t

tERPtASSIGNMENTt1t
tImplementationtoftERPtandtitstsuccesstattCadbury
t

Submittedttot:tSubmittedtby:
Prof.tNilimatReginatTopnotRitikatBFTtVI

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Acknowledgementt

FirsttoftalltItwouldtlikettotexpresstmytgratitudettowardstourtsubjecttfacultytMisstNilimatR
eginatTopnotforthertcontinuedtsupporttandtencouragementtandtfortofferingtustthetoppo
rtunityttotworktontthistprojectt.tItwouldtoffertmytsinceretappreciationttowardstmytclass
matesttothelptmetouttwhereteverttheytcouldt.t
Itwouldtalsotlikettotthanktourthonbl’tDirectortNIFTtPatnatProf.tSanjaytSrivastavatfortprovi
dingtustwithtexcellenttcollegetinfrastructuretandtfacilitiestandtcreatingtantabsolutetlearni
ngtenvironmentt.tMytheartfelttthanksttotmytparentstwithouttwhosetsupporttthetcompleti
ontoftanytoftourtworktistnottpossiblet.
Thanktyou.

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Tabletoftcontentst

Content tPagetNumber
t
Companytintroduction t4
ERPtimplementationtattCadburyt 4
t
NeedtfortERPtimplementation t4
PhasestoftERPtimplementationt 5t–t6t
ERPtimplementationtmethodologytchallengest 7 -8
BenefitstfromtimplementingtERP t9t–t11t

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CompanytIntroduction

CadburytIndiatistatchocolatetandtconfectionerytproducingtorganizationtwhichtistattot
allytpossessedtsponsorshiptoftKraftstnourishment.tCadbury'styearlytincomestwholet
uptotroughlyt$50tbilliontmakingtittthetworld'stsecondtbiggesttnourishmenttorganizatio
nt.tCadburythastbeentmakingtsweetstandtdelicaciestintmoretthant160tnationstthroug
houttrecenttyears.tIttgivestworkttotmoretthant140,000tindividualstortmoretandtworkst
intexcesstoft70tnationst.

IntIndia,tCadburytstartedtitstactivitiestint1948tbytimportingtchocolates.tFollowingt60t
yearstoftpresence,titttodaythastfivetorganizationtpossessedtassemblingtofficestattTh
ane,tInduri(Pune)tandtMalanpur(Gwalior),tBangaloretandtBaddi(HimachaltPradesh)t
andt4salestworkplacest(NewtDelhi,tMumbai,tKolkatatandtChennai).tThetcorporatetof
ficetistintMumbait.

CadburytmadetantERPtImplementationtactivitytexpressingtabouttattotaltcoordination
tofttheirtrealtbusinesstformst.tTheirtrealtprocedurestincorporatedtthetacquisitiontfram
ework,tthetfundtdivision,tthetHumantResourcetofficetandtdifferenttofficest.Thetpurpo
setfortcoordinatingttheirtworkingtwastthatttheythadtbeentworkingtintatdecentralizedta
ndtsloppytwaytfortoverteverytonetoftthesetyearst.tIntthosetdaystCadburythadtfourtbr
anchttaskstandt13tactivitiestfortassemblingtandteverytsingletframeworkthadtbeentru
nningtintdisengagement.

ERPtImplementationtattCadburyt
CadburytIndiatwastthetprincipalthierarchicaltunittontthetplanetttotexecutetERPtintitst
procedures.tThetusagetproceduretintIndiatintthosetdaystbegantstartingtwithtnotoutsi
dethelptastittwastthetfirsttruntthroughtERPtwastbeingtexecutedtontthetworldwidetsca
letfortCadburyt.tTheytattemptedttotteachtthetacceptedtprocedurestinsidetthetorganiz
ationtandtendeavouredttotexpandtontthetqualitytinsidetthetpasttframeworkstwithtnew
tERPtframeworks.
NeedtfortERPtImplementationt
TheirtERPtactivitytwasttotincorporatetallttheirtsignificanttbusinesstprocesst.tThetrealt
procedurestincludedtacquirementtframework,tmoneytframework,tthetHumantResour
cestandtdifferenttdivisions.t
Sincettheytweretworkingtintattotallytdecentralizedtwaytandtthetaccounttofficetwastth
etjusttatsingletperformingtnormalttaskstfortallt,tERPtfilledtintastatcoordinatingtframew
orktandtantanswertforttheirtthentexistingtdecentralizedtmodelt.
NowttotmaketthisthappentCadbury’sthadttotcollaboratetwithtantexternaltvendor.tForti
tstERPtimplementationtittwenttintotatpartnershiptSiemenstandtfortitstinfrastructuretm
anagementtittcollaboratedtwithtIBM.t
Thetexecutiontstrategy/proceduretthattwastembracedtbytCadbury'stwastplannedtint1
995tandttheytproceededttotpursuetthethugetexplosiontapproacht.tProceduretexecuti
ontwastdonetorganizationtsavvyt.tOnetnoteworthytdesiretthattCadburythadtfromtitstE
RPtexecutiontfromtwasttotsupporttthetadministrationtandtauthoritiestworktbettertthan

