Practical Implementation Of Enterprise Resource Planning Systems: Case Study On Saline Water Conversion Corporation In Saudi Arabia
- Statement of purpose
- Literature review
- Timescale/research planning
The main objective of the research is to examine indepth the equality of opportunity in the Saudi Saline Water Conversion Corporation (SSWCC)l market, regarding Saudi Arabia’s enterprise resource planning The main objective of the research is to examine in-depth the equality of opportunity in the Saudi Saline Water Conversion Corporation (SSWCC)l market, regarding Saudi Arabia’s enterprise resource planning.
The reason why the author decided to study this area is the immense effect that governments have on a large number of professionals in the market.
To achieve the aim mentioned above, the author has set out two objectives that need to be answered. Hadeed follows Materials Processing Operations, where raw material and some related components are transformed into finished tangible products, also called Manufacturing processes. There are some intangible Services associated with Hadeed products such as Out-sourcing, Transportation, and Storage of goods, Logistic, etc. SABIC incorporated Shared Services Organization in 2003, to develop complementary services like Centralized Purchasing, Inventory Management, Supply Chain Management, among SABIC and its affiliates like HADEED to assist attain its strategic objectives from side to side augmented competence. It optimizes their Inventory by utilization of inventory management tools viz., MRP Planning, Inventory Optimization through ABC Analysis, and Supply-Chain Management.
On the contrary, SSWCC starts their operations from one-on-one, i.e., consumers requests and keep in touch with Customer and supply them best networking, newest technology, modified services, and support for their services. SSWCC operates the customer services following making the sales. The main dissimilarity among Manufacturing and Service providers can be well recognized by comparing the subsequent Nature and Consumption of Output, consistency of Input and Output, Measurement of output, and Labour Requirement (Lincoln, J.; Hanada, M.; 2001, 93-115).
In this research, with the literature review about the areas of this study for ERP systems.
Next, in sections, the study continues with the Research Methodology. Finally, in the last article, the author suggests his views to be made in the area of research.
Enterprise resource planning: (noun); An accounting-oriented information system for recognizing and preparation the enterprise-wide resources wanted to take, make, ship, and account for client orders.
To assess the assignments, we have select two large good reputed organizations from the Secondary Sector & Tertiary Sector of Industry within the Kingdom of Saudi Arabia. From the public sector, i.e., Manufacturing, the foremost company being HADEED (A SABIC Affiliate) which offer touchable product, i.e., Goods & Commodities Steel Products and extra from Tertiary Sector, i.e., Service, is Saudi Saline Water Conversion Corporation (SSWCC), which pleased its customers by offering a high standard of the insubstantial product, i.e., Services Water Convention Network.
Saudi developmental policies and plans are drawn round in a five-year national plan that directs public investments. The eighth five-year growth plan (2005-2009) speaks to lots of the challenges declare above. It has, for the first time, a long-term strategic viewpoint on growth based on the Future dream of the Saudi financial system towards 2025. It underscores a national promise to the people by
- put together all the MDGs and seeking to endorse the role of women and childhood in general growth procedure;
- supporting Government sector asset as the driver of future enlargement and promoting further diversification away from heavy dependence on natural resources, chiefly oil and natural gas, avoiding unenthusiastic impacts on the environment, mainly water resources; and
- Optimizing the competence of the public sector, counting a reform procedure towards greater transparency, contribution, democratization, decentralization, and local supremacy.
A grave effort has been made to support and defend human rights in the country, counting child We shall begin our assignment by stating the overall policies of the companies. Then we will compare and contrast the five main business functions, i.e., Human Resource Management, Marketing, Operations, Accounting & Finance, and Information Management of together the organizations. Saudi Saline Water Conversion Corporation (Hadeed), time-honored in 1976 and wholly-owned by SABIC, the first wholly integrated and leading manufacturer in Saudi Arabia, manufacture steel rebars and wire rods, in the Jubail manufacturing city. The mission declaration of Hadeed is to offer complete and competitive steel products from side to side employee empowerment with safe and environmentally sound performance (Pearce, J.L., 2000, 193-205).
