MRF Madras Rubber Factory Essay

Solutions and Services Implementation Highlights Time-frame: 9 months, strict adherence to time-schedules Top Management’s support Highly dedicated team Comprehensive change management SAP ERP success story MRF Limited MRF Limited is engaged in the manufacturing, distribution and sale of an extensive ange of superior quality tyres for various kinds of vehicles. The company’s operations relate to manufacture of rubber products, such as tyres, of applications. MRF has six production facilities in India and around 80 sales offices. From its humble origins in 1946, the company has come a long way to become the market leader in the tyre manufacturing industry. MRF exports its products to over 75 countries worldwide. Today, global tyre manufacturers have to plan and adapt to changes in customer demand, fluctuations in raw material prices and availability, while keeping pace with timelines for shipments; in the face of increasing ompetition in the global marketplace. The Need for SAP Before becoming an SAP customer, MRF was running several outmoded legacy systems that could no longer keep up with the company’s expanding operations, and, as a result, the company was plagued with inefficiency. Problems of slow availability of information, tedious manual entry and data transfer, lack of system flexibility, excess manpower utilization and costs started to have a negative impact on the business. Consequently, the company was spending a lot of time in consolidating the information, getting the data together, and on time. It did not take long for MRF to know that it had to replace its nonintegrated, independent systems if it wanted to gain strategic insight and higher productivity to manage rapid business growth. The company wanted a flexible solution to allow IT to keep pace with changes while offering a low total cost of ownership. MRF decided to reengineer its entire IT landscape by implementing SAP ERP and SAP CRM solutions, based on the SAP NetWeaver platform. A Core Team called the Power Users team was formed to determine the requirements of the company and the selection of a suitable ERP olution. MRF brought in IBM Global to facilitate the process and the Core Team was sensitized to the process of reengineering. The company did a detailed evaluation based on various criteria such as experience in the manufacturing sector and product-offerings; Oracle and SAP were short listed. MRF participated in a SAP summit which helped the company to take the final decision. â€Å"SAP came out on top in terms of product superiority, post-sales support, and record customer satisfaction. We were confident that SAP will support our plans for continued growth,† says Prince Azariah, Chief Information Officer, MRF Limited. SAP offered a clear solution for MRFs manufacturing operations which include process as well as discrete production. â€Å"We have moved onto a mature product with SAP. We have made a very good decision in selecting SAP,† adds Sathya Gautham, Manager IT Services. Implementation MRF chose Siemens Information Systems as the implementation partner after a thorough selection process. The project went live on December 1, 2007. There were around 60 members from MRF and 35-40 members from Siemens involved in the implementation process. The core team nd the partner’s team worked in full collaboration, while ensuring that the implementation was carried out according to time schedules. â€Å"One of the complications was that our systems were in silos. Change management has been a big challenge,† says Gautham. There were many instances when MRF looked to SAP India and SAP Labs for assistance and support during the implementation. SAP ERP has been implemented at the company’s Head Office in Chennai, 6 factories in Sales Offices. MRF went in for all core modules including Financials and Controlling (FICO), Sales ; Distribution (SD), Materials Management (MM), Production Planning PP), Quality Management (QM), Plant Maintenance (PM), Human Resources (HR), and SAP NetWeaver Business Intelligence (SAP NetWeaver 81). Today, there are around 700 users who have accepted the implementation in a positive manner. Benefits With SAP ERP, the company has one harmonized, standardized and integrated solution. The solution has enabled MRF to transform its business operation management from time consuming and inflexible to real-time and adaptable. The users can now count on easy access to accurate, complete, and up-to-the minute information, thanks to entralized, integrated data. This has led to quicker decision making and improved business transactions for MRF. SAP is the best thing that has happened to MRF,† Sathya Gautham, Manager IT Services The implementation of SAP has brought in a major shift in the work-culture in the company. â€Å"The core team was clearly aware that they are responsible for creating their future. Earlier, we were a top-driven company. Now, we have close to 60 personnel at the middle management level who have been empowered to take business decisions, and who are advising top management on what needs to be done o set up processes in the company. There is so much of enthusiasm among the core team members and the end-users. Also, we used to be a very silo-ed company. With SAP, the Heads of different Departments look to these people for resolution of problems.