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Key
ERP Features
One of the
key feature of ERP system is that Data is captured at the point
of origin & impacts all related sub-systems, there-by making
it available to every participant in the process. ERP is meant
to integrate the entire Enterprise, starting from
Supplier/Vendor to the Customer, covering not only Finance,
in-bound & out-bound logistics and Human Resources, but also
cross functional Supply Chain optimisation & execution and
business intelligence function sets. The various areas that an
Enterprise Solution covers are:
-
FINANCIALS:
Financial Accounting, Treasury Management, Enterprise
Controlling, Asset Management.
-
LOGISTICS:
Production Planning, Materials Management, Plant
Maintenance, Quality Management, Project Systems, Sales,
Marketing & Distribution.
-
HUMAN
RESOURCE:
Personnel Management, Training & Development, Skills
& Management.
-
SUPPLY
CHAIN:
Planner & optimiser, e-commerce/business to business,
Commerce, Sales Force Automation & Warehouse Management.
-
ENABLERS:
Business Workflow, Executive Information Systems, Alarm
Systems.
________________
RPK
Software (P) Ltd.
(Oracle
Applications Consultants)
48A, Motilal Nehru Road,
Calcutta 700 029 (INDIA).
Tel: +91 33 475 6007
Tel: +91 33 476 6655
Fax: +91 33 476 6655
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Know,
Prepare & Communicate
Enterprise
Systems are all about the Enterprise & not about Systems.
Their success greatly depends upon the role of the top
Management of the Enterprise & active participation of the
HR.
The popular
notion is that implementation of an ERP is a technology
decision. The fact is that it is not. In fact, it is a decision
that ideally should be based on business needs &
benefits.
How does one
decide on ERP implementation?
-
Create a
base case of annual savings from cost cuts that could be
achieved without
the ERP system in place.
-
Create an
ERP case of annual savings that could be achieved with the
ERP system. This should include the savings that do not
depend upon ERP (the base case in step 1).
-
Substract
the savings in (1) & (2) , and calculate the NPV of the
residual cash flow. A positive NPV will indicate that one
should proceed with the implementation of the ERP system.
-
If step 3
produces a positive NPV. conduct a sensitivity analysis to
ensure that the business case is strong enough to withstand
the time & cost over-runs.
-
Back
allocate all ERP implementation costs to individual business
units so that they can factor them into their planning.
Ensure that each unit is responsible for producing the
promised savings.
A subject
that has to be addressed early in the stages of the ERP
initiative is the approach to the business logic re-engineering.
It
should be understood that Enterprise Packages may be
re-engineered to a Client specific environment, but only within
limits. The package already considers the normal business
operations & some amount of standarisation is always in-corporated
within. A sound approach is to perform a detailed study of the
particular business environment & optimise the amount of
re-engineering to be incorporated.
In deployment
of ERP, continuous communication is maintained at every level of
the Enterprise. This is done by laying out specific plans of
meetings at different spheres, fixing dates for the steering
committee to meet, discuss & finalise the specifications.
The other most important aspect for the Management is to see a
change in the Management Process & Culture, while bringing
in the concept of ERP to each & every level of the
Enterprise, while the ERP gets implemented.
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