Pak Elekron Limited Case
Pak Elekron Limited: ERP Problems
October 9, 2014
MGAC70H3 F
Danielle Punit 999006597
Dongwei Chen 999097329
Introduction
This is the case of Pak Electron Ltd (PEL), an international manufacturing company based in Pakistan, which is undertaking a drastic overhaul of their information systems. Their two main operating divisions are Power and Appliances, where equipment is delivered to companies in both the public and private sectors. As a result of the two divisions, many of the business processes were developed independently. Previously PEL was using various legacy information systems, such as Visual FoxPro and Visual Studio 2003/2005, for their various business processing (i.e. manufacturing process) and planned to transition to Oracle EBS, an enterprise resource planning (ERP) system. While implementing Oracle EBS, it is evident that PEL has had a very difficult transitioning period. Issues including high staff turnover, cash flow deficiencies, inaccurate financial reporting and being a company with a global presence made it more difficult to implement and integrate the new ERP system with the company’s existing Legacy applications.
Key Stakeholders and Motives
Both the CFO and CIO of PEL understands that data entry is a huge component of the business and hopes to see it become more streamlined with the implementation of Oracle EBS. Once business operations are streamlined, the added efficiency and reduction of errors may provide a boost to company performance and help PEL with competing against rival companies. The new chief financial controller also wants to see the quality and timeliness of data entry and overall business operations to improve through the use of Oracle EBS. The financial controller is understanding of the fact that with a new ERP system comes a new set of skill requirements and as a result, he wishes to focus on team development and training for both current and new employees in the use of the Oracle EBS
October 9, 2014
MGAC70H3 F
Danielle Punit 999006597
Dongwei Chen 999097329
Introduction
This is the case of Pak Electron Ltd (PEL), an international manufacturing company based in Pakistan, which is undertaking a drastic overhaul of their information systems. Their two main operating divisions are Power and Appliances, where equipment is delivered to companies in both the public and private sectors. As a result of the two divisions, many of the business processes were developed independently. Previously PEL was using various legacy information systems, such as Visual FoxPro and Visual Studio 2003/2005, for their various business processing (i.e. manufacturing process) and planned to transition to Oracle EBS, an enterprise resource planning (ERP) system. While implementing Oracle EBS, it is evident that PEL has had a very difficult transitioning period. Issues including high staff turnover, cash flow deficiencies, inaccurate financial reporting and being a company with a global presence made it more difficult to implement and integrate the new ERP system with the company’s existing Legacy applications.
Key Stakeholders and Motives
Both the CFO and CIO of PEL understands that data entry is a huge component of the business and hopes to see it become more streamlined with the implementation of Oracle EBS. Once business operations are streamlined, the added efficiency and reduction of errors may provide a boost to company performance and help PEL with competing against rival companies. The new chief financial controller also wants to see the quality and timeliness of data entry and overall business operations to improve through the use of Oracle EBS. The financial controller is understanding of the fact that with a new ERP system comes a new set of skill requirements and as a result, he wishes to focus on team development and training for both current and new employees in the use of the Oracle EBS