Overcoming ERP Resistance to Change

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					                                 UNIT 8


Resistance to Change :

Change Management is a planned approach to change within an
organization. The objective is to maximize the benefits for the
organization and lower the potential risk associated with any ERP
solution changes. These changes are either reactive, which is caused
by external source, or proactive, which is a goal oriented change. A
huge aspect of integrating any new ERP technolgies is human based.
There are psychological aspects of any change, such as resistance,
that many people go through.

Any effective change management touches on all these aspects within
an organization. The key process of change management begins by
measuring attitudinal changes as the process of ERP implementation
begins which is not just recording how people feel about the changes
anticipated in technology implementation of the business processes
that is primarily focussed on the automation over a period of time and
how to manage the shift in their expectations. This requires a
communication as well as a training process. Implementing an ERP will
bring in changes to the way people work within the organization,
processes will change and there may be job cuts and rationalization of
responsibilities within departments.

All this will definitely evoke resistance from the employees and this
has to be managed effectively before, during and after the
implementation of the ERP package. Top management has to lead the
way in propagating the reasons for the implementation and the
business benefits that can be expected by implementing a new ERP
package. A strong change management team needs to be involved to
approve, implement and track the changes in the organization, which
includes the impact and detailed structure (ie. documentation)
associated with the life cycle of the ERP project. The ERP are made to
flexibilize the enterprise and the management of the internal supply
chain.

It's commonly perceived that people in general don't like change, and
ERP involves quite a bit of change. So that may explain why resistance
to change is so common on ERP projects. But is there a way to resolve
these change obstacles? The good news is that there are some key
activities that will help minimize this type of resistance to change:
1) Identify change agents early in the project :

These should be people that know the business well, embrace change, and are
   well-respected in the organization. This group of people, which should
represent all the functional areas affected by ERP, will serve as champions of
the project. They will also be key in helping other employees understand and
             learn the value of ERP and how it affects their jobs.


2) Train people :

  Very few disagree that training is important. The problem, however, is that
many projects tend to focus on training users how to use the new system prior
 to go-live. While this is certainly important, it does not address other issues
 such as how key business processes will be affected by ERP. In addition, not
 enough companies take advantage of on-going training tools such as on-line
                     help, on-going refresher training, etc.


3) Involve employees in ERP process.

The more involved employees are in the ERP decision and implementation, the
more ownership and buy-in they will have into the project. This is not to say
that every single employee should be involved. However, involving more
employees than just senior management in the decision and implementation
planning process will go a long way to make people feel more ownership, which
inevitably results in less resistance in the future.



4) Over-communicate. There is no such thing as communicating too much with
employees. The more they know about why your organization is selecting ERP,
how it will benefit the company, and what it means to them and their jobs, the
less likely they will be to resist the changes when they are implemented.



ERP SELECTION ISSUES :

ERP selection is a fundamental process in which different project
components such as change management, business reengineering,
and an ERP independent consultant, play a key role in identifying
strong and weak points of your organisation, change and
reengineering strategies, and proper ERP or vertical ERP applications
to support a change management process.

ERP selection staff puts people at the center of project approach.
Change management, business reengineering, and project managed
by an ERP independent consultant are much more important than the
selection of an ERP or a vertical ERP application. ERP systems are:

      Designed to solve the fragmentation of information in large
       business organisations (change management issue)
      Perceived as a contribution towards a more process-oriented
       organisation (business reengineering issue)

ERP selection process must be performed by an ERP independent
consultant, who should:

      Analyse business requirements
      Assess ERP-users competence.

ERP selection process is based upon a world-wide knowledge and
implementation experience of major ERP systems; however, as we
enter a new company, we look at top management goals, to
determine:

      Business requirements
      B2B and IPE requirements
      System integration constrains and opportunities
      Change management challenges
      Business reengineering implications
      Datawarehousing and costing implications

ERP independent consultant activities are then set up within a Joint
Application Development team-centric framework, where we partner
with our clients to lend technical expertise, coaching them all through
the change management process.

ERP selection staff deals with business reengineering and change
management. ERP selection neither starts or ends with an ERP. An ERP
is just a force multiplier to support change; alone, without a business
reengineering strategy, it will hinder change, make change
management expectations difficult to reach, and bring failure, even
under the eyes of an ERP independent consultant: the change
management issue is too important.

