ERP Implementation for Steel Industry
Critical Success Factors and SAP ASAP
Critical Success Factors
Analyzing SAP ERP's success in Steel Industry
Case Study: Tata Steel
Case Study: Jindal Stainless Ltd.
In order to eliminate the problems associated with legacy systems, a new breed of software systems, called Enterprise Resource Planning (ERP), was created. These systems provide a single source of data with designed integration between different functional modules (for example, Accounting, Sales and Distribution, Materials Management, Production planning, etc.). These ERP systems are customized using the table-driven customization method, which provide a common set of data source to the whole organization. Due to table settings instead of old-fashioned hard-coded program logic, new and changed business requirements are rapidly implemented and tested in the system. There are various ERP products available today for example from SAP, Oracle, PeopleSoft, JD Edwards, Salesforce.com, Baan, Microsoft, and HP to name a few. With hundreds of companies implementing the ERP systems to make their business more efficient only few are very successful in implementing them. According to a survey done by Gartner only 60% of companies implementing ERP system claim they got expected benefits. In general an implementation is considered successful if it is done within budget and time with meeting all the preset implementation goals as measured by ROI, etc. Also, it is important to understand that delivering an ERP system on time and budget doesn’t make sense if no one in the company uses it. In any ERP implementation lots of variables are involved like personnel (business side, technical side, support side, users), implementation partner (for e.g., IBM, Accenture, Cap Gemini, Delloite, Wipro, independent consultants, etc.), software and hardware vendor (SAP, Oracle, QAD, Peoplesoft, JD Edwards, Baan, Salesforce.com, Baan, HP, Microsoft, etc.), and implementation strategy. With so many things coming together in a matter of few months to a year or so for implementation it is important to know the critical factors for success and failures of an implementation. This project is a study in depth of SAP ERP implementations at Tata Steel to determine critical success factors and what needs to be done and what mistakes to avoid for a successful implementation. About SAP
SAP AG founded in 1972 is the world’s largest Enterprise Resource Planning (ERP) software with 82,000 customers / 91,500 installations / 12 million users in 120 countries. The SAP system comprises of a number of fully integrated modules: * Financials
* Human Resources
* Customer Relationship
* Management Supplier
* Relationship Management
* Product Lifecycle Management
* Supply Chain Management
* Business Intelligence
These modules or solutions, as SAP would like to call them, cover virtually every aspect of business management. SAP provides standard business application software which reduces the amount of time and money spent on developing and testing all the programs.
Literature review is divided into two sections: ASAP Methodology, Critical Success Factors ASAP Methodology
SAP ERP implementation is the group of processes that defines a complete method to implement SAP software in an organization. The two methodologies used to implement SAP ERP are Conventional and ASAP. Conventional methodology also known as SAP Procedure Model was widely used initially. In recent past years SAP Procedure Model has been overshadowed by the ASAP methodology as implementations with later methodology are fast and provide flexibility. Most of the companies implementing SAP ERP system use ASAP methodology with the exception of very large companies with revenues in...
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