Rolls Royce group is a British luxury automobile maker which was established in 1998.
It is a well known company with businesses around 135 countries and manufacturing capabilities
in 14 different counties. They have ventured in various businesses including civil, defense,
aerospace, marine and energy markets. Rolls Royce services aircraft engines for most of the
airlines, public companies and armed forces.
The business that Rolls Royce is in
Rolls Royce aero engines are used for power generation which acts as backups for
nuclear power stations and filling across the UK. According to Maxcy and Silberston, (2017),
Rolls Royce engines are used in ships and submarines due to their powerful nature. These
engines can be found in almost every commercial aircrafts manufactured by aviation industries.
They are famous in provision of high class quality, reliable, and the high end technological
services offered to its customers (Pugh, 2015).
Rolls Royce is well known in the production of British luxury cars including phantom,
phantom drop head coupe, phantom coupe, Ghost, Wraith, Dawn, Rolls-Royce Cullinan,
Phantom (2018) and several other models.
Rolls Royce offers highly qualified 24/7 technical support to its customers and their
vessels across the world. With their global network and strategically located marine workshops,
it is able to support its customers whenever there is need for repair and overhaul. Its services is
tailored to customer requirements, they offer rapid turn a rounds to meet the docking schedules
while adhering to ISO quality standards.
Rolls Royce provides upgrades to ensure that their products maintain the highest level of
operational safety and productivity. Other services offered by Rolls Royce include: Customer
product training, energy management, equipment and health management, spares, and field
Issues trying to Solve – Rolls Royce
The business was working toward solving some technical, cultural and business issues
hence the decision to implement the ERP system. Before starting the ERP project, the company
had already used over 1500 systems that they developed internally. Aside from these systems
being expensive to operate and very difficult to maintain, while using these systems the company
continually were faced with issues of accuracy, consistency and accessibility of data that are
needed for management to make calculated decisions and correct performance assessment. The
old systems were prone to manual manipulation and most were not compatible with modern
technology, for example, the “MERLIN” system was incapable of communicating between
Roll Royce IT department was outsourced to EDS in 1996 and soon EDS began working
on the ERP project. Although the company experienced many of the above issues and more, the
implementation of the ERP system created a list of other issues. The company faced some
cultural issues, in that the system was met with low acceptance. The required change in
processes and functions was not appreciated and the team had to work to resolve this issue.
Also, there were business issues in that the implementation of the ERP (SAP R/3) project
required a change in business structure so that it is more rigid. To solve this issue, the team used
BPR, an internal business program to identify potential problems and mapping the current
processes to fit the SAP system.
Thirdly, the company had been faced with the major issue of inaccuracy of data. Transferring
data from the old system brought the fear of duplication of data. The company decided to keep
previous system running until all data were screened and transferred safely to the new system.
One major issue Job shops who have not mastered their art of logistic is facing is the fear
of collapse of the company.
The company is faced with logistic issue and study have proven that the implementation
of ERPs will helps solve this issue. The Job shop encounters many logistic planning, logistic
performance and other logistic related problems consistently. For example, the company’s leadtime was averaging more than three times other companies hence the company started to lose
customers. Logistic performance can be improved by implanting ERP systems.
Customers need quality products delivered accurately and timely at the lowest possible
cost. The job shop is also faced with the issue of being unable to position people, materials, and
products to meet customer needs. When it comes to packaging, labeling, storing, transporting,
material handling in processing centers, and physically distributing the products the
inconsistency is easily seen.
Logistic effectiveness as it relates to customers expectations in modern society is very
high and the implementation of high performing logistic systems (ERP) will result in excellent
customer service. Now that the industry is involved with distribution of products in this
globalized economy and confronted with many problems, logistic effective will be at its highest
potential with implementation of ERPs.
Success or Failure?
Rolls-Royce recently went through an upgrade with the way they used their
implementation of information technologies and systems. The upgrade that they performed was
to their enterprise resource planning (ERP) and the implementation had cases were some of the
things were successful and unsuccessful. The (ERP software package that was implemented is
known as SAP R/3.
Rolls-Royce used over 1500 systems before the ERP project was started. These legacy
systems were expensive to operate and difficult to maintain and develop. The difficulties with
the ERP was the costly development of additional software to retrieve the information from these
legacy systems. The issues they had were that SAP R/3 requires a certain business structure in
order for it to work successfully.
