Sunday, June 22, 2008

Why ERP?

Billy was working at a Furniture company. After he did vacation he started to work again and the announcer said something about providing solutions for small and medium size businesses in partnership with SAP.

In order to implement ERP company hired many consultants but they want to be a part of the ERP implementation process.

There is a professor Kellsdorf and she claims that ERP can not manage the whole

There was a use of MRP system in the company. MRP system has some bugs.

Problem of that software was company cannot see the forecasts and company cannot see the situation of deliveries. It creates some problems.

Part of the problem was deliveries. From MRP software delivery situation cannot be seen properly. At that time it was seen that no problem was actually happened but in

MRP there seemed to be a problem.

CEO of the company wanted to implement an ERP program so he wanted to form an implementation team.

To be a part of implementation process Billy gone to educate himself to SAP seminars.

Billy took advice from professor and the professor told him that ERPs are implemented in order to increases integration.

There should be so much management work done before implementing ERP on a company.

That furniture company wanted to use the best practice approach that means seeing other companies as an example then implementing ERP according to their outcomes.

In the management process before ERP implementation Billy understood that some jobs may change after ERP implementation.

There was some tests done at the implementation process such as financial implementations and it seemed that converting different currencies to their own currency seemed a good issue.

There was a problem that while the company was using MRP, they wrote small applications. However, these applications may not work cooperatively with implementation of SAP. Thus, company may lose data.

The company showed Billy that Ohio as an example of successful SAP implementation and for the reasons such as Ohio factory was working as a mass production factory and Billy’s factory work as a niche factory, Billy refused to implement SAP in his plant.

Billy also saw that in the plan of implementing SAP in the factory, the time needed to train the staff was too low and he refused the implementation of SAP.

After the factory wanted to implement SAP, Billy resigned from the company and changed his job he started to work as a consultant.

Like 70% of the ERP implementations, implementation of ERP failed. Because best practice approach did not work in the factory like in Ohio. Problem was the factory was a niche factory and Ohio was a mass production company.

1 comment:

Jenice said...

After reading the whole scenario the main flaw that I find is that people fail to understand the meaning and benefits of ERP before planning to implement. Its really necessary to have a clear understanding of what ERP does and how it will work.
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