ERP
ERP
Implementation
Different Phase of ERP implementation
Different Phase of ERP implementation
are-
Pre-Evaluation ScreeningPre-Evaluation Screening
Package EvaluationPackage Evaluation
PrProject oject Planning Planning PhPhasease
Gap AnalysisGap Analysis
ReengineeringReengineering
ConfigurationConfiguration
ImplImplementementatioation n eeam am rrainaininging
esting esting
En!-"ser raining En!-"ser raining
Going #iveGoing #ive
Company Management ERP Vendors Pre-Evaluation Screening Package Evaluation Project Planning
Gap Analysis Reengineering Configuration
Implementation Team Training Testing End-ser Training
Go a!ead
Going "ive
$%
Pre-Evaluation Screening
Pre-Evaluation Screening is the phase &hich
starts &hen company !eci!es to go for a ERP System' the search for perfect solution starts%
(ot all packages are same each has its o&n
&eakness an! strength%
)hile making the analysis it is goo! to
investigate the origins of the !ifferent packages%
Some packages can *e goo! in some areas &hile
in other sectors they may not%
+nce fe& packages are screene! !etaile!
,%
Package Evaluation
Package Evaluation process is one of the most
imp phase of the ERP implementation ' *ecause the package you select &ill !eci!e failure or success of project%
here is little room for error in this as ERP
packages are so epensive once purchase! can not s&itch to another%
)hile making the analysis the imp point is
nothing is perfect ' imp here is &hether it is a
.e& imp points to remem*er &hile evaluating soft&are inclu!es%
.lei*ility / Scala*ility% Compleity
A*ility to support multi site planning / control% #ocal support infrastructure %
otal cost i%e license ' training' customi0ation
1%
Project Planning Phase
his is the phase &hich plans that !esigns the
implementation process%
In this phase !etails of ho& to go a*out
implementation ' sche!ules an! !ea!lines etc are !eci!e!%
Roles an! responsi*ilities are i!entifie! an! assigne!% his is phase &hich &ill !eci!e &hen to *egin' ho& to
!o it an! &hen the project is suppose! to *e complete! an! &hat to !o in contingencies%
heir is a committee for this an! &hich is suppose to
meet perio!ically through out cycle to revie& process an! chart future course of action %
a.
Project schedule
his is the phase that !esigns the implementation
process%
In this phase the !etails of ho& to go a*out the
implementation are !eci!e!%
ime sche!ules' !ea!lines' etc for the projects are
arrive! at / the project plan is !evelope!%
Roles are i!entifie! / responsi*ilities are assigne!% he resources that &ill *e use! for implementation
efforts are !eci!e! / the people &ho are going to *e in-charge of implementation are i!entifie!%
Planning is !one *y the committee constitute! *y
b. Decision of the phase
his phase plans 2&hat to !o3 in case of contingencies'
ho& to monitor the progress of the implementation%
his phase also !eci!es &hat control measures shoul!
*e installe! / &hat corrective measures or actions shoul! *e taken &hen things get out of control%
c. Team leader
he project planning is usually !one *y a committee
constitute! *y the team lea!ers of each implementation group%
he committee &ill *e hea!e! *y the ERP in-charge
4i%e% the CI+ or C++5%
he committee &ill meet perio!ically to revie& the
PROJECT PLANNING PHASE
Project schedule
Decision of phse
Te! leder
DESIGN I"PLE"ENTATION PROCESS
TI"E SCHED#LES$ DEADLINES$ ETC
RESO#RCES ARE NEEDED AND I"PLE"ENTATION IDENTI%IED
CONTINGENCIES$ "ONITOR THE PROGRA"$ CONTROL "EAS#RES $ CORRECTI&E ACTIONS
PLANNING IS DONE '( TEA" LEADERS
6% GAP A(A#7SIS
Importance of Gap Analysis
Gap analysis is a phase in the ERP implementation' &here the organi0ation tries to fin! out the gaps *et&een the company3s eisting *usiness practices / those supporte! *y the ERP package%
his is the process through &hich companies create a complete mo!el of &here they are no& / &here they &ant to hea! in the future%
Main objective
he main o*jective is to !esign a mo!el' &hich *oth anticipates / covers any function gap%
It has *een estimate! that even the *est ERP package meets only 89: of the company3s functional gaps%
Different ways of finding gaps
a% +ne of the most affor!a*le' *ut most !ifficult' solutions entails altering the
*usiness to 2fit3 the ERP package%
*% Another solution is that the company can simply agree to live &ithout a
particular function%
c% +ther solutions inclu!e;
Pinning your hopes on an upgra!e or up!ating of soft&are% I!entifying a thir!-party pro!uct that might fill the gap% Designing a custom program%
GAP ANAL(SIS
I!portnce "in o*jecti+e Different ,-s of findin.
%IND O#T THE GAPS 'ET)EEN '#SINESS AND ERP PAC/AGE CO"PAN( CREATES A "ODEL DESIGN A "ODEL CO&ERS AN( %#NCTIONAL GAP
ALTERING THE '#SINESS TO %IT THE PAC/AGE
#PDATING SO%T)ARE IDENTI%(ING A PROD#CT DESIGNING A PROGRA" LI&E )0O A %#NCTION
. !"#"$GI$""!I$G%
&. It is in this phase that the human factors are ta'en into
account.
