ERP Implementation from Feasibility Report

Made By : Kunal Gawade (WRO0493187)Taher Bharmal (WRO0476543)

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.

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.

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.

Benefits from ERPDimension Sub - Dimension Explanation

Operational 1. Cost reduction2. Cycle time reduction3. Productivity improvement4. Quality improvement5. 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 management7. Improved decision making and planning8. Performance improvement

With a centralized database and built in data analysis capabilities, it seems likely that ERP systems will provide informational benefits to management.

Goals of an ERP SystemThe 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.

ERP Implementation Process1. Pre evaluation Screening2. Evaluation Package3. Project Planning4. GAP Analysis5. Reengineering6. Team training7. Testing8. Going Live9. End-User Training10.Post implementation

• 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.

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.

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.

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.

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.

ABCs of implementing ERP System

• 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.

Implementation Challenges1. 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.

“Transformation Is

Never Easy To

Achieve”

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.

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

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.