ERP Key Success Factors Series 2

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ERP Key Success Factors Series 2 presentation includes the following:
6) Effective Project Management
7) High Communication Standards
8) Scope Creep Management
9) Data & Approvals on Time
10) Education & Training

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  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • Enables streamlining of business processes & simplify management of complex tasks such as order management, logistics, material planning, inventory traceability & machine workload managementHelps optimize operations & support compliance with legal, regulatory & market requirements to profitably satisfy customers & gain acompetitive advantageHelps component, sub-assembly & whole-system manufacturers increase operational visibility, enhance control of processes & projects & fuel expansion into new territories & services
  • ERP Key Success Factors Series 2

    1. 1. ERP KEY SUCCESS FACTORS:<br />SERIES 2 (FACTOR 6 – 10)<br />VELCOM ERP IT SOURCING PVT LTD<br />An Independent ERP Consulting & Talent Sourcing Company<br />1<br />
    2. 2. ERP KEY SUCCESS FACTORS: SERIES 2<br /><ul><li>Effective Project Management
    3. 3. High Communication Standards
    4. 4. Scope Creep Management
    5. 5. Data & Approvals on Time
    6. 6. Education & Training</li></ul>2<br />
    7. 7. EFFECTIVE ERP PROJECT MANAGEMENT<br /><ul><li>Most ERP implementations take more time than expected & few reasons are:
    8. 8. Unrealistic expectations on project timelines
    9. 9. Not accounting all the project implementation activities during the planning phase
    10. 10. ERP vendors fail to manage client expectations on project scope & duration
    11. 11. Try to develop an estimate before a proper plan is in place
    12. 12. Project plan misses the non-vendor related items - process & workflow definition, data migration & customization effort to meet unique business requirements.
    13. 13. Effective ERP project management can resolve the following issues among others:
    14. 14. Enable the required level of transparency / visibility to all on the project progress
    15. 15. Manage expectations across the organization especially with the project stakeholders
    16. 16. Manage the time, effort & cost of all involved while meeting the project objectives
    17. 17. Escalate the critical risks early with relevant mitigations to stakeholders
    18. 18. Establish clear project structures to be maintained through stakeholders support
    19. 19. Expectation management is of defining, managing & integrating the below processes:
    20. 20. Overall implementation schedule, effort & cost
    21. 21. Communicate key milestones / deliverable & their target dates to all the stakeholders
    22. 22. Process to keep track of the project schedule & measures to gauge the performance</li></ul>3<br />
    23. 23. EFFECTIVE ERP PROJECT MANAGEMENT<br /><ul><li>ERP Implementation project plan should cover the following critical steps:
    24. 24. Define key business objectives
    25. 25. Frame project schedule specific to the implementation project & cover all the project implementation details
    26. 26. Aggregate all the business transformation activities & corresponding resources required covering all the project phases
    27. 27. Track the dependencies between the project & business areas involved in the plan
    28. 28. Gather input for resource forecasting & collaboration, track milestone achievement status and align it with the organization’s environment & constraints
    29. 29. An effective ERP program management should take care of mitigating the risks involved in the following phases of the project:
    30. 30. Planning; Business process re-engineering (AS-IS, GAP FIT & TO-BE)
    31. 31. Implementation of Standard functionality / modules of ERP; Training
    32. 32. Planned Customization to take care of the critical requirements (business & technical), which are identified through the Gap-fit analysis
    33. 33. Key Integration requirements for legacy systems; Resource requirements to execute the change management process
    34. 34. Understanding the scale of data conversions & related data cleansing
    35. 35. Coordination of business resources for testing & validation of functionality</li></ul>4<br />
    36. 36. HIGH COMMUNICATION STANDARDS<br /><ul><li>Communication plan is to ensure that everyone knows the new ERP system & their roles
    37. 37. Few examples of stakeholders communication for the ERP project are
    38. 38. Internal (employees)
    39. 39. Frequent project status reporting
    40. 40. Role Clarity for all the project team members
    41. 41. When to impart their current process & business requirements to the vendor & their impact
    42. 42. Executive stakeholder (top management)
    43. 43. Major risks identification & their mitigation plan
    44. 44. Key Decision to be made
    45. 45. External stakeholder (customer, vendor etc.,)
    46. 46. Precautions taken to ensure customer deliveries aren't delayed
    47. 47. Requirements / data they need to provide for the project
    48. 48. Changes to the ways orders will be processed</li></ul>5<br />
    49. 49. HIGH COMMUNICATION STANDARDS<br /><ul><li>Project manager during ERP project must communicate frequently to all the following:
    50. 50. Project Objectives, Milestones & Deliverable – Plan vs Actual
    51. 51. Project Risks / Constraints & Mitigation Plan
    52. 52. Time, Effort & Cost – Budget vs Actual
    53. 53. Impact of new ERP system across all the functions of the organization
    54. 54. Communication management system, include the following:
    55. 55. Objectives identification - Identify the information needs of all the stakeholders
    56. 56. Plan development - Communication targets, required information & time intervals
    57. 57. Plan execution
    58. 58. Project team members should know what their tasks are and how & when to accomplish them
    59. 59. Good Communication help lessen the curiosity & uncertainty of an ERP Project Implementation</li></ul>6<br />
    60. 60. SCOPE CREEP MANAGEMENT<br /><ul><li>Scope creep discomforts, as business requirements continue to change
    61. 61. Critical to prioritize the business requirements / goals & implement ERP accordingly
    62. 62. Processes defined to avoid the scope creep - Planning, Definition, Authentication, Control
