The manufacturing industry experienced the first systems created with the objective to integrate the details and information, and to organize the different productive processes with MRP.
Improved customer service, efficient distribution system, and reduced operation expenses are some of the other important business imperatives that are driving manufacturing industry to implement ERP solutions.
In today's aggressive business environment it is essential to be prepared to face a vast and competitive world. In this time of diminishing global economic situation, manufacturers are one of the most worried sectors. They are challenged by the requirement of the customer and compliance mandates, effective management of supplier, costs control and finding new customers to grow the business. It is therefore opinioned by majority of the decision makers that ERP is an important tool to achieve competitive advantage.
For more information kindly visit: http://www.erppandit.com/How-ERP-system-can-help-manufacturing-industry.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Friday, July 2, 2010
What are the risks of the ERP implementation
ERP implementations are notoriously resource intensive, highly complex, time-consuming and unpredictable in terms of cost. The primary challenge that often leaves companies marooned when it comes to ERP is that most companies cannot handle a project of such complexity and one that requires huge amounts of resources.
Lack of budget and skilled personnel prevent many companies from focusing on the steps necessary to ensure that the new ERP is configured and rolled out in a fashion to best meet the business needs of the company. Then there are many people, technological, business process, implementation and operational issues that increase the risk of ERP implementations.
For more information kindly visit: http://www.erppandit.com/What-are-the-risks-of-the-ERP-implementation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Lack of budget and skilled personnel prevent many companies from focusing on the steps necessary to ensure that the new ERP is configured and rolled out in a fashion to best meet the business needs of the company. Then there are many people, technological, business process, implementation and operational issues that increase the risk of ERP implementations.
For more information kindly visit: http://www.erppandit.com/What-are-the-risks-of-the-ERP-implementation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Are better known companies the best choice
MEMBERS of the implementing team that are going to be dedicated for your company during the implementation are a key success factor to consider. Rather than concentrating on having a big name behind your implementation, we would suggest you get more details on the Consultants and their project management that are going to form the team of this implementing company..
If small companies have good capabilities among them and seem to be up to their promises in the contract, then this would be satisfying.
Sometimes big named companies would issue a sub contract to smaller implementing companies brought from Asia, but usually and for some reasons such implementations fail.
Again, you might get excited during the discussions held, but nothing is going to be guaranteed if not documented in the contract.
For more information kindly visit: http://www.erppandit.com/Are-better-known-companies-the-best-choice.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
If small companies have good capabilities among them and seem to be up to their promises in the contract, then this would be satisfying.
Sometimes big named companies would issue a sub contract to smaller implementing companies brought from Asia, but usually and for some reasons such implementations fail.
Again, you might get excited during the discussions held, but nothing is going to be guaranteed if not documented in the contract.
For more information kindly visit: http://www.erppandit.com/Are-better-known-companies-the-best-choice.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Preparation required before an ERP implementation
One of the biggest problems that many have had with implementing ERP is misunderstanding what ERP is all about and underestimating what it takes to effectively implement. Driving ERP preparation and implementation, senior operation management cannot relegate critical decisions to workers who may not have the background and/or the temperament for this type of decision-making.
Companies need a well thought out and comprehensive process that will help plan, guide and control the entire ERP implementation effort. Starting an implementation with an undocumented, skimpy or untailored implementation methodology is open invitation to disaster and at the very least, a long drawn up implementation.
Everyone from the board room to the stockroom needs to clearly understand their role and responsibilities for implementation and above all encourage dialogue that will get people focused on the business objectives as well as early identification and or correction of any problems. In addition, and no small matter, the question of how, when and who will be accountable for results must be an integral part of this understanding.
An implementation that is going astray becomes recognizable when repeated schedule slippage surface. As time moves on the schedules miss problems starts to compound the implementation quality, as the invariable response is too start taking short-cut; and by-passing critical business issues.
For more information kindly visit: http://www.erppandit.com/preparation-required-before-an-ERP-implementation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Companies need a well thought out and comprehensive process that will help plan, guide and control the entire ERP implementation effort. Starting an implementation with an undocumented, skimpy or untailored implementation methodology is open invitation to disaster and at the very least, a long drawn up implementation.
Everyone from the board room to the stockroom needs to clearly understand their role and responsibilities for implementation and above all encourage dialogue that will get people focused on the business objectives as well as early identification and or correction of any problems. In addition, and no small matter, the question of how, when and who will be accountable for results must be an integral part of this understanding.
An implementation that is going astray becomes recognizable when repeated schedule slippage surface. As time moves on the schedules miss problems starts to compound the implementation quality, as the invariable response is too start taking short-cut; and by-passing critical business issues.
For more information kindly visit: http://www.erppandit.com/preparation-required-before-an-ERP-implementation.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Business benefits of Enterprise Resource Planning
IMPLEMENTATION of Enterprise Resource Planning (ERP) requires a substantial investment of money and other organizational resources and is often fraught with a high risk of failure due to organizational change.