Rolls-Royce also had success due to using a highly configurable and flexible
implementation of the ERP Project. They also used a pilot to demonstrate the business principles,
processes, procedures, role definitions, behaviors, software, hardware, and data transfers. RollsRoyce team also separated the project into two waves. Wave one was concerned with the
replacement of legacy systems. Wave two was about implementing engine assembly, spares,
logistics and human resource elements within the project. Lastly, they focused on training and
cultural changes to help people buy into the changes. The training was implanted in the form of
organized seminars which were then split into two distinct groups of specialists and mass users.
Job-shop manufacturing system
The results of the study of the job-shop manufacturing system updating ERP to system
applications and products in data processing (SAP) is what was expected. The study found interrater reliability resulted in 92% agreement after administering two different forms of the same
test. The study also found that effectiveness of logistics management does affect the logistics
system's effectiveness. The second thing the study found was that correlation exists between the
use of technology and the improvement of logistics performance. Lastly, the effectiveness of the
ERP is also greatly improved when used by a high skill professional with the ability to work with
Why it was or was not
The implementation of the ERP on Rolls-Royce had the potential to deliver services to
the customer on time since the ERP utilized the current data. This would, in turn, boost the
customer satisfaction level and also enhance the customer conﬁdence. Although the
implementation of ERP was an expensive information system investment for Rolls-Royce, the
ERP streamlined the supply chain where transactions were made easier through the utilization of
Electronic Communications. However, there were issues with the sustainability of the ERP due
to inadequate understanding of the requirements for supporting the effectiveness of the ERP.
The implementation of the ERP was a success since it unified the company's IT costs.
The company focused all its costs on a single ERP rather than making expenditure on numerous
separate systems that require dedicated personnel, support workforce infrastructure and related
licenses. The utilization on the ERP reduced spending on end-user training where the users train
on a single system instead of the various individual systems.
The deployment of the ERP on all the company’s departments resulted in having a single,
consolidated reporting system for each process. The system could readily create meaningful
reports and analytics through comparison of functions across departments. In addition, the
sharing of data among the different departments like customer service, sales and marketing
improved collaboration throughout the company. The ERP incorporated intrinsic controls that
guaranteed the security of its data.
The ERP greatly reduced the time and effort needed by the company’s workforce to
undertake their daily operations. The system removed repetitive manual processes, thereby
releasing some personnel who were absolved in other revenue-generating tasks. This allowed the
company to adopt and enforce industry best-practice methods of manufacturing and aligned all
operations across the company.
ERPs have received average adoption rates in Job shop manufacturing process on
boosting logistics performance. This is partly attributed to the cost of adopting as well as the
deployment of the ERP. The implementation of ERP comes with extra costs like training users,
integration, testing and consultant fees. Performance can be boosted by improving logistics
planning by utilizing ERP technology. The impact of ERPs on logistics performance in
production operations suggest that it is ideal for large-scale production processes.
The utilization of ERP technology permits efficiency of logistics management since the
utilization of ERP has no impact on the job shop manufacturing system. There exists a
connection between the utilization of ERP and the enhancement of logistics performance in a
job-shop manufacturing system. Most Job shop manufacturing process requires precise logistics.
An excellent logistics system offers efficient customer service by supplying the product or
service in the finest form, to a particular location, at a particular time, at a minimum cost
These manufacturing enterprises have challenges associated with the management of
logistics systems and therefore the need for a ERPs which provides a well-planned, organized,
and controlled logistics systems. When properly utilized, ERPs significantly improve the
efficiency in customized job shops. The ERP allows collaboration that needs extra time and
effort. It streamlines the collaboration process where it provides the employees with access to
data they require in real time. This, in turn, provides the company employees with the tools they
require to make decisions. The overall effect on the enterprise is enhanced efficiency and
decreased operational costs related to the manual data tracking.
Case Study 1- We must avoid the failures of not providing accurate and easily accessible
data which is important for performance assessing. The data redundancy was a major area of
concern in Rolls Royce. We must optimize the use of information system for strategic decision
makings. To continuously modify the existing process to adjust and fit the new systems
available. This will in return increase customer satisfaction to the high availability of products.
With providing accurate information, this will lead to a better management of the billing process
minimizing on the disputes per order.
Case Study 2- It is to be noted that every business endeavor is critical to the company’s
goal. The ERP is necessary because it is cost effective and efficient. Efficiency is evident
through the accuracy of orders. By using the appropriate logistics system, this will cut stocks and
gain customers confidence in the ability to obtain in and external resources that are in demand.
