المؤتمر الثالث لتوزيع الطاقة الكهربائية 28- 29 /8/2012 سلطنة...
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لتوزيع الثالث المؤتمرالكهربائية 29- 28 الطاقة
/8/2012 عمان سلطنة
An Evaluation of ERP Systems at
Public Sector
Adel S.AlbarasiGeneral Electricity Company of Libya
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
ABSTRACT
GECOL: General Electrical Company of Libya State-Owned Enterprise (SOE) Vertically - Structured Power Utility
CompanyResponsible for generation, transmission,
and distribution of electric power
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
ERP Benefits at GECOL Are Evaluated and Validated According to the ERP Performance
Conclusions & Recommendations Are Reported
ABSTRACT
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
INTRODUCTION
In the past decade the business environment has changed dramatically due to:
Dynamic marketplaceNew marketsHuge competition & Increasing customer expectations
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
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
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
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
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.
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
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
Out lines
Abstract Introduction Research problemResearch hypothesis • Research objectives• Research Methodology • ERP definition• Case Study • Results & Discussion • Data analysis and assessment• Outcomes & Conclusions• Recommendations
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
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
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectives• Research Methodology • ERP definition• Case Study • Results & Discussion • Data analysis and assessment• Outcomes & Conclusions• Recommendations
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.
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectivesResearch Methodology • ERP definition• Case Study • Results & Discussion • Data analysis and assessment• Outcomes & Conclusions• Recommendations
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”Aviation, Rail & Defense
Process Industries
Automotive
Industrial Manufacturing
Utility & Telecom
Service & Facilities Management
High-Tech
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
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectivesResearch Methodology ERP definition• Case Study • Results & Discussion • Data analysis and assessment• Outcomes & Conclusions• Recommendations
CASE STUDY
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
Summary of users who have accounts on IFS system
Table 1: number of users have IFS account
Units Number of users
Finance 397
Human resources and payroll 487
Maintenance System (production) 275
Maintenance System (Transmission lines) 156
Maintenance System ( Distribution network) 172
Procurement and stores 503
Project Management System (CDA) 130
total 2120
Source: GECOL document
GECOL IFS PROJECT
• 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:
Before the Implementation of ERP System in GECOL,
The situation is:• Manual procedures
that slow down the business processes
• Non-integrated systems
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 systemShuffling of employees between the
departments
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.
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
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectivesResearch Methodology ERP definitionCase Study • Results & Discussion • Data analysis and assessment• Outcomes & Conclusions• Recommendations
RESULTS & DISCUSSION
• Results of monitoring the IFS users during the time period of 4 months
Human Resources (H.R.)FinanceEnterprise Asset Management
RESULTS & DISCUSSION
Human Resources
22
310 308 302 296 300
32 30
314
342
320 320
290
18 22
336
354 356
320
294
16 18
348
320 320
302312
1624
340
0
50
100
150
200
250
300
350
400
01/11
/200
9
03/11
/200
9
05/11
/200
9
07/11
/200
9
09/11
/200
9
11/11
/200
9
13/11
/200
9
15/11
/200
9
17/11
/200
9
19/11
/200
9
21/11
/200
9
23/11
/200
9
25/11
/200
9
27/11
/200
9
29/11
/200
9
Series1
RESULTS & DISCUSSION
Financials
14
130
146
124130
150
1214
156160
128
160148
24
4
168
152160
136142
6 2
154152
130144
134
1826
170
0
20
40
60
80
100
120
140
160
180
01/11
/200
9
03/11
/200
9
05/11
/200
9
07/11
/200
9
09/11
/200
9
11/11
/200
9
13/11
/200
9
15/11
/200
9
17/11
/200
9
19/11
/200
9
21/11
/200
9
23/11
/200
9
25/11
/200
9
27/11
/200
9
29/11
/200
9
Series1
RESULTS & DISCUSSION
Enterprise Asset Management
16
144146154
130136
3244
154
136148
174182
4430
158148
164162
130
1824
148156158162
140
26
44
148
0
20
40
60
80
100
120
140
160
180
200
01/11
/200
9
03/11
/200
9
05/11
/200
9
07/11
/200
9
09/11
/200
9
11/11
/200
9
13/11
/200
9
15/11
/200
9
17/11
/200
9
19/11
/200
9
21/11
/200
9
23/11
/200
9
25/11
/200
9
27/11
/200
9
29/11
/200
9
Series1
RESULTS & DISCUSSION
General Usage• The total No. of IFS users 2120
• Human resources 487
• Finance 397
• Enterprise Asset Management 1236
• 28.5 % = Average daily user’s over 4 months period.• 71.5 % = Average non daily user’s over 4 months period.
Breakdown by ModuleHuman Resources (H.R.)
% of the average Average daily users
Months
65.5 % 319 NOV. 2009
57.7 % 281 DEC. 2009
65 % 317 JAN. 2010
70 % 326 FEB. 2010
Breakdown by Module
Finance
% of the average Average daily users
Months
36.8 % 146 NOV. 2009
37% 148 DEC. 2009
36 % 143 JAN. 2010
33 % 131 FEB. 2010
Enterprise Asset Management
Breakdown by Module
% of the average
Average daily users
Months
12 % 151 NOV. 2009
11 % 140 DEC. 2009
12.5 % 154 JAN. 2010
14 % 168 FEB. 2010
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
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectivesResearch Methodology ERP definitionCase Study Results & Discussion • Data analysis and assessment• Outcomes & Conclusions• Recommendations
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
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.
DATA ANALYSIS & ASSESSMENT
The reasons that do not allow the system modules to be used fully may attribute to the following aspects:
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.
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
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
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectivesResearch Methodology ERP definitionCase Study Results & Discussion Data analysis and assessment• Outcomes & Conclusions• Recommendations
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:
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
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
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectivesResearch Methodology ERP definitionCase Study Results & Discussion Data analysis and assessmentOutcomes & Conclusions• Recommendations
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
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.
Out lines
Abstract Introduction Research problemResearch hypothesis Research objectivesResearch Methodology ERP definitionCase Study Results & Discussion Data analysis and assessmentOutcomes & ConclusionsRecommendations
Questions & AnswersTHANK YOU!