The SSWCC has emerged as the result of permanent jobs that began in the late 20th century. Telecom services were administered by the former Saudi Post, Water, Sanitary Ministry. SSWCC provides wired and wireless communication services such as fixed water supply, Mobile network, Internet, and so on. Saudi Telecom Company (SSWCC) deliver high-quality water convention services that meet its Customer’s needs, enriches their lives & contributes to their domestic and trade purpose, using state of the art telecom services while becoming an economical & cultural pioneer that reflects the kingdom’s values & progress benefiting all shareholders, customers & employees of Government sector (Perry, J., 2004, 182-201).
Statement of purpose
The purpose of this research will be to take place two SABIC’s Information Technology Services. And its details are:
SABIC’s Information Technology Services
The SABIC’s Information Technology Services by Saudi Government develops and maintains the infrastructure for Hadeed’s networks and systems from water convention, E-mail, Intranet & Inter-net services, to significant finance, product support. ERP based SAP systems are implemented for the complete functioning of all departments. The system also helps Hadeed’s Process Control System to monitor and control ongoing production processes. The Information Management System of SSWCC differs from the manufacturing industry; it has its system network contacting all company departments and braches throughout the kingdom. SSWCC deals with two types of Information systems. The first one is Transaction-Processing System (TPS); the other one is the Office Automation System (Allison, G., 2003, pp. 72-92).
ERP in Saudi Saline Water Conversion Corporation (SSWCC) in Saudi Arabia
Human capital, with additional Production and Distribution functionality. Today , the business task is to build new consumer needs; the growth of Enterprise Resource Planning ( ERP) systems continues as a means of resource control and has evolved to replace knowledge islands by incorporating traditional management functions such as accounting , payroll and computers.. Names and acronyms related to extended-ERP, ERP II, Enterprise Trade Applications (EBA), Enterprise Trade Management (ECM), and Complete Enterprise Applications (CEA) are being thrown around, so what happens? During the 1960s SSWCC’s inventory management was the main goal of an ERP program.
Manufacturer’s unspecified consumers would carry on their buying patterns and aimed to keep sufficient inventory on hand to meet demand. The complexity of resource planning grew with the affordability and viability of the computer. In the sixties, networks were large, hot, noisy machines that busy entire rooms, but by the seventies, standard manufacturing companies could, in conclusion, afford them. The novelty computers allowed caused management to review customary product cycles and resource allocation. Materials obligation planning (MRP) computer systems were developed to endorse having the right quantity of materials when needed.
This project aims to examine how employees perceive the ERP department in Saudi Arabia and how ERP influences the employees. Moreover, during the last years, business in Saudi Arabia has suffered some decreases. This project also has the purpose of finding what measures the ERP has taken about the employees, to achieve customer satisfaction, and to the creation of customer loyalty.
The hypothesis is that some problems exist between employees and the ERP department. There are not all employees satisfied with the measures that ERP has taken.
The main objectives are:
- To find out the employee’s perception regarding the ERP department.
- Identify how the relationship between employees and ERP it’s perceived to be beneficial for both sides.
In this section, existing information from secondary research is going to be given like books, journal articles, reports, and electronic databases.
The purpose of this study is to give knowledge for the overview of ERP and how ERP is working in Saudi Firms. This research is going to help the experts to improve the experience from the research subject and to create the appropriate questions to give focus on the research objectives.
After gathering the existing information (Literature Review), the research has the purpose of offering a concise description of the research design and methodology.
The author is being used both qualitative and quantitative research for a complete image of the research situation fro ERP use in Saudi Arabian firms. The methods that are going to be used for this research are questionnaires with a close approach of the employees of Saudi firms.
