Case Analysis Report:

ERP Implementation at
ABC Mining Company
Introduction
ABC is a public-sector mining company operated as a major mining
company in the eastern part of India. It had acquired mining leases from
the Odisha state government and had undertaken exploration,
processing and sale of mineral ore such as iron ore, manganese ore and
chromite. Although the company seems to have a strong market
demand despite its competitors, it still has to fulfill the increasing
customer demands to grow its revenue and hit their target revenue
growth for the next 3-4 years. The inadequately integrated information
systems of ABC was their major concern which basically affects the
operations and sales of the company and would mean probable loss of
customers in the long run. With these problems at hand, the
management opted for ERP system implementations that they hoped to
solve all concerns and to quickly respond to challenges specifically with
the information systems.
STRATEGIC ISSUE/PROBLEM
IDENTIFICATION

Slow sales and distribution process .

Lack of IT Infrastructure

Poor manufacturing management

Poor inventory management

Need of proper selection of Enterprise Resource Planning (ERP) software that is

efficient and effective
ALTERNATIVE COURSES OF ACTION

Alternative 1: Pre-packaged ERP Alternative 4: Customized ERP

System on-premises deployment System on-premises deployment

Alternative 2: Pre-packaged ERP Alternative 5: Customized ERP

System public deployment System public deployment

Alternative 3: Pre-packaged ERP Alternative 6: Customized ERP

System private deployment System private deployment
RECOMMENDATIONS
Alternative 2: Having a Customized-designed ERP System.

It provides features and functions of what the companies really need and
processes can be automated without causing large modifications to the
company's workflow and can easily migrate for future upgrades and portability in
the long-run and because of its on-premise deployment only users or people
within the organization can access the data and information, thus it make it
highly secured. Furthermore, customized ERP system can be easily adaptable
because the software system is built based on the organization’s needs and
business practices which means that the employees has already a knowledge of
what the new software system would look like unlike the pre-packaged which is
built in standard practices in the industry where employees must adjust their
practices based on it.
RECOMMENDATIONS

Indeed, Customized-ERP systems need more time to be fully completed

and high initial cost, however, this fully customized ERP system gives
substantial results such as increase in revenue and low cost in
upgrading the system when the organization has some changes in their
business system in the future. On the other hand, in order to minimize
the initial cost of customized design ERP, the ABC Mining can tactically
use the option to only integrate the important modules of the company
that solves directly to the current operational problems of the
organization such as IT, Production, and Sales.
IMPLEMENTATION/ACTION
PLAN

Objective 1: To address the customer dissatisfaction because of the long PO

process that leads to low sales of the company and also delays on dispatching of
mining orders.

Objective 2: To address the issue of long turn-around time for Heavy

Equipment and Machinery Status breakdown due to slow pace of information
flow.
ACTIVITIES/PROG PERSON COSTS/ DURATION MEASURE OF POSSIBLE
RAM IN BUDGET SUCCESS/FAIL OBSTACLES/IMPEDIM
CHARGE URE ENTS

"
ERP Custom-Based Team of The At most 6 Almost 100% Uncontrolled Condition,
Implementation: IT Costs/Budget months to 1 completion/attain Slow Connection, Data
Profession Details of this year ment of objectives Availability
als and activity/Progr including the
ITS Staff am can be Transitional
in seen in the Phase
coordinati Appendix
on with: Table. Employees/Users Some employees would be
Extensive training of can apply the hesitant to attend trainings,
employees who will use Users of 1 month knowledge thinking it would be waste
the ERP system on the the system they’ve gain in of time.
basics and advance their day to day
knowledge of job with minor
computers including mistakes.
MS Programs and all
relevant skills needed.

Data Migration through 2 Full 1 month Every record was Absence of the Data Entry
Digitalization wherein Time Data digitized and Operators which can cause
digital records were to Entry entered into the delay in the accomplishment
be uploaded to the Operators system. of tasks
system.

Information on the Production If the system Availability of Slow connection at some

processed mineral ore is Staff in is completely data on the Mining Centers and
to be inputted at Processing operating, it Regional Offices Processing Plants due to its
designated Processing Plants will be remote location
Plants after the data on displayed in
quantity mined is real time.
recorded at designated
Mining Centers.
Verification of the Production Immediately All necessary If some data are lacking
information inputted in Staff in the as soon as documents are from the MC and PRP
the system and directly Regional data from the attached w/out which consumes time and
report to the Corporate Office MC and PRP constraints repeat process if necessary.
Office the status of the is complete.
mineral ores processed.

Corporate Office then Corporate As soon as The process takes Uncontrolled Events by the
notifies the customer Office possible less time of Company such as
when the mineral was Staff - when there is completion Calamities.
ready for pick-up at a particularl communicati compared to the
specific Regional y from on from the manual process
Warehouse location. Sales PD Staff at
Team Regional
Office.

Final Invoice to be Corporate A day after Receives Full

delivered/sent to the Office the customer Payments on an
customer through mail Staff - gets its orders order
which then pays the particularl
remaining 70% balance y from
Sales
Team

Post-implementation Team of As long as Minimal turn- Costly and maybe IT

maintenance - Maintain IT the system around time on Professionals will require an
IT infrastructure and Profession needs solving increase for their services
provide support to the als maintenance maintenance offered.
ERP application. and support problem as it
arises
ACTIVITIES/PROGR PERSON COSTS/ DURATION MEASURE OF POSSIBLE
AM IN BUDGET SUCCESS/FAI OBSTACLES/IMPEDIME
CHARGE LURE NTS

ERP Custom-Based Team of IT At most 6 All heavy Uncontrolled Condition,

Implementation: Profession months to a machinery and Slow Connection, and Data
als and ITS year including equipment were Availability
Staff in the entered into the
coordinatio Transitional system.
n with: Phase

Extensive training of Users of 1 month Employees/User Some employees would be

employees who will use the system s can apply the hesitant to attend trainings,
the ERP system on the knowledge thinking it would be waste
basics and advance The they’ve gain in of time.
knowledge of Costs/Budget their day to day
computers including Details of this job with minor
MS Programs and all activity/Progr mistakes.
relevant skills needed. am can be
seen in the
Data Migration through 2 Full Appendix 1 month Every record Absence of the Data Entry
Digitalization wherein Time Data Table. was digitized Operators which can cause
digital records were to Entry and entered into delay in the accomplishment
be uploaded to the Operators the system. of tasks
system.
Input in the system all Production If the system Availability of Slow connection at some
the available Equipment Staff at is completely data on the Mining Centers and
and Machinery with Processing operating, it Regional Offices Processing Plants due to its
complete details as to Plants will be as well as to remote location
the date of purchase, displayed in Corporate Office
where it was purchased, real time.
property number, years
used, history of repair,
its current status and all
other relevant
information.

Post-implementation Team of IT As long as the Minimal turn- Costly and maybe IT

maintenance - Maintain Profession system needs around time on Professionals will require an
IT infrastructure and als maintenance solving increase for their services
provide support to the and support maintenance offered.
ERP application. problem as it
arises
Thank you for listening!