Rolls-Royce – Implementing Erp System and Overcome Issues

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Rolls-Royce – implementing ERP system and overcome issues

Yasuf, Y, Gunasekaran, A & Abthorpe, M 2004, ‘Enterprise information systems project implementation: A case study of ERP in Rolls-Royce, International Journal of Production Economics, vol. 87, no. 3, pp. 251-266.

Rolls Royce came into private sector in 1987 and became a partner with Northern Engineering Industries in 1989, after this year Rolls Royce show the capabilities of industrial power. Currently the Company holds number one position in the super luxury car segment in the world. Rolls Royce had several problems of controlling procurement, finance, logistics and distribution in the former system. The company no have a legacy to maintain system (Yasuf, Gunasekaran & Abthorpe 2004, pp. 251-266). The current system was not enough to provide accurate, consistent and accessible data in the company. The proper data is so important for decision making in the companies. It effects the decision making way. The current system is also not up to date, and has manufacturing problems as cannot adapt with newer manufacturing process system. The company trying to find new solutions for these problems and at the end decided to launch Enterprise Resource Planning also known as ERP.

Chang et al. (2008, pp. 928-942) ERP basically provides an organization a common single platform between internal and external functions (e.g. individual departments in the company and customers) Proper integration of ERP system has to be managed widely in the company; it is not just a software installation and integration in the company. This system targets to integrate the business process with a latest computer information system. It helps to integrate sections in the company such as Procurement, Finance, HR, Logistics, and Manufacturing. In this way, those individual departments swap their latest information with other departments under computerization system. Kremers and van Dissel (2000, pp. 53-56) states that ERP...
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