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Large dollar investments for setup, implementation and maintenance even for small ERP projects Painful and lengthy implementation and debugging ERP Disadvantages Multiple Difficulties are hidden leading to "doubling the time and tripling the cost" estimates for the project Difficulties amplify organizational resistance to change.
Large dollar investments for setup, implementation and maintenance even for small ERP projects Painful and lengthy implementation and debugging ERP Disadvantages Multiple Difficulties are hidden leading to "doubling the time and tripling the cost" estimates for the project Difficulties amplify organizational resistance to change.
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Large dollar investments for setup, implementation and maintenance even for small ERP projects Painful and lengthy implementation and debugging ERP Disadvantages Multiple Difficulties are hidden leading to "doubling the time and tripling the cost" estimates for the project Difficulties amplify organizational resistance to change.
Droits d'auteur :
Attribution Non-Commercial (BY-NC)
Formats disponibles
Téléchargez comme PPT, PDF, TXT ou lisez en ligne sur Scribd
University of Wisconsin USA Introduction Medium size U.S. business 1,200 employees Multiple, geographically scattered manufacturing sites located in the Milwaukee metro area Single finished product with a large variety of custom options Multiple distribution centers worldwide Introduction Billof Materials with approximately 25 levels 250 global suppliers Mature product, well established brand name Demand consistently exceeds supply Production capacity shortage SAP R/3 ERP system ERP Benefits Cross-functional process orientation with high visibility Enables exchange of information throughout the supply chain in real time Reduces operations costs Reduces cycle times Facilitates bottleneck identification and management ERP Benefits Improved inventory management and inventory cost reduction Improved customer service levels, material shortages and reduced late deliveries Standardized and normalized data and data formats ERP Benefits Enhanced communication across functional boundaries Emphasis on process orientation Enhanced integration across the supply chain and business units Expanded information access with appropriate user rights ERP Benefits Enhanced empowerment of employees through increased information sharing Improved system-wide accountability and visibility Facilitates the implementation of do it right the first time philosophy Improved accuracy of forecasting and master scheduling Specifically, ERP Benefits: Organization and it’s supplier chain Manufacturing and sales functions Inventory management Product distribution and logistics IT function by consolidating and standardizing diverse legacy database platforms ERP Disadvantages Large dollar investments for setup, implementation and maintenance even for small ERP projects Painful and lengthy implementation and debugging High level of expertise needed for implementation and debugging ERP Disadvantages Multiple difficulties are hidden leading do “doubling the time and tripling the cost” estimates for the project Difficulties amplify organizational resistance to change Strategic benefits are hard to quantify Targets are rarely achieved Plans are too ambitious (time and $$$) ERP Disadvantages Expectations are unrealistic Lack of understanding of strategic benefits of ERP implementation (follow the crowd mentality) Superficial implementation with a lack of necessary infrastructure support Is it really worth it? ERP Implementation Case Specific Strategic Goals: Speed-up new product development Improve customer focus (emphasis on large accounts) Eliminate 5 independent computer systems to improve operating system efficiency Eliminate functional silos by enhancing communication ERP Implementation Case PhaseI: The establishment of a “Customer First” team in order to: Identify customer expectations (for external and internal customers) Understand the current processes Identify improvement opportunities Determine future process vision, targets, and goals, and Develop a Vision ERP Implementation Case Phase I implementation difficulties: Lack of common vision (functional silo mentality) based on 220 interviews Current processes and infrastructure could not efficiently support the requirements of increased customer demands SAP Modules Selected for Implementation MaterialsManagement Sales and Distribution Production Planning Warehouse Management Human Resources Business to Business SAP Modules Selected for Implementation Advanced Planning Optimizer (Forecasting Tool) Financial Accounting/Controlling Costing, and Customer Relations Management Implementation Schedule 18 months allowed for complete system implementation System simulations performed in May, 2002 using mock transactions Go-live in July, 2002 (slow business period) IBM consultants retained to facilitate the implementation process Implementation Issues Since 7/2002 implementation there was: Confusion and a general lack of knowledge about the new system throughout the organization The production and inventory control department, as well as the SAP help desk, and IS department were pummeled with a lot of questions that they did not have the capacity to answer Implementation Issues Since 7/2002 implementation there was: A lack of tools for generating necessary reports/ the new system wasn’t customized to the business Lack of quantitative measures to assess implementation progresses and the fulfillment of strategic benefits Implementation Issues Since 7/2002 implementation there was: A lack of knowledge regarding the forecasting module decreased forecasting accuracy No back-up plans
Unacceptable consultant turnover
produced instability Implementation Issues Since 7/2002 implementation there was: Data had been inaccurate, incomplete, overlooked or was not entered into the system causing many errors (garbage-in, garbage-out) Confidence in the system amongst internal and external customers was undermined Implementation Issues Since 7/2002 implementation there was: Insufficient time and money necessary to successfully implement the project Management pushed for a quick transition to a new system to save money on current system software licenses Finger-pointing and blame shifting for poor system performance 4 Major Implementation Issues Always develop back up strategies and computer infrastructure systems Review and understand your current processes and need before defining the need for a system (Choose or design a system around your business needs) Support and drive from executive staff to change corporate culture is a must, and Training, Training, Training Conclusions Develop a system exploitation strategy: Identify projects that utilize the base infrastructure and deliver the biggest benefits Find people who understand the business and its processes, and the technology Conclusions Develop benefit-focused implementation plans supporter by specific business cases Establish recognizable benefit delivery processes