Rolls Royce Erp Case Study Essay

2212 WordsJan 31, 20119 Pages
Introduction In the following assignment I will outline what Enterprise Resource Planning is and the costs and benefits frequently associated with the system. I will then go on to write a case study regarding a major company which has implemented an ERP system, providing a detailed account of the costs and benefits which arose as a result. I will start this case study with a brief contextual background of the company. Literature review The purpose of Enterprise Resource Planning, or ERP, is to effectively integrate all departments and functions within any given business onto one computer system. If implemented appropriately, ERP should serve the needs of these departments by centralising any required information, making it easily…show more content…
Case study The nature of today’s modern international markets requires companies to maximise their flexibility and ability to respond quickly to an ever changing environment in order to remain competitive, whereas in the past businesses would compete on one or two performance objectives, such as price and quality. It is therefore a necessity for a key player in any market to be able to make quick decisions both within its own supply chain and as a result of moves made by its competitors. In this part of my project, I will discuss a case study from Rolls Royce detailing the implementation of an ERP system, along with the costs/benefits and a final conclusion. Rolls Royce is £10,414million (2009 revenues) global power systems and services company based in London. It employs nearly 39000 people and is the world’s second largest manufacturer of aircraft engines, providing engines for aircraft such as the Nimrod, Boeing 707 and countless other military and commercial aircraft. The company also has major businesses in the marine and energy sectors and was listed as the 32nd largest company on the FTSE 100 as of august 2010. The company’s most popular engine was the Merlin, with over 160,000 being produced. Rolls Royce used over 1500 information systems before their implementation of ERP. The majority of these systems were very old, expensive to run and maintain,
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