Important evaluation factors for implementing ERP

The implementation of ERP system is a management reform for enterprises. in project implementation, enterprises cannot simply run their original management models on computers, the Advanced ERP management mode must be integrated. Computers are just a tool for implementation.
An enterprise's ERP project is more important to a management project. ERP is a system project of an enterprise. It covers planning, procurement, inventory, production management, sales and distribution, finance, after-sales service, and cost accounting, all aspects of the enterprise are involved. Only when all employees of the enterprise participate in the implementation can the implementation be successful.

The criteria used to verify and measure the successful implementation of the project are very important for enterprises that implement the ERP project. The successful implementation of the ERP system is hard-won for enterprises and requires the hard work of the project team members and all employees at various stages, meticulously organize and evaluate software functions, project requirements, and implementation processes. There are many criteria for evaluating whether an ERP system has been successfully implemented. The main reasons for verification are as follows.

1. selecting appropriate software is the start of a successful project

The implementation of enterprise ERP projects is a new process of management ideas. The primary issue of project team members is how to select Software suitable for enterprise development. Evaluate the commercialization of ERP software from the following aspects.

1. Software features

The software functions shall be subject to meeting the current and future development needs of the enterprise. Redundant functions only cause complexity of use and maintenance. If some functions can be implemented only after the Software Version Upgrade, you must identify whether the upgrade possibility, time, and conditions can meet the implementation progress of the enterprise. The availability ratio of software depends on the degree to which the user accepts the ERP principle, the degree to which the enterprise deepens the reform, and the degree to which the software function applies to the user, and does not depend on the imported or domestically made software.

2. tools used by the Development System

Any product software has more or less user-oriented and secondary development work. As the application scope expands, enterprises will certainly add some functions. Therefore, development tools must be easy to grasp and use. Even a 4th-generation language, case, or object-oriented development tool needs to be carefully analyzed and compared. The report formats of enterprises vary and need to be customized. This is a very common requirement. The software must have the function to help users generate the report formats they need. On the other hand, we should also try to select the appropriate software to reduce the workload of secondary development, in order to shorten the implementation cycle.

3. Software documentation

For a standardized product, documents should be complete and should be easy to learn and use. If the software is imported, the software screen, help text, various documents and teaching materials should be localized, And the words and statements must be fluent and in line with national conditions. Whether domestic or imported software, pay attention to the consistency of the document content with the software products.

4. After-sales service and support

After-sales service and support are directly related to the success or failure of the project. After-sales services include training, project management, implementation guidance, secondary development and user-based services, which can be undertaken by consulting companies or software companies. After-sales support is provided by expert consultants who are familiar with enterprise management and have implementation experience. To ensure normal operation of the project, it is necessary to obtain benefits as soon as possible. The importance of this aspect has been gradually understood in China. The success rate of foreign ERP projects is high, and adequate service support is an important factor. In foreign countries, support service personnel generally have production and inventory management qualification certificates from the American Association for production and inventory management (apics), such as CPIM, cfpim, and Crim. The ratio of service support fee to software Price is generally 2: 3. A group of management experts (application consultants) and several software experts (technical consultants) are usually responsible for service and support.

5. Ergonomics

Ergonomics is an important discipline of industrial engineering, also known as human engineering. It processes the physiological and psychological relationships between the environment, equipment, tools, and people in the workplace. Pay attention to this relationship when selecting software. For example, the screen format of each module is consistent, the frequently used data set is in the same screen, the screen format is concise, any front and back pages are located, and the screens of the offices running in a fixed order are also connected in sequence..

6. Software reputation and Stability

Software Vendors should have long-term business strategies to win the market through products and high-quality services that can meet technological advances and user needs. From the perspective of China's software market, some mrp ii software products no longer appeared in 1980s. Software that is more open, more functional, and more convenient to use is being released. The service life, cycle, advancement, applicability and scalability of software products should be taken into account when selecting software products. We strive to establish a long-term cooperative relationship with software vendors to adapt to the long-term development of enterprise management information systems.

7. Price issues

To treat the price, we should consider the performance, quality and content of the software, and conduct investment/benefit analysis. The implementation cycle should be considered to avoid impact on efficiency recovery due to insufficient after-sales support or long delays in secondary development. Software investment should be the sum of the loss of software costs, service support costs, and secondary development costs. In addition, daily maintenance costs should also be taken into account in the calculation payback period.

