12 tips for successful implementation of erp in a manufacturing company
12 TIPS FOR SUCCESSFUL
ERP/MRP IMPLEMENTATION IN
A MANUFACTURING COMPANY
1. COMPANY SIZE MATTERS
Not every company is ready to implement an ERP/MRP system anytime.
This is especially true for micro-companies (up to 10 employees). Such
companies may not have enough resources and competence for the ERP/MRP
system installation and operation.
Also, the outcome of using an ERP software in such company can be less than
2. AVOID MICROTASKING
ERP/MRP system is intended to solve major problems associated with
manufacturing, so try to identify important tasks, since they will have the most
impact while focusing on micro-automation will lead to more complexity of the
Set a limited number of major implementation project goals which should be
closely related to the business processes and problems that you want to solve.
Don’t waste time and energy on tasks which look nice, but have a small impact.
Goals should relate to the business, rather than automation itself.
3. ALLOCATE ENOUGH RESOURCES
The ERP/MRP system implementation process is a one-time, but quite a big
project, so allocate resources accordingly.
Set a project manager for the implementation process with enough time
resources, as well as with experience in ERP/MRP software.
All heads of departments that will use the system should be included in the
implementation project team.
4. ERP IMPLEMENTATION STEP BY STEP
Depending on your company’s size and structure, you can implement the
system by module, by functionality and by personnel, for example.
In the beginning the managers report about finished manufacturing orders on
their own before passing this function to line workers.
5. DATA CLASSIFICATION
Think over data classification and categorization.
Create logical product groups.
It is near impossible to change data classification after installation.
6. KEEP TESTING &
Have a clear understanding – are you testing, or implementing the ERP with
real data already.
Using real data during the testing period will make the process over-
Cleaning the database if the data are mixed with test data might be
7. CUSTOMIZATION IS NOT THE
It is practically impossible to find an ERP solution that would suit all the
needs and align perfectly with your existing business processes and
documents. In most cases you have to adapt or customize.
Though customization might seem as the simplest solution, on practice
adapting your business processes could be more effective, and may deliver
better results in the long-run.
8. KEEP ALL FUTURE USERS
INFORMED ABOUT PROJECT GOALS
Make sure that all the users that will be interacting with the ERP system
have a clear understanding of implementation goals and schedule.
This means that one general meeting in the beginning of implementation
should be held with periodic communication to follow.
9. USERS MUST BE TRAINED
Every person interacting with the ERP software should be aware of what
one is doing. Usually the first one or two trained users pass the knowledge
Another option would be software vendor’s trainings.
10. EXPERIENCE WITH ERP/MRP
The implementation project team leader should have prior experience with
using and/or implementing ERP systems in your specific industry.
If you don’t have such a person, then it is good to find a partner consulting
company with such experience.
11. NO RUSH – TEST & TEST AGAIN
Test intensively prior to start using an ERP system in production mode.
It is much easier to fix errors during the testing period than during operating
with real data.
12. KEEP OLD SYSTEM FOR A WHILE
It is better to use the old system in parallel with the new one for at least 1-2
months after having implemented the new ERP software.
This helps to make sure that the new solution has been configured and is
being used properly, for example the reports in old and new systems are
Also, in case of major issues with the new system you will be able to roll
back to the old.
Hope this helps! Let us know if you have any questions.
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