Human Resources Management
The first company feature, Human Resources Management, will be analysed. When we compare the Saudi Government’s manufacturing company with the Service industry in the HR function, there isn’t much distinction because both of them contributes to operations by providing the workforce with high suitability and develops them time to time, to fit with any expectation and unexpected change within the company’s environment. One of the main reasons for which these companies were formed is to impart training and creates large scale employment opportunities for nationals. Both follow the best fit HRM practices for the development of safe working practices, quality control, and automation programs enhancing the working environment of its service employees. A manufacturing unit like HADEED is based on employee satisfaction, and Service industries like SSWCC will always be oriented towards customer satisfaction. One characteristic which differentiates the tertiary sector from Manufacturing is that services are consumed. The purchaser of a service does not take possession of the touchable product. In the sales of Service, the manufacture and consumption of the Service take place concurrently. Quality cannot be examined at the end of the production procedure as in a manufacturing procedure. Instead, service organizations have to manage the processes before the expenditure of the Service. The Service has to be delivered right the first time. HRM practices in Service industries are expected to be more durable. HRM Practices adopted by Hadeed include Long-term Planning for HRM, Non-managerial job report defines consequence expected, Use of appraisal Centre for Managerial staffing. HRM Practices adopted by STC comprise Broad Career Path for Non-managerial workers, Use of character Test for Managerial Recruitment, Use of originality test for Non-managerial staffing (Rainey, H. 2003, 207-243).
The second business function we will consider is the Marketing Function. Hadeed does not deal with the individual as a consumer, but the nature of its business is business-to-business relations. Hadeed has specific customers to deal with them through long term contracts. Their marketing department is responsible for the worldwide sales and marketing of its steel. In Saudi society, Hadeed also promotes itself by engaging in social events, organizing social gatherings, exhibits, and improving public relations through some social and cultural activities. Marketing is also responsible for the positioning and incorporation of the Department into other related organizations and institutions; Research, the definitive function of external or internal environments
The third trade function being Operation Function. Operations function doesn’t unavoidably mean production. An operation is a group of actions and processes used in making equally tangible and insubstantial products. In both industries, the marketing department also acts as Operation function as subsequent up their Customer and make sure it’s customer approval with their products and by analyzing dimension performances. The Customer engages in operations dispensation by specified products criterion and standardizations. A Service provider uses human and mechanical processes to offer products that are insubstantial in the public sector (Solomon, E., 2006, 247-259).
Interpreting different approaches to productivity measurement and their computation like Single Factor Productivity Measures (unit input to a unit output) or Multifactor efficiency Measures (multiple information to different output) requires careful thought. In a product development organization like Hadeed, Productivity Measurement and development for manufacture has the addition of four tools; Operations Research Methods (ORM), System Analysis Methods (SAM), Continuous Improvement Methods (CIM), and Performance Metrics Methods (PMM). Hadeed incorporated the productivity improvement techniques or problem-solving tools as Continuous improvement (Kaizen), Six Sigma & Total Integrated Management (TIM), for attaining better work efficiency & control. In a services leaning company, the employees are continually confronted by newer coursework compared to a product growth based organization. Hence it is easier to uphold a high output level in the association due to tremendous learning opportunities to the employee. Insubstantial inputs such as information, motivation, and information take for granted added significance since of their role in inducing the innovation necessary for humanizing productivity. This is why SSWCC put into practice new tools such as the Balanced Scorecard (an impartial compound of leading and lagging performance measures addressing every stakeholder) and Economic Value Added. These tools give means for management to center on creating Value-Added Services, civilizing Results, Communicating Priorities, and observe Performance (Hofstede, G., 2000, 42-63).
Totality of Characteristics
Quality is a total of characteristics of an entity that bear on its aptitude to make happy stated and implied needs. Quality and its management are critical aspects of modern business and have a significant impact on both industrial and Service sector enterprises. In both industries, Quality Management is a method for ensuring that processor all the activities necessary to design, develop, and implement a product or Service are efficient and well-organized concerning the system and its presentation. Quality Management is the Analytical equilibrium of all activities of the on the whole management function that decide the quality policy, objectives, responsibilities and implementing Quality Planning, Quality Control, Quality Assurance & Quality Improvement; inside the Quality System (Al-Aiban, K., 2004).
