Issues posed to ERP Implementation Projects in Manufacturing or Public Sector Organisations
Vinoraj Selvaraj
School of Computer and Information Science
University of South Australia
Mawson Lakes, Australia
Email: selvy003@mymail.unisa.edu.au
Abstract
ERP (Enterprise Resource Planning) implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including
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This is not possible with an ERP system due to the fact that it is tightly integrated. The effect of mistakes that are made in one department passes onto other departments too fast for it to be corrected and thus the original mistakes will also get magnified as they flow through the company causing a ripple effect (Hongjiang, Rondeau & Mahenthiran 2011) . The impact of errors that are made could be detrimental to a company.
The management who approve the ERP implementation must be aware of the potential risk of error and take proper steps, such as monitoring each department and taking immediate steps to rectify the problems should they occur. This can be done by having a response team whose only task is to monitor and look out for mistakes within each department (Hoch, Dulebohn 2013). A formal plan of action which provides detailed steps explaining what should be done if there is an error has to be created. A proper means to communicate to all the parties who are victims of the errors as soon as the errors are detected is also extremely important. The management has to be aware of the changes they have to make after implementing an ERP system. This is crucial due to the fact that without the management’s guidance, the employees would not know what to do and the system will fail.
Implementing an ERP system is not a matter of changing software systems, rather it
It my recommendation to Bandon Group to implement EPR firs and CRM follows because ERP provides CRM software. Conceptually, ERP covers all the basic business process but CRM systems focus specifically on processes at the customer interface (Schubert, 2010). The current situation at Bandon Group is not limited to customer relationship or the problem of Bandon Group is not limited to lack of sales and marketing data, the billing system, web enabled support system, better invoice or the integration of the software but the company and its process need overall business restructure and re-engineering because that is all about ERP.
Foremost among these is that the ERP implementation efforts of many of their larger counterparts have resulted in partial failure, and in some cases total abandonment. Moreover, small manufacturers tend to lack the financial resources to adopt the entire system and may be forced to adopt a piecemeal approach to integrating the typically expensive ERP systems into their services. It is also felt that the lower staff levels in smaller enterprises when compared to their larger counterparts are inadequate for the rigorous and extensive IT training and development requirements for implementing an ERP project. It is however important for these firms to ensure that they make adequate studies of ERP systems before deciding to do away with them altogether because it has been found that they can be of use to the success of the business, especially after successful
Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.
The recommendation from the Boston Consulting Group was to implement an ERP system in manageable intervals over a three to five year period, but internal NIBCO selection team endorsed a “big bang” approach to leadership team for a number of reasons (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012). While there was a cost savings under the big bang approach, there appeared to be more important reasons including: fear of complacency with partial implementation, poor success ratio with delayed implementations, and business needs that urged a compressed implementation timeline.
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
Enterprise resource planning systems (ERPs) are management information systems that integrate and automate many of the business practices associated with the operations or production aspects of a company.
The most significant costs and risks a company can take are in re-aligning its core business processes and systems to allow for greater responsiveness to market opportunities and threats. Increasingly Enterprise Resource Planning (ERP) systems are being used as the unifying platform for all systems throughout an enterprise. As a result, the project, implementation, training and support plans often must be carefully devised and implemented across nontechnical and technical personnel to ensure the overall project's success. ERP systems especially are fulfilling a critical role in the managing of enterprises, taking on the tasks of managing accounting, financial reporting, supply chain management, logistics and ongoing quality management of products, processes and the role of people in adding value to finished goods and services (Ash, Burn, 2003). ERP has become the catalyst of entirely new approaches to using information, including the ongoing development of analytics and business intelligence (BI) applications that are giving executives greater visibility into their operations than ever before (Ash, Burn, 2003). In addition to analytics and BI, companies are aggressively pursuing Customer Relationship Management (CRM) systems that give them the ability to more effectively track and evaluate the performance of marketing and selling strategies. CRM systems are
The enterprise resource planning (ERP) system is integrated set of programs that provides support for core organizational activities such as manufacturing and logistics, finance and accounting, sales and marketing, e-commerce, payroll and human resources. An ERP system helps the different parts of the organization share data and knowledge, reduce cost, and improved management of business processes.
ERP is a short form of enterprise resource planning. Enterprise resource planning is business process management software that allows an organization to use many applications to manage the business and do many office works like collect, store, manage and interpret the data. This software integrates all faces of an operation including product planning, development, manufacturing, sales and marketing, shipping and payment etc. This software does work related to technology, services and human resources. It is considered as a vital organizational tool as it sis integrates various systems and provide error free results for the system. This software is considered as business application software as it is only designed to be used by large businesses and it often requires teams to do work for the development of the company.
ENTERPRISE RESOURCE PLANNING (ERP) is a management software especially designed for organizations and companies to collect, store, manage and interpret data from different business departments such as product planning, cost, manufacturing, service, delivery, marketing, sales, inventory management, shipping and payment and the list goes on, it also provides integrated and upgraded versions of its core business processes. It mostly tracks down raw material, cash flows, production and manufacturing capacity. ERP facilitates information flow between all business departments and manages connection to outside stakeholders. ERP in a broader term includes many advantages as well as risks it also consists of a lot of processes which
ERP or Enterprise Resource Planning is explained as a central data collection with wide distribution, so as compared to functional system instead of having several databases for individual departments with disconnected spreadsheets ERP can bring everything together for all users from top management to CEO to accounts payable clerks to work on same data derived through common processes. ERP had certain security level to verify the data security and its correction.
Nowadays, information and the value of information become the very important things, especially in the business concepts. Therefore, the company is like a race against the time to manage all resources in a single integrated database to supply real-time data. They are implementing a computer software as well as Enterprise Resource Planning (ERP), an information system which is used to integrate and control all company resources (Mabert 2003). There are at least three stages of the key success factors of ERP implementation in an enterprise: the planning effort, the implementation decision, and the implementation management. The first factor, planning effort, is all stages before ERP project commencing such as executive support and their contribution in the project planning, team formation, and technology issues. Implementation decision, as the second key success factor, is the strategies to implement the project, such as the big-bang approach or the phased-in approach, include software customization and re-engineering. The last factor, management implementation, is all actions or variations during the project implementation (Mabert 2003). In conjunction with the key factors of ERP implementation mentioned above, this essay aims to discuss the benefits as well as the disadvantages of ERP, then to analyze the role of ERP in supporting budgeting process.
The motive of this research is to consider and determine assorted approaches towards potential risk that may occur while practicing and maintaining the Enterprise resource planning systems the Chinese companies may encounter during the post- administration phase. The authors could deduce strong evidence supporting the source materiel although there aren’t any research questions. The key goal of the research is similar as defined in the abstract of the study while the marginal goal aims to explore the impacts, probability, and frequency of occurrence of identified ERP risk events, as well as to investigate the correlations between
Regardless of what industry your business is a part of, implementing an ERP system is a crucial venture that must be taken seriously for it necessitates strong commitment by the project team and solid support by the business leaders for guaranteed success. It is a known fact that ERP deployment is among the most costly, labour-intensive, lengthy, and complicated tasks a project team can take on.