ENTERPRISE RESOURCE PLANNING

An Enterprise is a group of people with a common goal. Resources include money, manpower, materials and all the other things that are required to run the enterprise. Planning is putting necessary functions in place together. ENTERPRISE RESOURCE PLANNING is a method of effective planning of all the resources in an organization. ERP Covers the techniques and concepts employed for the integrated management of businesses as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise.

BUSINESS FUNCTIONS AND BUSINESS PROCESSES A Business process is a collection of activities that takes one or more kinds of inputs and creates an output that is of value to the customer. it cuts across more than one business functions to get a task done. INTEGRATED MANAGEMENT INFORMATION The information system consists of three elements: people, procedures and data. The fundamental characteristics of information are ACCURACY, RELEVANCY AND TIMELINESS.

COMMON ERP MYTHS: 1. ERP means more work and procedures. 2. ERP will make many employees redundant and jobless. 3. ERP is the sole responsibility of the management. 4. ERP is just for the Managers/ Decision-makers. 5. ERP is just for manufacturing organizations. 6. ERP is just for the ERP implementation team. 7. ERP slows down the organization. 8. ERP is just to impress customers.

9.ERP package will take care of everything. 10.One ERP package will suit everybody. 11.ERP is very expensive. 12.Organizations can succeed without ERP.

Evolution of ERP
Origins in the manufacturing industry. 1960,s- inventory management and control system

1970s- materials requirements planning (MRP) and

closed-loop MRP 1980S- manufacturing requirement planning (MRP 11) 1990s- ERP

Inventory management and control system

Inventory Management and control is the

combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. Material Requirement Planning (MRP) Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.

Closed-loop MRP
Its a series of functions for automating the production

process. It contains tools and techniques to address both priority and capacity and supports both planning and execution. It has provisions for accepting the feedback from the execution functions back to the planning function thus enabling the plans to be revised and updated depending on the actual execution or changes in priorities. Manufacturing Requirements Planning (MRP II) Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.

Enterprise Resource Planning (ERP)

Enterprise Resource Planning or ERP uses multi-

module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking.

Reasons for the growth of the ERP market

To enable improved business performance To support business growth requirements

To provide flexible, integrated, real time decision support.

To eliminate limitation in legacy systems To take advantage of the untapped mid-market

The advantages of ERP

Business integration Flexibility

Better analysis and planning capabilities

Use of latest technology

Why ERP packages are being used now?

ERP packages are able to handle entire range of business

functions necessary for the companys operations. ERP packages are targeted at everything from small businesses to the largest organizations. Global adaptation.

Business Modeling
It is a representation of the business as one large system

showing the interconnections and interdependencies of the various subsystems and business processes. Its representation of the actual business-what are the various business functions of the organization, how are they related, what are their interdependencies.

Basic concepts of ERP

Why is ERP important to a company? ERP affects almost all organizations, irrespective of their size and nature. Forces the competition to change their strategies and processes. Influences business partners to become more competitive. Improves the profits of the consulting organizations. It is the most important tool for business process reengineering. Enforces best practice business process in organizations. Fully utilizes the true potential of client- server computing to deliver an enterprise product.

Contd
Changes the nature of information systems function and IT

professionals. Changes the nature of jobs in all functional business areas. Implementation is very costly.

How does ERP creates Value?

Integrate the organizations activities. Force the use of best practices.

Enable organizational standardization.

Eliminate information asymmetries. Provide online and real time information.

Allow simultaneous access to the same data for planning

and control. Facilitate intra-organization communication. Enable inter-organization collaboration.

Risks and benefits of ERP

Quantifiable benefits from an ERP system: Reduced inventory and inventory carrying costs Reduced Man power costs Reduced Material costs Improved sales and customer service Efficient financial Management

Intangible benefits of ERP system

Accounting Product and process design Production and materials management Sales MIS Function

Other Factors: Implementation costs Production and business transaction costs Reporting costs Personnel costs Business process change and enhancement costs Customer and partner support Enabling new business opportunities

Risks of ERP
People Issues: Change management Internal staff adequacy Project team Training Employee relocation and retraining Staffing (includes turnover) Top management support Consultants Discipline Resistance to change

Process Risks

Program Management Business Process Re-engineering

Stage Transition
Benefit Realization

Technological Risks Software Functionality Technological Obsolescence Application Portfolio Management Enhancement and Upgrades

Implementation Issues
Project Size Lengthy Implementation Time

High Initial Investment

Unreasonable Deadlines Insufficient Funding

Interface
Organizational politics Scope Creep

Unexpected Gaps
Configuration Difficulties

Operation and Maintenance Issues

Managing Risk on ERP Projects: 1. Find potential failure Points or Risks 2. Analyze the potential failure points to determine the damage they might do 3. Asses the probability of the failure occurring 4. Based on the first three factors, prioritize the risks 5. Mitigate the risks through whatever action is necessary.