8. Select the software running environment

For an open software, there is a lot of room for hardware selection. The main indication of an open system is the adaptability of the system. It adopts industrial-standard programming languages and tools, databases, operating systems and communication interfaces. From a practical perspective, we should consider the hardware durability and reliability (the enterprise's management information system is not interrupted), easy to operate and maintain. Data processing capacity should be combined (such as the complexity of the product structure, the number of processes on the process route, the number of orders per month, and the frequency of planned changes) and response speed select the computer model grade (some software can provide computing programs for reference when determining the hardware capacity ). Numerous experiences show that reducing the computer level due to insufficient preparation is not a best practice. In application, the response speed is too slow and the decision-making on external changes will not affect the confidence of the system. In this regard, not only should we not make up for it, but there is room for response. In the selection process, the enterprise's requirements should be clarified based on the first selection of software and then the order of hardware, to avoid the hardware constraints on the selection problem.

9. Protection of original enterprise resources

The resources mentioned here mainly refer to the data and original hardware that the enterprise has run on the original system. Whether it is necessary to protect and how to protect the system should first be protected in line with the long-term needs of the new system. If the original data is not standardized, does not meet the requirements of the ERP principles, or the integration of the original system information cannot meet the requirements, the long-term interests of the enterprise can only be retried, and do not lag behind.

2. Meeting enterprise needs is an important criterion for evaluating successful ERP implementation

Enterprise project requirements for ERP are an important criterion for measuring the success of the project. ERP implementation in enterprises is mostly a kind of need for the enterprise's own development. At this stage, most enterprises have conflicts in management, such: frequent changes in production plans, serious inventory backlog, untimely delivery of market information, and frequent changes in product design have severely restricted the development of enterprises.

Before implementing an ERP project, enterprises must clarify the requirements of the ERP project, propose the main purpose, characteristics, implementation scope and strategies of the project, and refine the archive. The ERP vendors selected by the enterprise should design the enterprise's system scope and system architecture according to the actual situation and project requirements before implementing the project, and puts forward suggestions for business process Restructuring Based on the actual situation. In the process of project implementation, software companies should also analyze and optimize the business processes of each department of the enterprise according to the needs of the enterprise, therefore, the enterprise's project requirements have been well developed and are actually the foundation for successful project implementation. At the same time, after the project implementation, the Software acceptance should also be based on the enterprise's project requirements, only when the functions of the software completely resolve the conflicts between the enterprise and meet the development needs of the enterprise can the project be said to be successful.

Requirement analysis refers to discussing the specific requirements of the system with the customer after fully understanding the customer's situation, including the customer's production, finance, and management processes, based on the deficiencies in the current system and the information currently required, a set of user requirements for the system is developed. Demand analysis is based entirely on the needs and actual conditions of the enterprise. Therefore, it provides a basic guarantee for the enterprise to reasonably choose the system. Demand analysis is performed from top to bottom, from big to small, from coarse to refined. Requirement Analysis is a crucial step in the entire implementation process. The success or failure of the entire system is determined by the rational customer requirements.

1. Requirement Analysis is a guide to System Selection

Because different systems have different development priorities, the applicable industries are also different. For the manufacturing industry, the structure and production method of the material list of different enterprises are quite different. During the main production plan and material demand plan, the software expands the structure of the material list, there are many differences in the calculation method, and the resulting procurement plan, sales plan, and estimated production time will naturally vary by system. It is hard to imagine the results of the cost accounting system adopted by an enterprise in the pharmaceutical manufacturing industry. Because of its unique nature, the pharmaceutical industry must strictly track the content and production time of various ingredients in its products. If the accounting system of the assembly-type product manufacturing industry is adopted, the above two factors cannot be accurately tracked, the functions of the entire system are also greatly discounted. Both users and consultants do not want to see that a system that has invested a lot of energy, financial resources, and time is completely different from the functions they originally imagined. Therefore, choosing the system type correctly becomes the decisive factor for the system to make full use of the system.

2. Requirement Analysis: to identify whether a system is suitable for enterprises to establish reference standards

The choice of large IT systems is a complex task. In fact, for all systems, some superficial needs are easily met. The more advanced requirement with unique enterprise characteristics is the most important consideration for users when selecting a system. If you do not perform in-depth analysis on your own needs, you will often find that the specific business and management requirements are not met after a period of system implementation, but the system has been installed, it has consumed a lot of human and material resources. A waste of funds, resources, and time is not uncommon because the user does not conduct in-depth demand analysis or a wrong system choice due to a shift mentality. The role of an experienced it consulting consultant is to guide the customer to make the right requirements, so as to help the customer select the appropriate system based on these needs.

Before implementing the project, enterprises will conduct qualitative and quantitative analysis on the benefits brought by the project to the enterprise. The enterprise's leaders and experts will evaluate whether the ERP project is successful, it mainly depends on whether the enterprise's indicators have achieved the expected results. These indicators also reflect the direct benefits of system operation.

The more important feature of ERP implementation is that it brings management reform to enterprises. The benefits obtained by enterprises cannot be simply explained by the enterprise's indicators, some potential benefits can be realized only by the staff who use the system.