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tanyonetmightthavetexpectedtwithttheteffectivelytexistingtframeworkstastyettbeingts
ettupt.
Soontthereafterttheytfelttfreettotgottotatcapacitytwhichtdependedtontenormoustdeton
ationtapproachtandtacceptingtitstgainingtfromtatsimilartittexecutedtthetwholetmodule
tovertthetentiretytoftitstorganizationtinsidetthetrangetoftonetyeart.

Thistusagetwasttotallytdeterminedtbytbesttadministrationt.tCadburytnowthastitstveryt
owntappropriatetManagementtInformationtSystemtMISt.Thetframeworktgetstrefreshe
dtattnormaltinterimstandtthetinformationtistunitedtattatsolitarytstagetwhichtcantbetgot
tenttotbytanybodytfromtanyplacet.tAttfirsttittwastatphysicallytcontrolledtframeworktho
wevertattthistpointtistatframeworktdriventprogrammingt.tJoiningteverytonetoftthesetst
agestCadburytactualizedtitstBIGtBANGtapproachtandtintthistmannertittERPt.

Phaset1
ProjecttPreparationt
a)tprocuredtthetundertakingtindividualst
b)timprovementtframeworktestablishmentt
c)tinwardtITtexchangestaretmadet
d)tframeworktintegratortandtheadtwastchosent
e)tintroductiontoftthettaskt
f)tpre-arrangedtcustomerstintroduced

Phaset2t
a) Designtandtproceduretprerequisitetintdetail
b) Reporttplanningt
c) Formtfillingtandtstructuretentriest
d) Measurestfortbusinesstimprovementtwerettakentliket,tIdentifyingtthetbusiness
tsuggestionst,tProject'stdangerstandtopeningstweretconsidered,titstapplicatio
ntontGlobaltguidetweretcontemplatedtandtsuccessivelytatreporttwastreadiedt
e) Globaltlayoutstweretsettledtandtitstdegreetwastexaminedtandtchangestweret
madet.

Phaset3t

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a) mastertconversiontoftdatat
b) configurationstoftglobalttemplate
c) configurationstoftexceptionaltcasest
d) cyclettestingt
e) resolutiontoftissuestandtitstdocumentationt
f) begantwithtglobalttrainingtandtmaterialtpreparationt

Phaset4t
a) trainingtprogramtwastfinalizedt
b) end-usersttrainingtstartedt
c) Preparationtfortproductiontsystemt
d) Cutovertplantwastfinalized
e) Cutovertplantwastthentcommunicatedt
f) Externaltpartnerstweretinformedtastnecessaryt

Phaset5t

a)tconversiontcreationtacetinformationt
b)tcutovertplantexecutiont
c)tprocesstandtframeworktutilizationtobservingt
d)tsettlingtoftissuestandtquestiontthattweretthentemergingt
e)tmediatetthetastoftnowtrunningtemotionallytsupportivetnetwork

ERPtImplementationtmethodologytchallengest

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CadburystIndiatwastthetabsolutetfirstthierarchicaltunittalltovertthetworldttotactualizet
ERPtintitstprocedures.tThetexecutiontproceduretintIndiatwastbeguntsanstpreparatio
ntasttheytweretthetfirstttotactualizetthattintalltovertworldwidetutilizationtoftthetCadbur
y.tTheytattemptedttotinculpatetthetprescribedtprocedurestoftthetorganizationtandten
deavouredttotexpandtontthetqualitiestthetpasttframeworkstintnewtERPtframeworks.t
Cadburystrealizedtthattfortusagetwillttheytwilltinstitutionalizetthetprocedurestint16tdis
tincttareas.
ThetERPtactivitytwasttotrealizetattotaltincorporationtoftthetrealtprocedurestintthetbus
iness.tThetsignificanttprocedurestbeingtobtainmenttframework,taccounttframework,tt
hetHumantResourcestandtdifferenttoffices.t

