What ERP Will Do To and For Your Company

What ERP Will Do For and To Your Company

Success for any company begins with education. Education for Enterprise Resource Planning (ERP) is critical to a company's ability to reduce implementation risks. According to The Standish Group, IT projects have a high risk. Their famous Chaos Report (1995) shows that only 16.2% of business management projects for mid-sized companies completed on time and on budget and large companies had only 9% of projects completed on time and on budget. Without the proper education, without proper project management, and without proper guidance, these projects are highly unlikely to succeed. Their follow-up study in 2009 did not show significant improvements in these projects for either mid-sized or large organizations.

Education decreases those risks. The return on the investments dollars are difficult to quantify but research suggests that payback exceeds $3 for every $1 spent. Manufacturing Practices stresses education and has the experience to make that education work. The current offering for business management software (ERP) education reduces a company’s implementation failure risks.

The ERP Education is a multiple day class that identifies properly functioning Enterprise Resource Planning (ERP) Systems. The sessions identify:

1. How ERP modules function as an integrated unit

2. Why data validity is important

3. How to setup programs to create valid data

4. How to use Material Requirements Planning (MRP) and the process necessary to help create valid material plans

5. How to setup proper Production Schedules

6. How to setup Shop Floor Management Systems to monitor production schedules to create valid Production Schedules

7. How to setup Forecasts and use them to help define valid Capable to Promise schedules at Sales Order entry time

8. How ERP Systems use Costing Methods (i.e., LIFO, FIFO, Average Cost, Weighted Cost, and Standard Cost)

9. How to structure the company to lead the ERP Implementation

10. The role for Top Management, middle management, and users in the ERP Implementation

11. How to create a project plan for the ERP implementation

12. How to keep the project on track

13. How to use Key Performance Indicators (KPIs) to Keep People Involved

ERP Systems are more that a tool for people to use to ‘update the system’. To benefit from an ERP System, users have to understand what happens when they push the ERP System buttons. Their understanding must move past their department activities. Their understanding of how their data affects other departments in the organization is critical to ERP deployment success. ERP Vendors train users to push the proper buttons at the proper time. Our education lays the foundation so that users understand the impact of their activities on the company’s bottom line. Our education removes a number of the risks a company faces when they implement an ERP System.

To begin a dialogue, contact us. Call us at 770-772-6894, Skype: michael.a..roman, email: operations@manufacturingpractices.com or Ask the Expert We look forward to earning your business.