Misr El Hegaz Case
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1) What in your view could be done to convince Misr EL Hegaz Senior Management & Chairman to continue improvement plan & introduce ERP software? What is the future of this group?
First make strong opinion among internal personnel in favor of implementing an ERP system.
Prepare a list of pros and cons from the point of view of each member in the management team and try to cover their doubts.
Ask a professional vendor ( who are well-versed with the industry-specific needs ) to prepare a presentation to the senior management to clarify the below points:
Advantages and disadvantages of an ERP system,
Evaluated ERP solutions for their industry,
Benefitted users,
Cost savings ( Time, manpower & accuracy )
Cost of ERP software and the implementation cost
System securities & controls
2) Prepare “Action Plan” for new strategy for improving productivity, reducing inventory and increasing revenue.
To improve productivity:
Train employee on how to best interact, work and serve customers.
Track productivity using graphs and charts. One of the best ways to boost productivity is to show employees their rate of productivity on a chart.
Motivate employee by creating an incentive, recognition or reward program for productive behavior.
Identify waste in every process and eliminate it
Create Open Communication Channels
Implement an ERP system
To reduce inventory:
Control Order Transaction Costs implementing electronic purchase order system
Lower Inventory Holding Costs by optimizing space in warehouses
Demand Forecasting:
Reduce Lead Times
Extend Payment Terms:
Take Advantage of Price/Quantity Breaks:
Transfer to different locations instead of Purchase:
Implement outsourcing and consignment
By improving productivity and reducing inventory they will increase their revenues
3) How can you increase exports? On what basis we can