Thesetweretworkingtintattotallytdecentralizedtwayt.tCadburysthavetfourtbranchttasks
tandt13tproducingtactivitiestandteachthadttheirtverytowntframeworkstrunningtintdeta
chment.tThetfundtdivisiontwastthetjusttatsingletnormalttotall.tERPtfilledtintastantincor
poratingtframeworktandtantanswertforttheirtthentexistingtdecentralizedtmodel.
ERPtfilledtintastatcoordinatingtframeworktandtantanswertforttheirtthentexistingtdece
ntralizedtmodel.tThetusagetproceduretreceivedtbytCadbury'stoccurredtint1995tandtt
heytproceededtutilizingtathugetexplosiontapproach.tTheytdidtthetusagetorganizationt
savvy.tCadbury'sthadtonetnoteworthytdesiretfromtERPti.e.tITttotenabletthetadministr
ationttotworktbettertthantanyonetmightthavetexpectedtwithtthetcurrenttframeworksts
ettup.t

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SotasttotcompletetthetERPtusage,tCadbury’stneededttotlinetuptwithtantoutsidetselle
r.tFortERPtassociationtwithtSiemenstandtfortfoundationtthetexecutivestorganizationt
withtIBMt.
AttfirsttCadbury'strantwithtFinancetandtafterwardtintthistwayttotgenerationtandtstoret
network.tTheytwenttfortatcapacitytbasedtenormoustdetonationtapproachtintIndiatand
taftertthattexecutedtthetentiretmoduletalltovertorganizationtintrangetoft1tyeartsotittte
ndsttotbetsaidtasthugetexplosiontastentirety.t
Ittwasttotallyttoptadministrationtdriven.tCadbury'sthavetatlegitimatetMIStnow.tInform
ationtistenteredtjusttonce.tThetwholetframeworktgetstrefreshed.tOnetcantseetthetme
rgedtinformationtfromtanyplacetandtmaketdecisionst.tFromtmanualtpassagestitthastt
urnedtintotantabsolutelytframeworktdriventinformationtsectiontnow.tThetERPtsystem
tactualizedtbytCadbury'stcantbetclarifiedtbasedtontthetgeneraltstrategytapproachttak
entbytorganizations.t
Cadbury'sthastattemptedttotconsolidateteverytonetoftthesetstagestintotatsolitarytstag
etandtexecutedtBIGtBANGtstrategyttotactualizetitstERPtPracticest.

Thetintriguetoftthetenormoustdetonationtusagetsystemtistthattittcentrestthetassociati
ontfortantexceptionaltandtgenerallytshorterttimeframetthantiftthetventuretweretstage
d.tThistfrequentlytenablestaddressttotlongthaultassettdeficiencies.tIttadditionallytgath
erstthetagonytandttroubletoftantERPtventuretintotatshorterttimeframe,tdespitetthetfa
cttthattthettormenttistordinarilytincreasinglytarticulatedtutilizingtthistmethodology.t

Thetdrawbacktoftthethugetexplosiontexecutiontapproachtistthattthettasktistregularlyt
hurried,tsubtletiestaretneglected,tandtchangesttotbusinesstprocedurestmaytnottbetth
etbesttonestfortthetorganization.tProjectstthattactualizetantexcessivelytforcefultenor
moustdetonationtapproachtaretincreasinglytunsafetandtresulttintlesstfulfilmenttwithtt
hetframework'stcapacitiesttotmeettessentialtbusinesstprerequisitest.