ERP selection wrongly accomplished and no change management
process properly run: this is why companies turn out to be their worst
enemy in ERP project management. They start their trip by:
     Attempting to micro-manage ERP customisation
     Denying business reengineering needs
     Forgetting about change management and optimisation of their
      own structure

They eventually stumble on their way to implementation. The best ERP
selection process, the best ERP independent consultant, and the most
powerful vertical ERP fall however too short, without business
reengineering and change management issues.

ERP selection process will avoid that: we assess your current working
environment, your human organisational framework, strengths,
weaknesses, opportunities, and threats your company is to face with.
All these issues have strong change management and business
reengineering implications.

ERP selection process points at business reengineering. Business
reengineering is meant to create a leveraged infrastructure with the
final objective of aligning corporate knowledge management with
business strategy, through a rigorous but flexible project methodology
managed by an ERP independent consultant. Final goal: an ERP
system properly implemented.

ERP selection process brings you in touch with a world-wide range of
ERP vendors, weighing advantages and disadvantages of each system.
ERP applications are also weighed for a wide range of industry
segments, such as label industry, building enterprises, artificial
leather coating, paper coating, and many other ones. By carrying a
ERP-based project management role, the ERP independent consultant
sets aside your staff on a day-to-day basis, and interact with your
management team, taking care of all change management and
business reengineering issues.

customers typically need:

     ERP selection guidance
     Evaluation of where to house systems (internal or outsourced)
     Project management by an independent consultant
     Assistance in understanding technical jargon and evaluating
      different ERP implementation methodology
     Change management and business reengineering alternatives
    services include:

        ERP selection or vertical ERP system selection
        Project leadership and project management (ERP or vertical ERP-
         based)
        Analysis of business requirements for feasibility assessment
         process
        Evaluating, recommending, and managing change
        Change management and business reengineering alternatives


.

                            UNIT 5


What is an ERP System ?

An ERP solution is an integrated business system that provides a
company with the decision support tools needed to effectively manage
and grow its business. These support tools provide an organization
with access to the information that it needs, when it needs it, in a
user-friendly format. The system as a whole allows each individual to
work more effectively with a higher degree of responsiveness and
should provide all of the information that each individual within the
organization requires to do his or her job. When a change occurs at
any point, that information is updated accordingly, alerting key
personnel to changes in status when required. Management then has
the ability to view this activity and is thus able to make decisions
based on current data and information.

ERP is a strategic tool which helps companies gain a competitive edge.
By integrating all business processes and optimizing the resources
available helps manage the enterprise as a whole, implementing best
practices for each business process across an entire company.

ERP is the concept of taking many departments and combining their
unique systems and utilising the methods used. Information collected
and processed by these separate departments, combining it all into
one system, enabling seamless communications between departments,
suppliers, clients and management.
When to Consider an Enterprise-wide Solution
If an organization is experiencing one or more of the following
business conditions, it is
time to seriously consider implementing an ERP solution or replacing
the current one:

• Fast and uncontrolled growth
• The company’s exact financial performance is unknown
• Unknown or inaccurate job costs
• Inventories that do not meet or far exceed production requirements
on a consistent basis
• Duplication of effort in order to capture vital data that impacts
employee efficiency
• Commonly setting inaccurate customer expectations
• Promised delivery dates are regularly missed
• Unknown operations performance
• The current system is negatively impacting the organization’s ability
to grow.
• Little or no ability to forecast and plan production requirements with
any degree of accuracy.


How to successfully approach the ERP :

The most important element of ERP is communication, which can be in
effect used to decide on issues quickly and decisively, in order to set
reasonable expectations. Reliable implementation costs and time
required for implementation need to be forecasted at the start of a
project, along with, ensuring that the technical infrastructure is
sufficiently robust before implementation, and that a single, unified
database is used to store data for the various system modules.