Despite numerous attempts to quantify the contribution of ERP investment to firm performance in both theoretical and empirical studies, the major question frequently ask is 'what is the return on ERP investment?'
The answer to this question is not simple. In fact there are three stakeholders of the ERP project, viz., Vendor, Implementation Partner and User Organization. The vendors and implementation Partners promise big business benefits such as enhanced enterprise productivity, more accurate business planning, improved customer services, increased value in stock market, etc. to the user organization.
While the implementation issues of ERP have been extensively studied and published worldwide, there is not much study reported and published on the business impact of ERP adoption. Although some research reports and case studies on the business impact of ERP have been published, majority of them were focused on larger firms.
The majority of these studies revealed that the ERP adopted company gives greater performance in terms of sales per employee, profit as well as operating margins, return on assets, inventory turnover, assets utilization, working capital turnover, accounts receivable turnover, etc. The studies further reveal that it takes about eight months to realize the benefits of the new system.
However, some of the studies found little or no improvement in business performance contributing to ERP investments. The causes for these contradictory outcomes were further examined and it was found that ERP implementation results into business performance improvement only when they are associated with organizational improvement efforts such as business process re-engineering, corporate restructuring, and creating strategic business units and so on.
It is now quite clear that merely acquiring and installing ERP does not provide any benefits to an organization. However, its proper implementation along with organization maturity and business process transformation can have a dramatic impact.
For more information kindly visit: http://www.erppandit.com/Business-benefits-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Despite numerous attempts to quantify the contribution of ERP investment to firm performance in both theoretical and empirical studies, the major question frequently ask is 'what is the return on ERP investment?'
The answer to this question is not simple. In fact there are three stakeholders of the ERP project, viz., Vendor, Implementation Partner and User Organization. The vendors and implementation Partners promise big business benefits such as enhanced enterprise productivity, more accurate business planning, improved customer services, increased value in stock market, etc. to the user organization.
While the implementation issues of ERP have been extensively studied and published worldwide, there is not much study reported and published on the business impact of ERP adoption. Although some research reports and case studies on the business impact of ERP have been published, majority of them were focused on larger firms.
The majority of these studies revealed that the ERP adopted company gives greater performance in terms of sales per employee, profit as well as operating margins, return on assets, inventory turnover, assets utilization, working capital turnover, accounts receivable turnover, etc. The studies further reveal that it takes about eight months to realize the benefits of the new system.
However, some of the studies found little or no improvement in business performance contributing to ERP investments. The causes for these contradictory outcomes were further examined and it was found that ERP implementation results into business performance improvement only when they are associated with organizational improvement efforts such as business process re-engineering, corporate restructuring, and creating strategic business units and so on.
It is now quite clear that merely acquiring and installing ERP does not provide any benefits to an organization. However, its proper implementation along with organization maturity and business process transformation can have a dramatic impact.
For more information kindly visit: http://www.erppandit.com/Business-benefits-of-ERP.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Measure the ERP system to improve performance
ERP performance studies are undertaken by organizations to know the effectiveness or benefit of ERP. Evaluation is an important step that helps in analyzing the contribution of ERP to an organization. However, this process of assessment itself poses many problems.
Normally, organizations have tendency to perform this process in a professional manner so that it would yield results. They tend to lose focus as the whole process gets into action. It is geared with great enthusiasm but confusions develop and mar things.
The success of an ERP project cannot be judged on the basis of unscientific evidence. Measuring its effectiveness and the improvement it has provided establishes ROI, justifies costs and lays the foundation for a continuous improvement model. But the goal of measurement is not to measure; rather, it is to improve performance and processes are the point at which this can be best accomplished.
A recently survey shows the proposition that ERP systems support business process and the measureable success of these system is dependent on the continuous examination and improvement of those processes. Metrics are the evidence upon which success can best be judged.
For a metric to be of any use to an organization, it needs to measure one of three different aspects of a process: cycle time (the percent of acceptable products produced during one cycle). All three metrics types are required to provide balanced improvement to a process.
Many companies get everything done at the right time with regards to ERP right from software selection to customization to training and implementation. They take all measures to provide the necessary impetus and invest in huge volumes even if it is pinching monetarily.
They are more particular about the benefits and are hence unmindful of the costs and investments. What happens thereafter is something to be worried about and corrected. After going all the way and that too in the right manner, companies do not bother to review the working pattern of ERP. Unless they understand this it is not possible to achieve the benefit of ERP.
For more information kindly visit: http://www.erppandit.com/Measure-ERP-to-improve-performance.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Normally, organizations have tendency to perform this process in a professional manner so that it would yield results. They tend to lose focus as the whole process gets into action. It is geared with great enthusiasm but confusions develop and mar things.