(. Two different connotations
1% $st one is the controversial' involving the use of ERP to ai! in
!o&nsi0ing efforts%
6% here have *een occasions &here high level eecutives have
invoke! the reengineering slogan / purchase! an ERP package &ith the aim of re!ucing num*er of employees%
<% )hile every implementation is going to involve some change in
jo* responsi*ilities' so it is the *est to treat ERP as an investment as &ell as cost-cutting measure' rather than a !o&nsi0ing tool%
=% 2Do&nsi0ing3 is a *usiness practice that may have its place' *ut it
shoul! not *e cloake! &ithin the glossier slogan of 2reengineering3%
>% he ,n! use of the &or! re-engineering in the ERP fiel! refers to
he ?PR approach to an ERP implementation
implies t&o separate' *ut closely linke! implementations involve! on an ERP site i%e% a technical implementation / a *usiness process implementation%
he ?PR approach emphasis the human
element of necessary changes &ithin the organi0ation' &hich is generally more
ime consuming / has receive! its share of
criticism for creating *loate! *u!gets / eten!e! projects%
he ERP market shifts to a mi!-market focus /
as all implementation are *ecoming more cost sensitive@ the ?PR approach has come un!er some real scrutiny%
RE1ENGINEERING
Hu!n fctor t2en into ccount
Do,nsi3in. effort
). *+$,IG-!ATI+$
IMP+!TA$*" +, *+$,IG-!ATI+$
his is the main functional area of the ERP implementation%
?usiness processes have to *e un!erstoo! / mappe! in such a &ay that the arrive! solution matches &ith the overall goals of the company%
T" P!+T+T/P"
a% A prototype- a simulation of the actual *usiness processes of the company- &ill
*e use!%
*% he prototype allo&s for thorough testing of the 2to *e3 mo!el in a controlle!
c% As the ERP consultants configure / test the
prototype they attempt to solve any logistical pro*lems inherite! in the ?PR *efore the actual go-live implementation%
0T!"$GT0 1 2"A3$"00"0
a%
Configuring a company3s system reveals
not only the strengths of a company3s
*usiness process *ut also- / perhaps
more importantly- its &eakness%
*%
It is vital to the health of the company /
to the success of the ERP implementation
that those configuring the system are
a*le to eplain &hat &on3t fit into the
package
/
&here
the
gaps
in
functionality occur%
4. IMP5"M"$TATI+$ T"AM T!AI$I$G
)hen the configuration is taking place the implementation
team is *eing traine! not ho& to use the system' *ut ho& to implement it%
his is the phase &here the company trains its employees to
implement / later run the system%
he ERP ven!ors / the hire! consultants &ill leave after the
implementation is over%
Good in#house team
.or the company to *e self sufficient in running the ERP
system' it shoul! have a goo! in-house team that can han!le the various situations%
hus' it is very vital that the company recogni0es the
importance of this phase / selects those employees &ho have the right attitu!e- people &ho are &illing to change' learn ne& things / are not afrai! of technology- / goo! functional kno&le!ge%
6. T"0TI$G%
his is the phase &here you try to *reak the
system%
ere &e reach a point &here &e are testing real
case scenarios%
he system is configure! / no& &e must come up
&ith etreme case scenarios- system overloa!s' multiple users logging on at the same time &ith the same Buery' users entering invali! !ata' hackers trying to access restricte! areas / so on%
he test case must *e !esigne! specifically to fin!
the &eak links in the system / these *ugs shoul! *e fie! *efore going live%
7.
G+I$G 5I8"
+n the technical si!e' the &ork is almost
complete-!ata conversions is !one' complete-!ata*ases are up / running' / on the functional si!e' the prototype is fully configure! / teste! / rea!y to go operational%
he system is officially proclaime! operational' even
though the implementation team must have *een testing it / running successfully for some time%
?ut once the system is 2live3' the ol! system is
remove! / the ne& system is use! for !oing *usiness%
&9. "$D -0"! T!AI$I$G%
0uccess 1 failure
he success or failure of an ERP system !epen!s on ho& the
actual users use the system%
he most successful implemente! ERP packages fail !ue to lack of
en! user training%
People are divided into groups
ERP system changes the jo* !escriptions of the people' so it is
important to i!entify the people &ho are going to use the system% he current skills of the people are i!entifie! / they are !ivi!e! into groups%
Every group is provi!e! training on the ne& system%
Training sections
he training section gives the overall vie& of the system / ho&
P+0T IMP5"M"$TATI+$ :MAI$T"$A$*" M+D";%
Important factors
+ne important factor that shoul! *e kept in min! is that the post
implementation phase is very critical%
+nce the implementation is over the ven!ors / the hire! consultants
&ill go%
$ecessary enhancements 1 upgrades
here shoul! *e people &ithin the company &ho have the technical
processes to make the necessary enhancements to the system as / &hen reBuire!%
he system must *e upgra!e! as / &hen ne& versions or technologies
are intro!uce!%
Training is needed
Everyone &ho uses these systems nee!s to *e traine! on ho& they &ork'
ho& they relate to the *usiness process / ho& a transaction ripples through the entire company &henever they press a key%
he training &ill never en!@ it is an ongoing process@ ne& people &ill
al&ays *e coming in / ne& functionality &ill al&ays *e entering the organi0ation%
Ma<imum value for these input
#iving &ith ERP system &ill *e totally !ifferent from installing them% o&ever' an organi0ation can only get the maimum value of these