Essila, J. C. (2018). The Impact of Enterprise Resource Planning on Job Shop Manufacturing
Supply Chain Management. IUP Journal of Supply Chain Management, 15(3), 48–67.
Yusuf, Y., Gunasekaran, A., & Abthorpe, M. S. (2004). Enterprise information systems
project implementation:. A case study of ERP in Rolls-Royce. International Journal of
Production Economics, 87, 251–266. https://doiorg.ezproxy.umuc.edu/10.1016/j.ijpe.2003.10.004
Memo to CIO on Success Criteria for Enterprise System Implementation
and Enterprise Architecture
Purpose of this Assignment
This assignment gives you the opportunity to demonstrate your ability to research,
evaluate, and explain enterprise systems, and to communicate effectively at the executive
level. This assignment specifically addresses the following course outcomes:
analyze and examine how enterprise architecture and enterprise systems influence,
support, and enable an organization's ability to contribute to strategic decision
making and to respond and adapt to the business environment
analyze enterprise system solutions to make recommendations based on benefits,
limitations, and best fit within the enterprise environment
analyze and explain the elements of a successful plan for implementing enterprise
solutions, addressing structure, processes, culture, and other considerations
analyze success criteria for higher application to enterprise architecture
Your instructor has assigned each group one of several types of enterprise systems (ERP,
SCM, CRM, etc.) to research and prepare a paper and an executive-level informational
presentation. In Group Project 1, your team prepared a 2-3 page paper summarizing the
case studies, evaluating the success of the implementations, and identifying lessons
learned. For this assignment, you are to work independently and write a 1-2 page
memo (not including references page) to the CIO that identifies more than seven
success criteria for implementation of enterprise systems, for the category of enterprise
systems assigned to your group (ERP, SCM, CRM, etc.). (NOTE: More than seven
success criteria are required to receive all possible points; see Grading Rubric
1. Each of these success criteria should be briefly explained and then related to how
they would be applied during an implementation of the assigned category of
enterprise systems within the CIO’s organization.
2. Discuss how each of the success criteria relates, on a larger scale, to satisfying the
enterprise architecture. Some areas to consider include the structure of the
organization and its processes and culture; other aspects of a proposed
implementation relate to the phases of the system development life cycle (needs
analysis, design, development, implementation, maintenance).
3. The case studies your group is using may be a good source of ideas. The criteria you
identify must be applicable to enterprise systems (in the category assigned to your
group) and should come from your research.
Important: Often students write this memo from the perspective of what it looks like to
have a successful implementation of ES/EA. Instead, the focus should be on the criteria that
will help you be successful! There is a difference here. For example, cost savings is the
result but not necessarily the success criteria leading up to it. Now you could contribute cost
savings to the fact that you had executive buy-in with sustained sponsorship (this could be
an example) or other criteria that includes re-engineering of business processes as
contributors. Please orient this memo such that you look at success criteria as the "drivers"
for a good implementation. Also, please remember to put this into a memo format that
looks professional. Please remember that the CIO has limited time and you should get to
the key points quickly. Please refer to the grading rubric and carefully follow the
You are to use a Microsoft Word memo template. The use of at least three external
scholarly resources (in addition to your case studies and other class materials) is
required. (NOTE: More than three external resources are required to receive all possible
points; see Grading Rubric below.) You should use scholarly journals (rather than
Wikipedia and authorless website postings). If you need assistance with determining what a
scholarly journal is, the UMUC library is a very good source of information, accessed via the
following link: http://www.umuc.edu/library/libhow/articles.cfm.
Remember to correctly cite and reference all sources. Since you are writing a memo, you
should use in-text citations and list the references on a separate page at the end.
After your individual assignment has been submitted, you will work with your group to
select a set of recommendations for a successful implementation that will become a part of
your Group Project 2, the executive briefing.
Note: The filename of your paper should include your last name. An example would be:
Your work will be graded according to the rubric below.
There is a clearly
the stage for the
the stage for
little effort is
More than 7
systems (in the
More than 7
systems (in the
At least 7 criteria
systems (in the
are applicable to
Fewer than 7
systems (in the
Few or no
There is an
identified. Each of
the criteria is
each is very
how the success
criteria relates to
of the criteria is
and each is
Includes a good
how the success
criteria relates to
on how the
of the criteria
may not be
and/or may not
be applicable to
Little to no
mention of how
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