Erp selection criteria


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Erp selection criteria - Unitedworld School of Business

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Erp selection criteria

  1. 1. Management Information Systems
  2. 2. Evaluation criteria  Functional fit with the company’s business processes  Degree of integration between various components of the ERP system  Flexibility and scalability  Complexity  User friendliness  Implementation time  Multi-site planning and control  Technology – Client/server, database, security  Amount of customization required  Local support  Total costs including costs of license, training, implementation, maintenance, customization and hardware requirements 1
  3. 3. ERP Product selection Criteria 1 Technology Support Costs 5 Strategic Requirement Levels Functionality Goal: To select the Most Suitable Software Package Solution Vendor
  4. 4. ERP Success criteria  The firm & optimistic approach of the Management - on adapting the ERP product driven methodologies - on customization - on monetary commitments  The dedicated Team  Good Training  Strict adherence to the Project schedules  Right technical infra-structure  Change Management 1
  5. 5. ERP Benefits  Easier access to reliable information  Automate tasks to perform various business functions  Elimination of redundant data and software packages  Improved communication between departments, internal and external organizations  Better capabilities of forecasting, planning, scheduling, and control 1
  6. 6. Reduced Time  Reduction of lead-time (Supplier Side) ◦ The elapsed time between placing an order and receiving is known as the lead time.  Reduction in cycle time (Customer Side) ◦ The time between receipt of the order and delivery of the product  On-time shipment 1
  7. 7. Improved Customer satisfaction  Whether the product or service includes the features that are most important to the customer  Whether the company can respond to the customer’s demands in a timely manner, a criterion that is especially important for custom products and services  Whether the product or service is free of defects and performs as expected 1
  8. 8. Reduction in quality costs  Internal failures costs – costs of scrap, rework, re-inspection and low production yields for non- conforming items that are detected before they leave the company  External failure costs – Warranty claims, repairs and service costs that are result when the failures are detected in the market place  Appraisal costs – costs of inspection on arrival, during manufacturing, in laboratory tests, and by outside inspectors  Prevention costs – design and development of new quality equipment, evaluation costs of a new product or a service, training of quality personnel 1
  9. 9. Improved resource utility  The efficient functioning of the different modules in the ERP ensures that ◦ the inventory is kept to a minimum level, ◦ the machine down time is minimum, ◦ the goods are produced only as per the demand ◦ and the finished goods are delivered to the customer in the most efficient way  Thus, the ERP systems help the organization in drastically improving the capacity and resource utilization 1
  10. 10. Increased flexibility  Flexibility of the organization as a whole by automating most of the processes  Organizations will need to design new products or redesign existing products quickly and efficiently  Product flexibility is the ability of the operation to efficiently produce highly customized and unique products 1
  11. 11. Improved information accuracy and decision- making capability  To survive, thrive and beat the competition in today’s competitive world, one has to manage the future  Managing the future means managing the information  organizations have to harness IT’s full potential ◦ to deliver high quality information to the decision-makers at the right time ◦ to automate the process of data collection, collation and refinement 1
  12. 12. Campus Overview 907/A Uvarshad, Gandhinagar Highway, Ahmedabad – 382422. Ahmedabad Kolkata Infinity Benchmark, 10th Floor, Plot G1, Block EP & GP, Sector V, Salt-Lake, Kolkata – 700091. Mumbai Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.
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