Workflow Management
At present workflow management systems are mainly
used for administrative tasks in office environments. They
are only sporadically applied for supporting production
processes, i.e. in sales order processing, product development,
and quality inspection. More extensive approaches
integrate workflow technology as a core mechanism
to control process flow in information systems.Especially in ERP
systems the workflow integration is beneficial: Work schedules are
fundamental ERP data describing the manufacturing activities
to produce the industrial output. Production control
is based on this information. Work schedules are prestructured
process descriptions with specifications of operations
and assigned capacity units. Despite of their purpose
of material-oriented output, work schedules have
similar components as workflow definitions. Therefore it
is expedient to treat both kinds of processes by same
means. Production control on one side and workflow
management of administrative tasks on the other side
should be handled with the same system. Synergies can be
obtain by combining the advantages of both domains.
Workflow technology can benefit for instance from long
practical and theoretical experiences of production management,
e.g. implementing an organization for process
descriptions like the work scheduling department. Integrating
workflow technologies in ERP systems overcomes
department boundaries between production control in the
manufacturing areas and order processes in administrative
areas of an enterprise. Applying interorganizational
workflow technologies with mechanisms like
capacity sharing, chained execution, subcontracting, case
transfer and loosely coupled workflow offers means even
to overcome enterprise boundaries, which is essential for
supply chain management and process handling in virtual
enterprises .



Workflow Management Systems for management and execution
of business processes :

In business process modelling,one of the nasty complexities of reality
lies in the fact that there are usually many exceptions. This would lead
to much larger models, which easily become incomprehensible. In
general, business process models can be designed for an
organisational purpose, such as business process redesign, in which
their purpose is to support communication between humans. Such
models should be kept simple. Alternatively, models
can be made to support automated management and execution.
Workflow application (high level)

We start now by a high level description of the typical workflow
application. Work flow management systems contain a general
description
of a business process, which can be depicted in a graphical way. The
graphical language in which business processes are expressed are
often based on Petri-nets. In Petri-nets, activities are called transitions,
and they are always connecting two different states (called places).
Workflow languages allow a precise description of the activities which
are defined in the business process, as well as of the parallel paths
and sequence constraints which are applicable

The workflow system supporting a business process is depicted as a
“black box” containing the activities and their precedence/parallelism
relations within the process and identify what “a case” represents. The
business process is instantiated for individual cases. The instantiated
business process consists of activities, which may have to be
performed for each individual case.

Architecture of Workflow Management systems

The main observation, which we want to make about the WfM
approach is that each case has to be independent. This means that the
cases each hold their own data. When data from the environment of
the case are needed (e.g. due to joint resources or to data sharing).
Therefore, the information in the database about resources, and their
assignment to the roles that fulfill the activities is static. Also, other
restrictions (e.g. an active case cannot modify the persistent data of
another running case) stem from the strong assumption
that active cases are independent from each other.

In the example introduced above, this notion of “independence” can be
illustrated as follows. In phase one, a number of checks are performed
before a customer’s request can be replied by an offer. If any of these
checks fails, the order is refused. These checks are e.g.:

• The check whether the customer is known and accepted as a debtor
• The check whether the debtor’s credit limit has been reached
• The check whether sufficient material is in stock.

In phase two, the workflow logic has to assume that some of these
checks still hold true. For example, it assumes that the customer
object is still present in the database. If the customer object would be
removed from the database after phase one, the workflow system
might not be able to end properly in phase two. In this situation, the
case is not independent.

Thus, “independence of cases” means that each case can control it’s
own (persistent) data. However, it is a rather strong assumption that
cases are independent in reality. Of course, it can be debated whether
(in reality) a customer can be removed from the database while there
is still an order entry case in process.



                                 UNIT 6
INVENTORY -

ERP Inventory module facilitates processes of maintaining the appropriate level of
stock in a warehouse. The activities of inventory control involves in identifying
inventory requirements, setting targets, providing replenishment techniques and
options, monitoring item usages, reconciling the inventory balances, and reporting
inventory status. Integration of inventory control module with sales, purchase,
finance modules allows ERP systems to generate vigilant executive level reports .

Features & Highlights:

      Online status of item quantity in terms of on-hand, on-hand,
       available, reserved, ordered, to order, rejected, defective and
       reworkable quantities.
      Complete excise functionality and generation of excise registers
      Multiple levels of classification of items
      Multiple units of measurement
      Alternate items for Production Planning
      Handling of non-stock low value items like stationery
      Lot wise tracking of inventory at shop floor and main stores
      Stock Valuation – LIFO/FIFO/weighted average
      Material Requisition from different requirement areas
      Purchasing and subcontracting
      Receiving material against sales order processing, material
       requirement, subcontracting, gate pass and production
       requisition
      Landed Rate of Items
      Quality Control based on QC parameters
      Handling Material Rejections
      Rejected Material dispatch to subcontractors
      Linking of GRN to PO and Invoice
      Gate pass – returnable/non returnable
      Analysis which help in maintaining optimum stock levels
      Physical verification of stock
      Reallocation of reworkable stock
      Multiple warehouses/branches/regional offices
      Stock transfer – receipts from other warehouse
      Consolidation of all warehouses
      Consolidation at any level of company hierarchy


