ERP Sucks ......

This is the feedback gotten from the "organics worker" who are supposed to run the program, means the "end users" reporting to "key users".
The new ERP system is installed, orders get placed, product is shipped, and invoices get paid. Yet no one is really happy with the results.
Customer satisfaction is unchanged and profits don’t increase. Ironically, quality of life at work declines while employees climb the learning curve. Finally, the company continues to struggle against competition.

What happened? Which are the causes? The most frequent situation is when the ERP vendor’s selection criteria are based mostly on the product features, covering less or not at all the implementation. For some managers installation and implementation are the same, which is an expensive confusion. The goal of an installation is move from one software to another, with a minimum of disruption. The goal of an implementation is to enable a company to achieve significant business goals as the result of a carefully planned transformation of its business processes, supported by appropiate software and technologies.

Computerizations are suppose to simplify our work and improving our quality of life.
It is true if implemented correctly, but in the big project like ERP implementation, the quality of team work and team player is very important.
In the team work, the commitment of each players are craved and need to be shown to the other players.


What is ERP
It is an integrated systems comprised modules for Finance, Logistics and Manufacturing, allowing for the management of purchases, sales, stocks, production etc. These solutions were referred to as Enterprise Resource Planning since they permitted the stage elaboration and integrated administration of the company major resources (finance, fixed inventory, materials, human resource) and the associated processes. [ING BARING 1997].


Benefits of ERP Implemetation to the way companies are managed as explained by JOHN GUNSON and JEAN-PAUL de BLASIS

• Reduction in effort for the collect and input of data : immediate input at the moment of the transaction.
• Possibility to interrogate in real time and at distance integrated information from different functions.
• Discipline and uniformity applied to processes and working methods.
• Breaking down of function and geographic barriers.
• Real time aid to decision-making; for example better visibility of stocks, leading to higher service level to the customer.
• Integration of activities, from the taking of the order through to the planning of production; from warehouse picking and dispatch through to invoicing; the transactions being automatically recorded in an accounting format.

A successful ERP implementation led to a simplification of management processes.


Key Success Factors in Implementing ERP

The need for a Project Sponsor.
If the project (the ERP implementation) is associated with a person - a person responsible for a business unit concerned, a person who hierarchically and by personal charisma is forceful, known , respected, liked throughout the company this helps to assure project success. This person is seen to be associated and permanently associated with the project, irrespective of perceived success or failure at any moment in time.

A strong management commitment.
Top Management, and their continued involvement, support, commitment, mobilization is vital.

Identification of a Project Coordinator/ Project Manager.
This was the I.T. Manager, this makes sense as I.T. is highly involved and later will be instrumental in data conversion, interfaces and modifications.

A strong business case for the Project.
If the reason for adopting an ERP solution is purely to align an affiliate with a Head Office choice, or with a hidden or open agenda to reduce the number of personnel, to centralize control and reporting so that a local management is brought to line or if simply the business needs are secondary - these ‘motivations’ can add to resistance either from the start or at a later date. This resistance can be manifest or latent; in both cases the consequences in terms of cost, delay, implementation quality could be major.

Clear vision.
Need to have a clear idea of what is wanted as an end result. These objectives will translate later into needs requirements, into measures checks and balances control, and a means of calculating a return on investment (financial/non-financial).

Re engineering, Rethinking; Change and Change Management; Benchmarking and Best Practices.
Encourage the change of existing structure and method where applicable.


The Risk of Failure
Here are the most important problems as explained by Luminita Hurbean from West University of Timisoara
• lack of ERP training and education;
• lack of in-house expertise in ERP;
• lack of clear goals for ERP effort;
• lack of companywide support and involvement (resistance to change);
• lack of top management commitment and support;
• lack of data accuracy.