Finance and Accountant Function
The fourth business function is Finance and Accountant function. Finance & Accounting Function in Service and Manufacturing sector quest for lower costs and their endgame best serves the broader interests of the business. Another key is that Finance & Accounting Function’s decision support, including Cost Analysis, Business Performance psychoanalysis, New Business/Pricing Analysis, and Strategic Planning hold up accounts for generally finance costs as a percent of revenue. These activities, dangerous in defining the course of the business and deliberately exact ways to get bigger the business (McCurdy, H., 2002, 71-578).
Hadeed’s Financial Accounting is more related to operations, and it contributes by providing all necessary resources such as Materials, Machines, Manpower, and improving Capital Investments, Appraising Staff, and Draw Strategic Planning for investments. Their Account’s primary responsibilities are Planning and Budgeting, Makings Decisions about Investments and Wages Procedures, Safeguarding / Efficient running of Equipment & Managing Assets, Supervising Finances, Preparation of the Annual Balance Sheet and Periodic Financial Reports.
While Service companies have also turned into more efficient in their finance staffing, they’re not as sleek as their manufacturing associates. Service companies usually trail their developed counterparts in generally finance costs as a percent of revenue, based mainly on their more massive deal processing load and the intrinsic difficulty of their customer base and hamstrung by extra transaction dispensation resources required to address areas like expanding a budget and strategic commerce plan in combination with management. Formulate strategies, policies, programs, standards for Management Information Systems, and Information Technology Developments.
Universal business functions
Universal business functions as we discussed Finance, Operations, Sales, Human Resources (FOSH), and Information Management should be applied continuously to refine the companies’ performance to completely optimize the use of their resources irrespective of the type of industry. Liberalization produces Efficiency and endorses Product Diversification and Innovation. Entire sectors of the financial service system from water convention, to banking, to accountancy, to computer programming can now be carried out wherever in the world and bring to consumers in a matter of seconds. The monetary sector is already feeling the belongings of the Internet and electronic banking. IBM now recruits programmers from as far as India or China via Tertiary Sector, while many other firms are Outsourcing Services like Design, Data Processing, and Marketing around the world (Buchanan, B., 2004, 339-347).
Enhanced Public Sector Performance
In response to growing demands on the fineness and quantity of services from a modernizing society using growing expectations, the Government of Saudi Arabia has been rising its administrative and institutional systems and restructuring its public agencies, thus enhancing service release and rendering it money-making not only at the middle level but in all regions of the country. In this attempt, the Government intends to make the best use of modern management techniques and information knowledge such as e-government.
In exacting, UNDP will help the Government by providing suggestions for more efficient alignment of mandates and structures in a few pilot units. It will give options for improvement of service release at the central, regional, and restricted levels. It will also suggest a strategy that would help one pilot government organization in charge of its performance. Lastly, UNDP will help the Government duplicate and scale up its hugely winning experience in e-government in the Ministry of Foreign Affairs, which was together urbanized with UNDP.
Quality improvement techniques have developed and today are incredibly adaptive to the unique challenges of service business. According to the rules of the Saudi Government, quality improvement in the service business has benefit Labor costs are higher, so making their core procedure additional efficient can have a substantial impact. The process for intangible products is not different from that of tangible products. Since its privatization, Saudi Telecom, turn into the leading operator in the region and one of the uppermost ranked companies in the whole Middle East by undertaking main moves and all through the company implementing Quality Improvement Programs. Their secrets to achievement include: adoption of Quality Oriented Strong Business Strategies, application of Balanced Score Cards, attractive Customer Focused, improvement of Customer-Facing Processes from side to side eTOM (enhanced Telecom Operations Map) procedure mapping, a framework of TQM and meeting Customer needs as remaining inexpensively competitive. Saudi Telecom has anticipated well in go forward the challenges raised by market liberalization and rising competition and has been focusing on the intensification of its competitive bearing through excellence improvement programs (Al-Saigh, N., 2005).
If the companies get better their core trade processes, they will improve Customer and Employee approval, and augment Profits. It has found that building quality is preferable to inspecting quality in, and the quality development techniques are focused on that end. Also, the trend is moving away from Building Inventories to Building to Order (Al-Saigh, N., 2005).
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