ERP

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Chapter Five Getting Ready Group KC, Sangam Kocahan, Ezgi Reddy, Suraj kumar Rai, Roshni Shrestha, Bijay Issues propping up in an organization: • Lack of better and faster internal coordination • Shipping problem, leading to loss of market share • Major cash-flow problems • Unmanaged financial reporting • Backorders and material shortages Audit/Assessment I • Audit/Assessment I addresses the issues stated above • Its purpose is to determine specifically which tools are needed, and in what matter they should be implemented • For instance, a company wanting to implement ERP company-wide, mobilizing all departments at the same time may not be possible. In case other time-consuming are underway, Audit/ Assessment I might be able to implement Quickslice ERP into one or several major product lines followed by company-wide implementation later on. • Audit/Assessment I and its companion Audit/Assessment II are critically important to ensure that the improvement initiatives to be pursued by the company: – Match it’s true needs. – Generate competitive advantages in the short run – Are consistent with the company’s long-term strategy • Participants in this step include: – Executives – Operating Managers – Outside Consultant (virtually) • The time for Audit/Assessment I time will range from several days to one month • After fact finding, Implementation of a particular tool requires consensus from all and consciousness at the same time. • ERP when chosen as a tool, one must outline how ERP can assist the company in reaching the goals and objectives (increased sales, reduced costs, better product quality etc.). First-Cut Education • Once the tool and its features are discussed and outlined, general manager and other key people need to learn about ERP in order to make an informed decision. • Learning about ERP is called First-Cut Education Who needs First-cut Education? 1.Top Management • CEO • VP of Engineering, Finance, manufacturing, and the marketing/Sales departments. 2. Operating Management Managers from Sales, Customer service, production, logistics, systems, purchasing, engineering, accounting department. Learnings in First-Cut Education • 1. What is ERP? • 2. Is it for us? Does it make sense for our business? • 3. What will it cost? • 4. What will it save? What are the benefits we’ll get if we do it the right way? • 5. What are the linkages with ES and should we do both at the same time? Vision Statement • Executives and operating managers who participated in first-cut education develop a written vision of the company’s anticipated transformation. • Vision statement serves as a framework for consistent decision making over the life of the project, and can serve as a rallying point for the entire company. • Brevity is a key factor, the paper not being more than a page. Inputs to the vision statement includes: • 1. The executives’ and managers’ knowledge of the company and its problems, its strategic direction, operating environment, competition etc. • 2. The recommendations made in audit/assessment I • 3. What was learned in first-cut education.

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