ERP inventory module covers all stock related functions of an
organization. Stock management and valuation activities, which form
the backbone of any organization generally, take a lot of time and
resources.Inventory handles all the store activities of issues,
dispatches, receipts and quality control. The lot wise stock of each
item is maintained and various MIS are provided for tracking stock
movement.


FINANCE –

All kind of organizations small scale, large scale organizations benefit
from the implementation of ERP finance module. The financial module
is the core of many ERP software systems. It can gather financial data
from various functional departments, and generates valuable financial
reports such general ledger, trail balance, asbalance sheet and
quarterly financial statements.
This module of the ERP software will take care of all accounts related
entries and their impact on the whole system. How the finance comes
and how it is been utilised. Total flow of money (Cash/Bank) and total
expenditures will be reflected here. As an after effect of this, the
management will be able to take their important financial decision,
Budgeting etc. They can come to know about company’s financial
position at any point of time. All sorts of important financial reports i.e.
Trial Balance, Trading A/c, Profit & Loss A/c, Balance Sheet, Debtor’s
Balance, Creditors Balance, Cash/Bank Fund position and many more
are covered in this module.

General Ledger
The General Ledger module is the foundation of your accounting
system, with flexibility that meets the current and future financial
management requirements of organizations of all types and sizes. It
provides a robust feature set designed to handle your most demanding
budgeting and processing needs. General Ledger fully integrates with
all modules and is the key to maximizing the efficiency and accuracy of
your financial data.

G/L Security
The G/L Security module enables organizations to control which users
can view or use certain general ledger accounts based on segment
validation in G/L Security settings.

G/L Consolidations
G/L Consolidations lets you transfer and merge General Ledger
account and transaction information between separate company and
branch office locations. It is also designed to enable subsidiaries and
holding companies to run without being on the same network or
accounting database. G/L Consolidations provides a feature set that
allows your company to define the level of detail to consolidate and
provides a comprehensive audit trail.

Intercompany Transactions
The Intercompany Transactions module lets you enter General Ledger
and Accounts Payable transactions that affect more than one company
by automatically distributing transactions across two or more
companies. In addition, its built-in flexibility automatically generates
intercompany loan account entries according to user-defined
relationship tables called routes. Intercompany Transactions simplifies
and significantly reduces the amount of work required for
intercompany accounting.

The Accounting Module is completely Transaction based unlike journal
based. This implies most of the accounting functions are handled
through relevant transactions in other Modules there by saving lot of
time. The Module contains complete functionality required for any
Accounting Department right from vouchers to the Balance Sheet and
Profit and Loss Account.

Budgeting and Variance Analysis between Budgeted and Actual figures
helps in controlling the Enterprise Expenses and Income efficiently.
The Module also includes Cost Centres, which is completely flexible in
terms of defining Cost Centres and their components. Cost Allocations
for General Overheads can also be done on a pre-defined basis and
required outputs could be generated for analysis purposes.
Outstanding of Payables and Receivables with Ageing Analysis of both
debtors and creditors are some the features of this module. Overall the
module takes care of complete functions of any Accounting department.
The function of this module starts with accounts creation. External
departments like marketing or purchase will create some of those
accounts. Apart from regular voucher entries this module will help the
authority as well as other departments by providing financial figures.
Final accounts will be generated from this module. Documents like
Receivable and Payable statements are generated from this module.
This module bridges between Sales & Procurement processes. All
figures will be protected under password. Only authorised person will
be eligible to access information from this module.

Funds manipulations for a concern are important factor and some
times it is treated as blood for an organisation. So in this regard,
sources of funds and application of funds are to be taken care of, by
defining Balance sheets, Schedules, General and Sub-Ledger, party
and customer masters etc. Also the various input transaction such as
Voucher Entry, Credit/Debit entry, Cash/Bank receipts, Cash/Bank
Payment, Bank Reconciliation statements, Bill verification etc. Then
finally different types of financial reports, which can be of various
types according to specified company standard.