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BenefitstoftimplementingtERPtattCadbury’s
Cadburythadtactivitiestint16tareastandt26twarehousestandtthesetweretexceptionallyt
decentralized.tThetadministrationtwastseeingtapproachesttotsorttinnertissuestandtthi
stistthetplacetSAPthadtactedtthetherot
Cadburytwastontatquicktpacedtdevelopmenttandtcouldn'ttproceedtwithtthetcurrenttfr
ameworkstandtthetpacetwastexcessivelytmoderatetduettotincludedtwastefultaspectst
downtthetchain.tERPtexecutionttooktcaretoftthetconsiderabletnumbertoftissuestandti
ncludedtproductivitytandtguidedtthetquicktpacedtdevelopmentt
Cadburytinstitutionalizedtthetprocedurestinsidetthet16tareastintthistmannertbenchma
rkingtthetprescribedtprocedurestintthetareastandthavingtatstampedtincrementtintthet
productivitytbytconveyingteverytonetoftthetareasttotatsimilartpagetandtthetbesttpage.
t
ThetusagetoftERPtacquiredtanothertmethodtfortproductthousetthetboardtframeworkt
andtgottstructurettotbranchtworkplacestandtthetwarehousest
Thetassemblingtintitselfthadt13tactivitiestandteverytwatworkingtintatstorehouse.tThis
thadtexpandedtthetworktintadvancementtandtthetreconciliationtoftthetprocedurestha
stdonetwelltfortthetorganizationt
WhiletexecutingtthetERPtframeworks,tthetorganizationthastconstructedtittupontthetp
asttqualitiestoftthetorganizationtintthistmannertnottmissingtouttontitstupperthandtandt
intthetmeantimetsaddlingtitselftuptfortatquicktpacedtdevelopmentt

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Thetunderlyingtexecutiontrequiredtsometserioustenergytandtaftertthattthetprogressiv
etusagettooktlesserttimetandtcosttandttheretistantenormoustpreferredtstandpointtints
paringtexpensetwhiletintthetusagetstagetitselft
Thetresponsetfromtrivalrytdoestnottmaketatdifferencetintthistsincetthistisn'ttatchange
tthattwastpublicizedttotthetmarket.tThististantinteriortproceduretrebuildingtandtwastat
muchtneededtdevelopmenttinsidetthetorganizationtwhichtseriouslytrequiredtthetchan
get.
Cadburythadtexercisestint16tregionstandt26tdistributiontcentrestandtthesetweretincr
ediblytdecentralized.tThetorganizationtwastseeingtwaysttotdealtwithtsorttinwardtissu
estandtthististthetspottSAPthadtactedtthetlegendt

Cadburytwastontatsnappytpacedtimprovementtandtcouldn'ttcontinuetwithtthetpresen
ttstructurestandtthetpacetwasttootmuchtmoderatetbecausetoftincludedtinefficienttang
lestdowntthetchain.tERPtexecutiontdealttwithtthetextensivetnumbertoftissuestandtinc
ludedtprofitabilitytandtguidedtthetsnappytpacedtadvancementt

Cadburytregulatedtthetmethodologytinsidetthet16tzonestthuslytbenchmarkingtthetrec
ommendedttechniquestintthetregionstandthavingtatsteppedtaugmentationtintthetprofi
tabilitytbytpassingtontalltoftthetzonesttotatcomparabletpagetandtthetbesttpage.t

ThetusetoftERPtgainedtanotherttechniquetfortitemthousetthetboardtsystemtandtmoti
vatedtstructurettotbranchtworktenvironmentstandtthetdistributiont
Thetamassingtintitselfthadt13texercisestandteachtworkingtintatstoragetfacility.tThisth
adtextendedtthetworktintprogressiontandtthetcompromisetoftthetsystemsthastdonetw
elltfortthetassociationt
WhiletexecutingtthetERPtsystems,tthetassociationthastbuilttittupontthetpasttcharacte
risticstoftthetassociationtthuslytnottpassingtuptitsthightgroundtandtmeanwhiletsaddlin
gtitselftuptfortatspeedytpacedtimprovementt

Thethiddentexecutiontrequiredtsometgenuinetvitalitytandtaftertthattthetdynamictutiliz
ationttooktlesserttimetandtcosttandttheretistathugetfavouredtpointtoftviewtintsavingtc
osttwhiletintthetusetorganizetitselft

Thetreactiontfromtcompetitiontdoestnotthavetanytkindtofteffecttintthistsincetthistisn'tt
atchangetthattwastexposedttotthetmarket.tThististantinsidetmethodologytmodifyingta
ndtwastattrulytnecessarytadvancementtinsidetthetassociationtwhichtgenuinelytrequir
edtthetchanget.

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