ERP Implementation at ABC Mining Company
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Questions and Answers

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 ______'.

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.

pre-configured

Guru engaged two experts, Nathan Das and Aakash ______, to assist with the ERP project.

<p>Kamble</p> Signup and view all the answers

Das and Kamble were known for their consulting services to ______ sector companies.

<p>public</p> Signup and view all the answers

ERP computer terminals in MC, PRP and RO locations were spread out in remote ______ locations.

<p>mining</p> Signup and view all the answers

The cost of each VSAT link along with its router was ______ per year.

<p>US$750</p> Signup and view all the answers

Desktop computers compatible to install ERP professional licenses were suggested to be purchased for ERP ______.

<p>users</p> Signup and view all the answers

The SaaS model gained success in catering to the resource planning requirements of small and medium ______.

<p>enterprises</p> Signup and view all the answers

The SaaS model required the user organization to pay a monthly ______ fee.

<p>subscription</p> Signup and view all the answers

The monthly subscription fee for SaaS-based ERP deployment for each developer user was ______.

<p>US$100</p> Signup and view all the answers

The recommended subscription fee for each professional user was ______.

<p>US$50</p> Signup and view all the answers

Users accessed their data through ______ browsers in the SaaS model.

<p>web</p> Signup and view all the answers

Information related to mining stock and accounting of MCs and PRPs was maintained by the respective ______.

<p>MCs</p> Signup and view all the answers

Copies of these files were physically dispatched to ROs by the ______ employee at the MCs.

<p>PD</p> Signup and view all the answers

Once the information was verified at ROs, an employee from each RO traveled to the ______ for attending weekly update meetings.

<p>CO</p> Signup and view all the answers

To purchase mineral ore from ABC, a customer was required to place an order at least ______ days ahead of the desired delivery date.

<p>30</p> Signup and view all the answers

An advance of ______ percent of the transaction amount was required to confirm the purchase order.

<p>thirty</p> Signup and view all the answers

Once the mineral batch(es) were picked up by the customer from the warehouse, CO was required to raise a final ______.

<p>invoice</p> Signup and view all the answers

Based on these details, the customer paid the remaining balance to CO via check or online ______ account transfer.

<p>bank</p> Signup and view all the answers

The entire sales process currently took a month, which was significantly more than that taken by its ______.

<p>competitors</p> Signup and view all the answers

The extracted ores were sent for processing to the ______.

<p>MC's</p> Signup and view all the answers

Ore is mined at MC and transported to ______.

<p>PRP</p> Signup and view all the answers

Information on quantity of mined ore is recorded at MC and that of processed ore is recorded at ______.

<p>PRP</p> Signup and view all the answers

Customer picks up the material from ______.

<p>RW</p> Signup and view all the answers

RO verifies information on mined, processed, warehoused and dispatched ore and reports to ______ on a weekly basis.

<p>CO</p> Signup and view all the answers

The output from these processing plants was then stocked at their corresponding ______.

<p>RW</p> Signup and view all the answers

The PD employee kept track of information on incoming and outgoing material and reported to ______ daily.

<p>RO</p> Signup and view all the answers

ABC had managed its operations using manual and ______-based systems.

<p>paper</p> Signup and view all the answers

The FA department used a desktop-based financial accounting system installed on three stand-alone ______ computers.

<p>desktop</p> Signup and view all the answers

Embarking on a risky project such as ______ implementation presented a giant leap for ABC.

<p>ERP</p> Signup and view all the answers

ERP systems emerged as disruptive technological systems at the beginning of the ______ century.

<p>21st</p> Signup and view all the answers

These software systems provided the opportunity for organizations to centrally manage their ______ and processes using real-time information.

<p>resources</p> Signup and view all the answers

Failure of ERP projects is not uncommon when firms overlook key factors such as ______ and stakes associated with ERP projects.

<p>costs</p> Signup and view all the answers

In a developing nation scenario, poor infrastructure facilities, cost affordability and cultural barriers add more challenges to ______ initiatives.

<p>ERP</p> Signup and view all the answers

Guru and Rai studied ERP-related IT investments made by ABC’s ______.

<p>competitors</p> Signup and view all the answers

One of their closest competitors, XYZ Mining Co, was using a custom-designed ______ system.

<p>ERP</p> Signup and view all the answers

The cloud option facilitated the load balancing of the ERP server capacity based on ______ patterns.

<p>usage</p> Signup and view all the answers

The pricing plan in this type of deployment is ______.

<p>competitive</p> Signup and view all the answers

Private cloud hosting costs include components such as virtual machine costs, database storage costs, and data ______ costs.

<p>transfer</p> Signup and view all the answers

The estimated cost for inbound and outbound data transfer is approximately US$______ per month.

<p>15</p> Signup and view all the answers

The private cloud option might not face major IT ______-related challenges.

<p>infrastructure</p> Signup and view all the answers

ABC had the practice of storing all information in ______ format in paper files.

<p>physical</p> Signup and view all the answers

The first step in data migration was ______.

<p>digitalization</p> Signup and view all the answers

Two full-time data-entry operators were required to accomplish the data ______ tasks.

<p>migration</p> Signup and view all the answers

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.

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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.

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