Manufacturing –


   Three powerful ERP manufacturing software modules, Bill of
   Materials, Work Order Processing, and Material Requirements
   Planning, provide detailed and accurate tracking and reporting
   throughout the entire manufacturing process-from forecasting to
   the shop floor, and on to completion. The manufacturing solution
   for the Sage MAS 90 or Sage MAS 200 ERP manufacturing
   software system offers a range of features that will help
   maximize efficiency through all stages.

   The ERP manufacturing software modules for the Sage MAS 90 or
   200 give you the ability to create multi-level bills and produce
   accurate, informative reports detailing bill structures. And when
   goods are finished, they can be completed to Inventory
   Management or Sales Order for seamless integration with the
   distribution system. Additionally, manufactured component items
   can be completed to other work orders during the ERP
   manufacturing software process.
Bill of Materials

The Bill of Materials module for the Sage MAS 90 or Sage MAS
200 ERP system allows you to easily create and maintain a
detailed bill of the components and miscellaneous charges that
make up your finished items and subassembly components. You
can produce accurate and informative reports detailing bill
structures, component requirements, and production history.

The Bill of Materials module is designed to accommodate after-
the-fact production documentation. As each finished product is
created and recorded, this application automatically relieves the
component items used from inventory, and automatically
receives the finished products into inventory. The Disassembly
Entry and Production Entry functions can account for disassembly
of finished items, or components that are added, deleted, or
modified

Material Requirements Planning

One of the most critical and time-consuming aspects of
manufacturing is to manage the task of keeping sufficient
amounts of materials on hand at all times. How many times has
production been delayed because a necessary material was not in
stock or you could not get it in time? The Material Requirements
Planning (MRP) module for the Sage MAS 90 or Sage MAS 200
ERP system can help you eliminate purchasing and scheduling
problems. It is designed to simplify and speed up the work
processes of purchasing and production managers, enabling them
to plan more effectively.




Work Order

The Work Order module is the cornerstone of the manufacturing
solution for the Sage MAS 90 or Sage MAS 200 ERP system. It
allows you to issue work orders, develop schedules, and track
costs associated with the manufacturing process. Work Order
provides you with complete control of the manufacturing process
and the ability to see up-to-the-minute, work-inprocess
information. This module is particularly well suited for companies
    engaged in assemble-to-order, engineer-to-order or maketo-
    order processing.

    When Work Order is used in conjunction with Bill of Materials, the
    material required to create a product can be automatically
    merged from the appropriate bill. All of the required paperwork to
    move the job through the shop can then be generated from each
    work order, including travelers, picking sheets, dispatch sheets,
    and operation tickets.



Production Planning & Production Module :

In the process of evolution of manufacturing requirements planning
(MRP) II into ERP, while vendors have developed more robust software
for production planning, consulting firms have accumulated vast
knowledge of implementing ERP production planning module.
Production planning optimizes the utilization of manufacturing capacity,
parts, components and material resources using historical production
data                                               andsalesforecasting.

ERP production module will just handle a tiny portion of production.
The module begins with Product creation. There will be a component
master and stage master. This module is mainly designed to monitor
day-to-day production progress. On completion of any work order
information will be passed on to despatch for delivery. Reports on
delivery schedule will be available in this module.

Production Planning helps an organization plan production with the
optimum utilization of all available resources. Material Requirement
Planning is done based on the production advice generated by the
sales department. Feasibility of production is evaluated using details
like raw material availability and procurement time, machine
availability and capacity. A production schedule is generated for all
machines where the scheduling is done in an optimized fashion based
on the priorities of production.

features of Production and Production planning module:

Production module:

* Process definition with inputs, outputs, by-products and overheads
* Definition of Bill of Material for all products up to any number of
levels
* Planning based on customer wise production advice and sales
forecast
* Material requirement planning: MRP based on machine capacity and
availability, machine efficiency, raw material availability, lead time -
giving feasible quantity for production
* Production plan for machines with optimum utilization of all available
resources like raw materials and machines
* Option to revoke production plan to change input parameters/
production priority/ quantity using fresh production advice
* Generation of production schedule for machines detailing inputs and
outputs
* Analysis of machine efficiency and utilization
* Automatic generation of MRS and purchase requisitions on
finalization of plan
* Generation of process requisition for processes that have to be
subcontracted
* Reserving quantity for production
* Automatic generation of job orders for production
* Option to make daily plans for production

