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Fax_0928a

By Victoria Long,2014-04-29 02:42
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Fax_0928a

    Facsimile Shanghai Office

Privileged/Confidential Information may be contained in this 19/F, Shui On Plaza facsimile and is intended only for the use of the addressee. 333 Huai Hai Zhong Road If you are not the addressee, or person responsible for delivering Shanghai 200021 it to the person addressed, you may not copy or deliver this to People’s Republic of China anyone else. If you receive this facsimile by mistake, please (8621) 6386 6688 Telephone notify us immediately by telephone. Thank you. (8621) 6386 2288 Facsimile

    To (name) Edward Peng From (name) Norman Sze cc (name) Office number 0744 At (company) Merloni TermoSanitari Charge number MER45206

    (China)Co.Ltd

    Facsimile number 0510-5212377 Date September 28,1999 Priority: ? Immediate

    ? Normal No. of pages to follow 2

     ? Overnight IF UNREADABLE OR INCOMPLETE PLEASE CALL

     ? Send with attached Distribution List (8621) 6386 6688 x 243

    Subject/Special Instructions: MPS/MRP PROJECT IMPLEMENTATION

Dear Mr. Peng,

Thank you for your fax dated Sept. 24, '99. We understand from the fax that you want to run this project in an

    approach significantly differs from the normal ERP implementation approach. However, we have some concerns

    on the new approach which, we think, may affect the success of the project. Following are a few points we would

    like to clarify with you:

1. We are implementing an ERP project instead of a pure EDP project. ERP system emphasizes coordination and

    integration between various business functions. It involves a lot of process design and restructuring, which

    takes a comparatively longer time and more resources to implement. Also profound knowledge in both system

    and business is essential to a successful project, and this can not be gained through several days' training

    program.

    To us, your approach looks more like an IT programing project. The emphasis is on data integrity instead of

    process design and implementation. This can be seen from the missing of some key steps like, new business

    process mapping, conference room pilot, system conversion plan, new system evaluation, etc. These are

    critical to all ERP software implementation, including SAP and Oracle. Another thing we are not clear is why

    end user training shall be held before prototyping.It is very rare for the end users to be heavily involved in this

    stage.

2. As BPCS is a highly integrated system, the decision you are making in one module may affect others. The

    project team not only need to consider manufacturing situation, but also the interface with finance and

    distribution. Since you have already implemented financial and distribution modules, the whole system set-

    up structure and system integration with other modules need to be fully understood and considered during

    manufacturing module prototyping. It seems that the approach does not include such tasks.

    3. Without proper involvement and the front end in the prototyping, it is very difficult for A.A. to "check and

    solve problem". The possibility does exist while we find some process is not right and has to be re-designed.

    This is extra work and the time can not be easily estimated in advance. Besides, as we are not involved in the

    system design, it is hard for us to provide support after the project going life, which is proved necessary from

    the experience of last two phases.

    4. There will be many problems during prototyping. This is the time when consultancy is most needed. For

    example, in Phase II, Finance Department required that the PPV should be by item class, this is difficult to

    achieve in the system. With the support from A.A. consultants, the effective macro was found to resolve the

    PPV account according to item class and the problem had been successfully solved.

    5. In case this approach is your final choice , we would like to clarify beforehand that MTS shall be fully

    responsible for the project, while A.A. will adopt "loan staff" method, i.e. our consultant will just carry out

    tasks as instructed by your project leader. Also the charge rate shall be discussed separately.

We understand that different systems may have different approaches. However, the approach on your fax dated

    Sept. 24 is not only different from our experience on BPCS implementation, but also on that of SAP, Oracle and JD

    Edwards. It will help us a lot during the following project if you could shed us some light on the reason for

    choosing this specific approach.

Best Regards,

Norman Sze

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