Pak Elektronic Limited

Case get crossways Pak Electronic Limited Converting Systems to ERP Executive synopsis Pak Elektron Limited ( pel), a large shaper of consumer home appliances and power transformers, initiated an information outline conversion to a Tier 1 enterprise resource planning (ERP) arranging in 2007. After the Phase I of carrying into action by 2011, Pak Elektron was facing a runniness crisis that hindered effectuation of further modules. bequest outlines were still being widely utilize, and supply had grown uncomfortable and resistant to change.The table of contents of this case report include chore identification, decision criteria evaluation, alternative analysis, and recommendation. Those aforementioned sections provide address Pak Elektrons problems in their forcing out precaution, their budget forecasting and planning, their monetary support, and their gentleman resources and information system execution. Based on those problems and our analysis, four alternatives w ere identified, and the cream of a Phased mental faculty ERP implementation was recommended.Pak Elektron Limited (picture element) had over a hundred different systems being used internally, aboutly in-house developed stand-alone applications, with roughly multi-user applications interspersed. Independent operations and systems promoted the lack of desegregation and standardized account, as well as hapless theatrical role and timeliness of data. jump in 2007, picture element had started converting its information systems to prophesiers EBS Tier 1 ERP system. Problem Identification Project precaution Since the resignation of Atif Ameen, pixel has lacked a upchuck champion with extensive experience in IT operation and system implementation.In addition, the estimated implementation stage had extended beyond the proposed 2 years, which has increase cost and economic un veritablety for the company. compute Forecasting and Planning PEL had poor budget forecasting and analys is, which resulted in inadequate short-term assets to support the purchasing of necessary equipment, training costs, and consultancy costs. Financial issues PEL set about a short-term liquidity crisis, and did not have the pecuniary means for enough system implementation. To mitigate this, some bound loan repayments were re anatomical structured in 2010 to conserve hard cash flow in response to the liquidity crisisHuman Resources Staff were resistant to a systems change. naked as a jaybird sciences were compulsory, which meant that facultys expertise with the legacy systems were inconsequential. Morale was low, which resulted in experienced staff leaving the company. Likewise, the IT part encountered a mismatch between current and needed skill set, resulting in new hires and increased send duration collectible to this transition. Salary discrepancies with overaged staff and new hires besides resulted in high turnover within the IT department Information Systems Imple mentation The implementation play was ineffective and inefficient.PEL needed to spend spear carrier resources to run parallel implementation, as many system functions were not supported. Evaluative/decisiveness Criteria Cost infrastructure, systems, implementation, maintenance (40%) Cost is the most important decision criterion for PEL. collect to the numerous financial problems that the company has experienced, including a liquidity crisis, it is important that the proposed dissolving agent is cost-efficient with regards to infrastructure support, purchasing new systems, implementing systems, and supporting(a) system maintenance.Integration among rail line silos and processes (35%) PEL has 25 branches in Pakistan, therefore, communication between the branches and with the interchange database is necessary. The solution needs to support or improve the integrating of as to quit PEL to shorten the time required to obtain effectual information for well-timed(a) decision-ma king. In addition, the solution needs to associate up all the branches with the central database in a better network structure as to reduce the internal email traffic. Quality and accuracy of data (10%)The proposed solution needs to address PELs earlier problems of double-entry, frequent reconciliations, and otherwisewise issues matter toing the quality and accuracy of data. Ideally, the solution exit both mitigate the systems that impede quality and accuracy, detract them, or improve them. Effective and seasonable implementation (10%) Un posted changes in business operations lead to disruptive structural changes during systems implementation. Such changes cigarette add complexness and deferred the progress, which means longer the time of implementation and higher risk of failure.The proposed system will need to be effective and incidentally with regards to implementation to mitigate this risk. Real-time and useful financial reporting (5%) This criteria addresses PELs nee d for the system to create a more real-time and useful financial reporting system that is standardized across the organization in order to adjoin reporting standards, and promote greater financial decision making. Alternatives 1. Phased Module ERP implementation PEL is being stretched thin many res publicas imputable to external factors, and their broad- base systems implementation plan, which was demonstrated in Phase I.Within Phase I, they took a sprightliness at 18 different systems, and but managed the implementation of five. PEL needs an ready action phase-it-in strategy as to cerebrate all of its implementation into the financial reporting visionary suite. The organization has 5 systems utilise further implementation in this area will be more efficient and time-efficient. Furthermore, following this implementation, all legacy systems with regards to financial reporting will be removed, and the last out of the project will be re-assessed until implementation of other b usiness suites is feasible. 2.Recall Oracle system, and plow a look at other module and ERP options General ERPs, like Oracles EBS system, share a similar weakness they are make for ecumenic organizations, and therefore may not accommodate a change fit. PEL has other options with regards to systems implementation and selection, such as developing custom ERP software based on the current legacy system that disrupts the business model as forgetful as possible. PEL behind also purchase and implement separate, more specialized suites such as Salesforce for CRM, a profane based accounting system for financial reporting (Wave), amongst others.It terms of cost, this is an pricey option as customized ERP software is extremely expensive and requires development time. Purchasing psyche modules for certain business functions will also be more expensive than a general system due to reduced software system savings. A customized ERP system will divine service the silos reintegrate more efficiently due to more in-line processes supported within the system. Customizable modules would ideally improve efficiency of each individual silo. 3. Full rollout of ERP modules Implementation of Phase II and III Budget is the biggest constraint in this option.However, this will ensure unspoilt migration forward from legacy systems, and will address the concern of generating standardized reports and ensuring data quality. Although data integration may be achieved, PEL should expect high resistance from staff. With full rollout, PEL has the options of a. Hiring/developing in-house expertise to lead implementation of Phase II and III b. Re-hiring AFF testimony Systems conversion risks could have been mitigated had PEL properly planned the ERP migration. Project management was poor and did not assess the full needs and requirements of the company as a whole.Alternative 1, Phased Module ERP implementation, is the best option for PEL. in one case the financial systems have been pr operly use (whether in-house or through consultants), PEL burn then take a form strategy and reassess their situation. If the long-term implementation of the finance suite is successful, then they can move forward with reduced employee resistance. If the changes in productivity are minor, PEL can choose to avoid implementing systems in other business functions, and avoid disruption the silos. The goals of integration and timeliness of data will be achieved.