Enterprise information systems project implementation:

A case study of ERP in Rolls-Royce

Submitted by:-
Vishal Kumar
Apoorv jaitly
 INTRODUCTION

Enterprise
Resource Planning
(ERP) is an integrated
computer-based
system used to
manage internal and
external resources,
including tangible
assets, financial
resources, materials,
and human resources.
ERP allows the corporate management of a
business, and aims to integrate individual functional
systems such as manufacturing, finance,
procurement and distribution.
ERP uses Internet technologies to integrate the flow
of information from internal business functions as
well as information from customers and suppliers.
The system uses a relational database management
system, within client/server network architecture, to
capture valuable management data. The key
principle behind the system involves entering the
data from a series of modular applications only
once.
ERP systems offer companies the following three
major benefits:
Business process automation.
Timely access to management information.
Rolls-Royce Case
study
 COMPANY BACKGROUND
This case study conducted at Rolls- Royce investigating
the implementation of ERP (SAP) is discussed.
Rolls-Royce, a world-leading provider of power systems
and services for use on land, at sea and in the air, has
established a strong position in global markets - civil
aerospace, defense aerospace, marine and energy.
Rolls-Royce today has a broad customer base
comprising more than 600 airlines, 4,000 corporate and
utility aircraft and helicopter operators, 160 armed
forces, more than 2,000 marine customers, including
70 navies, and energy customers in nearly 120
countries, with an installed base of 54,000 gas
turbines.
Annual underlying revenues were 15.1 billion in 2015,
of which about half came from services revenues.
THE SITUATIONS BEFORE
ERP
Rolls-Royce used 1500 legacy systems before
ERP project was started.
These legacy systems were difficult decision
making and performance assessment.
Rolls-Royce implemented another system
MERLIN, which stands for mechanized
evaluation of resources, logistics and inventory.
MERLIN often had difficulty communicating with
another manufacturing system named IBIS, IBIS
was an older manufacturing system that was
used at the Bristol and Antsy facilities.
 IT AT ROLLS-ROYCE
In 1996 Rolls-Royce formed a partnership with
electronic data services (EDS). The Rolls-Royce IT
department was outsourced to EDS, which meant
that EDS were responsible for the development of
the companys IT systems.
Rolls-Royce implemented ERP PROJECT consists of
a management team of specialists from the external
outsourcing company EDS.
In conjunction with this each has its own ERP
planning team, which is responsible for
implementing working changes and training.
The project implementation problems can be
grouped into three areas...........
1. Cultural Problem
2. Business Problem
3. Technical Problem
Cultural problems

New function might not get the full appreciation the

legacy systems once had.
Implementation of new system require training which
cost is very expensive.

Business problem
ERP are rigid and difficult to adapt to the specific
workflow and business process ,this is cited as one of
the main problem for implementation .
Cost of switching old system to new system is very high .

Technical problem

Accuracy of data
Duplication of data was a major concern
Implementation of ERP
in Rolls Royce
Suite Implementation
Suite 1
Plan the supply chain:
The supply chain capacity was compared to the range of
possible sales scenarios
Master schedule key programmes:
The sales and operating review board (SORB), makes
decisions affecting changes to achieve capacity.
Suite 2
Plan and schedule the factory:
This converts the agreed schedule from suite 1 into a
production plan.
Schedule the shop:
This converts the production plan into a detailed shop plan.
Suite 3
Operate the Factory:
It control of workflow through the shop from the initial
generation of launch paperwork, right through to delivery of
finished products.
The ERP pilot

The purpose of the pilot was Initial problem Experienced:

to demonstrate: User authorisation problems
business principles Transaction problems
processes occurred from the first MRP
procedures run
Route cards were unavailable
role definitions and
behaviours Values between the systems
software, hardware and data were incorrect, so
transfers comparisons were made on
Creation of New Roles:
the values from the legacy
system with those on the
MRP controllers
new system
Capacity owners
 The Go live
The Process goes as follows
The data must be kept in a stable state for a period of roughly 10
weeks.
The initial data to be transferred includes some transaction data and
master data
If any changes occur to the data on the old systems after the transfer,
they are logged and then passed through to the new system
Running the ERP system to initialise the whole system.
The whole Go Live process took roughly 2 weeks to complete, and
during this time the new system was off the air.

Project Risk
The non-delivery or non-availability of reliable IT hardware and
infrastructure both before and during implementation
Possible failure to give ERP adequate priority due to the number of
existing and ongoing business improvements.
Possible failure to cut over to the new system through an inability to
load data.
 Conclusion
Increased orders from the market place, and also from the fact
that ERP has become a standard solution world-wide within the
Aerospace and Defence industry.
Rolls-Royce produce a range of quality world class turbine
engines, and have recognised that they must change in order
to compete effectively with their competitors.
Accurate information systems and direct communication with
suppliers are vital when offering customers a committed
promise to deliver.
The partnership with EDS has produced a sound architectural
framework for the project, thus allowing Rolls-Royce to
concentrate its efforts on manufacturing turbine engines.
Managing effective relationships and leading teams in both
technical and non-computer based environments.
refrences
http://www.sapphiresystems.com/en-us/solutio
ns/enterprise-resource-planning/
https://www.rolls-royce.com/about.aspx
https://www.scribd.com/doc/73815843/Case-St
udy-on-ERP-Implementation-Rolls-Royce
http://www.academia.edu/4486322/4_Rolls_R
oyce_ERP_Implementation_Tim
https://www.umassd.edu/media/umassdartmo
uth/businessinnovationresearchcenter/publica
tions/erp_rolls-royce.pdf
THANK YOU