ERP and Related Technologies

Business processing Reengineering (BPR) Management Information System (MIS)

Decision Support Systems (DSS)

Executive Information Systems (EIS) Data Warehousing

Data Mining
On-line Analytical processing (OLAP) Supply Chain Management (SCM) Customer Relationship Management (CRM)

Business processing Reengineering

It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality service and speed. Management information System MIS is a computer-based system that optimizes the collection, collation, transfer and presentation of information throughout an organization, through an integrated structure of databases and information flow. Characteristics of MIS: MIS supports the functions of transaction handling and record keeping.

 MIS uses an integrated database and supports a variety of

functional areas. Provides operational, tactical and strategic levels of the organization with timely and structured information. MIS is flexible. Advantages of MIS over Data processing system: The integrated database of the MIS enables greater flexibility. MIS integrates the information flow between functional areas. MIS caters to the information needs of all levels of management. Information needs are supported on more timely basis with MIS than Data processing system.

 DSS are designed to support decision-making processes

involving semi-structured and unstructured problems. A DSS can help close the information gap and allow managers to improve the quality of their decisions. Characteristics of DSS: DSS is designed to address semi-structured and unstructured problems. Mainly supports decision-making at the top management level. DSS is interactive, user-friendly.

Executive Information System

EIS is a decision support system especially made for

senior-level executives. It is the concerned with how decisions affect an entire organization. EIS takes the following in to consideration: The overall vision and mission of the company and company goals. Strategic planning and objectives. Organizational structure. Crisis management Strategic control and monitoring of overall operations.

Advantages of EIS: Easy to use Flexible Use of latest technology

Data Warehousing: The primary concept of data warehousing is that the data stored for business analysis can be accessed most effectively by separating it from the data in operational systems. A data warehouse is a collection of computer-based information that is critical to the successful execution of enterprise initiatives. One of the principle reason for developing a data warehouse is to integrate operational data from various sources in to a single and consistent architecture that support analysis and decision making within the enterprise.

Advantages of a data warehouse More cost effective decision making Better enterprise intelligence Enhanced customer service Business reengineering Information system engineering Data warehouse components: Summarised data Operational systems of record Integration/ transformation programs Current detail Data warehouse architecture or metadata Archives

Structure of a Data Warehouse : Physical data warehouse Logical data warehouse Data Mart Challenges of data warehousing project: Complex Extract, Transformation and Load Characteristics a. Source vs. Target b. Data Transformations c. Transaction-based loading Immense volume of daily data Load methodology ( load control and auditing) Data warehouse Recovery ( load recovery) Data warehouse Validation

Meta data Management Uses of a DATA WAREHOUSE : Standard Reports and Queries Queries against Summarized Data Data Mining Interface with other data warehouses

DATA MINING It is the process of identifying valid, novel, potentially useful and ultimately comprehensive knowledge from databases that is used to make crucial business decisions. Advantages of Data Mining: Automated prediction of trends and behaviors Automated discovery of previously unknown patterns Databases can be larger in both depth and breadth Technologies used in Data Mining: Neural Networks Rule Induction Evolutionary Programming Case-Based Reasoning (CBR) Decision Trees Genetic Algorithms Non-Linear regression methods

On-Line Analytical Processing (OLAP) OLAP is a method of analyzing data in a multidimensional format, often across multiple time periods, with the aim of uncovering the business information concealed within the data. OLAP provides the facility to analyze the data held within the data warehouse in a flexible manner. OLAP can be defined as the process o converting raw data in to business information through multi-dimensional analysis. This enables analysts to identify business strengths and weaknesses, business trends and the underlying causes of these trends.

Uses of OLAP: Financial Functions Sales Functions Manufacturing Functions Key Features of OLAP: Multi-dimensional views of data Calculation-intensive Capabilities Time intelligence Different Styles of OLAP: Multi-dimensional OLAP Hybrid OLAP Desktop OLAP Relational OLAP

Supply Chain Management (SCM) The concept of supply chain management encompasses all activities relating to the supply chain. This includes vendor selection, negotiation, relations and performance. It accommodates the planning, procurement and delivery processes and personnel recruitment and training. SCM enables collaboration, planning, execution and coordination of the entire supply chain, empowering companies to adapt their supply chain processes to an ever changing competitive environment.

