Analyzing the ERP Implementation at Pak Elektron Limited (PEL)

This case study examines the ERP implementation process at Pak Elektron Limited (PEL), a large manufacturer facing outdated information systems and a need for a Tier 1 ERP solution. The assignment analyzes the challenges PEL faced, including issues with the chosen implementation firm, data ...Read More

Running head: MANAGING INFORMATION SYSTEM
Managing Information System
Name of the Student
Name of the University
Author Note:

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Table of Contents
1.What should be included in Ahmed Plan to revitalize the ERP Project?.....................................2
2.Evaluate the implementation procedure and suggest procedure needed for improving the
implementation procedure...............................................................................................................2
3. Examine Exhibit 11, and elaboration of answer to problem.......................................................3
4. What are the objectives for investing in Advanced ERP Solution?............................................4
5. Do you think that choice of Tier 1 ERP was correct choice?......................................................5
6. What inference can be drawn by examination of Exhibit of 4, 5 and lastly 6 with respect to
PEL management?...........................................................................................................................5
7. Why was the MMS software so important?................................................................................6
References........................................................................................................................................7

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1.What should be included in Ahmed Plan to revitalize the ERP Project?
Ans: PEL stands for Pak Electronics Limited is known to be a large manufacturer of consumer-
based home appliance and large distribution of power transformer. It can be defined as
switchgear for power distribution in Pakistan (Laudon and Laudon 2016). In the year 2007, PEL
has started a process to make changes in their information system. The system in PEL has
become outdated as Microsoft has to withdraw the support of Visual FoxPro. This is a well-
known platform in which system can be easily developed. PEL has come up with plan to
implement Tier 1 ERP with strength in manufacturing appropriate modules. In September 2011,
Ahmed joined the organization like Financial Controller for streamline of financial reporting. It
requires inculcating a culture for real-time data. After taking the job he comes up with the idea of
streamline for the use of Oracle Financials (Zhang, 2016). The first thing that should be taken
into account is the transaction of large number of things on daily basis. For proceeding further,
he requires support for overcoming the technical issues. Apart from this, he also requires team
development and re-training needs along with problems.
2.Evaluate the implementation procedure and suggest procedure needed for
improving the implementation procedure.
Ans: A.F. Ferguson and Cooperation (AFF) has come up with proposal of completing the
implementation system in the last two years. The project was planned to be completed in three
stages. On 1st Feb 2010, AFF started the work with their team which is led by Irfan Faruqui, one
of them in charge of the project (Lin et al. 2016). Phase 1 of this project is mainly inclusive of
some core accounting functions like procurement, planning and management order, Modules for
Planning. It comes up planning module like AFF that has seven to five consultants. Proper

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training is provided by AFF which is inclusive of formal instruction led along with hand on-
work for the given functional areas. It is inclusive of list of components for each of the member
in the department staff (Acar et al. 2017). The 1st Phase of the implementation requires a large
number of modules along with procedural changes which are required to be understood by
various users.
AFF should follow a list of steps for successful implementation of ERP in PEL:
 AFF should identify the present issues in PEL in much better way.
 AFF should define the scope of the team members.
 AFF needs to brainstorm and evaluate the list of given option.
 There should be proper data migration that provides smooth transition and utilization of
software.
 AFF should look for checking some infrastructure so that all the steps of ERP
implementation which plays an important role.
3. Examine Exhibit 11, and elaboration of answer to problem
Ans: By August 2010, FDM (Functional Design Manual) were made almost completed and the
staff members are making preparation for manuals. It is made by making changes in the standard
manual for suiting the PEL needs (Altamony et al. 2016). Both implementation and training were
started in accordance with the legacy system for five modules that are account payable, general
ledger, purchasing and fixed assets and lastly cash management. After that, two new modules
that are order management and account receivable were started in parallel with it. A.F. Ferguson
and Cooperation (AFF) has come up with some normal strategy for software implementation.
Beginning with the modules, it was very much easy to make use of implementation strategy.

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Both data reconciliation and streamline of real-time process are required for regenerating values
(Nguyen, Nguyen and Nguyen 2015). It is expected to be generated from various modules that
are implemented. Proper roll out all different location helps in facilitating closure along with
consolidation to a single platform
4. What are the objectives for investing in Advanced ERP Solution?
Ans: There are large number of benefits of investing in Advanced ERP Solution in PEL (Pak
Electronics Limited) like
Making use of Business Data for improving and strengthening Security: At present,
ERP System tends to offer some advanced user permission for required setting. By the help of
Advanced ERP system excel sheets can be secured and Google documents can provide financial
and inventory needs (Gabriel et al. 2017). ERP System is considered to be more secure and
robust in nature. User can provide required permission which can prevent sensitive data ending
up from wrong hands. User can also only access the required information about the system.
Making use of Community knowledge and Support: At present, there is large number
business that makes use ERP based software. PEL is actively involved within their platform and
online community of knowledge (Shatat 2015). If an employee of this organization encounters
issues, then chances are there that someone might experience this too.
Application of Better Data for making better business decision: Poorly managed
business software can easily lead to messy and non-standardization of Data. It ultimately leads to
year-over-year comparison which is accurate in nature (Li, Chang and Yen 2017). This will
ultimately the overall process a bit difficult and time-consuming in nature. By the help of
advanced ERP system, all the required things can be integrated into the required application.