Production Planning module:

* Process definition with inputs, outputs, by-products and overheads
* Definition of Bill of Material for all products up to any number of
levels
* Planning based on customer wise production advice and sales
forecast
* Material requirement planning: MRP based on machine capacity and
availability, machine efficiency, raw material availability, lead time -
giving feasible quantity for production
* Production plan for machines with optimum utilization of all available
resources like raw materials and machines
* Option to revoke production plan to change input parameters/
production priority/ quantity using fresh production advice
* Generation of production schedule for machines detailing inputs and
outputs
* Analysis of machine efficiency and utilization
* Automatic generation of MRS and purchase requisitions on
finalization of plan
* Generation of process requisition for processes that have to be
subcontracted
* Reserving quantity for production
* Automatic generation of job orders for production
* Option to make daily plans for production


Production Planning helps an organization plan production with the
optimum utilization of all available resources. Material Requirement
Planning is done based on the production advice generated by the
sales department. Feasibility of production is evaluated using details
like raw material availability and procurement time, machine
availability and capacity. A production schedule is generated for all
machines where the scheduling is done in an optimized fashion based
on the priorities of production.


PURCHASING -

ERP Purchasing module streamline procurement of required raw
materials. It automates the processes of identifying potential suppliers,
negotiating price, awarding purchase order to the supplier, and billing
processes. Purchase module is tightly integrated with the inventory
control and production planning modules. Purchasing module is often
integrated with supply chain management software

Features of purchasing module:

* Streamlines purchase and process cycles
* Detailed Supplier/Subcontractor/Service Provider database
* Capturing materials requirement
* Automatic firing of purchase requisitions based on MRS
* Quotations from various suppliers
* Recording Payment terms in PO
* Excise consideration in Purchase and Process Orders
* PO authorization
* PO amendments with complete amendment history
* Order cancellation and order closing
* Multiple delivery schedules
* Quality inspection of goods
* Quotation validity
* MIS for vendor evaluation based on quality, price & delivery time
* Subcontracting – generation of process orders
* Multiple indents for multiple items in a single PO
* Purchase order processing
* Purchase order entry with item details and other details like taxes,
discounts, extra charges like freight, P&F, octroi etc.
* Flexibility to generate Purchase Order in domestic and foreign
currency
* Advance adjustments
* Purchase bill with updating of GL and purchase book
* Service contracts, Service Bills, Service indents and PO
* Value based approval of indents
* Bill of Entry
* Complete import functionality with handling of custom details -
Purchase Bill for import, Excise consideration in imports
* Reports for Order tracking for complete control on the procurement
cycle

ERP Purchasing module aims at making available the required
materials of the right quality, in the right quantity, at the right time
and at the right price, for the smooth functioning of the organization.
All purchasing and subcontracting activities such as inviting quotations,
supplier evaluation, placing purchase order, order scheduling and
billing are covered in this module. Import of goods is also handled by
the system.



(Reference : http://sdc.ca/production_control.shtml )




                               UNIT- 7

MRP -

In the early days companies would get software written for them to
explode the bill of material. The first "package" material requirements
planning (MRP) software was IBM’s RPS (Requirements Planning
System).

There were 2 main faults with Material Requirements Planning
(MRP) systems :

(1) Nobody could work out how to make the planning systems stable -
every MRP run produced widely different results from the last, due to
the normal fluctuations in demand and supply.
(2) The systems had the effect of driving up the inventory instead of
reducing it. The reason for this was that every fluctuation upwards
increased supply orders which could not be easily reduced.

In the early 70’s the idea of master production scheduling and capacity
requirements planning were introduced into MRP systems to overcome
the stability and inventory problems. The new packages were called
MRP II (Manufacturing Resource Planning) to emphasis the
improvement over the old MRP systems.


The main reasons for MRP II failures

MRP II should have overcome the old MRP problems. Unfortunately it
seems that the majority of software implementers did not understand
master scheduling very well so encouraged companies to implement
MRP II packages in the old, flawed MRP way i.e. without proper master
scheduling and capacity planning.

