Presentation is loading. Please wait.

Presentation is loading. Please wait.

المؤتمر الثالث لتوزيع الطاقة الكهربائية 28- 29 /8/2012 سلطنة عمان An Evaluation of ERP Systems at Public Sector Adel S.Albarasi General Electricity Company.

Similar presentations


Presentation on theme: "المؤتمر الثالث لتوزيع الطاقة الكهربائية 28- 29 /8/2012 سلطنة عمان An Evaluation of ERP Systems at Public Sector Adel S.Albarasi General Electricity Company."— Presentation transcript:

1 المؤتمر الثالث لتوزيع الطاقة الكهربائية /8/2012 سلطنة عمان An Evaluation of ERP Systems at Public Sector Adel S.Albarasi General Electricity Company of Libya

2 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

3 ABSTRACT  GECOL:  General Electrical Company of Libya  State-Owned Enterprise (SOE)  Vertically - Structured Power Utility Company  Responsible for generation, transmission, and distribution of electric power

4 ABSTRACT  GECOL is expected to benefit from a state-of-the-art enterprise system From GECOL experience : Is ERP Viable System for P.S?. Requirements for ERP at GECOL

5  ERP Benefits at GECOL Are Evaluated and Validated According to the ERP Performance  Conclusions & Recommendations Are Reported ABSTRACT

6 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

7 INTRODUCTION In the past decade the business environment has changed dramatically due to :  Dynamic marketplace  New markets  Huge competition &  Increasing customer expectations

8  Lower costs in the compete supply chain  Reduce stock to a minimum  Enlarge product assortment  Improve product quality  More reliable delivery dates and services  Coordinate global supply & production INTRODUCTIONODUCTION The previous points put a tremendous demand on manufacturers to

9 INTRODUCTION  Therefore. companies have chosen among others to introduce ERP system as a strategic solution to face these demands.  The ERP systems that are utilized in the private sector are gaining acceptance in the public sector as well

10 INTRODUCTION The purpose of this research is to study the ERP system at Public Sector taking the General Electrical Company of Libya (GECOL) as a case study and evaluating the successes and failures of this implementation

11 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

12 RESEARCH PROBLEM lack of global and integrated information systems in the Libyan economic environment Most of the organizations are still particular hence, this research evaluates whether ERP systems, as being implemented at GECOL, represent a viable choice for Libyan Public Sector.

13 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

14 RESEARCH HYPOTHESIS The research hypothesis can be expressed as follow: ERP systems present a viable solution for business needs in P.S. provided they are planned, implemented and used correctly

15 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

16 RESEARCH OBJECTIVES Introducing and evaluating the benefits that can be gained from ERP utilization by GECOL. Presenting the project requirements for the GECOL environment. Justifying the need of ERP implementation by GECOL

17 RESEARCH OBJECTIVES Understanding the role of ERP in receiving and distributing knowledge. Clarifying the project need for re-engineering of business processes and operations to match system requirements at GECOL. Assessing the business users' satisfaction as well as their resistance for the ERP system. Generalizing the findings concluded from the GECOL case study to Libyan P.S

18 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

19 RESEARCH METHODOLOGY Face-to-face interviews with (SMEs) that include project managers, department heads, team leaders, and qualified stakeholders. Collection of data and information from the GECOL environment and the ERP system itself. Questionnaires to determine what SMEs and key business users think of the ERP system, the implementation, training, support etc.

20 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

21 ERP SYSTEM DEFINITION: “ Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions under a common software platform ”

22 What is pushing the organizations towards ERP? The threat of losing market share Foreign competition The need for restructuring P.S BPs ERP runs all enterprise

23 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

24 CASE STUDY

25 GECOL IFS PROJECT Company Objectives: Automate the processes in GECOL Standardize the processes Reduce the overhead of processes Provide tools for the Mgmt Improve HR Mgmt

26  Summary of users who have accounts on IFS system Table 1: number of users have IFS account UnitsNumber of users Finance397 Human resources and payroll487 Maintenance System (production)275 Maintenance System (Transmission lines)156 Maintenance System ( Distribution network)172 Procurement and stores503 Project Management System (CDA)130 total2120 Source: GECOL document GECOL IFS PROJECT

27 Use of modern tools Closing accounts in a timely manner Accurate cost accounting Provide precise indicators Flow of information Provision of structural evidence of finances Documentation improvement Control style improvement : The GECOL main assumptions of benefiting from the ERP implementation can be expressed in the following points:

28 Before the Implementation of ERP System in GECOL, The situation is: Manual procedures that slow down the business processes Non-integrated systems

29  The challenges that face the application of ERP system at GECOL can be summarized as follows :  Some users, do not know exactly what they  need from the system  Shuffling of employees between the departments

30  To understand actually what is behind ERP implementation 1.utilized data that is received from the ERP system directly and performed an analysis that can be summarized in the following:  Examined the movement of users within IFS system during a certain period of time for each module (finance - human resources – enterprise asset management) through: Determined the percentage of active users out of the total number of users during the same period. Classified users by position and by modules. Identified low-use segment of the system. Targeted this module segment. Identified problems and obstacles faced. Proposed and Recommended Solutions.

