This PPT is made by Taher Abbas and Kunal Gawade during the CA-IPCC ITT Training.
This power point presentation is all about the implementing the ERP system in an enterprise.
what is the process of its implementation ?
how is to done ?
What are the problems faced during its implementation process and some failure cases of ERP implementation.
ERP Implementation from feasibility Report : An Information System Study
1. ERP Implementation from Feasibility
Report
Made By :
Kunal Gawade (WRO0493187)
Taher Bharmal (WRO0476543)
2. What Is Feasibility Report ?
Feasibility Report :
• Evaluates the project's potential for success
• And rationally uncover the strengths and weaknesses
of an existing business,
• Opportunities and threats present in
the environment;
• Ultimately giving the prospects for success.
3. What is ERP ?
• It is a strategic business solution that integrates all
business functions, including manufacturing, finance,
and distribution.
• It is a customized, packaged software-based system
that handles the majority of an enterprise’s
information systems requirements.
• Some Examples of ERP software packages are Tally
ERP 9,SAP,ERPNEXT, Astral Manufacturing ERP, etc.
4. Feasibility Report in relation to ERP
• If Feasible : It is beneficial for an enterprise then it
should take steps towards the implementation of
ERP.
• If Not Feasible : It is not beneficial for the enterprise
so it should not implement ERP.
• The common reason for non feasibility is
expensiveness.
5. Benefits from ERP
Dimension Sub - Dimension Explanation
Operational 1. Cost reduction
2. Cycle time reduction
3. Productivity improvement
4. Quality improvement
5. Customer services
improvement
Because ERP systems
automate business processes
and enable process changes,
one would expect ERP
systems to offer all of these
types of benefits.
Managerial 6. Better resource
management
7. Improved decision making
and planning
8. Performance improvement
With a centralized database
and built in data analysis
capabilities, it seems likely
that ERP systems will provide
informational benefits to
management.
6. Goals of an ERP System
The primary purpose of implementing ERP is to run
the business far better than before, in a rapidly
changing and highly competitive environment.
In modern businesses, these three goals are
identified:
1. Integration of financial data.
2. Standardization of manufacturing processes.
3. Standardization of human resource
information.
7. ERP Implementation Process
1. Pre evaluation Screening
2. Evaluation Package
3. Project Planning
4. GAP Analysis
5. Reengineering
6. Team training
7. Testing
8. Going Live
9. End-User Training
10.Post implementation
8. • Decision for perfect package.
• Number of ERP vendors.
• Screening eliminates the packages that are not at all suitable for
the company’s business processes.
• Selection is done on best few package available.
Pre evaluation Screening :
Evaluation Package :
• Package is selected on the basis of different parameter.
• Test and certify the package and also check the coordination with
different department.
• Selected package will determine the success or failure of the project.
9. Project Planning :
• Designs the implementation process.
• Resources are identified.
• Implementation team is selected and allocated tasks.
• Special arrangement for contingencies.
GAP Analysis :
• Most crucial phase.
• Process through which company can create a model of where
they are standing now and where they want to go.
• Model help the company to cover the functional gap.
10. Reengineering :
• Implementation is going to involve a significant change in number of
employees and their job responsibilities.
• Process become more automated and efficient.
Team Training :
• Takes place along with the process of implementation.
• Company trains its employees to implement and later, run the
system.
• Employee become self sufficient to implement the software after
the vendors and consultant have left.
11. Testing :
• This phase is performed to find the
weak link so that it can be rectified
before its implementation.
Going Live :
• The work is complete, data conversion is done, databases are up
and running, the configuration is complete & testing is done.
• The system is officially proclaimed.
• Once the system is live, the old system is removed.
12. End-User Training :
• The employee who is going to
use the system are identified and
trained.
Post implementation :
• This is the maintenance phase.
• Employees who are trained enough to handle problems those
crop up time to time.
• The post implementation will need a different set of roles and
skills than those with less integrated kind of systems.
13. • The ABC approach, applied to implementation, states
that Item C is the computer, both the hardware and
software.
• Item B is the data: The inventory records, the bills of
material, the routings, etc.
• Item A is the people, the most important element. They
won’t allow the “computer tail” to shake the “company
dog,” as has been the case far too often. People are the
key.
14. Implementation Challenges
1.It’s a lot of work.
2.It’s a do-it-yourself project.
3.It’s not priority number one.
4.It’s people-intensive.
5.It requires top management leadership and
participation.
6.It involves virtually every department within the
company.
7.It requires people to do their jobs differently.
15. The Good News
The good news is there’s a way to meet these challenges.
Implementing ERP successfully can be almost a sure thing—if it’s
done right.
Doing it right involves two major elements:
1. An aggressive implementation schedule, focused on achieving
maximum benefits in minimum time.
2. The Proven Path. A set of steps that, if followed, will ensure a
successful implementation.
16. Top Six ERP Implementation Failures
1. Hershey's Blunder
2. Nike's Supply Chain Issues
3. Hewlett Packard's Disaster
4. Waste Management's Trashed System
5. FoxMeyer Drugs' Bankruptcy
6. The Navy's $1 Billion Dollar Blunder
17. Conclusion
ERP implementation involves many
challenges but there are ways to meet
these challenges. Yes, it is a lot of work.
However, ERP has never failed to work, not
once, when correctly implemented. It will
work and users will realize enormous
benefits.