erp making it happen

Download ERP Making it happen

Post on 21-Jan-2015




7 download

Embed Size (px)




  • 1. Enterprise Resource Planning (ERP):Making It Happen

2. 3. Many major companies are having difficulty achieving effective enterprise resource planning even after a full year of implementation, according to a report issued by The Conference Board. The report goes on to state that some 40% of participants in The Conference Board survey failed to achieve their business case even a year after having implemented enterprise resource planning (ERP). ----(The Conference Board) 4. Role of ERP Has Changed

  • 20 thCentury ERP Role


  • Enterprise Optimization
  • Supply Chain Optimization
  • Tactical Cost of DoingBusiness
  • Strategic Investment
  • Reengineered processesfor Survival
  • Reengineered processes for Efficiency
  • Computing in the Cloud
  • ERP is the Next Wave

5. Summary ERP and e-Business 6. ERP, e-Business and Data Base Accuracy

  • Item Master/Bill of Material/Routing
  • Customer and Vendor Masters
  • Financial Account Coding
  • Inventory Accuracy

7. Data Accuracy at a Medical Products Distributor

  • $40+ billion health care supply management company
  • 30+ North American distribution centers
  • One million order lines every work day
  • Short filled order can be a life threatening event

8. Data Accuracy

  • Recognized the impact of accurate records on both
    • Customer service
    • Financial reporting
  • Transformed the Enterprise by
    • Deploying a proprietary warehouse management system
    • Redesigning business processes to achieve high levels of data accuracy

Medical ProductsDistributor 9. Data Accuracy: Positive Change

  • Early 90s

Today 70 to 90% inventory accuracy 99.8+% inventory accuracy 90% of physical inventories eliminated Two physical inventories per year at each distribution centerUse of more efficient process cycle counting Exclusive use of ABC cycle counting Medical Products Distributor 10. Implementing ERP: The Three Elements 11. The New Industrial Engineering Business Process Information TechnologyRedesign Capabilities How can processes be redesigned using IT? 12. Business Process Redesign 13. Business Process Redesignat a Discrete Manufacturer --- Redesigned Procurement Process

  • Receipt is authority to pay

Automatic AP entry and payment

  • Automatic adjustment of contract
  • PO

Internet release to vendor Swipe bar code to receive in stock

  • Receive directly to point of use

External Kanban 14. Business Process Redesignat a Discrete Manufacturer ---Redesigned Procurement Process

  • 80%+ of items under Kanban control
    • POs written reduced from 5,000 per month to 1,700
  • Self-billing invoicing routine eliminates supplier invoices
  • Save over $20,000 per month using the
  • self-billing invoicing routines in ERP software


  • Reduced delivery lead-times 67%
  • Increased inventory turns 2.3X to 18X
  • Increased revenues by 250%

Business Process Redesignat a Discrete Manufacturer 16. Strategic Project Management 17. 18. Risk Management It s the alligators that you don t see, that will bite you. 19. ERP Risks 20. Change Management 21. Multiple Projects, Multiple Visions, Competing Resources Six Sigma Collaborative Product Design ERP Empowerment Vision 22. The Essential Elements of Change Management 23. The Ten Steps for a Successful ERP Project 1. Clearly defined Project Mission 2. Leadership at the Top 3. Realistic Project Schedule/Plan 4. Client Consultation 5. Personnel selection 24. 10 ERP Success Factors 6. Technical Tasks 7. Client Acceptance 8. Monitoring &Feedback 9. Communication 10. Trouble-shooting The Ten Steps for a Successful ERP Project 25. ERP: Making It Happen