enterprise resource planning unit 4 post implementation on erp
TRANSCRIPT
Prepared and presented by,
N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
II y
ear
III Sem
est
er
Academ
ic y
ear
2017-2
018
1
A successfully implementation ERP system
will not automatically produce results.
As technology advances, new software with
more features and capacities will emerge.
This requires continuous improvements,
continuous learning and an ongoing
implementation.
Most of the companies treat ERP
implementation as projects, with the
assumption that someday the projects will
but the ERP system cannot end with the
implementation.
Once the implementation phase ends and
staff have started using the ERP system, the
real benefits of the ERP will be soon.
Employee Relocation and Re-Training
Continuous Training
Break-Down Maintenance:
This is a reactive approach, i.e., dealing with
break-downs or problems when they occur.
Preventive Maintenance:
This is a proactive approach, i.e., reducing break-
downs through a programme of lubrication,
adjustment, cleaning, inspection, and
replacement of worn parts.
Time-Based: Preventive maintenance work is due at
specific intervals (e.g., in every sixth month, part need to
be lubricated).
Performance-Based: Preventive maintenance work is due
when a specific performance level has been reached (e.g.,
an aircraft part need to be replaced after every 50,000km
of flying).
Condition-Based: Preventive maintenance work is due
when a condition is outside of a specific value range (e.g.,
cooling of a part is needed when temperature reaches
85°C).
Negotiate Lower Software License Fees:
Limit Software Customization during ERP System
Implementation:
Explore Third-Party Support and Maintenance
Options:
Negotiate Lower Ongoing Professional Service
Rates:
Quantity your Total Direct and Indirect
Maintenance and Support Costs:
Organizational Impact
Enterprise Resource Planning (ERP) is one of the
most popular' software technologies for 'supporting
operational organization, it emphasizes
business transformation which will lead to
process change in its effort to maximize the company's
benefit.
With the fast developing of industries and the need for
managing procedures and resources, it has been every
important to have a tool which can help one to coordinate
several activities, and the best one is ERP
Management of product variety is not only a
production issue, but a challenge for sales as well.
Through support of an ERP system, firms can
configure products efficiently and produce greater
variety efficiently.
A majority of the firms expect their new ERP-based
systems should enable process improvements.
Petroleum, Oil & Gas Companies
These solutions enable the following key activities:
Field Development
Liquid and Gas Production
Oil Field Service and Repair Operations
Refinery Operations
Lubes Manufacturing Operations
There are some key challenges that are faced by the
automotive industry, as
High maintenance cost of production facilities
Vendor management
Inventory management
Issues related to labour and land
Maintaining efficiency in global product delivery
Reduction in environmental impact of materials used
etc.
Stream lined business processes and IT structures
that are less complex
IT structures that are flexible and allow quick
adjustments in the business processes of supporting
operation
Easy integration of new functions and processes
without harm to either the underlying technology or
previous investments
Personalized data, tools, and solutions that
employees can access anywhere at any time.
Success Factors:
Project planning
Align the Organization on the true
destination.
Architectural Design
Transition project roles to a way of life.
Data Requirements
Applying planning and program management
practices throughout the program life cycle
Achieve balanced people, process and
technology changes across all areas.
ERP must be driven by a business case
Active executive direction
Focus on capabilities and benefits, not just going
live
Make ERP related decisions quickly
Put the very best people on the
implementation team
Phased Approach
Data conversion
Organization Commitments
Create a partnership between your software
vendor and your stakeholders
Sell, sell and continuous to sell the ERP to
your stakeholders
Build and leverage process expertise
Adequately resources your project
Define metrics and manage them
Communicate and manage expectations at
go-live
Extend capabilities beyond the ERP
foundation
Ensure the project has sufficient budget
Encourage functional ownership of the project
Develop dependency-driven project schedules
that can be tracked and managed to provide
early warning and help avoid crisis.
Implement pre-project readiness assessment and
overall project planning
Implement aggressive project management
processes
Create a project organization structure to
provide planning and quick response for
decision-making and issues management
Make the best use of the external consultants
and experts.
Implementation Review
ERP implementation is, at its core, a people project
Employee resistance
Lack of top management commitment
Inadequate training and educate
Inadequate requirements definition
Inadequate resources
A poor fit between the software and users procedures
Unrealistic expectations of the benefits and the ROI
Poor ERP package selection
Extensive customization
Change Management
Failure of accommodating evaluation of business
processes
User acceptance
Going Live is not the end of the ERP journey
Companies should anticipate a temporary dip in
performance after going live