Project:
Fashionista Textiles Ltd. (FT Ltd.) is a well-established organization dealing in the manufacturing of apparel, since 1965. With a current workforce of about 500 employees, FT Ltd. has built a strong reputation in its market. The organization is well known for its products and quality and has also earned the trust and commitment of its employees and customers.
However, as compared to its contemporaries, FT Ltd. is still following traditional file processing system in all its functional departments. Thus most of the processes lack standardization automation and integration. With increasing competition and advancement in technology the management has sensed the need to overhaul its process system to ensure better resource optimization and greater profitability. Consequently, the management has decided to introduce ERP system in its organization.
Based on the above scenario prepare a detailed report consisting your responses to below mentioned questions.
What could have been the probable shortcomings faced by FT Ltd. in the Traditional File Processing system?
How do you think the ERP system will benefit the organization as well as its employees?
Which ERP implementation approach would you suggest to FT Ltd. so that it gains the maximum benefits? Justify your suggestion.
With FT Ltd opting for Cloud ERP (SaaS), which type of cloud, would you recommend to ensure the best results?
With the introduction of the new system what strategies should FT Ltd. adopt to overcome any possible resistance to change?
How can FT Ltd apply Lewin's Three-step Model as well as Kotter's Eight-step Plan to manage the drastic change that shall occur with the implementation of ERP system?
A year after implementation of ERP, FT Ltd. conducted a survey among its employees to test the effectiveness of the ERP system. The result of the survey is as shown in the observed table below.
|
Effectiveness of ERP
|
Functional Departments
|
Total employees
|
|
Marketing
|
Finance
|
Operations
|
|
No improvement in efficiency
|
60
|
90
|
50
|
200
|
|
Improvement in efficiency
|
90
|
110
|
100
|
300
|
|
Total employees
|
150
|
200
|
150
|
500
|
Using Chi Square Test, comment on whether the effectiveness of ERP system is independent of the functional departments or not. Consider 2 degrees of freedom at 5% level of significance. (Critical Value of chi-square for 2 degrees of freedom at 5% level of significance is 5.991).
Hint: Null Hypothesis- Effectiveness of ERP and Functional Departments are independent. Alternate Hypothesis- Effectiveness of ERP and Functional Departments are dependent.