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ERP telecommunications systems

ERP telecommunications systems,  JD Edwards (JDE) ERP system, successful ERP implementation


This chapter starts by presenting seven case studies in which the impact of the implementation of an ERP system on the Management Accountant is examined. These case studies provide a robust setting. The companies are primarily large, publicly traded organizations from a wide variety of industries and are summarized in Table 4.1. Some have been very successful in their ERP implementation whereas others are still trying to find value in these systems. The names of all organizations and the parties involved in each case study have been changed so as to preserve anonymity. Table 4.1 Company and industry Company Industry AAA Telecommunications BBB Heavy engineering and chemicals CCC Audio and telecommunications production and distribution DDD Food services and beverages EEE Food and consumer products FFF Automotive GGG Energy/aerospace This company (referred to as AAA) is a large organization operating in the telecommunications industry and is part of a much larger multinational corporation in related industries. The Senior Manager involved in the ERP system implementation describes the case. All quoted comments are from this senior manager. AAA works with customers on relevant design, construction, operations and management of their telecommunications systems. In 1999, the company implemented JD Edwards (JDE) ERP system. The full-time project team of 8 people included a Management (Project) Accountant (hereafter Management Accountant). The modules implemented included financials, distribution and supply chain. A motivation for the implementation of the ERP system was the Year 2000 problem. The Managing Director (MD) sponsored and backed the ERP implementation and played a vital role in ensuring that the implementation ran smoothly. If a major problem occurred during the implementation with either people or process, the MD was called upon to find the solution. This ensured that the people and process changes were implemented smoothly and contributed to the success of the new system. The ERP system is process-oriented and the company organization varies between process-oriented and business function-oriented depending on the department. In answer to the question, ‘To what extent does the ERP system and the organization structure match?’, the response was ‘You would put it midway at the moment.’ (Point 4 on a scale of 1–7, where 1 is no match and 7 is a perfect match.) The main task of the Management (and other) Accountants with the ERP system implementation was the creation of the structure of the Chart of Accounts. They built a level of detail that resulted in a six-level structure in the Chart of Accounts. This allows the Management Accountants to drill down to the appropriate level to ascertain project costs. They were responsible for designing the Chart of Accounts around both the business reporting requirements, and reporting how well the organization was doing financially. The developed Chart of Accounts provides the ability to assess the profit/loss in a project at a detailed level.  



 
 
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