ERP process reengineering Common Errors

Process Reengineering is a key link in the ERP project. The success or failure of this link is directly related to the smooth implementation of the ERP project. However, in actual projects, the most likely cause of problems lies in this link. How should enterprises grasp the process reorganization? The author summarizes four common problems and solutions of ERP process reengineering and shares them with readers.

Problem 1: The top-level "heart" cannot reach "line"

Although some Enterprise Managers realize that their business processes are slow and cumbersome, which has seriously affected their production efficiency, they cannot effectively reform their business processes due to lack of experience, or, when the business process changes, it simply "merges similar items" and changes without changing the changes. It does not realize value-added, innovation and breakthroughs in the original process, and does not bring substantial improvements to enterprise management. Although there is a "heart" of Process Reengineering, "line" does not come.

The goal of business process reengineering is to promote enterprise management reform, improve production efficiency, and increase enterprise competitiveness through re-design and reconstruction of business processes. For re-design and restructuring of business processes, the top leaders of enterprises must be pioneers, promoters and leaders of process restructuring. Others cannot take this responsibility. The strong belief and persistent enthusiasm of the top leaders are the source of motivation for process re-engineering, and the "powerful sword" for all obstacles in process re-engineering. during the restructuring process, only when leaders believe in themselves and are keen on reengineering processes can they send information to employees in a timely and accurate manner so that the re-engineering process can be successful.

In the process of business process reengineering, only the leaders actively derive and are keen on Process Reengineering can promptly and accurately convey their advanced management ideas to employees, infect employees, and make the process reengineering successful. Let employees deeply feel the belief of the top leaders in process restructuring, so that they will abandon their original prejudice and actively participate in the wave of process restructuring.

Question 2: employees' enthusiasm for re-engineering processes

In the process of Business Process restructuring, employees may worry that they will be left out or even eliminated in the new process system. Therefore, they may not cooperate or even resist to varying degrees. Although process reengineering is a top-down process, employees are only executors, it is often only the frontline employees who have the most say in process restructuring. Therefore, it is a difficult problem for enterprises and ERP implementation consultants to consider how to mobilize the enthusiasm of frontline employees from passive executors to active participation. Only with their participation will the effect of Process Reengineering be twice the result with half the effort.

To successfully reorganize the process and improve the effect of the process, we can't ignore the strength of employees, especially front-line employees. We should use systems, human feelings, and other means to mobilize every department and employee in the enterprise and change their standard concept. The identification and participation of employees will make the entire enterprise's business process more efficient in the process of design, transformation and implementation, and achieve better results:

① Adopt the Reward and Punishment System

Reward some employees who make better suggestions, such as material rewards, training opportunities, and upgrade opportunities. For example, Haier Group's practices serve as a model of material and spiritual rewards. For employees who propose and accept process reform suggestions, in addition to material rewards, they also name the process by employee name, such as "XX production line" and "XX process ", if their names are always printed in the history of enterprise development, and they feel extremely proud, they will rush to propose improved recommendations.

② Actively listen to the voice of frontline employees

During the implementation of ERP projects, department managers often have a strange sense of superiority, and feel that they are better than their employees and are ashamed to ask. If they find that they are inferior to them in some aspects, they will not be convinced. On the other hand, employees are afraid that they will not be accepted, be laughed at, and have no face. As a result, leaders did not ask questions, employees did not take the initiative to say that the two sides had nothing to do, and shared peace. The final victim is the enterprise, which goes through a massive process restructuring and finally returns to the end without success.

Question 3: business departments are isolated from external information departments and lead the restructuring process

Many enterprises think that as long as computer-related things are taken care of by the Information Department, they will think that process reengineering is electronic process, it is a big mistake to let Technical Employees in the Information Department act as leaders and executors of process restructuring.

From successful cases, successful business process reengineering is performed by the business department rather than the Information Department. Although the Information Department is familiar with information technology, it lacks actual business experience, or although it understands some management theories, it has no practical operation experience, it is difficult to apply the theory to actual management. Business Process restructuring led by the Information Department is often too idealistic and lacks practical operability. Therefore, the Information Department can only be a participant in process restructuring, rather than a leader in process restructuring.

In addition, integration with the ERP system is also a factor to be considered during process restructuring. The ERP system can effectively combine the three major flows of Enterprises (logistics, capital flow, and cash flow. The ERP system can not only greatly improve the efficiency of the original single system, but also consolidate the effect of process reorganization and solidify the written process reorganization file into the actual operation. Quick enterprise information processing, comprehensive information sharing, and real-time transmission and transmission.

Generally, mature ERP providers provide a set of standard processes for enterprise reference. On this basis, enterprises can sort out all their jobs. If the two are found to be inconsistent, you should make a comparative analysis to see which is more in line with the actual needs of the enterprise. If necessary, consult the consultant, which errors may occur. Generally, it is recommended that the standard process be used, unless the enterprise has a very good reason to indicate that the current process is more suitable for the enterprise.

Problem 4: The process is reorganized in the fur re-engineering process without changing the changes

Some enterprises reorganize their processes and find that the process needs to be optimized in rare cases. Is their process so complete? Actually not.

If you need to open a ticket and review the issue before receiving materials from the warehouse, this process is the simplest and not enough. However, some people will think that we are in urgent production and it is too late to open a ticket first, after receiving the materials, make up the order to meet the actual situation of the company. Some even think that it is difficult to get such materials. Since the bad processes of enterprises have been deeply rooted in the hearts of the people, they will think that only this process is the most suitable and optimal for enterprises. Instead, the original standard process is regarded as an "alien" and does not work. As a result, the process is reorganized on the surface and cannot touch the process that really needs to be recreated.

Enterprises can adopt the following solutions:

① The business of an enterprise can be classified into primary and secondary businesses, and the process of an enterprise can also be classified into primary and secondary processes. Some processes often occur every day or even every hour, such as the sales order issuing process, production planning process, and production picking process. The more frequent the processes, the more common the employees think, it is easier to ignore and make mistakes. At the same time, relatively frequent processes have a high probability of errors, which may cause great losses to enterprises. When reorganizing business processes, consider the processes that occur frequently and have a greater impact on the Enterprise;

② For those processes that do not happen frequently or have little impact on the Enterprise, they can be put aside temporarily, such as the office supplies procurement process and sample process. If such processes have little impact on the Enterprise, there is no need to spend a lot of energy here, because the investment you may make on it has no corresponding return;

③ Because process reengineering is only a part of the ERP project and it is impossible to give too much time, we should pay more attention to the strategy of "getting bigger and smaller" during the implementation cycle of this tight ERP project, it is a wise choice.