Misr El Hegaz Case

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