CONSENTIMIENTO INFORMADO

A few years later, AgriCo has made significant organisational changes that include a new hiring of several executive positions, most of them hunted from competitors. The

new executives criticised information systems in AgriCo: more specifically they accused the existing ERP product of not meeting business needs compared to the ERP product that was used by competitors.

A few executive members discouraged the notion of implementing another ERP product. Alternatively, it was suggested to invite an existing ERP vendor to conduct a comprehensive health check, which would ensure that the existing ERP could fill existing requirements gaps and resolve all issues. The outcome of the health check confirmed that there was no need to change to different ERP vendor. Alternatively, it was suggested by the health check team to combine all deficits and issues to be tackled under new project. In addition, it was suggested that this team was not led by IT and the PM should be appointed from the business side. “AgriCo future” was the chosen name of the project to reflect its strategic importance. The project was led by the general manufacturing manager who held a degree in industrial engineering, majoring in operations research. He had five years of experience in a competitor company to AgriCo. Table 5.14 summarises the project objectives, while Figure 5.13 explains the project structure.

Table 5.14 „AgriCo future‟ objectives No Objective

1 Monitor company performance. 2 Reduce the cycle times.

3 Capture more revenue opportunities. 4 Improve inventory visibility and accuracy.

The PM assumed his responsibility along with his normal day-to-day activities. He led the coordination efforts among the various stakeholders including IT department, ERP consultants, functional managers and the CEO. Project tasks were divided in to three phases, based on their priority and urgency as per the Table 5.15 below.

Table 5.15 Priority list of the AgriCo future project No Phase Activity

1 I Identify and finalize all the company KPIs that will be measured and monitored in the ERP

2 I Address and solve all the issues raised in the assessment report (100 issues)

3 I Arrange for ERP training to refresh the end-users knowledge and maximize the system usage effectiveness for the current implemented functions

4 I Identify and finalize all the company KPIs that will be measured and monitored in the ERP

5 I Address and solve all the issues raised in vendor assessment report (100 issues) 6 I Arrange for ERP training to refresh the end-users knowledge and maximize the

system usage effectiveness for the current implemented functions

7 II Implement Process Manufacturing and Mobile Supply Chain Applications 8 II Implement Business Intelligence

9 III Implement Advanced Procurement Modules (i-supplier, i-procurement, Sourcing and Services Procurement)

10 III Implement Projects and Project contracts 11 III Implement i-Recruitment

All deficits, issues and problems were combined in a complete list. The PM, with the assistance of IT and ERP consultants, started acting on items in the list where the PM had to obtain the approval from the functional managers and resolve their issues if they still had any. The PM faced continuous difficulties in convincing functional managers to accept implemented ERP parts. Functional managers always claimed that they need proof that developed changes reflect best practices. It was a norm that functional managers always requested new ERP changes before accepting previous ones. Sometimes the PM accepted these unplanned changes for the sake of obtaining acceptance from users for completed tasks.

The implementation record does not show formal acceptance for all implemented parts, although it was in production for long time. Several challenges evolved during the implementation process; the first challenge was the costing method that the company should agree to use for the system configuration. It took the team more than

Sales Invoices - Asset Management

One of the key challenges noted was that software needed to be developed to capture sales data before it could be entered into financial modules. It was found that sales outlets were not interlinked with any computer system and there is no mechanism to aggregate sales transactions from sales points. As a result, a new software application had to be developed to capture all sales transactions from sales outlets to ERP in a timely manner to eliminate the off-the-record manual entry.

Asset management can be seen as another challenge due to the surprising discovery that enormous assets were not recorded in the system. It was found that the practice only to record basic asset data without a breakdown.

Status Review

Executive reviews detailed the implementation status of each module and provided updates of the deadlines and the issues faced by the team. Table 5.16 demonstrates an example of the status review.

The main comment made by the CEO during the project review meeting is the availability of system reports that allow him to visualise the company overall performance. The project reviews were attended by the CEO and all executive staff.

Table 5.16 Sample Status Review Report Applications Current Status Remake

AR Completed by November 2009 It required a lot of customization to reach to end user satisfaction

HR Completed by December 2010 The reason for extending the deadline is the late approval of HR policy

Inventory Completed by August 2010 It was ready since February 2010, but business owner doesn't start

OPM Setup completed,

Dairy Processing Go Live 1st December 2010

- Unexpected long setup time - Some delay from the Implementer - Date Factory setup is completed, just need new go live date 1st Jan 2011 Budget Completed - General enhancement requested from

Budget team

- The setup completed according to finance view.

Agriculture Project

Pending/Postponed No available application can fit with our requirement without a lot of customization, The best available application is very expensive and requires a new license OM Completed, Started from 1st of

August till mid of August, then postponed till 09th October 2010

- Unexpectedly long setup time

- Long-time taken from sales to test Auto order through Rout pro (then cancelled). - Need to setup another solution. - Then, final setup is completed EAM - Supply Chain EAM:

completed.

- Dairy Plant EAM postponed till Q1 2012

- IT team advise us to start the implement EAM for the dairy plat after upgrade to next release. - Expect to complete by Q1 2012 DBI HR – Completed. Finance – Completed Supply Chain : – Purchasing – completed. - Inventory – completed - Order Management (Standard) – Completed

- Order Management (Standard) – On going

- There was an error in the application (delayed the project 4 months) - Also, there is a delay from the implementer

There was no formal closing for the “AgriCo future” project, however the IT department announced that the 2012 plans consisted of ERP improvements including complementing parts of the “AgriCo future” project activities. The status of the implementation is demonstrated in table 5.18. The overall technical and application set-ups were completed for all tasks but the use of the system varies due to different reasons that may be summarised in table 5.17.

Table 5.17: The final Status Review this research Investigated

Applications Request Current Status Remake (Reason/ completion Time frame)

AR Aging Report Completed

AR Manuel Daily Receipt (standard) Completed

AR Auto Daily Receipt (customize) Completed

Budget Control on Purchase Requisition Completed - The setup completed according to

finance view.

- Hold by purchasing and requested

new setup which can‟t achieve by the application.

- Need final agreement between

both departments.

Fixed Asset Improving the existing

Application in Dairy Processing

-General analysis done. -Data Sheet completed -Ready for implementati on with R12 Q1 – 2012

Purchasing Improving the existing

Application)

Many issues solved and improved

Agriculture PR New approval hierarchy Completed

DBI – GL Cash Flow Statement Completed

Agri – OM Implement OM for Daily Agri

sales activities

Completed Go Live from 7th May 2011

ROUTPRO/ERP Completed

General There was too many reports

requested from different users get developed in the system

5.4.2 Analysis - AgriCo Case