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5. Do you think that choice of Tier 1 ERP was correct choice?
Ans: ERP Tier 1 are nothing but solution that is basically SAP and Oracle. It has been designed
so that it can meet the need of Fortune 1000 organization. It is considered one of the best
software for managing complex business that comes with many departments and global locations
(Seethamraju 2015). Revenue of the given business is generally measured in billions of dollars.
TIER 1 based ERP Solution is built with complexity of process which is required to be kept in
mind. TIER 1 based ERP help various people to work on single function. The given software can
split the given task among various user. It is important for a billion-dollar organization like PLE
(Pak Electronics Limited) to be overwhelmed by given steps that come up with complexity.
TIER 1 ERP solution generally requires a much longer time for implementation. It is totally
equipped with large number of features that are provided at much higher price.
The decision is right for implementing TIER software that will suit PEL (Pak Electronics
Limited) was totally based on diversification of given process for manufacturing and sales. Only
Tier 1 software is supported in Pakistan can be used by SAP and Oracle (Shen, Chen and Wang
2016). The solution aims to provide certain number of good application which is required by the
business of PEL. The decision to make choice between Tier 1 aims to provide two products like
SAP R/3 and Oracle suite of business. There is mainly two kinds of SAP implementers that are
Siemens in Karachi and Abacus Consultant.
6. What inference can be drawn by examination of Exhibit of 4, 5 and lastly 6
with respect to PEL management?
Ans: With respect to PEL management, a large number of things can be concluded from Exhibit
4 like a list of software name account payable, asset management system, Cheque management

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system. All the software is designed in phase 1 of the planning. In the exhibit, we have come
across Legacy GL data Processing that comprises of three main systems like budget, SBT FRS
and Payable (Costa et al. 2016). From the legacy Sales tax system, we have come across eight
important parts like purchase, account payable, CSD, AR-AD, AR-CMD, AR-Generator, AR-
parts Ref and lastly AR- Parts Generator. The accounts payable comprises of two major parts
like Supplier and Debit and Credit Notes. The purchase system comprises of import bill entry,
local bill entry, debit and credit card notes (Nguyen, Nguyen and Nguyen 2015). CDS comprises
of only one thing that is sale invoice. AR-AD comprises of three things that are delivery note,
debit note and credit note by quantity.
7. Why was the MMS software so important?
Ans: PEL (Pak Electronics Limited) can be stated as an interim measure which is required for
developing a bridge known as Material Management System (MMS). It tends to work with
Oracle EBS suite (Laudon and Laudon 2016). There were some variations in the basic algorithm
for all in-house MRCS and processed Oracle EBS suite. It was mainly done for understanding
the manufacturing system. It is expected that the switchover from MRCS to Oracle
EBS manufacturing will be completed by the fiscal year (Zhang, 2016). MMS system was
developed so that it can create a bridge between existing process by providing a list of benefits
like
 Job- definition which can be both in-house and vendor.
 Billing of Materials.
 Proper function to easily manage the stock insurance to and from the floor of the shop.
 Job Management of Vendors
 Job costing of materials

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 Interface of inventory stock-based transaction back to Oracle EBS manufacturing.

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References
Acar, M.F., Tarim, M., Zaim, H., Zaim, S. and Delen, D., 2017. Knowledge management and
ERP: Complementary or contradictory? International Journal of Information
Management, 37(6), pp.703-712.
Altamony, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between change
management strategy and successful enterprise resource planning (ERP) implementations: A
theoretical perspective. International Journal of Business Management and Economic
Research, 7(4), pp.690-703.
Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M., 2016. Enterprise resource planning adoption
and satisfaction determinants. Computers in Human Behavior, 63, pp.659-671.
Gabriel, M., Martha, S., Diego, A. and Juan, L., 2017. ERP Systems Created to Support
Academic Management in Contexts of Geographic Dispersion: A Case Study in Regional Higher
Education. In ITM Web of Conferences (Vol. 9, p. 03014). EDP Sciences.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Li, H.J., Chang, S.I. and Yen, D.C., 2017. Investigating CSFs for the life cycle of ERP system
from the perspective of IT governance. Computer Standards & Interfaces, 50, pp.269-279.
Lin, Z., Yuegang, L., Jing, K., Zhanqun, S. and Andrew, B., 2016. Development of
Transportation Supervision Information System of Frozen Seafood Processing Enterprises Based
on ERP. Journal of Applied Science and Engineering Innovation, 3(1), pp.18-21.

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Nguyen, T.D., Nguyen, D.T. and Nguyen, T.M., 2015, November. Information systems success:
The project management information system for ERP projects. In ICCASA(pp. 198-211).
Springer, Cham.
Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning
(ERP) systems in small and medium sized enterprises (SMEs). Information systems
frontiers, 17(3), pp.475-492.
Shatat, A.S., 2015. Critical success factors in enterprise resource planning (ERP) system
implementation: An exploratory study in Oman. Electronic Journal of Information Systems
Evaluation, 18(1), p.36.
Shen, Y.C., Chen, P.S. and Wang, C.H., 2016. A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, pp.127-139.
Zhang, Y., 2016, June. Management information system. In 2017 2nd International Conference
on Machinery, Electronics and Control Simulation (MECS 2017). Atlantis Press.