Metalco Company Overview Discovers develops produces and processes
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Metalco Company Overview Discovers, develops, produces and processes mineral products 1995 Sales Revenue of $2. 2 billion Assets $6. 0 billion 6, 300 Employees Most operations are in Australia
What is ERP ? ERP - Enterprise Resource Planning Use common database for all business functions. (Sales, Accounting, Inventory) Typically Client Server Architecture although moving to a Web based format.
Legacy System Manufacturing DB Sales DB Accounting DB
Example ERP Sales Manufacturing DB Accounting
Benefits of ERP Common information throughout business Information is easier to access Ability for real-time decision making In theory “easier to maintain systems”
Risks Poor track record (TOS) $23. 5 MM - significant expenditure Technical uncertainty IS Infrastructure risk
Reasons for Implementing Achieve economies of scale Support global business operations Reduce extraneous workforce Improve data integrity $60 MM over 5 years
Metalco ERP Decision Adoption Criteria 1. Does the SAP proposal have the ability to support multiple sites with differing functions and cultures? 2. Will the SAP system’s standardized business processes and work methods provide a benefit to Metalco? 3. Has the selection process of SAP been rigorous? 4. Can Metalco afford the estimated $23. 5 million dollar investment in SAP?
Critical Success Factors Senior management support. Involvement of all stakeholders in the implementation process. An internal technical person that facilitates the process.
