PRESENTED BY

GROUP-7V I V E K KU M A R A G R AWA L 2 0 3

VA I B H AV B A N S A L 2 0 7

B H U P E S H S I N G H C H A N D E L 2 0 8

K R I S H N A D E E P G U P TA 2 1 2

K R I T I G U P TA 2 1 3

A B H R A J I T KU N D U 3 2 3

ERP IMPLEMENTATION AT KODAK INDIA PVT. LTD.

Agenda

1 •Introduction to company and industry

2 •ERP implementation process at Kodak India

3 •Architecture & Costs

4 •Change management & BPR

5 •KPIs, Benefits & takeaways

Introduction

Established in 1892 by George EastmanKodak India Private Ltd. Established in 1913Leader in ImagingPresence in US, Europe, Middle East/Africa, AsiaProduct ranges from digital still and video cameras

and related accessoriesTop industry competitors, e.g. Canon, Sony, Nikon,

Panasonic, Konica, etc

Need for ERP at KodakIntegration of systems

Timely availability of data

Real time consolidation

One instance of an application addressing

multiple areas

Functional Silos

COBOL/FoxPro based multiple systems

Problems in consolidation of month

end financial statements

Delay in availability of data

State before ERP

Desired state

ERP Implementation at Kodak India

Fourth-Shift ERP implemented in 1989 (following the parent organization)

Issues – Manufacturing modules were COBOL/FoxPro based legacy applications

As a result: No unified database for manufacturing Lack of integration adversely affected the whole supply chain Material procurement (Invoicing, POs) etc. was manually done Unable to generate correct POs and give it to supplier

Further Volumes were increasing rapidly resulting in pressure on

inventories, MRP and GRN Reconciliation was too much time consuming

ERP Implementation at Kodak India

Mid 1990’s: 2600 fragmented software applications, 4000

system interfaces

1996: Parent organization started planning for worldwide

implementation of SAP R/3

September 1997: The implementation started

2006: Implementation in Kodak India started

It took 12 months for implementation across the locations

ERP Implementation Process at Kodak

Vendor and Consultant selection

Reasons for selecting SAP R/3 Fit for it’s business requirements (niche softwares for non-standard requirements) Low cost of adapting software An integrated system which enables to operate on set

of global corporate dataReasons for selecting Infosys

It’s solution and delivery capabilities Improved time to market and predictability Reduced cost of implementation

Various Stages

The ERP teamDepartment Heads

Key users

External consultants (Infosys)

ERP Architecture

Location •Single location•Multiple locations in a country•Multiple locations across the globe

Connectivity issues

•No. and location of application servers•Low response time leads to user dissatisfaction

Statutory & cultural concerns

•Consideration of financial laws, tax codes, legal obligations in various countries•Need of different screens

Kodak has a single server in US and a back up server at a different location. only 1 instance of ERP for all locations

Costs associated with ERPCostsFixed

One time license cost

Depends on no. of modules of SAP ERP used

VariableDepends on no. of users

New user licenses

Maintenance costsPatches

Upgrades /Enhancements

Adjustments made according to tax changes

Change management & BPR

Change Management

• Highly complex change management due to size• Global scale of operations• Tax issues• Adoption of country specific version in India

BPR

• Objective: Reengineer processes to make them standard• SBU level activity• Processes mapped to SAP• List of processes needed to be standardized• Some gaps need not be plugged

Other key considerations

Role of CIO

• Part of the steering committee• Acts as a liaison between teams• Gives periodic updates to the top management

Need for audit

• Ensure processes are correct• Enable user sign off

Different ERP packages in an organization

• Single ERP for core function and other ERP packages can be used for additional functions

KPIs & Benefits

Benefits•Standardization•Reduction in man hours•Better processes

Adherence to commitment

Level of Process standardization

Improvement in productivity

Inventory Levels

User satisfaction

KPIs

Key takeaways

The drive for ERP implementation has to come from top

Planning is the most crucial stage of implementation

Users have to be involved at every stage, there should not be any surprises.

Clear communication is a must

Recommendations of users must be considered taking into account global application.

ERP should not be treated as an IT project

Acknowledgements & References

Mr. Rajiv Rajda – VP IS, Kodak India Pvt. Ltd.

A Process Change-Oriented Model for ERP Application - Majed Al-Mashari

The Phases of ERP Software Implementation and Maintenance: A Model for Predicting Preferred ERP Use - ALAN R. PESLAK, GIRISH H. SUBRAMANIAN, GEORGE E. CLAYTON

http://www.expresscomputeronline.com/20070528/manufacturingengineering01.shtml

http://managesapproject.blogspot.com/ http://

download.sap.com/platform/soa/customers/download.epd?context=529FE9716979113B1300A651892DE403E5EA47DEDD9D434AA29030862A5210E42FF8DC234C805FE7BCB06CF2BF04EA4DDFF9955502C09533

https://cw.sdn.sap.com/cw/servlet/JiveServlet/previewBody/6777-102-2-12230/SPHR08_EastmanKodak_APO.pdf

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