If QAD MFG/PRO
is down even for 10 minutes, our
work stops. Its like the life line
of the Company," says Balu
Srinisavan, Executive Director,
Ford Information Technology Services
India (FITSI).
Reads like an advert for QAD? Well
a company couldn't ask for a better
advertisement for its product than
the words of a satisfied customer.
And Ford Motor Company is satisfied
all right.
In 1995 the company decided to roll
out its operations in the "emerging
markets" India, Thailand, China,
Vietnam and Korea being the initial
markets.
Given the volumes in these markets
it was concluded that the IT applications
used in the established markets
would be an overkill for them. The
process Leadership Team for Ford
Asia Pacific markets decided to
go in for QAD MFG/PRO for the entire
Asia-Pacific region. And Thirdware
Solution Limited was chosen as the
implementation partner for the region.
Model site
India, the first market to launch
the car was chosen as the model
site for the implementation of the
package. This model was then repeated
in the other countries - Thailand.
Vietnam, Korea, the Philippines,
Malaysia and China.
October 1996 was the launch date
for the Ford Escort in India. Work
at the plant site started in February
1996 and was completed by October
1996. The core implementation process
took four to five rnonths while
consultancy was spread over a longer
period.
Three locations Nasik (manufacturing),
Chennai (finance and purchasing)
and Pune (parts warehouse) went
live with following modules:
Purchasing
Manufacturing,
Planning and. Logistics (MP&L)
Finance
Sales
Parts
and Services
Why QAD MFG/PRO
and Thirdware?:
"Ford uses mainframe systems
in Europe and the US and we wanted
the same for India too. We basically
wanted an affordable package which
was quick to implement and needed
minimum training for the end users.
QAD fit the bill and was the right
choice for Ford India", says
Srinivasan who was then the implementation
leader for Ford. Also global IT
applications which were used centrally
to serve North America and Europe
did not seem a viable option for
the Indian market with volumes of
12.000 to 30,000 units anually.
The company, therefore looked at
QAD, a packaged application which
would serve the functions for an
automotive company and was scalable,
adds Pradeep Erinjery, Director,
Thirdware.
Explaining the
choice of Thirdware as the implementation
partner, Srinivasan says, "Thirdware
had the required business process
exposure that Ford was looking for
... the requisite process and business
knowledge. The one impressive point
about Thirdware was that they had
the right mix of people who could
understand processes quickly even
if they had no prior experience
in the sector.
Ford infact, picked
up a 20 percent
Stake in Thirdware
which it claims is put of its long-term
strategy. "Globally, we have
joint ventures with various IT companies
... it's part of our long-term policy,'
says Srinivasan.
"In India too, FITSI has partnerships
with Covisint, Satyam and Thirdware
for all IT solutions required by
Ford throughout the Asia.Pacific.
The basic rationale is that Ford
is in automotive company and not
a specialised IT firm. We want to
partner with companies who can supply
us with IT resources as and when
we want. Though, we have a core
in-house IT team they are not always
in a position to provide specialised
IT services".
Greenfield Site
According to Srinivasan "one
of the biggest advantages of implementation
in India was that it was a greenfield
site" which means that we were
starting from scratch. This made
our work easier as we had no legacy
systems from which to migrate.....no
need to unlearn and learn anew!
The package was used from day one
of the company starting operations
in India".
"The challenge , however was
that we had to define and implement
th eprocess. we stuck to certain
core/standard processes of Ford
which were mapped on to the package
with its existing features."
For Thirdware it was a two edged
sword, says Erinjery.
"Ford is a process-oriented
company and they wanted the core
processes to be standard across
the world, be it in US or India.
They brought in six to eight people,
experienced and well versed with
their processes specifically to
ensure uniformity in processes adopted
here."
"To a large extent that helped
in defining the task at hand. But
the challenge lay in educating Indian
employees about the processes as
they were all new and had little
knowledge about the company and
product. Training them was time-consuming."
Srinivasan adds: "we had a
week of overview training session,
then training for key users. this
was followed by an intensive training
for functional users with regards
to specific modules."
Customisation
"There was hardly any customisation.
We did not touch the core package
as we were all too aware of the
drawbacks. If we customised too
much it would be difficult to upgrade
to a newer version of the package.
Also a maintainance would be a problem.
Moreover, the package suggests certain
business practices which are very
good. If we customised then we would
not be able to take full advantage
of this package." says Srinivasan.
"The only area that poses a
bit of a problem in India was tax
laws. But the package has a Global
Tax Module (GTM) which came in quite
handy and has taken care of most
of our legal problems as it was
developed by QAD with a lot of inputs
from various Indian companies."
he added.
Support
Since, february 2001, Thirdware
has set up a regional application
management centre in Chennai which
provides solutions to all Ford sites
in the Asia-Pacific. "In fact
Thirdware runs an Asia-Pacific centric
help desk for QAD and this takes
care of all our sites too"
says Srinivasan.
Investments
"In India alone the company
has spent $8 million on its initial
IT initiatives including the implementation
of the package, hardware , software
and networking among other infrastructure"
according to Srinivasan.
A Web-enabled future
"We are currently working on
consolidating the MFG/PRO packages
running in different countries into
a single database in Singapore"
says Srinivasan.
The integration of all Ford Asia-Pacific
sites to corporates e-Business applications
is also in progress. "Apart
from the consolidation we plan to
move on to a web-enabled version
of MFG/PRO" says Srinivasan.
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