Transcript Siemens ERP Implementation Hirt & Swanson (2001)

Siemens ERP Implementation
Hirt & Swanson (2001)
Nuclear fuel assembly manufacturer
Engineering-oriented
Siemens Power Corporation
• 1994 Began major reengineering effort
– Reduced employees by 30%
• 1996 Adopted SAP R/3 system
– Replacement of IS budgeted at $4 million
• Some legacy systems retained
Siemens Modules
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FI
CO
AR
AP
MM
PP
QC
Finance
Controlling
Accounts receivable
Accounts payable
Materials management
Production planning
Quality control
Implementation
• To be led by users
• Project manager from User community
• Consultant hired for IT support
– IS group only marginally involved
Project Progress
• Oct 1996
Installed FI module
• Sep 1997
Installed other modules
• On time, within budget
Permanent Team
• Made project team a permanent group
• Project manager had been replaced
– 2nd PM retained
• SAP steering committee
• SAP project team formed
SAP steering committee
• 7 major user stakeholders
– Guided operating policy
– major expenditures
– major design changes
SAP project team formed
• 15 members from key user groups
• part-time
– Trainer
– User help
– Advisors to middle management
Training
• End users became more proficient with time
– Average of 3 months to learn what needed
• Management training took longer
– Management didn’t understand system well
– Often made unrealistic requests
Operations
• During first year
– Major errors in ERP configuration
– Evident that users needed additional training
– New opportunities to change system scope
suggested
• Two years after installation
– R/3 system upgrade