Rolls Royce Case Study

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Change is modification of a structure or process of a system, that maybe good or even bad. It disturbs the existing equilibrium or status quo of an organanization, or various other parts of an organization in varying degrees of speed and significance, this is further explained in reference to the Rolls Royce Case Study:

When change takes place to due to external forces it is called a reactive change. This can be achieved by applying an Enterprise Resource Planning (ERP) to achieve a positive result. Parties concerned include: purchasers, contractors and manufacturers, especially for supply chains. A critical factor to eliminate failure is planning and pre testing the temperament of an ERP. In the past, business measured competition on the price and quality. The inclusions of the following systems are critical for supply chain units to operate in harmony, they include: new technology, electronic data exchange (EDI), Manufacturing Resource planning (MRPII), enterprise resource planning (ERP). The implementation of ERP in business since the early 90’s has reduced costs, be highly implemented and maintain high quality standards. (Lucas et al., 1988).

SAP (Systems, Applications and Process in Data Processing) became the common denominator for most businesses to integrate the organizational processes by using one common language.

The real time concept “R” variable within SAP, evolved since the birth of SAP, with an intention of having a high end business solution. This approach was to address both software and application needs of the business. Rolls Royce ventured into a few company acquisitions before analyzing its abilities in gaining a commercial enterprise. The company found a secure niche in the US markets, allowing the business to be deemed as great stakeholders for aerospace and defense industry. This iconic revolution resulted in the implementation of initiating a well structured organization to meet customer requirements.

Rolls Royce attempted over 1500 internal systems to co ordinate and meets the needs of the company; however this was unsuccessful, and resulted in high costs, poor quality, and a disconnected work structure.

MERLIN, MRPII were in-house systems that was designed to a composition of effort with IBIS (Inventory based instructing system) measured against the accurate financial reports as a successful end – end business solution in supply chain processes, was another failed attempt. In trying to keep abreast and aligned to advanced technology. The system did not allow for information sharing between the internal and external drivers of the business (namely, the suppliers, customers and partners). In the late 90’s Rolls Royce, considered EDS (Electronic Data Services), as an outsourced business partner to assist them in meeting their IT objectives within the aerospace business. The company then adopted a procumbent structure in line with the customer focused business unit and the production based units, with the overall control decision making taken from business. Transformation and implementation of new technology affects certain areas of the business. The first contact to change in an organizational process, are the employees. The discretion and tact that management that the business poses determines the successful implementation and sustainability of the change. Training needs were identified to address implementation of new system, included both change management and knowledge based training. This transition from a client server (Rolls Royce) system to a seamless system, SAP R3.

Cultural difficulties impacted on business process automation. The highly qualified project team of professionals from EDS was assigned to manage the system and facilitate technical training and to the management and support the end users. A robust system such as SAP R3 works in conjunction with ABAP (Advanced Business Application Process) to support the available resources. The transition was to...
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