NO SMALL DECISION
ERP Systems – from Selection to Implementation
Every manufacturing company aims to stay ahead of the game in terms of managing resources effectively . One tool that can help you achieve this is Enterprise Resource Planning ( ERP ). But what is ERP and why is it important for the future of manufacturing ? How does a business move through the process from selection of an ERP to implementation ? In this article , you ’ ll get an overview of ERP , its benefits , and what it takes to select an ERP that is right for your business and get it implemented to streamline your manufacturing operations .
What is Enterprise Resource Planning ?
Enterprise Resource Planning ( ERP ) is a software system that helps businesses manage their resources effectively . It integrates all business functions , such as finance , inventory management , production , sales , and human resources into a single system , providing a centralized view of your organization ’ s data . With ERP , you can automate routine tasks , streamline manufacturing processes , and improve visibility into your operations . ERP systems eliminate duplicate and manual data entry , which reduces errors , improves efficiency , and allows you to make better-informed decisions in real-time .
Choosing an ERP That ’ s Right for Your Business
Selecting an ERP system is no small decision – it can be exciting , complicated , and stressful . It is important to identify a project manager to help ease the selection and implementation process . There are three main steps that should be followed : Assess – what does the business need , Decide – choose a system , and Implement – go live using the system .
Assess – It is important to create a project team which typically includes an executive sponsor , a project manager , and representatives from the key departments that will use the system . This approach creates ownership and buy-in among the team while ensuring the project gets the resources it needs . Many businesses hire an external consultant or ERP implementation partner to provide expertise in design and configuration of the system .
One of the team ’ s main goals is to understand the current issues , including process inefficiencies and requirements for the ERP system . To help with this process , consider conducting a Needs and Wants Assessment . Key items to consider in this assessment are :
• Data Analytics
• Reporting Requirements
• User Experience / Ease of use
• Automation Accessibility
• Future Business Growth
Decide – The decision process should evaluate two to three systems in a side-by-side comparison . Though costs are important , don ’ t make your decision based solely on cost . Make sure to review the pros and cons of each system – it is recommended that the following categories are included in the evaluation :
• Industry experience of each supplier
• Customization ability and requirements
• System flexibility
• Ease of use
• Reporting
• Implementation timeline
Lastly , before making a final decision , it is important to check references for each system . Not only should you be asking other clients what they like and dislike , ask about the implementation process . If possible , request an on-site visit or client demonstration . Asking other users about their experience is the best way to validate that you are choosing the right system for your business .
Implementation – Now the real work begins ! Now that an ERP provider has been chosen , the next step is to develop an implementation plan and timeline . During the assessment phase , each department ’ s requirements were identified and the issues the system needs to solve are known . There are several steps included in the implementation phase of the process .
Design – Start by analyzing existing workflows and designing new , more efficient processes . Include users in this process , as they have the best understanding of current processes and what works and what doesn ’ t . This process will help identify what customization is required .
Development – In conjunction with the software vendor , configure the software to the business requirements . In parallel with software development , the team should start preparing training materials and documenting new processes . This is when you start planning data migration which can be complex . Migrating data often involves extracting , transforming and loading information from multiple sources . Bear in mind that each source may use different formats and may have duplicate or inconsistent information . The project team will need to determine how much historical information will be transferred .