The success of an ERP project cannot be judged on the basis of unscientific evidence. Measuring its effectiveness and the improvement it has provided establishes ROI, justifies costs and lays the foundation for a continuous improvement model. But the goal of measurement is not to measure; rather, it is to improve performance and processes are the point at which this can be best accomplished.
A recently survey shows the proposition that ERP systems support business process and the measureable success of these system is dependent on the continuous examination and improvement of those processes. Metrics are the evidence upon which success can best be judged.
For a metric to be of any use to an organization, it needs to measure one of three different aspects of a process: cycle time (the percent of acceptable products produced during one cycle). All three metrics types are required to provide balanced improvement to a process.
Many companies get everything done at the right time with regards to ERP right from software selection to customization to training and implementation. They take all measures to provide the necessary impetus and invest in huge volumes even if it is pinching monetarily.
They are more particular about the benefits and are hence unmindful of the costs and investments. What happens thereafter is something to be worried about and corrected. After going all the way and that too in the right manner, companies do not bother to review the working pattern of ERP. Unless they understand this it is not possible to achieve the benefit of ERP.
For more information kindly visit: http://www.erppandit.com/Measure-ERP-to-improve-performance.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
Continuous ERP training is a must
Organizations must realize that there is a need for continuous training programs and refresher courses for the ERP success. There will be occasional new recruitments of employees and these employees should be properly trained in the basics of ERP and how to use the ERP system before they can be allotted to different departments. So there must be an induction, orientation and training program that is conducted on a regular basis.
It is very important that new employees undergo these programs before start work as they will have an opportunity to imbibe the correct work culture and learn the correct work practices, so that they will be doing things in the correct way from day one.
Once the ERP system is introduced, the way in which the companies conduct business will change. With the ERP systems will come, automation and new technologies. The company should make it a point to familiarize users with these technologies and find ways to motivate them to use these technologies. It is also a good idea to conduct refresher programs for the employees to reinforce the basics, correct working practices and also to update them on the latest developments.
When a new module or a system upgrade is done new capabilities and features become available and the employees should be trained on these new features so that they will be a position to make the best use of them and their capabilities.
For example, most ERP systems have the facilities to send automatic notifications to managers regarding some issues as and when it arises. The company managers have the facility to see the details of the problems and then query the ERP database to analyze its implications. So the managers can communicate with their peers to resolve the issues as soon as possible.
But for this to happen, the managers should make use of these technologies. One member abstaining from this process can delay the problem resolution. The company should therefore, have a plan to train and then motivate its employees to get the best out of the new features and facilities that are available to them.
Most systems can be configured to have an escalation mechanism - a mechanism that can escalate the issue to a higher authority if something does not happen within a specified period of time. For example, the system could be configured to send a mail notification to the superior of a manager if that manager has not taken an action regarding an issue within a specified period.
In such cases, senior managers should find out why the person is not using the technology and take the steps necessary to get him involved. Many people are dazzled by the technology or are afraid to use it. These fears should be alleviated for the proper functioning of the ERP system and to get the maximum benefit from the system.
For more information kindly visit: http://www.erppandit.com/Continuous-ERP-training-is-a-must.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
It is very important that new employees undergo these programs before start work as they will have an opportunity to imbibe the correct work culture and learn the correct work practices, so that they will be doing things in the correct way from day one.
Once the ERP system is introduced, the way in which the companies conduct business will change. With the ERP systems will come, automation and new technologies. The company should make it a point to familiarize users with these technologies and find ways to motivate them to use these technologies. It is also a good idea to conduct refresher programs for the employees to reinforce the basics, correct working practices and also to update them on the latest developments.
When a new module or a system upgrade is done new capabilities and features become available and the employees should be trained on these new features so that they will be a position to make the best use of them and their capabilities.
For example, most ERP systems have the facilities to send automatic notifications to managers regarding some issues as and when it arises. The company managers have the facility to see the details of the problems and then query the ERP database to analyze its implications. So the managers can communicate with their peers to resolve the issues as soon as possible.
But for this to happen, the managers should make use of these technologies. One member abstaining from this process can delay the problem resolution. The company should therefore, have a plan to train and then motivate its employees to get the best out of the new features and facilities that are available to them.
Most systems can be configured to have an escalation mechanism - a mechanism that can escalate the issue to a higher authority if something does not happen within a specified period of time. For example, the system could be configured to send a mail notification to the superior of a manager if that manager has not taken an action regarding an issue within a specified period.
In such cases, senior managers should find out why the person is not using the technology and take the steps necessary to get him involved. Many people are dazzled by the technology or are afraid to use it. These fears should be alleviated for the proper functioning of the ERP system and to get the maximum benefit from the system.
For more information kindly visit: http://www.erppandit.com/Continuous-ERP-training-is-a-must.html
OR Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775.e-mail (enquiry): contactus@erppandit.com, e-mail (feedback):feedback@erppandit.com Web site: www.erppandit.com.
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