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Davis Butler BCIS 340 11/04/09

Chapter 10. Closing Case Three. Shell Canada Fuels Productivity With ERP. Davis Butler BCIS 340 11/04/09. Shell Canada. Shell is one of the nation’s largest integrated Petroleum companies. A leading manufacturer, distributor, and marketer of refined petroleum products.

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Davis Butler BCIS 340 11/04/09

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  1. Chapter 10 Closing Case Three Shell Canada Fuels Productivity With ERP Davis Butler BCIS 340 11/04/09

  2. Shell Canada • Shell is one of the nation’s largest integrated Petroleum companies. • A leading manufacturer, distributor, and marketer of refined petroleum products. • Their headquarters are in Calgary • Produce natural gas, natural gas liquids, bitumen (asphalt or tar). • Countries largest producer of sulfur. • There is a Canada-wide network of 1,809 Shell gas stations and convenience stores.

  3. Enterprise Resource Planning • Enterprise Resource Planning (ERP) integrates all departments and functions throughout an organization into a single IT system • Employees can make decisions by viewing enterprise-wide information on all business operations • Logical solution to the mess of • Incompatible applications that had • sprung up in most businesses • ERP addresses the need for global • Information sharing and reporting

  4. Shell before ERP • Contactors had to send Shell Canada monthly summarized invoices that listed maintenance calls the contractors made at various Shell stations. • Each invoice would take a contractor 8-20 hours to prepare. • Submit 50 to 100 invoices a month Shell Canada Mine • It took 16-30 hours to review the invoices by a manager and send them to the head office for payment process • 200 hours to manually enter each batch invoice data into payment system • That is the amount of time it takes if everything runs smoothly

  5. Shell after ERP • The ERP system solved the inadequacies by providing an integrated web-based server order, invoicing, and payment submission system. • Now third party contractors can enter service orders directly into Shell’s ERP system via the web. • Contractors can also attach photos and drawings of the work that is done.

  6. Shell after ERP • With the ERP system it only takes a few minutes for a contractor to enter the details about the service order. • Can be transmitted wirelessly through a PDA to shell manager for immediate approval • The monthly invoices can be generated automatically and fed into the ERP’s accounts payable application • ERP can help speed up maintenance and repair operations in the refineries.

  7. Shell Canada • Important part of any successful ERP implementation is the training end users to learn how to utilize the system and to teach them about the functions and abilities of the ERP system. • Shell Canada offered both formal and informal ERP training to its personnel • Shell Canada executives are pleased and optimistic about the advantages of the ERP system. • Employees across the company have gained fast and easy access to the tools and information they need to conduct their daily operations.

  8. Question 1 There is a Canada-wide network of how many gas stations and convenience stores? Answer: 1,809

  9. Question 2 An invoice without ERP took about how many hours? 8-20 hrs 20-30 hrs 15-28 hrs 7-15 hrs Answer: A. 8-20 hrs

  10. Question 3 How did ERP help improve business operations at Shell? Discussion Question

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