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To (name) Edward Peng From (name) Norman Sze cc (name) Office number 0744 At (company) Merloni TermoSanitari Charge number MER45206
Facsimile number 0510-5212377 Date September 28,1999 Priority: ? Immediate
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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
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
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.