The hottest Geely Automobile no longer pays tuitio

2022-07-24
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Geely Automobile: no longer pay tuition fees for ERP implementation consulting

when the consultants in suits, ties and black rimmed glasses put a thick pile of consulting reports in front of Li Shufu, chairman of Geely Holding Group (hereinafter referred to as "Geely"), they faced the consulting fees that used many professional terms, explained a series of abstract concepts, and the asking price of the other party was often in the millions of yuan, LiShufu must have another headache: should he abandon the consulting company like a clog, or do he worship it like a God? In LiShufu's mind, the two e's can effectively prevent external impurities from entering the hydraulic system and polluting the hydraulic oil. The shadow left by the consulting company in the failure of RP implementation has not been cleared up yet

In 2002, like those enterprises that chose to launch ERP, Geely Automobile could not bear the problems of loose management and isolated information island, which affected the rapid development of the enterprise. The company hoped to use information technology to transform the production process

the production process of a complete vehicle involves more than 2000 assemblies (Note: all components that complete a certain function are called assemblies together). If it is subdivided into parts, it will consist of more than 20000 parts. For the purpose of cost control, each head office of Geely is provided by several different suppliers, so the cost structure of each vehicle of Geely is very complex. In the absence of effective information means, not only the material cost is unclear, but also the more complex overall cost is a "muddle headed account"

since 2002, Geely has chosen the coastal factory base, which accounts for half of the group's total output and has the longest history of plant construction, as the first stop on the road of ERP exploration, and has taken cost control as the goal of informatization implementation. LiShufu put forward a clear requirement: one vehicle one cost (Note: the cost of each Geely vehicle can be reflected through the system)

Geely, known as a price killer, did not hesitate to choose SAP this time, but this costly and powerful project ended in failure. In retrospect, zhangzhengzhu, deputy manager of Geely Automotive Information System Department, admitted that apart from the company's insufficient understanding of the equipment information applicable to the intuitive weighing of gear oil's ability to withstand extreme pressure, the selection of the consulting company at that time was not considered thoroughly. Due to financial considerations, Geely chose a small second-line consulting company instead of the "Big Five" consulting companies, which buried hidden worries about the failure of the ERP project

this consulting company, which has no background in the automotive industry, has some good consultants, but its overall level is uneven. It is unexpected that during the eight months of project implementation, consultants frequently changed their jobs like riding a horse's lamp. Almost every time a module was implemented, three consultants were replaced, and the fastest time was less than two weeks. Zhang Zhengzhu said, "even the project managers have been changed several times, and the problem of project connection has occurred frequently."

the prophecy of consulting death and ERP death was finally fulfilled. When the ERP system was launched on New Year's day in 2003, Geely sold a car with a price of only tens of thousands of yuan, but the cost displayed in the ERP system was more than 100000 yuan. Geely's first ERP implementation was ruined by the consulting company, (3) the greening of plastic additives and the vice president of Geely Automotive business who advocated ERP at that time also left sadly

the first launch of ERP ended in failure, but Geely's idea of trying to strengthen cost control through ERP has not changed. In 2003, the company embarked on the ERP journey again. In view of the first painful experience, Geely understands that the industry experience and professional level of the consulting companies involved in the implementation have a great impact on the success or failure of the project. The professional level of the consultant team responsible for "billing" in the company's defense lit the hope of success for Geely

but what Geely didn't expect is that the after-sales and pre-sales consulting teams of this company, which gives them a hundred times confidence, are not a group of people at all, and their level is far from the same. To make matters worse, only two of the seven after-sales consultants sent by the internationally renowned IT company were affiliated with the company, and the other five were all temporary recruits

"Geely is very sensitive to the word" consulting "due to the uneven service level, professional ability and rush to work style of the first two consulting companies."

the primary purpose of this "grass-roots team" is obviously to complete the project as soon as possible. Therefore, in all the parts involving the re division of power, affecting the interests of the company's employees and other obstacles to the progress of project implementation, they adopted the Avoidance Policy and did not make much changes to the original process. This obviously goes against Geely's original intention of "seeking medical advice and strengthening the body"

a satisfactory start, but the subsequent process was really bad. The loss caused by this consulting experience to Geely is painful. At the beginning of 2004, when the three financial statement modules of the ERP project were launched as agreed, Geely executives who had high hopes for ERP did not recognize the work of the consultants because they did not play a due role in improving Geely's management level. This lesson made Geely realize that "when selecting a consulting company, you can't just look at the brand. It is very important to be responsible for the implementation of the consultant's skill level. Before signing, you must ask the consulting company to provide the list and background of consultants, and users should review and confirm the authenticity of the information." Zhang Zhengzhu concluded

failure consulting and success consulting

the service level, professional ability and rush style of the first two consulting companies make Geely very sensitive to the word "consulting". Of course, from another point of view, this is also testing Geely's patience with the consulting industry. The two failures brought Geely a blow not only that the informatization was almost stopped,

"many people began to doubt Geely's own management ability; others thought that foreign designers could not design local services; and it was suggested to use domestic software to improve the management first, and others later". During this period, Geely also tried to find a domestic ERP manufacturer for cooperation

in the end, Geely did not give up the original investment, but chose another Deloitte Consulting Company with rich experience in China's automobile industry with the advice of the supplier. Based on the previous lessons, consultants have become an important item in the examination of Deloitte. The composition of consultants has been agreed in the contract, and the personalized requirements of "one vehicle, one gear, one vehicle, one cost" have been required and fully communicated in advance

in October, 2005, Geely Automobile implemented ERP for the third time. When the system went online, the difference between the single vehicle cost data from the system and the data from manual statistics was only about 500 yuan. Three months later, the ERP project of Ningbo base was launched. Subsequently, as the fifth ERP project, the road and bridge base ERP was also implemented by Geely to achieve independent launch. On may19,2007, the ERP project of Shanghai base started. (end)

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