The document discusses ERP systems and their implementation at ATCO. It describes ERPs as software that integrates information across organizational functions. The document analyzes ATCO's current fragmented systems and redundant processes. It proposes improvements like establishing an IT structure, implementing CRM and other integrated systems, upgrading ERP software, and connecting previously separate divisions. The goal is to optimize operations, eliminate inefficiencies, and provide transparent organizational information and reporting.

1. ERP in ATCO
Concepts and Real Applications
By Ahmed Rami Elsherif
21/05/2007

2. What Is ERP?
• ERPS (Enterprise Resource Planning Systems) comprises of software
packages that promises the seamless integration of all the information
flowing through the organization - financial, accounting, human resources,
purchasing, Sales, Inventory, Cost Controlling, Etc..
• ERP Systems provide information management and analysis to
organizations.
• ERP Systems need of an integrated hardware infrastructure to deliver its
full potential
• ERP Implementation project is a Business Project. IT is a supplier and
facilitator for such a project.

3. ERP Characteristics
• Integrated online/real time information throughout all the
functional areas of an organization.
• Data standardization and accuracy across the enterprise.
• Best-practices or optimized solutions are included in the
applications.
• Creates efficiencies that organizations would not otherwise
have.
• Delivers analysis and reporting capacity that can be used for
short and long-term planning and management.

4. ERP
Planning
Finance & Accounting
Expenses & Costs
Human Resources
Material Management
Fixed Assets
Special Solutions
Division 1
Division 2
Division N
An Integrated Model
Branch 1
Branch 2
Branch X

5. ERP
Division 1
Division 2
Division N
Standardized Data
Chart of Accounts
Budget Items
Cost & Profit Centers
Employees Master Data
Materials Master Data
Assets Master Data
Third Parties
Single Master Data
Entry through out
the Organization.

6. Best-Practices
e.g. Purchase Order Process
Purchase Petition
Approval PP
Offer Evaluation
Purchase Order
Approval PO
Reception of Goods
ERP
Budget
Accounting & Finance
Purchasing Limit
Material Management

7. Analysis and Reporting
Sorting Criteria
Drill-Down
Analysis
Balance and Result Sheets
Divisions
Costume
Presentation
Economical Indicators
Graphical
Presentations
Accounts payables and receivables
Graphical
Presentations

8. ERP Benefits
Tangibles:
• Inventory Reduction (25 – 30 %).
• Material Cost Reduction (5 %).
• Labor Cost Reduction (10%).
• Improved Customer Service & Sales (10 %).
• Reduce AR & AP Delays (18 %).
Intangibles:
• Single Source, Online Data, Information & knowledge for the decision
making.
• Control and Management over the enterprise processes.
“Not everything that counts can be counted, and not everything that can
be counted counts.” Einstein

9. Where Does ATCO Stands?
• Partially Connected Network.
• Diverse non-integrated number of Information System across
divisions and branches.
• Un standardized master data in some cases.
• Varied procedures and processes depending on available
systems and interconnectivity.
• Redundant work by operational and administrative personnel.
• Excel based estimation process and lack of integration
between Estimation, Planning and execution in the
Construction division.

10. Network and system current situation.
Hardware
East West Factory
ATCO-Dammam
Head office
CMD Warehouse
Other Branches
Other showrooms
Software
ATCO Menu
Head Office
Accpac-Head office
Paradox-Warehouse &
Showrooms
Gesco – Office 1
DacEasy – Jeddah
& Riyadh
Riyadh Office
Jubail Office
Jaddah Office

11. Actual Sales Process Flow
Sales and
Invoicing
Elaborated twice:
1. In branch
2. In head office
Sales Order
Non Existent
because is done
post operation.
Financial Credit Control
Invoicing
Distribution
and Logistics
Product/Service Delivery
Sales Person Inventory Control
Elaborated twice:
1. In branch
2. In head office
Elaborated twice:
1. In branch
2. In head office
Redundant Time
•70 % of Accountant
•50 % of Auxiliary Acc.

12. Construction Project Lifecycle
Planning
Estimation
Execution
Excel Based. Lacks
controls and retro
alimentation from
executed data.
Done in Primavera but
it lacks integration with
Estimation and
Execution
Done in Accpac and
Atco menu. It suffers
from the same
problems we mention
earlier.

13. Proposed Improvements
New:
• IS/IT Organizational structure.
• Infrastructure.
• Optimizing the ERP systems by eliminating redundant work
and adding control elements.
• Construction division automation, integration between
estimation, planning, and execution.
• Intranet and Business Intelligence Portal.
Under Implementation:
• CRM or Sales tracking system.
• Tracking system for E&W.
• Sales & Distribution system.

14. Proposed Plan
# Pri. Task Est. $$ Lead Time Prereq. Dependency
1 1 IT/IS Organizational Structure 15 Days 0
---Form a competency center in charge of internal software and information systems
-------Organanizational chart
-------Pay scale?
---Form steering committee made up from different business divisions
-------Members nominated by divisions
-------Regular meetings
2 1 Infrastructure 3 Months 1
--Work with infrastructure and steering committee in prior zing
3 2 CRM or Sales Tracking System 2 Months 1
--Implement
1
4 2 Tracking System for E&W 2 Months
--Implement
5 3 Sales & Distribution System for trading Divisions 3 Months 1
--Implement
6 2 ERP evaluation & reimplementation 12-18 Months 0
--First option initiate a conversation with Accpac people for possible upgrade 1-2 Months
--Look at other products in the market
--Make a decision on the way to go
--Implement
7 2 Construction Division Integration 12-18 Months 0
--Evaluate Estimation, Planning and Execution support software 1-2 Months
--Possible Integrations with other softwares
--Implement
8 2 Intranet and Business Intelligence portal 1-2 Months 0
--Implement as a confidence building measurement
9 XX Others? New Business requirements?

15. Conclusion
ERP/IT plays a key role in providing businesses a competitive
edge by managing, optimizing, and transparenting
organizational activities like:
1. Financial.
2. Administrative
3. Accounts payable and receivable.
4. Payroll.
5. Material Management, etc..
Not only does it enhances accountability, responsibility and
communication but also it is used as a reporting tool; what
have we done? and did we gain or lose money?. Demo