Advantages of Supply Chain Management: Supply Chain Planning and Collaboration Supply Chain Execution Supply Chain Visibility deign and analytics Business Benefits Business Benefits of Supply Chain Management: Faster response to changes in Supply and Demand Increased Customer Satisfaction Compliance with regulatory requirements Improved Cash Flow Higher Margins Greater synchronization with business priorities

Customer Relationship Management: A business strategy, the outcomes of which optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviors, and implementing customer-centric processes. CRM technologies enable greater customer insight, increased customer access, more effective interactions and integration throughout all customer channels and back-office enterprise functions.

Functions of CRM: Identify factors important to clients Promote a customer oriented philosophy Adopt customer based measures Develop end-to-end process to serve customers Provide successful customer support Handle customer complaints Track all aspects of sales Create a holistic view of customers sales and services information

Components of A CRM SYSTEM: Operational Analytical Collaborative Operational CRM: Provides automated support to front office business process. It involves three general areas. Sales force automation (SFA) Customer service and support (CSS) Enterprise marketing automation (EMA) Analytical CRM: It analysis data in an attempt to identify means to enhance a companys relationship with its clients.

Collaborative CRM: Focuses on the interaction with customers. It includes: Providing efficient communication with customers across a variety of communications channels. Providing on-line services to reduce customer service costs. Providing access to customer information while interacting with customers. USES OF CRM: Providing on-line access to product information and technical assistance around the clock. Identifying what customers value and devising appropriate service strategies for each customer Providing mechanisms for managing and scheduling follow-up sales calls. Tracking all contacts with a customer.

 Identifying potential problems before they occur. Providing a user-friendly mechanism for registering

customer complaints. Providing a mechanism for handling problems and complaints. Providing a mechanism for correcting service deficiencies. Sorting customer interests in order to target customers selectively. Providing mechanisms for managing and scheduling maintenance, repair and ongoing support.

FEATURES AND FUNCTIONS OF A CRM SYSTEM: Technology-Enabled Selling Marketing Resource Management Segment and List Management Call Center Management Campaign Management Internet Protocol Telephony Field Service Management Trade promotion Management Lead Management Marketing Analytics

PRODUCT LIFE CYCLE MANAGEMENT

Its a software solution for collaborative engineering,

product development, and management of projects, product structures, documents and quality. The PLM application should provide integrated product life cycle management software , a single source of all product-related information needed for collaborating with business partners and supporting processes including product innovation, design and engineering, quality and maintenance management and control of environmental issues.

The PLM software can help the organization To support strategic sourcing by interfacing with supplier relationship management software. Improve decision making through insight in to projects, flexible reporting, and analytics for portfolio management, product safety and product quality. Increase strategic and operative control by monitoring product and production changes affecting timelines, costs and resources. Provide an open technology framework that delivers upto- date data required by enterprise processes for demand planning, manufacturing, purchasing, and sales.

Product data management: The product data management system facilitates the design release, distributes the design data to multiple manufacturing sites and manages changes to the design. Benefits of PDM: Market Share Customer Satisfaction Profit margins Returns to the Stakeholders

Product life cycle phases: New product development stage Introduction Stage Growth stage Maturity stage Decline stage PLM-Features and Functions: Life cycle data management Program and project management Life cycle collaboration Quality management Enterprise asset management Environment, health and safety

PLMs Support for Product life Cycle process: Product development Development collaboration and strategic sourcing Prototyping and production ramp-up Sales, service, and maintenance handovers Quality engineering and improvement Product costing Benefits of PLM: Faster development and reduced costs Seamless integration with enterprise systems Improved product quality Better business results Better business decision making

BUSINESS INTELLIGENCE (BI)

It is the intelligence of business and application of human

cognitive faculties and artificial intelligence technologies to the management and decision support in different business problems. It is a broad category of applications and technologies for gathering, providing access to, analyzing data for the purpose of helping enterprise users make better business decisions. The ultimate objective of business intelligence is to improve the timeliness and quality of information.

