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Enterprise Resource Planning Development System

This document discusses Enterprise Resource Planning (ERP) systems and their implementation. It covers the benefits of ERP, including process improvements, reduced costs, and improved strategic decision making. It also outlines the typical phases of an ERP implementation project, including preparation, blueprinting, realization, preparation, and go-live/support. Critical success factors are defined as strong leadership, user involvement, training, and change management. Potential obstacles include people, process, and technological issues. Examples of successful and unsuccessful ERP projects at various companies are provided. The conclusion emphasizes that ERP systems need to align with company strategy to avoid implementation risks and failures.

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31 views14 pages

Enterprise Resource Planning Development System

This document discusses Enterprise Resource Planning (ERP) systems and their implementation. It covers the benefits of ERP, including process improvements, reduced costs, and improved strategic decision making. It also outlines the typical phases of an ERP implementation project, including preparation, blueprinting, realization, preparation, and go-live/support. Critical success factors are defined as strong leadership, user involvement, training, and change management. Potential obstacles include people, process, and technological issues. Examples of successful and unsuccessful ERP projects at various companies are provided. The conclusion emphasizes that ERP systems need to align with company strategy to avoid implementation risks and failures.

Uploaded by

Supriyadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 14

Enterprise Resource

Planning
Development System

Dr. Bonny Prasetya, M.Eng


Graduate School of Industrial Engineering
Mercu Buana University

ERP Benefits
Process Improvements

eliminate redundant
transactions and multiple
reconciliations.
More efficient job rotation
process
More efficient staff and
succession planning
Information Technology
Reduced support costs.
Reduced infrastructure costs.
Strategic Direction
Improved resource allocation
More flexible organization.
Better future decision making

Related initiatives

Better focus, reduced spending

Project highlights:
45 global sites
implementation by 2002
single client, servers in
Indianapolis
approx. 70 person
implementation

Implementasi ERP
1

Business Process
Master List
Project
Plan

Scope

Enhancements.
Authorizations

System
Performance

Reports
Interfaces
Processes
Org. structure

Baseline
Scope

Procedures
Test Cases

Reports
Interfaces
Conversion

Test Plan
Train.Mat.
Go Live
Plan

Business
Blueprint

Phase 1: Project Preparation


Explain roles and procedures.
Prepare the Project Charter.
Define schedule, budget, and resources.
Provide initial training for project team.
Define technical requirements.
Prepare executive kickoff meeting.

Phase 2: Business Blueprint


Assess customer requirements through the interviews,

questionnaires, and models of the Business Blueprint.


Provide training for project team.
Install development system.
Review the Business Blueprint

Phase 3: Realization
Customizing.
Customize the "Baseline" system, which covers 100 % of the organizational
structure and 60% of all daily business operations.
Check that this Customizing realizes your business processes (first integration
test).
Final Integration Test.
Check other business processes which may be indirectly affected.
Design, develop, and test interfaces, reports, and data conversions.

Phase 4: Final Preparation


Planning for going live data.
Training end users.
Testing: integration, volume, and stress.
Establishing an internal Help Desk.
Cutover to production environment.

Phase 5: Go Live and Support


Start of production operation.
Setting up support.
Verifying the accuracy of the production system.

Measuring business benefits.


Optimizing performance.

Critical Success Factors of ERP


(1)
Strong top management support
Centralized project management

Strong IT management and staff support


Heavy user involvement
Business process reengineering to standardize on

software capabilities
Retraining of existing software developers in ERP

Critical Success Factors of ERP


(2)
Extensive training of end users
Use of consultants to lead implementation and

training
A respected and effective champion of ERP within the
organization
Effective and continuous communication
Top-notch systems analysts
Retaining analyst throughout project and beyond
Sensitivity to user resistance with new systems

10

Obstacles to Integration
Change management
Staff inadequacy
Training
Resource allocation

PEOPLE

PROCESS
Poor implementation
management
Inadequate reengineering
Poorly planned transition

TECHNOLOGY

Inadequate functionality in
integrating systems
Weaknesses in application
portfolio
Weaknesses in data & reporting
11

Success Stories
Autodesk (computer aided design software maker)
Reduced delivery time from two weeks to less than 24 hours

IBM Storage Systems Division


Reduced time to re-price 5 days to 5 minutes
Time to ship a replacement part 22 to 3 days
Time to complete a credit check 20 minutes to 3 seconds

Fujitsu Microelectronics
Reduced the cycle time for filling orders from 18 days to 1.5
days
Time to close financial books from 8 to 4 days

12

Horror Stories
FoxMeyer Drug software helped drive the company

into bankruptcy
Dell computer software will not fit its decentralized
management model
Applied Materials overwhelmed by the
organizational changes involved
Dow Chemicals spent seven years and 500 million
dollars on R/2 now starting again with R/3
Hersheys missed timely deliveries

Reasons for failure


Software logic and the company strategy may
not match!
13

Conclusions
ERP has great potentials for integrating

organizational information systems


Also has great risks
Enterprise systems need to be implemented
after careful thought and as a part of a firms
overall strategy

14

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