Ore extraction at Mining Centers (MCs) followed by processing and storage in Regional Warehouses (RWs). Daily reports are sent to Regional Offices (ROs) which ultimately reports to Corporate Office.
- Sales Process: Customers submit orders 30 days in advance; 30% deposit is needed with the remaining payment due upon delivery.
Procurement and Vendor Selection
- ABC uses a three-stage procurement process for goods and services above $20,000 for bias-free quality and cost-efficient choices
- First, pre-qualification criteria ensure financial stability, experience, and compliance with relevant regulations
- Second, technical proposals are evaluated to assess the vendor's approach and technical expertise.
- Third, financial proposals are opened, compared to the lowest bidder and a total score from both technical and financial elements is used to select the vendor. The highest scoree vendor gets to negotiate on terms of reference.
ERP Landscape
- ABC's competitors operate with either bespoke ERP software or established pre-packaged software
- ABC currently employs minimal IT infrastructure, relying on paper records for data storage
- Concerns about data security and control of processes, potentially leading to ERP implementation challenges
- The consultants suggested a private cloud option as a compromise between on-site and cloud-based, balanced in security, flexibility, and cost.
ERP Implementation Dilemmas
- ABC's board had concerns regarding costs, operational impacts, IT resources, and project success
- The board asked questions regarding the impact and cost of ERP implementation on operational performance.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers the ERP implementation process at ABC Mining Company. It highlights the operational challenges faced by the company, the integration needs of its information systems, and the team's strategy for ERP deployment. Test your understanding of the steps and considerations involved in successfully implementing ERP in a public sector organization.
