ERP Failure Case: business process re-engineering Error

ERP Failure Case: business process re-engineering Error

[] [Lin Jian] [Saidi network]

Process as formal management system solidified

After reaching a consensus with relevant departments, the new business process should be issued to the business department as an official document of the enterprise, and the Process Execution Supervision Department should be designated, along with a supporting Reward and Punishment System, ensure the timeliness and accuracy of business documents, and the business can follow normal steps.

Generally, it is suitable for the Process Execution Supervision Department to be set up in the IT department because it department is easy to obtain system execution status data, and the reward and punishment system execution department can be placed in the Human Resources Department, qualified enterprises can be linked to performance appraisal indicators. After a period of adaptive operation, everyone will develop good business habits.

In this article, Company A's Deputy Director is transferred away, causing a system paralysis. First, no consensus was reached with the business department during business process formulation; second, process execution relies only on personal influence, rather than on good business habits; third, there is no relevant Process Execution Supervision Department. In this case, changes to core personnel are most likely to cause system instability.

　Select a suitable system

Business process reengineering is not an advanced process, but a gradual optimization process. During business process planning, the current management status and employee quality of the enterprise should be fully considered. For example, the responsibilities of the business department should be re-planned before the system, the establishment of mutual supervision and control mechanisms between departments will cause some business departments to lose some local benefits due to management vulnerabilities, or some authority scope.

In private enterprises, such business process transformation is easy to implement, while in state-owned enterprises, such business process transformation is subject to great risks.

Another example is as follows, QC inspects the goods according to the procurement plan, the warehouse enters the warehouse according to the quality control result, and the finance department settles the account according to the warehouse receiving ticket.

The above procurement business process seems reasonable and there is no problem, but few enterprises can do this in the actual implementation process.

First, the accuracy of plan data calculation requires a high level of management for the enterprise. Even if the plan data is accurate, the purchase plan must be subject to the quality constraints of procurement batch and supply, also, such as the establishment of test standards and the level of warehouse management, the pattern of redoing the process based on advanced management ideas such as company A will inevitably not work, A feasible business process system should be developed based on the actual situation of the enterprise and be optimized and improved gradually during the implementation process.

　　

Business process reengineering is not an advanced process, but a gradual optimization process.

Establishing a clear and rational business process system is a key factor for successful implementation of ERP projects. As a management tool, ERP provides decision-making support for data and monitors business processes, A clear and reasonable business process system can ensure that the ERP system provides accurate and effective data instead of junk data, while ensuring that the business system is more standardized and efficiency is improved.

Wang Jian's company (hereinafter referred to as Company A) failed to complete the ERP project mainly because it did not do well in the following three aspects.

　Before implementation, clarify the responsibilities of each division

Prior to Business Process Planning, consultants, project teams, top executives with decision-making powers of the company and relevant departments should jointly analyze the gaps between existing business models and features and standard business processes, work out a future business process system based on the current situation, and clarify the business model and operation steps of relevant departments, such as the business documents required for sales, procurement, and warehouse in the system.

These business documents are maintained by the business departments, and how to handle exceptions, such as materials and BOM) strict maintenance and review procedures should be formulated for customers and suppliers, such as inaccurate public data, this has a great impact on the accuracy of future warehouse data, the normal operation of the planning system, and the generation of statistical analysis reports.

After determining the Department and job responsibilities, the business flow chart and process description should be formed, distributed to the relevant departments and signed for confirmation. In this way, the system test run started like Company A will not appear, from time to time, there may be complaints from leaders and operators of various departments.

However, when planning the business process, you should put the appropriate work in the appropriate department based on the actual situation of the enterprise. For example, material and BOM maintenance are usually conducted in the technical department, however, some purchased raw materials usually do not have enterprise code. In such cases, it is more appropriate to set encoding rules for specific business departments.

I have been in contact with a manufacturing enterprise for more than three years. Other modules were used very well, that is, the planning system or manual operation. At that time, their BOM was maintained by the technology department, the material consumption quota, finished product rate, loss rate, and work-time quota set by the technical department are all theoretical values. There is a big gap with the actual production workshop. The Planning Department only needs to manually build another system for calculation, this greatly reduces the use of ERP.

Later, the Planning Department formulated the BOM's material consumption quota, finished product rate, loss rate, and work-hour quota. The technical department only reviewed the BOM's material code and drawings. After this process was changed, it is expected that the ERP system will replace manual planning operations in two months.