erp implementation...

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ERP

Planning , Design and Implementation


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ERP implementation methodology

1. Identification of the needs forimplementing an ERP package

2. Evaluating the as-is situation

3. Deciding upon the desired would-besituation

4. Reengineering of the business processesto achieve the desired results

5. Evaluation of various ERP packages andfinalizing

6. Installing the requisite hardware andnetworks

7. Finalizing the implementation consultants8. Implementation of the ERP package


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1. Identification of the needs

o Why should company implement ERP package?

o Will it significantly improve profitability?

o Will it lead to reduced delivery times for

products?o Will it enhance customers satisfaction level in

terms of cost, delivery time, service and quality?

o Will it help reduce the cost of products?

o Will it enable to achieve same business volumewith reduced resources?


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3. Desired would-be situation

o What the business process should finally look

alike?

Benchmarking

Ensure targets set are comparable to the best in

industry.


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4. Reengineering

o The business process cycle time is reduced

significantly

o Number of decision points are reduced to

bear minimum

o Flow of information is streamlined


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5. Evaluation of various ERP

packages

o Global presence

o Local presence

o Investment in R&D

target marketo Price

o Modularity

o Obsolescence

o Ease of implementationo Cost of implementation

o Post implementation support


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6. Requisite H/W and networks

o Installation needs to be well planned to avoid

blocking of capital


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7. Implementation consultants

o Skill set available with the consultant

o Installation base

o

Industry-specific experienceo Finances involved in hiring


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8. Implementation of ERP Package

o Formation of implementation team

Knowledgeable users from all functions along withIT personnel and personnel from the

implementation consultant Project Manager, Project leaders, Module leaders,

Steering committee

Monitor the progress

Schedule is maintained Resolve any problem that comes up

Allocation of resources


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Implementation of ERP Package

o Preparation of implementation plan (Usage of

various project management techniques)

Training of the project team

Mapping of business processes onto the software

Function-wise implementation

Customization

Test runs

Parallel run


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o Mapping of business processes onto the

package

Map the business processes on standard

functionality available in the software


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o Gap Analysis

All uncovered requirements are compiled in to

Gap Analysis Report

Gaps which can be taken care of with little

programming effort

Gaps which involve an extensive programming

effort and hence require extra resources Gaps which cannot be taken care of in the system


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o Customization

After the process mapping and gap analysis is

done, actual customization starts by respective

functional teams.


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o Development of user-specific reports and

transactions

Any user requirements not covered by standard

system are created


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o Uploading of data from existing systems

Programmed transfer of data from existing system

to the new system takes place

o Test Runs

Sample transactions are tried to ensure error-free

state of the system.

o User Training

Users belonging to different functionality


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o Parallel run

Business transactions are carried both through theexisting and new systems to find lacunae in the

systemo Concurrence from user on satisfactory

working of the system

Final approval from users

o Migration to the new system

Time to go live


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o User Documentation

Details on how to carry out various transactions

o Post-implementation support

Queries from users, minor changes in report

formats, layouts etc.

o System monitoring and fine tuning

Monitor the system closely against performance

aspects


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Guidelines for ERP implementation

o Understand your corporate needs and culture

o Complete business process changes

o Communicate across the organization

o Provide strong leadershipo Ensure an efficient and capable project manager

o Choose a balanced team

o Select Good implementation methodology

o Train everyone

o Commit to adapt and change

erp implementation...

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