    63. 63. Reasons for scope creep to occur include:
    64. 64. In-complete project scope definition
    65. 65. Not having the right project team to determine the actual business requirements
    66. 66. No expectation management set between the customer & vendor
    67. 67. Lack of change request system
    68. 68. Bad communication among project stakeholders
    69. 69. Less project control by the project manager
    70. 70. Customer used for "freebies" and doesn’t value the project scope / effort / timeline
    71. 71. Project Stakeholders having conflicting interest on the project</li></ul>7<br />
    72. 72. SCOPE CREEP MANAGEMENT<br /><ul><li>Ways to manage the scope creep include:
    73. 73. Cordial relationship & manage expectation among the stakeholders
    74. 74. Good initial scoping & planning
    75. 75. Get the right project team from the start to determine the actual business requirements (present & future)
    76. 76. Firm agreement with the project management structure & change request system
    77. 77. Proper requirement documentation with customer acceptance including prioritization
    78. 78. Scope control through proper change control system & not accepting changes without executive acceptance are crucial
    79. 79. Every attempt to make seemingly "small" scope changes, should be avoided except business critical ones
    80. 80. Even the best projects would have at least 5-10% scope creep, so to buffer accordingly
    81. 81. Project manager should have the necessary skills to work with all, to successfully manage the scope creep at the desired levels.</li></ul>8<br />
    82. 82. DATA ON TIME<br /><ul><li>Data collection effort & time for the ERP project is mostly under-estimated
    83. 83. Enough time need to be allocated to recognize, explain, authorize & replicate all the required information
    84. 84. An ERP system implementation gives the opportunity to correct the legacy data i.e. Revision & updation of the data
    85. 85. Master - customers, suppliers, general ledger, inventory, technology etc.,
    86. 86. Transaction - quote, order, invoice, receipt, voucher etc.,
    87. 87. Significant effort for data preparation, entry, migration & validation would be required to collate information from various sources of dispersed data
    88. 88. Information related constraints include
    89. 89. Finding the right data to load into the system
    90. 90. Converting disparate data structures into a single, consistent format before the system usage.
    91. 91. Documentation of current & future (required) business processes & data flows is key to design the ERP system
    92. 92. This would ensure that the automated ERP system would bring in the complete business process & the desired operational management controls.</li></ul>9<br />
    93. 93. DECISIONS & APPROVALS ON TIME<br /><ul><li>Organization need to take various decisions / approvals during the ERP Project Implementation
    94. 94. Key decisions / approvals to be taken on the following during the ERP project implementation:
    95. 95. Project Plan
    96. 96. Team structure & Resource allocation
    97. 97. Project goals / deliverable & Scope
    98. 98. Key requirements (process & data flow) – business & technical
    99. 99. Business Process Re-engineering
    100. 100. Gaps & Issues
    101. 101. Change Management Plan
    102. 102. Total Cost of Ownership
    103. 103. Data (master & transaction) Conversion & Migration
    104. 104. Training – Core team / Business user / IT user
    105. 105. Documentation
    106. 106. Organization team along with the vendor team has to take the decisions on the above on time to ensure that the ERP Project is implemented successfully to realize the complete ROI.</li></ul>10<br />
    107. 107. ERP EDUCATION & TRAINING<br /><ul><li>One of the most under-estimated items while ERP project budgeting
    108. 108. Organizations would realize better ROI, only when the users understand how to properly use ERP
    109. 109. The more the exposure & hands-on training, the more users be confident on their abilities to take ownership & contribute to the ERP project success.
    110. 110. Normally 5% of the project effort is dedicated for the ERP Project. ERP Project would deliver great results, if the ERP training effort is increased to 10% of the overall ERP Project effort.
    111. 111. Training should be timed properly - neither very early nor very late
    112. 112. The team should enter the real transaction data & execute real life scenarios in the new ERP to confirm the required data accuracy & result.
    113. 113. Training Calendar
    114. 114. Set recurring training budget; Plan refresher training program
    115. 115. Periodic review of training requirements
    116. 116. Set & execute the action plan, to fix the users skills level gaps, for the proper usage of the ERP system</li></ul>11<br />
    117. 117. ERP EDUCATION & TRAINING - PHASE<br />ERP Training Plan for the Team members<br /><ul><li>Prepare training plan for all user levels - Core member, business user, maintenance team
    118. 118. Assess the skills-gap user-level wise & plan for upgrade (if any) before the ERP training
    119. 119. Draft the Training Documentation</li></ul>Train the users at all levels<br /><ul><li>ERP Core team member training - “Train the Trainer” Model
    120. 120. Basic training on the ERP system & process at the project start, to create proper ERP Blueprint
    121. 121. Education & training on Business process, Modules, transaction workflow, MIS
    122. 122. Training on the conference room pilot
    123. 123. Training to manage the end user training & support
    124. 124. ERP End business user training
    125. 125. Basic training on the ERP system & process for understanding of the ERP usage & benefits
    126. 126. Role based education & training on Business process, Modules, transaction workflow, MIS
    127. 127. ERP Maintenance team training
    128. 128. To manage the ERP master setup & administration, user rights, data/server backup & restore
    129. 129. Problem resolution (adding hardware capacity, process & procedure changes, user acceptance, retraining, additional training)
    130. 130. Training to manage SLAs with the ERP Implementation Support Vendor</li></ul>12<br />
    131. 131. THANK YOU! <br />13<br />

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