Professional Documents
Culture Documents
Presented By: Ashish Agarwal (121115) Manasi Puranik (121130) Shuchi Bhatnagar (121154) Aditi Sharma (121165)
Many were flavoured with vanilla and given luxurious-sounding names like LeRoi de Chocolate, Petit Bouquets and Chocolate Croquettes. Chocolate segars and cigarettes were also quite popular.
The sales of Hershey which were at US$ 334 million in 1969 grew to US$
4.94 billion by 2006. As of 2006 the company has 14,300 employees. It also has diversified into a pasta manufacturing.
In 1999, Hershey failed during the final leg of the ERP implementation
Delay in implementation by 3 months from April to July. A decision that changed the fate of Hershey Big Bang implementation of ERP Revenues dropped by 12% in 1999 from last year.
In order words, most corporations dont fail so dramatically the first time, so their repair is never so good
Steve Sawyer, Professor, Information Science and Technology Pennsylvania State University
What is ERP ?
In ERP solution there is only one database that is used by all departments, such as Sales, Production, Finance and Accounting, Maintenance and Engineering, Purchasing, etc. ERP applications contain several modules. Each module consists of the best business practice that can be implemented for the company. ERP helps to break down barriers between departments within a company.
By utilizing an ERP system, all departments have access to the up-to-date information that is needed to operate smoothly within any manufacturing environment..
Implementing ERP
Implementing ERP
In early 1990s, Hershey, like most of the other companies, used legacy mainframe systems for different functions ranging from human resource to order processing. In 1996, Enterprise 21 project was approved. Hersheys information system division wanted to implement ERP by April 1999 to face Y2K problem at the turn of the century; to enhance competitiveness and to enhance customer service. They implemented Bar coding as a part of this project across the products.
Expected Benefits
Tackle Y2K problem.
IT Partners
SAP AGs R/3 Enterprise Resource Planning Suite
IT Partners
SAP included modules for finance, purchasing, material management,
module.
Manugistics provided software for transport management, production, forecasting and scheduling.
Actual Implementation
January 1999 Some of the modules were implemented (SAP Financial, Warehousing, Material Management, purchasing)
July 1999 Implemented all the Modules using Big Bang Approach
billing
Sales order
delivery
warehouse
The Problems
17
Unentered Data
12
15
Consequences
Who really was culpable in this situation? Was it Hersheys management for not realizing that its business sales period probably was not the best time to activate the new ERP system?
Wrong timing
Unrealistic deadlines
(April 99)
Results
Lost halloween sales
Complexity
SAP R/3
CRM (Siebel)
Inexperienced Management
Bouncing Back
George Davis appointed CIO Rigorous initial testing program implemented Process redesigned, July 2001
Implemented successfully:
Duration- 11 months Costs- 20% lesser than estimates
Bouncing Back
Immediate benefits were experienced
Thank you!!