Case studies of Success and failure of ERP Implementations - MRP, MRP II, ERP

TL;DR

Success and failure of ERP implementations in Cadbury Dairy Milk and Hershey's.

Transcript

hi all welcome to this course on ppc today we will be learning about erp implementation erp implementation with a case study where which was successful and which was a fail so we are including two case studies over here one is of a success story which is of cadbury dairy milk and the second one is the same milk chocolate but of a different company ... Read More

Key Insights

• 🥺 Successful ERP implementations can lead to reduced operational costs and improved marketing reach.
• ❓ Failures in ERP implementations can result from unrealistic timelines and inadequate testing.
• ❓ Integrating legacy systems with ERP solutions like SAP can enhance operational efficiency.
• ⌛ Timing cutovers during slow business periods can minimize disruptions and provide more time for training.
• 😃 Hershey's oversqueezing of implementation schedules and big bang approach caused ERP failure.
• 👨‍💼 ERP implementations require careful planning, testing, and consideration of business periods for successful integration.
• 🙈 ERP can be a tool for growth and efficiency when implemented correctly, as seen in Cadbury's case.

Questions & Answers

Q: What is ERP and why is it crucial for businesses?

ERP, or Enterprise Resource Planning, is vital for companies as it integrates various business processes like production, marketing, inventory management, and sales into one system, enhancing efficiency and data management.

Q: How did Cadbury Dairy Milk benefit from implementing SAP ERP 6.0?

Cadbury Dairy Milk saw reduced operational costs, improved marketing reach, and integrated legacy systems with SAP's master data management solution, leading to increased efficiency.

Q: Why did Hershey's ERP implementation fail?

Hershey's ERP implementation failed due to oversqueezing implementation schedules, using a big bang approach, sacrificing system testing, and scheduling cutovers during busy seasons, causing customer service and order fulfillment issues.

Q: What are the key lessons learned from ERP implementations in Cadbury and Hershey's cases?

Lessons include avoiding unreasonable timelines, ensuring thorough system testing, scheduling cutovers during slower business periods, and not sacrificing testing for expediency to prevent operational disruptions and performance dips.

Summary & Key Takeaways

• Cadbury Dairy Milk's successful ERP implementation with SAP reduced operational costs and improved marketing reach.

• Hershey's failed ERP implementation led to customer service, warehousing, and order fulfillment issues.

• Lessons learned from ERP implementations: Avoid unreasonable timelines, prioritize system testing, and schedule cutovers wisely.