ERP Making it happen
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ERP Making it happen

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ERP Making it happen ERP Making it happen Presentation Transcript

  • Enterprise Resource Planning (ERP): Making It Happen
  •  
  • “ Many major companies are having difficulty achieving effective enterprise resource planning even after a full year of implementation,” according to a report issued by The Conference Board. The report goes on to state that “some 40% of participants in The Conference Board survey failed to achieve their business case even a year after having implemented enterprise resource planning (ERP).” ----(The Conference Board)
  • Role of ERP Has Changed
    • 20 th Century ERP Role
    Today
    • Enterprise Optimization
    • Supply Chain Optimization
    • Tactical Cost of Doing Business
    • Strategic Investment
    • Reengineered processes for Survival
    • Reengineered processes for Efficiency
    • Computing in the “Cloud”
    • ERP is the Next Wave
  • Summary ERP and e-Business
  • ERP, e-Business and Data Base Accuracy
    • Item Master/Bill of Material/Routing
    • Customer and Vendor Masters
    • Financial Account Coding
    • Inventory Accuracy
  • Data Accuracy at a Medical Products Distributor
    • $40+ billion health care supply management company
    • 30+ North American distribution centers
    • One million order lines every work day
    • Short filled order can be a life threatening event
  • Data Accuracy
    • Recognized the impact of accurate records on both
      • Customer service
      • Financial reporting
    • Transformed the Enterprise by
      • Deploying a proprietary warehouse management system
      • Redesigning business processes to achieve high levels of data accuracy
    Medical Products Distributor
  • Data Accuracy: Positive Change
    • Early 90’s
    Today 70 to 90% inventory accuracy 99.8+% inventory accuracy 90% of physical inventories eliminated Two physical inventories per year at each distribution center Use of more efficient “process” cycle counting Exclusive use of ABC cycle counting Medical Products Distributor
  • Implementing ERP: The Three Elements
  • The New Industrial Engineering Business Process Information Technology Redesign Capabilities How can processes be redesigned using IT?
  • Business Process Redesign
  • Business Process Redesign at a Discrete Manufacturer --- Redesigned Procurement Process
    • Receipt is authority to pay
    Automatic AP entry and payment
    • Automatic adjustment of contract
    • PO
    Internet release to vendor Swipe bar code to receive in stock
    • Receive directly to point of use
    External Kanban
  • Business Process Redesign at a Discrete Manufacturer ---Redesigned Procurement Process
    • 80%+ of items under Kanban control
      • POs written reduced from 5,000 per month to 1,700
    • Self-billing invoicing routine eliminates supplier invoices
    • Save over $20,000 per month using the
    • “ self-billing invoicing” routines in ERP software
    • Reduced delivery lead-times 67%
    • Increased inventory turns 2.3X to 18X
    • Increased revenues by 250%
    Business Process Redesign at a Discrete Manufacturer
  • Strategic Project Management
  •  
  • Risk Management “ It ’ s the alligators that you don ’ t see, that will bite you. ”
  • ERP Risks
  • Change Management
  • Multiple Projects, Multiple Visions, Competing Resources Six Sigma Collaborative Product Design ERP Empowerment Vision
  • The Essential Elements of Change Management
  • The Ten Steps for a Successful ERP Project 1. Clearly defined Project Mission 2. Leadership at the Top 3. Realistic Project Schedule/Plan 4. Client Consultation 5. Personnel selection
  • 10 ERP Success Factors 6. Technical Tasks 7. Client Acceptance 8. Monitoring & Feedback 9. Communication 10. Trouble-shooting The Ten Steps for a Successful ERP Project
  • ERP: Making It Happen