Pak Elektronic Limited
Case Report
Pak Electronic Limited: Converting Systems to ERP
Executive Summary
Pak Elektron Limited (PEL), a large manufacturer of consumer home appliances and power transformers, initiated an information system conversion to a Tier 1 enterprise resource planning (ERP) system in 2007. After the Phase I of implementation by 2011, Pak Elektron was facing a liquidity crisis that hindered implementation of further modules. Legacy systems were still being widely used, and staff had grown uncomfortable and resistant to change.
The contents of this case report include problem identification, decision criteria evaluation, alternative analysis, and recommendation. Those aforementioned sections will address Pak Elektron’s problems in their project management, their budget forecasting and planning, their financial support, and their human resources and information system implementation. Based on those problems and our analysis, four alternatives were identified, and the option of a Phased Module ERP implementation was recommended.
Pak Elektron Limited (PEL) had over a hundred different systems being used internally, mostly in-house developed stand-alone applications, with some multi-user applications interspersed. Independent operations and systems promoted the lack of integration and standardized reporting, as well as poor quality and timeliness of data. Beginning in 2007, PEL had started converting its information systems to Oracle’s EBS Tier 1 ERP system.
Problem Identification
Project Management:
Since the resignation of Atif Ameen, PEL has lacked a project champion with extensive experience in IT operation and system implementation. In addition, the estimated implementation period had extended beyond the proposed 2 years, which has increased cost and economic uncertainty for the company.
Budget Forecasting and Planning:
PEL had poor budget forecasting and analysis, which resulted in insufficient short-term assets to support the purchasing of
Pak Electronic Limited: Converting Systems to ERP
Executive Summary
Pak Elektron Limited (PEL), a large manufacturer of consumer home appliances and power transformers, initiated an information system conversion to a Tier 1 enterprise resource planning (ERP) system in 2007. After the Phase I of implementation by 2011, Pak Elektron was facing a liquidity crisis that hindered implementation of further modules. Legacy systems were still being widely used, and staff had grown uncomfortable and resistant to change.
The contents of this case report include problem identification, decision criteria evaluation, alternative analysis, and recommendation. Those aforementioned sections will address Pak Elektron’s problems in their project management, their budget forecasting and planning, their financial support, and their human resources and information system implementation. Based on those problems and our analysis, four alternatives were identified, and the option of a Phased Module ERP implementation was recommended.
Pak Elektron Limited (PEL) had over a hundred different systems being used internally, mostly in-house developed stand-alone applications, with some multi-user applications interspersed. Independent operations and systems promoted the lack of integration and standardized reporting, as well as poor quality and timeliness of data. Beginning in 2007, PEL had started converting its information systems to Oracle’s EBS Tier 1 ERP system.
Problem Identification
Project Management:
Since the resignation of Atif Ameen, PEL has lacked a project champion with extensive experience in IT operation and system implementation. In addition, the estimated implementation period had extended beyond the proposed 2 years, which has increased cost and economic uncertainty for the company.
Budget Forecasting and Planning:
PEL had poor budget forecasting and analysis, which resulted in insufficient short-term assets to support the purchasing of