Sapio, Mark Ivan D.

December 15, 2017

CISB 32-A

1. What problems did IGT face before the implementation of the ERP system?

The International Game Technology (IGT) has different departments or sites all around
the world. This company is very profitable with profits in 2005 reaching over $ 437 million.
Before implementing the ERP system that they are using in the present, the company faced
problems. IGT had different uncoordinated Information Systems for each department (sales,
customer orders, manufacturing and accounting). When they wanted to have information about
a customer order, they had to go to every unit to receive a piece of information and this really
takes a toll on the time and it also entails the company additional cost just to go to every
department. This problem particularly affects the accounting department of the company which
also had different software applications for each accounts in its books. Therefore, a condensed
or comprehensive information was a very hard thing to obtain. It is a very long process for the
accountants to do. Also, it takes them 2 weeks just to close their books. For me, these problems
is because of the constantly growing advancement in technology so the company needs to
adapt with this advancement to survive in the business world.

2. How does the new system help control processes?

The new Enterprise Resource Planning (ERP) system which is SAP also boosted the
company’s control processes. One thing is that the system does not allow a process to continue
if the employees ignore specifications or “cut corners”. The products are also made efficiently
and with fewer errors. It enables the managers to monitor design changes and costs involved in
new product development because of one of the system’s modules which is project
management. The Factory control system also enables managers to know which machines are
built at which plant.

3. Compared to the situation in 2002, what are the benefits of the ERP system?
The benefits of the new ERP system includes:
 The SAP system is less rigid and it builds machine to order
- IGT reduced average period of order to shipping from 9-10 weeks to 7-8 weeks
- They can also perform rush orders in four weeks instead of 7
 Price proposals are made based on more accurate information and estimates
-Error rates decreased from 10% to almost 0%
 Managers on the manufacturing floor can view or print out manufacturing process
sheets at their own PC’s
 Employees can no longer ignore specifications or “cut corners”
 The products are made more efficiently and with fewer errors
 The system connects all of the company’s sites around the globe
 Inventory is also managed efficiently
-inventory increased from 6.3% to 8.3%
 4. IGT decided to continue operating its older factory control system. Why do you think it did so?
According to my research, IGT continued to use its factory control system which it integrated it
with the SAP system because they have already tried to integrate the factory control system
with the old MRP system and they already know which data it required. This would prevent an
additional cost that will be incurred if they will integrate another system. The factory control
system is a system that enables the company to deliver materials to the production line at the
right location and time.

Source:

https://www.pcmag.com/article2/0,2817,2021403,00.asp