What is an ERP?

ERP, which is an abbreviation for Enterprise Resource Planning, is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with the core business processes of a corporate house to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components; Business Management Practices, Information Technology and Specific Business Objectives

Do we need an Integrated Software?

Deploying a comprehensive ERP system across an organization leads to performance increase, workflow synchronization, standardized information exchange formats, complete overview of the enterprise functioning, global decision optimization, speed enhancement and much more. Hence an ERP system is absolutely ESSENTIAL for a manufacturing unit.

How long does it take to implement an ERP?

Implementing an ERP system in an organization is an extremely complex process. It takes lot of systematic planning, expert consultation and well structured approach. Due to its extensive scope it may even take anywhere from six months to a year to implement in a SME organization.

What are the advantages of an ERP system?

There are many advantages of implementing an ERP system. A few of them are listed below: A perfectly integrated system chaining all the functional areas together The capability to streamline different organizational processes and workflows The ability to effortlessly communicate information across various departments\ Improved efficiency, performance and productivity levels Enhanced tracking and forecasting Improved customer service and satisfaction

What are qualities of an User Friendly Software?

A user friendly software should have the following main characteristics: How easy is it for users to accomplish basic tasks the first time they encounter the design Once users have learned the design, how quickly can they perform tasks? When users return to the design after a period of not using it, how easily can they establish proficiency? How many errors do users make, how severe are these errors, and how easily can they recover from the errors? Enhanced tracking and forecasting How pleasant is it to use the design?

What hardware infrastructure do we need?

ERP runs on a server client architecture. Server is a computer on which the ERP resides. Server :For a SME industry any lower end server class machine usually suffices. The configuration depends upon the number of concurrent users. Higher the number of concurrent users higher the configuration. Client Machines: Any standard computer with OS suiting the ERP. LAN: Wherever there are more than one users LAN comes into picture. Structured cabling is recommended for LAN. Internet: Internet is required on the server for updating patches in the O/s, updating anti-virus and downloading ERP patches or versions.

What are the essential skills for a user?

Functional knowledge is more important than knowledge of computers. ERPs are usually designed to be friendlier. Having said that knowledge of windows operating system and basic mouse control is essential.

What is the cost of implementation of software?

Implementation is a highly complex process. The direct cost is directly proportional to the time of implementation. Usually implementation is charged on per day basis. If the data is readily available it takes much lesser time. It also depends upon the internal priority set for ERP implementation. Key people should be available whenever decision making is required.

What are the options we have for an ERP?

ERP can either be bought as a standard product which is then customised to suit the needs of the company or it can be developed custom made with the help of ERP design consultants and developers.

What factors should we consider while deciding upon an ERP?

Following are the main factors considered while buying an ERP: The cost of ERP is the top most factor. ERP is a big investment. Cost-Benefit Analysis. How long will it take for Return-of-Investment to take effect. Existing System and quality of available data. Whether there is a Internal Champion for the ERP project. An internal champion plays a very vital role in the implementation of the system. A champion should understand all internal processes, should understand how ERP systems work, should have authority to get people working on/for ERP. Knowledge and experience of project execution helps to get the ERP rolling fast. Whether the ERP vendor has got the right skill set and experience to understand your need and then configure the system accordingly. An integrated ERP system solution can comprise manufacturing, supply chain management, financials, human resources, customer relationship management and data warehousing. The company must consider what components it requires and choose the solution that provides functional best fit without compromising existing company processes.

Why do ERP Implementations fail?

Scope of the project is not clearly defined. It should be clear what the ERP will achieve and what it cannot do. Lack of Champion for the project. Champion is usually from the top management who understands the importance of ERP and drives the implementation team with a sense of urgency and quality. Poor choice of ERP vendor/package. Lack of importance/urgency for implementation of the system. Implementers should not be loaded with other priority work. Resistance to change within employees Insufficient training for the users Unrealistic time targets Changing design after ERP is delivered. Some vendors allow customisations. But too much of customisation should be avoided as it may affect functioning of the ERP system. Taking up ERP Implementation without streamlining of existing processes.

When do you say an ERP is successful?

Typically ERP could be regarded as successful if: ERP works smoothly and the pre-defined objectives are achieved. Every entry is made in real time. ERP provides important Decision Support Information ERP provides Decision Automation saving time of routine decision making Information is available to the right person at the right time ERP reminds and articulately follows up on completing over due tasks ERP in general saves time and effort

What are the pre-requisites for implementing an ERP

Some of the pre-requisites are as follows: Inform everybody what is going to be achieved by the ERP Carry out Business Process Re-engineering Prepare quality data to be imported into the ERP Decide upon a internal project leader Train people for the new hardware and software requirements Upgrade hardware set-up if required to suit the ERP

Can a single manufacturing software fit different types manufacturing industries?

Most of the software remains essentially same for all types of engineering companies. Certain modules like production and in some cases Sales module may require customisation. A good manufacturing software generally adopts to all kinds of manufacturing processes and works smoothly. One has to take this precaution while choosing the software.

What is your approach in Implementing Software Systems?

Implementing ERP is a specialised job and though the macro procedure is essentially same the process needs some changes from case to case basis.