Question

ERP group case analysis assignment:
my part of the requirements:
1)executive summary for the case analysis
2)The motivation for adopting an Enterprise system (ERP) within Cadbury
3)The benefits gained after the implementation of ERP system
4)concluding statements about the implementation of ERP in Cadbury

Cadbury case:

Our first successful ERP implementation case study focuses on Cadbury, a 123 year-old confectioner currently owned by American snack foods conglomerate Modelez International. The company was on an accelerated growth-track while facing problems meeting its production and distribution requirements.

Subsequently, SAP was engaged to resolve these concerns. Along with other significant changes triggered by the ERP implementation; multi-node resources-management was extended throughout its supply-chain, along with a complete revamping of existing warehouse, and distribution processes.

The consequent impacts afforded Cadbury an opportunity to reduce overall operating costs, while its newly engaged supply-chain, produced significantly better production efficiencies throughout its manufacturing chain.

Answer 1

1) Executive summary for the case analysis

Answer: The Enterprise resource planning (ERP) is the resource management solution for complex system having interactions on various departments (called as nodes). The departments are Purchase, Production planning and control, Maintenance, inventory, finance, accounting, customer relationship etc. It is a computerized system designed to connect all above departments as well as key portion of supply chain to single database for purpose of information sharing, resources allocation and control. While SAP is a software and backbone of complete system. The Cadbury’s case related to above information is explained in below points,

· Since ERP’s main function is planning of tangible resources for hassle free operation of plant. In Cadbury’s case, main resources are Raw materials, Manpower for production, Machine maintenance, Delivery of products and accounting (invoicing).

· The main issue in production they may have faced are (these are the very common issue in production plants,

· Not able to decide the lot size of raw material. This will create an issue for data feeding. If lot size are not matching with price, this may cause loss of revenue.

· Not able to centralized need of all departments.

· Training to employees:

· Not able to add vendors for automated billing.

· Problem in Data conversion and Data analysis.

· Frequent walk in shop floor for silly information.

· Many invoicing error.

2) The motivation for adopting an Enterprise system (ERP) within Cadbury

Answer: Below are the reason of adopting ERP:

· It is good to integrate the financial data as finance is having its own set of revenue numbers. ERP brings all numbers to one system. The cash flow from purchasing to delivery invoicing was made up very easy through ERP.

· Cadbury was able to maintain production equipment because of perfect production planning and control. The equipment were available as per the production down time.

· There were not any issue in calculations of dispatch and invoicing department.

· It helps to standardize the manufacturing process.

· It standardize the information available in different format in different department.

3) The benefits gained after the implementation of ERP system

Answer: Below are the potential benefit Cadbury gained implementing ERP

· With Multi-node resource management, Cadbury is able to get the accurate information of resources. The benefit of Multi-node is you can have a closed network at very small level of management. They also included their potential vendors and implemented ERP in their firm too. With this, they are able to see the stock in vendor’s house also. This reduces the inventory cost of raw material.

· As the inventory planning has improved, the warehouse capacity also overhauled. The operating cost and material management cost also reduced.

· The operating cost is reduced because they can plan the exact resources for the production. They knows how much to be deliver and how much time it will take. They have reduced all movement in plan as all information are available in computer system.