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Theory Q Mihir ERP
Theory Q Mihir ERP
Theory Q Mihir ERP
Problems with ERP systems are mainly due to inadequate investment in ongoing
training for involved personnel, including those implementing and testing changes,
as well as a lack of corporate policy protecting the integrity of the data in the ERP
systems and how it is used.
Disadvantages
ERP systems can be very expensive leading to a new category of "ERP light"
solutions
ERPs are often seen as too rigid and too difficult to adapt to the specific workflow
and business process of some companies—this is cited as one of the main causes of
their failure.
Many of the integrated links need high accuracy in other applications to work
effectively. A company can achieve minimum standards, then over time "dirty
data" will reduce the reliability of some applications.
Once a system is established, switching costs are very high for any one of the
partners (reducing flexibility and strategic control at the corporate level).
Resistance in sharing
sensitive internal
information between
departments can reduce
the effectiveness of the
software.
Some large
organizations may have
multiple departments
with separate,
independent resources,
missions, chains-of-
command, etc, and
consolidation into a
single enterprise may
yield limited benefits.
The system may be too
complex measured
against the actual needs
of the customer.
There are twelve major reasons for why companies get bogged down or fail
in implementing ERP.
Another common mistake is made when a company leaves out the self-
examination of business processes and uses ERP to cover-up weaknesses. It
is easier to buy software than to perform the more difficult task of
identifying weaknesses and opportunities for improvement.
(11) Poor Communications
One of the causes of ERP implementation failure is poor project
communications, beginning with a failure to announce the reason for the up
and coming effort, and continuing to advise the organization of the progress
and importance of the ERP implementation to the company. Poor
communications prevent different parts of the organization from assessing
how they will be impacted by changes in processes, policies, and
procedures. Communications are a vital part of managing change in a
corporate environment.
Ease of use – The system of ERP is very user friendly. With the correct
amount of training, it becomes easy for the employees to use the system.
Best business practices – The ERP system helps companies to do away
with the erroneous ways of carrying out the different business functions and
introduces business best practices. This further helps to provide better
control and introduces standardized ways to execute business processes.
Ready-made elucidation for most of the problems – Most of the problems
get resolved as the vendors who develop ERP software packages, take the
best ideas from all their customers and incorporate them into their products.
Only customization required – ERP Systems are already developed to suit
the general businesses. But as every company has a slightly different way of
operating, only minor changes may be needed to customize the system to
suit the company’s particular business requirements.
Information entered only once into the system – As all the departments
and the functions in the organization are integrated and linked to one single
database, data needs to be entered only once into the system. It can then, be
accessed by different departments according to their needs. For example,
before taking an order from a customer, the sales representative can have
access to information regarding availability of inventory, cr rating of the
customer, etc.
Easy enterprise wide information sharing – Once the information is
entered into the single database, everyone in the organization has access to
the information and sees the same computer screen.
Reduction in time required to complete tasks – As the different parts of
the organization are connected with each other, people have faster access to
information and require less time to do their tasks. This helps to improve the
time and resources for decision-making.
Customer satisfaction – In the paper-based system, the order moved from
basket to basket around the organization, and often caused delays, errors in
processing due to repeated entries by the different department or got lost.
With the ERP system, the order process moves quickly through the
organization. This helps to get the orders to the customers faster and there is
no in-basket time waiting time involved.
Q2) bpr
- IT DOESN'T WORK,
- IT'S BROKE,
- FORGET IT. START OVER.
Q3) sap r3
Ppt
Q4) kaizen
WHAT IS KAIZEN?
1. MAINTENANCE, AND
2. IMPROVEMENT.
THE OBJECTIVE OF THE MAINTENANCE FUNCTION IS TO
MAINTAIN CURRENT TECHNOLOGICAL, MANAGERIAL, AND
OPERATING STANDARDS. THE IMPROVEMENT FUNCTION IS
AIMED AT IMPROVING CURRENT STANDARDS.
UNDER THE MAINTENANCE FUNCTION, THE MANAGEMENT
MUST FIRST ESTABLISH POLICIES, RULES, DIRECTIVES AND
STANDARD OPERATING PROCEDURES (SOPS) AND THEN WORK
TOWARDS ENSURING THAT EVERYBODY FOLLOWS SOP. THE
LATTER IS ACHIEVED THROUGH A COMBINATION OF DISCIPLINE
AND HUMAN RESOURCE DEVELOPMENT MEASURES.
UNDER THE IMPROVEMENT FUNCTION, MANAGEMENT WORKS
CONTINUOUSLY TOWARDS REVISING THE CURRENT
STANDARDS, ONCE THEY HAVE BEEN MASTERED, AND
ESTABLISHING HIGHER ONES. IMPROVEMENT CAN BE BROKEN
DOWN BETWEEN INNOVATION AND KAIZEN. INNOVATION
INVOLVES A DRASTIC IMPROVEMENT IN THE EXISTING PROCESS
AND REQUIRES LARGE INVESTMENTS. KAIZEN SIGNIFIES SMALL
IMPROVEMENTS AS A RESULT OF COORDINATED CONTINUOUS
EFFORTS BY ALL EMPLOYEES.