There were other problems with MRP II implementations:

* Inaccurate data - experience has shown that at least 98% of
inventory records and bills of material must be correct to make the
system usable to control the business. Other information must be
similarly accurate.

* Software packages did not meet the needs of the business -
packages were so complex that people running the company did not
understand them. Professional implementers who did not truly
understand the business were therefore left to decide how the
packages will be "mapped" to the business. Trying to modify the
package leads to higher costs.

* The longer term financial objectives of the company were not
addressed - companies are judged by their financial success. If a
planning system cannot be seen to connect to the financial needs of
the business, there will be two, frequently competing
agendas. Manufacturing, for instance, could be asked to hit monthly
financial targets whilst also being expected to meet the customer
requirements passed down through the planning process. In this
environment it is often the financial objectives that dominate so
undermining the validity of the plan.
* Insufficient education - time and again people who have
implemented MRPII systems, even those that were successful, say
they did not have a sufficient level of understanding of either the
software or the new business operating processes and procedures
needed to work in an integrated environment.

* Ineffective use of consultants - most people will only implement
planning systems once or twice in their careers. Many companies try
to implement systems without the help of people who have proven
experience in implementing such systems.

OLAP

The OLAP module provides the sophisticated functionality needed to
analyze and report on large amounts of transactional data using
advanced On Line Analytical Processing (OLAP) and data warehousing
technology.

OLAP Analytics enables you to gain critical insights into financial
activity, sales analysis, and production and inventory management.
Through the use of OLAP and data warehouse technology, The
Intuitive OLAP Analytics module delivers key analytical information
throughout your organization and gives you the power and knowledge
to reduce inventory, increase customer satisfaction and reduce costs.

      Analyze large amounts of business data
      Easily create your own reports and analysis using familiar
       Microsoft Excel user interface
      Select, sort and analyze data in an unlimited number of ways
      Uncover hidden trends

While OLAP technology is available to all Microsoft SQL users, the
difference with Intuitive's OLAP Analytics option is that the OLAP cubes
have been pre-filled with all the data required for you to simply run
reports. Other systems offer OLAP technology, but Intuitive offers pre-
filled cubes that will save weeks or months of development time.
Intuitive's OLAP Analytics option is ready to start analyzing data right
out of the box, with no modifications or development required.

OLAP Analytics presents business intelligence information in a way that
was not possible before, and does so with unprecedented speed and
flexibility. Now, instead of waiting a week or more for someone to
format a report and/or analyze the data, you can access it directly
from your desktop as quickly as you can drag and drop the attributes
of interest to you. OLAP Analytics allows you to select, sort and
analyze data in any way you want, virtually as quick as you can think
of it. It gives you the ability to rapidly drill down into your data to see
trends and conditions that would otherwise be invisible using slower
data retrieval technology.


KBS (Knowledge Based System)

In order to implement the systems that are aimed at improving the
sharing of enterprise-wide information and knowledge, organizations
must have the capability of effective knowledge sharing to start with.
Based on a review of the literature on the knowledge management in
enterprise system implementation projects, this paper identifies two
major areas of concern regarding the management of knowledge in
this specific type of projects: managing tacit knowledge, and issues
regarding the process-based nature of organizational knowledge
viewed through the lens of organizational memory. The more capable
an organization is in handling these issues, the more likely it is that
the implementation will result in competitive advantage for the
organization. The competitive advantage arises from the organization’s
capabilities in internalizing and integrating the adopted processes with
the existing knowledge paradigms and harmonizing the new system
and the organizational culture towards getting the most out of the
implementation effort.


                          UNIT 5


Enterprise Resource Planning (ERP)

ERP is a strategic tool which helps companies gain a competitive edge.
By integrating all business processes and optimizing the resources
available helps manage the enterprise as a whole, implementing best
practices for each business process across an entire company.

ERP is the concept of taking many departments and combining their
unique systems and utilising the methods used. Information collected
and processed by these separate departments, combining it all into
one system, enabling seamless communications between departments,
suppliers, clients and management.

How to successfully approach the ERP :
The most important element of ERP is communication, which can be in
effect used to decide on issues quickly and decisively, in order to set
reasonable expectations. Reliable implementation costs and time
required for implementation need to be forecasted at the start of a
project, along with, ensuring that the technical infrastructure is
sufficiently robust before implementation, and that a single, unified
database is used to store data for the various system modules.

				
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