1. Siemens ERP Implementation Hirt & Swanson (2001)
Nuclear fuel assembly manufacturer
Engineering-oriented

2. Siemens Power Corporation
1994 Began major reengineering effort
Reduced employees by 30%
1996 Adopted SAP R/3 system
Replacement of IS budgeted at $4 million
Some legacy systems retained

3. Siemens Modules FI Finance CO Controlling AR Accounts receivable
AP Accounts payable
MM Materials management
PP Production planning
QC Quality control

4. Implementation To be led by users Project manager from User community
Consultant hired for IT support
IS group only marginally involved

5. Project Progress Oct 1996 Installed FI module
Sep 1997 Installed other modules
On time, within budget

6. Permanent Team Made project team a permanent group
Project manager had been replaced
2nd PM retained
SAP steering committee
SAP project team formed

7. SAP steering committee
7 major user stakeholders
Guided operating policy
major expenditures
major design changes

8. SAP project team formed
15 members from key user groups
part-time
Trainer
User help
Advisors to middle management

9. Training End users became more proficient with time
Average of 3 months to learn what needed
Management training took longer
Management didn’t understand system well
Often made unrealistic requests

10. Operations During first year Two years after installation
Major errors in ERP configuration
Evident that users needed additional training
New opportunities to change system scope suggested
Two years after installation
R/3 system upgrade