Academic year 2017-2018

II year III Semester

Prepared and presented by,

N. Ganesha Pandian,
Assistant professor,
Madurai School of management.
1
A successfully implementation ERP system
will not automatically produce results.

 As technology advances, new software with

more features and capacities will emerge.

 This requires continuous improvements,

continuous learning and an ongoing
implementation.
 Most of the companies treat ERP
implementation as projects, with the
assumption that someday the projects will
but the ERP system cannot end with the
implementation.
 Once the implementation phase ends and
staff have started using the ERP system, the
real benefits of the ERP will be soon.
 Employee Relocation and Re-Training

 Continuous Training
Break-Down Maintenance:
This is a reactive approach, i.e., dealing with
break-downs or problems when they occur.

Preventive Maintenance:
This is a proactive approach, i.e., reducing break-
downs through a programme of lubrication,
adjustment, cleaning, inspection, and
replacement of worn parts.
 Time-Based: Preventive maintenance work is due at
specific intervals (e.g., in every sixth month, part need to
be lubricated).
 Performance-Based: Preventive maintenance work is due
when a specific performance level has been reached (e.g.,
an aircraft part need to be replaced after every 50,000km
of flying).
 Condition-Based: Preventive maintenance work is due
when a condition is outside of a specific value range (e.g.,
cooling of a part is needed when temperature reaches
85°C).
 Negotiate Lower Software License Fees:
 Limit Software Customization during ERP System
Implementation:
 Explore Third-Party Support and Maintenance
Options:
 Negotiate Lower Ongoing Professional Service
Rates:
 Quantity your Total Direct and Indirect
 Maintenance and Support Costs:
Organizational Impact
 Enterprise Resource Planning (ERP) is one of the
most popular' software technologies for 'supporting
operational organization, it emphasizes
business transformation which will lead to
process change in its effort to maximize the company's
benefit.
 With the fast developing of industries and the need for
managing procedures and resources, it has been every
important to have a tool which can help one to coordinate
several activities, and the best one is ERP
 Management of product variety is not only a
production issue, but a challenge for sales as well.

 Through support of an ERP system, firms can

configure products efficiently and produce greater
variety efficiently.

 A majority of the firms expect their new ERP-based

systems should enable process improvements.
Petroleum, Oil & Gas Companies

These solutions enable the following key activities:

 Field Development

 Liquid and Gas Production

 Oil Field Service and Repair Operations

 Refinery Operations

 Lubes Manufacturing Operations

There are some key challenges that are faced by the
automotive industry, as
 High maintenance cost of production facilities
 Vendor management
 Inventory management
 Issues related to labour and land
 Maintaining efficiency in global product delivery
 Reduction in environmental impact of materials used
etc.
 Stream lined business processes and IT structures
that are less complex
 IT structures that are flexible and allow quick
adjustments in the business processes of supporting
operation
 Easy integration of new functions and processes
without harm to either the underlying technology or
previous investments
 Personalized data, tools, and solutions that
employees can access anywhere at any time.
Success Factors:

 Project planning

 Align the Organization on the true

destination.

 Architectural Design

 Transition project roles to a way of life.

 Data Requirements
 Applying planning and program management
practices throughout the program life cycle
 Achieve balanced people, process and
technology changes across all areas.
 ERP must be driven by a business case
 Active executive direction
 Focus on capabilities and benefits, not just going
live
 Make ERP related decisions quickly
 Put the very best people on the
implementation team
 Phased Approach
 Data conversion
 Organization Commitments
 Create a partnership between your software
vendor and your stakeholders
 Sell, sell and continuous to sell the ERP to
your stakeholders
 Build and leverage process expertise

 Adequately resources your project

 Define metrics and manage them

 Communicate and manage expectations at

go-live

 Extend capabilities beyond the ERP

foundation
 Ensure the project has sufficient budget

 Encourage functional ownership of the project

 Develop dependency-driven project schedules

that can be tracked and managed to provide
early warning and help avoid crisis.

 Implement pre-project readiness assessment and

overall project planning
 Implement aggressive project management
processes
 Create a project organization structure to
provide planning and quick response for
decision-making and issues management
 Make the best use of the external consultants
and experts.
 Implementation Review
 ERP implementation is, at its core, a people project

 Employee resistance

 Lack of top management commitment

 Inadequate training and educate

 Inadequate requirements definition

 Inadequate resources

 A poor fit between the software and users procedures

 Unrealistic expectations of the benefits and the ROI

 Poor ERP package selection
 Extensive customization
 Change Management
 Failure of accommodating evaluation of business
processes
 User acceptance
 Going Live is not the end of the ERP journey
 Companies should anticipate a temporary dip in
performance after going live