Multinational Automobile Company

Business of company : The company is a large multinational company diversified in many areas like electronics, consumer durables etc. It is planning to enter in automobile business in collaboration with a leading Japanese automobile manufacturer. The manufacturing operation will start with SAP system.

Justification for an ERP solution: The automobile division is planning to handle about 40,000 components. It has plans to expand dealer network across developing countries in Asia. An integrated ERP system will help to plan and control manufacturing and distribution activities of automobiles and their spare parts.

Justification for SAP implementation: SAP provides integrated solution for manufacturing, distribution and finance activities. Implementation of SAP MM-WM module with SD module helps in keeping inventory at optimum level and provides high labour efficiency. SAP provides collection of the best management practices in the world. Since operations of the division are to start with SAP package, SAP can be implemented without re-organizing business activities or without major modifications in SAP provided features.

Implementation Approach: Emphasis was on maximum utilizations of SAP provided features and minimum modification of the system. SAP provided reports were used instead of writing ABAPs for customized reports. The approach was phasal approach.

• First phase includes broad analysis of business processes and decision about ERP package. ed.
• Second phase was requirement analysis phase. Close look was given to the business processes identified in the first phase. Gaps were identified broadly and alternatives were studied. Gaps were resolved by selecting the best alternative.
• Third phase was Design phase. Business processes identified in the second phase were mapped with SAP transactions. SAP system was configured as per the requirements. SAP enhancement, if required was done. Integrated testing was done and the prototype was presented to user management.
• Forth phase was implementation phase. The system in production area (Production client) was configured as per design phase. End user training was conducted. System integration testing was done.
• Fifth and final stage was post implementation early support. Minor problems which cropped up after implementation were resolved and integrated testing was done.

Major Constraints:

• User representatives were not familiar with English. Hence interpreter was always needed for any communication with user.
• Time available for implementation was hardly sufficient. Working late hours was necessary to keep project on time.

Results: All the phases of the project completed on schedule. The deliverables were ready in prescribed format on the schedule date. The project manager guided consultants timely for producing deliverables and motivated the team members to put in long hours to complete the work on schedule.

Conclusion: This project clearly demonstrates the role of motivation and timely guidance regarding structure of deliverables (documentation) in SAP project implementation.