31 2. Face to face interviews were conducted with subject matter experts at GECOL The questions covered all areas related to ERP project Included GECOL business, technology, implementation, training, and support SMEs interview is considered in project management as a tool for information gathering or a technique for analyzing the case under study

32 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

33 RESULTS & DISCUSSION Results of monitoring the IFS users during the time period of 4 months Human Resources (H.R.) Finance Enterprise Asset Management

34 RESULTS & DISCUSSION Human Resources

35 RESULTS & DISCUSSION Financials

36 RESULTS & DISCUSSION Enterprise Asset Management

37 RESULTS & DISCUSSION  General Usage The total No. of IFS users 2120 Human resources 487 Finance 397 Enterprise Asset Management % = Average daily user’s over 4 months period % = Average non daily user’s over 4 months period.

38  Breakdown by Module Human Resources (H.R.) % of the averageAverage daily users Months 65.5 %319NOV %281DEC %317JAN %326FEB. 2010

39  Breakdown by Module Finance % of the averageAverage daily users Months 36.8 %146NOV %148DEC %143JAN %131FEB. 2010

40 Enterprise Asset Management  Breakdown by Module % of the average Average daily users Months 12 %151 NOV %140 DEC %154 JAN %168 FEB. 2010

41 From the tables above, it can be concluded that  64.0 % average Human Resources daily users  35.7 % average Finance daily users  12.5 % average Enterprise Asset Management daily users

42 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

43 DATA ANALYSIS &ASSESSMENT  The IFS modules were used only by certain percentages of business users at GECOL. only 12.5% of the Enterprise Asset Management models were used during a period of four months maximum rate was recorded with the HR modules where only 64% of them were used during the same period

44 DATA ANALYSIS &ASSESSMENT  The system was not used fully by the business users due to the following reasons: There is no clear job description for each user. These low percentages detected may be due to the improper allocation of the users. This means that more system authorities are given to non needed users. Data is collected in Excel sheet and then entered to the system in some area are not connected to IFS system. Some urgent failures are repaired immediately without referring to the system. There is lack of control from relevant departments on their own users to use the system.

45 DATA ANALYSIS & ASSESSMENT  The reasons that do not allow the system modules to be used fully may attribute to the following aspects:

46 DATA ANALYSIS & ASSESSMENT  Chang Management No overall change management framework Lack of a centralized repository for business issues and problems Lack of formal communication among the project stakeholders including, GECOL Organization’s leadership does not play an integral role in communicating important information to end users. Shuffling of SMEs and managers between different departments, projects and tasks.

47 DATA ANALYSIS & ASSESSMENT  Training Lack of business/system skills and awareness training programs users of the IFS system had received training to perform their job but they do not know yet what exactly IFS system means, or what its importance is or how their work may change

48 DATA ANALYSIS & ASSESSMENT  GECOL Restructure SMEs interviews and questionnaire show that there is unstable organization structure at GECOL The data shows that the change in GECOL departments has a negative effect on diverse business users, specifically among the maintenance and warehouse units where their use for the system does not exceed 12.5% of authorized personnel

49 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

50 OUTCOMES & CONCLUSIONS  For the research hypothesis, the ERP systems, as being implemented by GECOL, cannot be completely validated as an optimum solution for the business. It could be possible, but not as the current progress and available information indicate. This can be due to the following issues:

51 OUTCOMES & CONCLUSIONS The system is still partially utilized. Low levels of user involvement Only 28.5% of the average daily business users used the system over a 4-month period Lack of control from relevant departments No overall CM framework Lack of formal communication Inadequate training and preparation

52 OUTCOMES & CONCLUSIONS The main concern of implementing the ERP system at GECOL is the BPs which have to be modified to match ERP system HR required to run/use the system are more important than the cost of buying, installing, and maintaining the software ERP system requires a thorough understanding and careful analysis to implement

53 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

54 RECOMMENDATIONS GECOL must establish an effective fully functional CM system Training should be developed and delivered to actually qualify teams to perform their cross functional jobs GECOL should establish stable administrative structure

55 RECOMMENDATIONS Strategic planning in GECOL should be supported by high quality information that reflects the reality and by having effective analysis and sincere transparency. To manage users of the ERP system effectively, GECOL must apply the related best practices and regulations.

56 Out lines Abstract Introduction Research problem Research hypothesis Research objectives Research Methodology ERP definition Case Study Results & Discussion Data analysis and assessment Outcomes & Conclusions Recommendations

57 Questions & Answers THANK YOU!


Download ppt "المؤتمر الثالث لتوزيع الطاقة الكهربائية 28- 29 /8/2012 سلطنة عمان An Evaluation of ERP Systems at Public Sector Adel S.Albarasi General Electricity Company."

Similar presentations


Ads by Google