Erp implementation at maruti suzuki ltd

Erp effectuation at maruti suzuki ltdMaruti Suzuki ltd. was established in 1981 in India as and since its establishment Maruti Suzuki ltd has been leader of the Indian car market. It is a subsidiary of its parent confederation Suzuki Motor Corporation of Japan. Maruti Suzuki Ltd is the largest selling passenger car ships alliance in India and controls more than 45% of the Indian car market. The follow is headquartered in New Delhi. On 17th September, 2007 Maruti Udyog Ltd was renamed to Maruti Suzuki Ltd. It has two manufacturing plants in India atomic number 53 is in Gurgaon and the other is in Manesar. Both units when combined can produce around 500000 units per annum. Till now the company has a portfolio of 15 passenger vehicle. It is listed on BSE (Bombay Stock Exchange) as well as NSE (National Stock Exchange).What is ERPEvery automobile company today has a very large amount of selective tuition to deal with. If the data is not integrated and is not avail adequate to(p) in consolidated form and at one place, it is very demanding for the users to entre the data. ERP (Enterprise Resource Planning) is a basically a software tool for integrating the business as a whole with an mastermind of effective use of the anxiety resources to improve the efficiency and working of the organization. It is a tool that integrates all the divisions and functions of the organizations into a single software program which runs on a single database and facilitates information sharing and communication among the various departments of the organizations.Need for ERPEvery automobile company today has a very large amount of data to deal with. If the data is not integrated and is not available in consolidated form and at one place, it is very difficult for the users to access the data. In todays scenario, it is very important to share the data among the various divisions and departments of the organization in order to improve the efficiency and working. At every point or juncture, the information can be viewed and can be accessed. ERP is as well used to integrate the value chain activities in the automobile industry. Enterprise Resource Planning too plays a major role in managing the inventory as it is one of the most important aspect in the automobile industry. Operational excellence is too achieved with the help of ERP. Thus, ERP has now become a necessity and need in the automobile industry and in companies like Maruti Suzuki ltd.IntroductionMaruti Suzuki Ltd. usesPre ImplementationBefore go foration of the ERP, the company used to depend upon its home grown, disparate systems to manage its business. But these systems were inefficient and were not able to communicate with each other and and then needed a lot of manual work like entering data multiple times. And it was very difficult for the staff to generate the results and reports. There was a insufficiency of control over processes. The company also added four new business sectors in 20 02 which also required constant attention and human intervention and thus making it difficult to manage the system. Also, before implementing ERP company faced problems like poor information quality and huge turnaround time. There was no trustworthy time access to information which made it difficult for the company staff to access and obtains the latest, updated and correct information.Strategies for ERP implementationMaruti Suzukis Chief General Manager Rajesh Uppal said that the company was looking for an expandable and a flexible system that can be easily managed. Thus this will lower down the complexity of the system (IT environment) and also would reduce the dependence on some people to handle and manage the system. By implementing ERP there will be a single standardized prophet platform and thus will also help the proper scaling of the system. The company adopted a phased migration strategy from its old legacy systems to the seer E Business Suite.Post ImplementationThere wa s a smooth transition from the old legacy systems to the newly adopted prophesier E Business Suite. The company selected Oracle Consulting to determine the companys requirements, to design the system, to develop the project plan, to deploy the software, to manage the parties involved and finally to provide the three months post implementation support to the company. The rearing programs were also designed for the employees. Under the training programs the user manuals were provided. There was also Train the Trainer program and Train the super users program under the educational activity programs.Financial InsightThe company observed that with using the old multiple systems, there was lack of control over the data and information quality and processes. It was difficult to manage finances and the divisions lagged behind each other. But with the implementation of the E Business Suite, Maruti Suzuki was able to standardize on a single financial management platform. Standardizatio n helped the company to keep and maintain tight control over the Accounts payable, accounts receivable and comprehensive general ledger. Also the efficiency improved and there was little confusion with the introduction of the standardized data formats and processes. Rajesh Uppal (Chief Manager IT) said that the completed the year end close on time without any hitch.HyperionThe company has been using Hyperion software for the last two years. It has been used to analyze the budgets across Marutis nine subsidiaries. It also helped the company to conduct financial reporting in compliance with the generally accepted accounting principles (Generally Accepted Accounting Principles) in India. The system is integrated with the Oracle Financial and is now being used by 10 (approximately) budgeting staff in the companys finance department. It has helped the company to improve their forecasts and also enabled Maruti to quickly respond to the changes in the market conditions thus enhancing the ir competitiveness. Hyperion can be easily integrated with the Oracle Financials Module.ProcurementOracle Purchasing was employ by Maruti to handle the procurance of the services, goods and indirect consumables. Before implementing this Purchasing system, the companys subsidiaries either depended on spreadsheets or used the elementary or of import system to handle the process thus leading to rise in costs and excess of inventory. The major changes this system brought in the company was the cost diminution and better inventory management. It also helped to reduce the number of vendors thus reducing the costs. An automated workflow sends purchase orders along the chain and keeps the staff aware of the procurement activity. It has provided working staff the capability to track the process from order to payment.HR Workforce ManagementMaruti was quick enough to discover that the systems they were using were not able to manage the employees. Thus it felt the need of a single integrate d system that could easily help them to manage the human resources. After the implementation of the Oracle Human Resouces module, Maruti observed that it had a better control over the functions such as leave and compensation management, payroll, recruitment and training and staff development. As the information is stored in a single database, the system enabled the staff to access the entire history and the details of the employees. Oracle self Service HR was also implemented which freed the HR staff from elementary duties (like changing details and addresses of employees). Thus, it helped Maruti to hire good quality people.Future PlansAfter the success of the HR, Procurement and Financials modules, the company can implement the Oracle Advanced Supply Chain Module and Oracle Enterprise Asset Management. The company can integrate more of its processes with ERP systems. This would help the company to access the real time information across all the different departments and divisions of the company.