Business Intelligence Reveals: The position of the firm in comparison to its competitors Changes in customer behavior and spending patterns The capabilities of firm Market conditions, future trends, demographic and economic information The social, regulatory and political environment What the other firms in the market are doing

Factors influencing the Business Intelligence Customers Competitors Business Partners Business Environment Internal Operations Techniques for integrating Business Intelligence in to business process:

BUSINESS PROCESS REENGINEERING (BPR) It is the fundamental rethinking and radical re-design of business process to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed. Successful BPR can result in dramatic performance improvements, increase in profits, better business practices, cost reductions, improvements in productivity, quality, customer service, employee satisfaction, profitability and other business goals.

Different Phases of BPR: There are seven different steps or phases: 1. Begin organizational Change 2. Building the reengineering Organization 3. Identifying BPR Opportunities 4. Understanding the existing process 5. Reengineering the Process 6. Blueprint the new business system 7. Perform the transformation

Begin organizational change: Asses the current state of the organization. Explain the need for change. Illustrate the desired state. Create a communication campaign for change.

Build the Reengineering Organization: Establish a BPR organizational structure. Establish the roles for performing BPR. Who are the people that will be enlisted to re-engineer the business? What will their responsibilities be? Who will they report to? What will happen to the normal business functions when the BPR is going on? Choose the personnel who will re-engineer. Members of the Reengineering Effort: Executive Leader: A high level Executive

Process Owner: Responsible for specific High level process Reengineering Team: To actually reengineer the process. Steering Committee: Helps to control its chaos and overall monitoring its progress. Reengineering Specialist or Consultants: They can assist each of the reengineering teams by providing tools, techniques and methods to help them with their tasks.

Identify BPR Opportunities: Identify the core/high-level processes Recognize potential change enablers Gather performance metrics within the industry Gather performance metrics outside industry Select processes that should be reengineered Change levelers can be identified as: The use of information The use of information technology Human factors Prioritize selected processes

Three factors for selecting high level processes: dysfunction Importance Feasibility Evaluate preexisting business strategies Consult with customers for their desires Determine customers actual needs Formulate new process performance objectives Establish key process characteristics Identify potential barriers to implementation

Understand the existing process: Understand why the current steps are performed Model the current process Understand how technology is currently used Understand how information is currently used Do staff members have access to essential information? Are some processes wasting time and effort by creating duplicate information? Why is technology used to support some tasks and not to others? How effective are the current interfaces?

 Are they easy to use?

In what way does the existing process take advantage of

technology? Understand the current organizational structure Compare current process with new objectives

Re-engineer the process: Ensure the diversity of the reengineering team Question current operating assumptions Is there a reason why a process has been performed in a certain way? Are there customer requirements that dictate the steps in a process? Brainstorm using change levers Brainstorm using BPR principles Successful BPR principles for Brainstorming sessions: Several jobs are combined in to one Workers make decisions

 The steps in a process are performed in a natural order Processes have multiple versions Work is performed where it makes the most sense Checks and controls are reduced Reconciliation is minimized hybrid centralized/ decentralized operations are prevalent Evaluate the impact of new technologies

Technologies that are often considered: ERP Systems Supply chain integration technologies Business intelligence technologies Internet technologies

 Distributed computing platforms

Client server architecture Workflow automation technologies Consider the perspectives of stakeholders Use customer value as the focal point

Blueprint the new Business System: Define the new flow of work Model the new process steps Model the new information requirements Document the new organizational structure Describe the new technology specifications Record the new personnel management systems Describe the new values and culture required

Perform the Transformation: Develop a migration strategy Full change over to new process Phased approach Pilot project Creating an entirely new business unit Create a migration action plan Develop metrics for measuring performance during implementation Involve the impacted staff Establish the new organizational structures Assess current skills and capabilities of workforce

 Map new tasks and skill requirements to staff

Re-allocate workforce Develop a training curriculum Educate staff about the new process Educate the staff about new technology used Educate management on facilitation skills Decide how new technologies will be introduced Transition to the new technologies Incorporate process improvement mechanisms

CHALLENGES FACED BY REENGINEERING EFFORTS Resistance Tradition Time Requirements Cost Skepticism Job Losses

GUIDELINES FOR THE SUCCESS OF BPR: Not every company needs to re-invent itself Surround the project with a sense of urgency Get top management to fully support the project Keep the lines of communication to employees open Create an atmosphere of trust and co-operation Change the way employees are evaluated and rewarded Staff the project with the best people Design the system from the customers point of view The employees are adequately trained Prepared to change the companys culture

BUSINESS MODULES OF AN ERP PACKAGE The Enterprise Resource planning Systems help the management by making the planning process more productive and efficient. ERP software is made up of many software modules. It includes modules for finance, manufacturing, production planning, human resources, plant maintenance, materials management, quality management, marketing, sales and distribution, purchasing, inventory control, product distribution, order tracking, etc.

