Metalco%20Company%20Overview

1
Metalco Company Overview

• Discovers, develops, produces and processes
  mineral products
• 1995 Sales Revenue of 2.2 billion
• Assets 6.0 billion
• 6,300 Employees
• Most operations are in Australia

2
What is ERP ?

• ERP - Enterprise Resource Planning
• Use common database for all business functions.
  (Sales, Accounting, Inventory)
• Typically Client Server Architecture although
  moving to a Web based format.

3
Legacy System
Accounting
Manufacturing
Sales

DB
DB
DB
4
Example ERP
Sales
Manufacturing
Accounting
DB
5
Benefits of ERP

• Common information throughout business
• Information is easier to access
• Ability for real-time decision making
• In theory easier to maintain systems

6
Risks

• Poor track record (TOS)
• 23.5MM - significant expenditure
• Technical uncertainty
• IS Infrastructure risk

7
Reasons for Implementing

• Achieve economies of scale
• Support global business operations
• Reduce extraneous workforce
• Improve data integrity
• 60MM over 5 years

8
MetalcoERP Decision Adoption Criteria

• Does the SAP proposal have the ability to support
  multiple sites with differing functions and
  cultures?
• Will the SAP systems standardized business
  processes and work methods provide a benefit to
  Metalco?
• Has the selection process of SAP been rigorous?
• Can Metalco afford the estimated 23.5 million
  dollar investment in SAP?
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9
Critical Success Factors

• Senior management support.
• Involvement of all stakeholders in the
  implementation process.
• An internal technical person that facilitates the
  process.