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Dow Chemical ERP Training

Dow Chemical ERP Training. Importance of Scheduling Hahki [1998]; Schaaf [1999]. Dow Chemical ERP. Adopted SAP R/2 mainframe system in early 1990s Merged with Union Carbide Migrated to SAP R/3 Supply-chain Performance management E-commerce. Dow Chemical ERP history.

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Dow Chemical ERP Training

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  1. Dow Chemical ERP Training Importance of Scheduling Hahki [1998]; Schaaf [1999]

  2. Dow Chemical ERP • Adopted SAP R/2 mainframe system in early 1990s • Merged with Union Carbide • Migrated to SAP R/3 • Supply-chain • Performance management • E-commerce

  3. Dow Chemical ERP history • Adopted PeopleSoft HR & Payroll modules in Europe • Large outsourcing contract with Andersen Consulting in 1996 • 550 Andersen & Dow IT personnel to support application development

  4. Business Process Reengineering • BPR needed for ERP led to retraining needs • In late 1990s adopted training program • 50 thousand employees • 900 sites around the world • 80% delivered on-line over 3 years • Payback expected in 17 months

  5. BPR Transition Elements • Preliminary design • Pilot projects • Full-scale implementation • Interrelated activities • Project scheduling

  6. Dow Chemical Training Program • What needed to be done • Designed program to accomplish it • Measures against objectives at every stage • Measurement continued through operation of the training program • Rolling computer technology upgrades • Firm able to deliver enterprise-wide training

  7. Owens Corning ERP Implementation Koch [1999] Hammer & Stanton [1999]

  8. History • 1992 – massive reengineering effort • 1997 ERP installation encountered problems • March 1997 major SAP installation applied over a weekend • Folded 16 customer service centers into 1 • Rest of 1997 spent rebuilding system • Repairing damaged customer relations

  9. Need for Integrated Processes • Departmental & regional managers retained power • Didn’t cooperate with ERP • Rejected ERP or tailored for local needs • Top executives responded • Reorganized company into cross-functional teams headed by process owners • Standardized order fulfillment processes • Motivated acceptance of ERP

  10. Benefits • Inventory turns increased 50% • Administrative costs reduced 20% • Logistic savings $50 million/year

  11. Learning • 7% of original budget allocated for training • Turned out to cost 13% of final ERP budget • Common to underestimate training

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