Financial Module: Financial module of ERP software systems gathers financial data form various functional departments and generates valuable financial reports such as the balance sheet, general ledger, trail balance and quarterly financial statements. It will have the following sub-systems: Financial Accounting Investment Management Controlling Treasury Enterprise Controlling

Financial Accounting Module: It gives the ability to centrally track financial accounting data with in an international framework of multiple companies, languages, currencies, charts of accounts . General Ledger Accounts Receivable/Payable Special Ledgers Fixed Asset Accounting Legal Consolidation

Controlling Module: It gathers the functions required for effective internal cost accounting. And it offers a versatile information system with standard reports and analysis paths for the most common questions. Overhead Cost Controlling Cost Center Accounting Overhead Orders Activity-Based Costing Product Cost Controlling Cost Object Controlling Profitability Analysis

 Investment Management Module:

It provides extensive support for investment processes

from planning through settlement. It provides tools enabling to plan and manage capital spending process. It allows to distribute the budgets, monitor and avoid the budget overruns. Investment Planning Budgeting Controlling Depreciation Forecast Simulation Calculation

Treasury Module: It provides a basis for effective liquidity, portfolio and risk management. Cash management Treasury Management Market Risk Management Funds Management

Enterprise Controlling: It comprises of functions that will optimize shareholder value while meeting internal objectives for growth and investment. Executive information System Business planning and budgeting Profit Center Accounting

Manufacturing (production) Module: Manufacturing module of an ERP do not limit businesses to a single manufacturing method, instead many manufacturing and planning methods can be combined within the same operation with unlimited flexibility to choose the best method. These applications should allow easier exchange of information through out the entire global enterprise. These systems support the entire range of production strategies and the information base upon which the entire operation should be run.

The major subsystems of the manufacturing modules are: Material and Capacity Planning Shop Floor Control Quality Management Just-IN-Time/ Repetitive Manufacturing Cost Management Engineering Data Management Engineering Change Control Configuration Management Serialization/ Lot Control Tooling

Human Resource Module: The HR module of most ERP systems have a set of rich features and I will integrate with the other modules and thereby improve the productivity. They offer company-wide solutions for HR departments and make it possible for other departments to access specific employee data. The various sub-systems under the HR module are: Personnel Management HR Master-Data Personnel Administration Information Systems Recruitment

 Travel Management
Benefits Administration Salary Administration

Organizational Management Organizational Culture Staffing Schedules Job Descriptions Planning Scenarios Personnel Cost Planning

Payroll Accounting Gross/Net Accounting History Function Dialog Capability Multi-Currency Capability International Solutions Time Management Shift Planning Work Schedules Time Recording Absence Determination

Personnel Development Career and Succession Planning Profile Comparisons Qualifications Assessments Additional Training Determination Training And Event Management

Plant Maintenance Module: This module provides an integrated solution for supporting the operational needs of an enterprise-wide system. It includes an entire family of products covering all aspects of plant/equipment maintenance and becomes integral to the achievement of process improvement. Plant maintenance supports various options for structuring technical with its object, type and function related views, and enables flexible navigation.

The major sub-systems of a plant maintenance module are: Preventive Maintenance Control Equipment Tracking Component Tracking Plant Maintenance Calibration Tracking Plant Maintenance Warranty Claims Tracking

Materials Management Module: The materials management module optimizes all purchasing processes with workflow driven processing functions, enables automated supplier evaluation, lowers procurement and warehousing costs with accurate inventory and warehouse management, and integrates invoice verification. The main sub-systems of materials management module are: Pre-purchasing Activities Purchasing Vendor Evaluation Inventory Management Invoice verification and material Inspection

Quality Management Module: The Quality management module handles the traditional tasks of quality planning, quality inspection and quality control. It supports quality management in procurement, product verification, documentation, and in the processing of problems. Quality Management Module Functions: Quality Planning Management of basic data for quality planning and inspection planning, material specifications. Quality Inspection Trigger inspections, inspection processing with inspection

Plan selection and sample calculation, print shop papers for sampling and inspection, record results and defects, make the usage decision and trigger follow-up actions. Quality Control Dynamic sample determination on the basis of quality level history Application of statistical process control techniques using quality control charts Quality notifications for processing internal or external problems and initiating corrective action to correct the problems Quality management information system for inspections and inspection results and quality notifications

Marketing Module: The marketing module enables organizations to maximize the efficiencies of marketing resources and empowers marketers to acquire and develop long-term customer relationships. By using the tools and features of the marketing module, the company gain a flexible application to power marketing success. The marketing module supports the critical marketing processes like: Marketing Resource Management Segment and list Management Campaign Management E-mail Marketing

 Trade Promotion Management

Lead Management
Marketing Analytics Web-based Marketing Surveys

Self-Service Portal

Sales, Distribution and Service Module: The sales and distribution modules of many ERP offer a comprehensive set of components for both order and logistics management. These modules very actively interacts with the material management and the financial accounting modules for delivery and billing. The main sub-systems of sales and distribution module are: Master-data Management Order Management Sales Order Management Purchase Order Management

 Warehouse Management

Inventory Planning
Inventory Handling Intelligent Location Assignment

Inventory Reporting
Inventory Analysis Lot Control

Distribution Data Collection

Shipping Billing

Pricing
Sale Support Transportation

Foreign Trade

ERP IMPLEMENTATION Implementation challenges: Inadequate Requirements Definition Resistance To Change Inability to Achieve Organizational Understanding Inadequate Resources Lack of Top Management Support Lack of Organizational Readiness Inadequate Training and Education Inaccurate Expectations Poor Package Selection Poor Project Management

 Customization Issues
Long Payback Period Poor Communication and Co-operation Data Quality Costs Hidden Implementation Costs Improper Integration Improper Operation/ Use

ERP Implementation (Transition) Strategies: Big Bang Phased Parallel Process Line Hybrid

ERP Implementation Life Cycle Objectives of ERP Implementation: Speed Scope Resources Risk Complexity Benefits

Different Phases of ERP Implementation: Pre-evaluation Screening Package Evaluation Project Planning Phase Gap Analysis Reengineering Customization Implementation Team Training Testing Going Live End-User Training Post-Implementation

Why Do Many ERP Implementations Fail? Lack of Top Management Buy-in, Commitment and Support Improper Planning and Budgeting Use of Wrong ERP Tool Lack of Training Work Culture of the Organization

Pre-implementation Tasks: Assembling the Participants Feasibility Study Review Project Mission and Vision Statements Creation Determination of Organizational Structure Determination of the Modules to be Implemented Creating the Core Team Establishing the training Needs Establishing the Data Conversion/ Migration Strategy Establishing Interfaces Determining Work Estimates Cost of Consultants

 Calculation of Implementation Time

Identifying Constraints Establishing Policies and Guidelines

Implementation Methodologies: Managing the Implementation Organization of the ERP Project Team Implementation Strategy ERP Implementation Plan Risk Assessment Budget Cost Cost-Benefit Analysis Performance Measurement Problem Resolution System Issues

ERP Implementation- The Hidden Costs Training Customization Integration and Testing Data Conversion Data Analysis ERP Consultants Brain Drain (Employee Turnover) Continuing Maintenance

ERP Project Teams Organization o the ERP implementation team: Chief Executive Officer (CEO) Executive Committee External Consultants Project Manager Project Management Team Work Teams or Implementation Teams Technical Support Team Administrative Support Team

Training and Education Define Learning Objectives Determine Content Plan Deliver Assess Learner Review effectiveness of the Training Session Training Phases: Pre-implementation Training User Training Training, Assessment and Review

Post Implementation Activities Data Conversion Bottleneck Resolution Documentation and Training Audit and Review Implementation Compromises System Design and Implementation Compare Planned and Actual Use Compare System Functioning Interfaces, Upgrades and Extensions Evaluating Success Timing Balance Scorecard Post-implementation Review

Success and Failure Factors of an ERP Implementation Success Factors: Project Planning Align the Organization on the True Destination Architectural Design Data Requirements Active Executive Direction Make ERP related Decisions Quickly Phased Approach Data Conversion Organization Commitments Ensure the Project has Sufficient budget Implementation Review

Failure Factors: Employee Resistance Lack of Top Management Commitment Inadequate Training and Education Inadequate Requirements Definition Inadequate Resources Poor ERP Package Selection Extensive Customization Change Management User Acceptance Going Live is not the end of the ERP journey

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