EMPLOYEE EMPOWERMENT: THE SUGGESTION SYSTEM
THE SUGGESTION SYSTEM IS AN INTEGRAL PART OF AN
ESTABLISHED MANAGEMENT SYSTEM THAT AIMS AT
INVOLVING EMPLOYEES IN KAIZEN. THE NUMBER OF WORKER'S
SUGGESTIONS IS REGARDED AS AN IMPORTANT CRITERIA IN
REVIEWING THE PERFORMANCE OF THE WORKER'S
SUPERVISOR AND THE MANAGER OF THE SUPERVISOR.
THE JAPANESE MANAGEMENT ENCOURAGES EMPLOYEES TO
GENERATE A GREAT NUMBER OF SUGGESTIONS AND WORKS
HARD TO CONSIDER AND IMPLEMENT THESE SUGGESTIONS,
OFTEN INCORPORATING THEM INTO THE OVERALL KAIZEN
STRATEGY. MANAGEMENT ALSO GIVES DUE RECOGNITION TO
EMPLOYEE'S EFFORTS FOR IMPROVEMENT. AN IMPORTANT
ASPECT OF THE SUGGESTION SYSTEM IS THAT EACH
SUGGESTION, ONCE IMPLEMENTED, LEADS TO AN UPGRADED
STANDARD.
QUALITY CONTROL (QC) CIRCLES CAN BE VIEWED AS A GROUP-
ORIENTED SUGGESTION SYSTEM FOR MAKING IMPROVEMENTS.
QC CIRCLE IS A SMALL GROUP THAT VOLUNTARILY PERFORMS
QUALITY-CONTROL ACTIVITIES IN THE WORKPLACE.
TOTAL QUALITY CONTROL (TQC) INVOLVES EVERYONE IN THE
ORGANIZATION AND IS AIMED AT IMPROVEMENT OF
MANAGERIAL PERFORMANCE AT ALL LEVELS.
PROCESS-ORIENTED THINKING VS. RESULT-ORIENTED
THINKING
KAIZEN CONCENTRATES AT IMPROVING THE PROCESS RATHER
THAN AT ACHIEVING CERTAIN RESULTS. SUCH MANAGERIAL
ATTITUDES AND PROCESS THINKING MAKE A MAJOR
DIFFERENCE IN HOW AN ORGANIZATION MASTERS CHANGE AND
ACHIEVES IMPROVEMENTS.
KAIZEN'S STARTING POINT:
SETTING THE RIGHT MINDSET & BUSINESS
ENVIRONMENT
Some of the companies who have implemented TQM include Ford Motor
Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor
Company.1
TQM DEFINED
TQM IS A MANAGEMENT PHILOSOPHY THAT SEEKS TO
INTEGRATE ALL ORGANIZATIONAL FUNCTIONS (MARKETING,
FINANCE, DESIGN, ENGINEERING, AND PRODUCTION, CUSTOMER
SERVICE, ETC.) TO FOCUS ON MEETING CUSTOMER NEEDS AND
ORGANIZATIONAL OBJECTIVES.
This shows that TQM must be practiced in all activities, by all personnel, in
Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.2
PRINCIPLES OF TQM
MANAGEMENT COMMITMENT
1. PLAN (DRIVE, DIRECT)
2. DO (DEPLOY, SUPPORT, PARTICIPATE)
3. CHECK (REVIEW)
4. ACT (RECOGNIZE, COMMUNICATE, REVISE)
EMPLOYEE EMPOWERMENT
1. TRAINING
2. SUGGESTION SCHEME
3. MEASUREMENT AND RECOGNITION
4. EXCELLENCE TEAMS
FACT BASED DECISION MAKING
1. SPC (STATISTICAL PROCESS CONTROL)
2. TOPS ( TEAM ORIENTED PROBLEM SOLVING)
CONTINUOUS IMPROVEMENT
1. SYSTEMATIC MEASUREMENT AND FOCUS ON CONQ
2. EXCELLENCE TEAMS
3. CROSS-FUNCTIONAL PROCESS MANAGEMENT
4. ATTAIN, MAINTAIN, IMPROVE STANDARDS
CUSTOMER FOCUS
1. SUPPLIER PARTNERSHIP
2. SERVICE RELATIONSHIP WITH INTERNAL CUSTOMERS
3. NEVER COMPROMISE QUALITY
4. CUSTOMER DRIVEN STANDARDS
The Concept of Continuous Improvement by TQM
TQM is mainly concerned with continuous improvement in all work, from high
level strategic planning and decision-making, to detailed execution of work
elements on the shop floor. It stems from the belief that mistakes can be avoided
and defects can be prevented. It leads to continuously improving results, in all
aspects of work, as a result of continuously improving capabilities, people,
processes, technology and machine capabilities.
Continuous improvement must deal not only with improving results, but more
importantly with improving capabilities to produce better results in the future. The
five major areas of focus for capability improvement are demand generation,
supply generation, technology, operations and people capability.
A central principle of TQM is that mistakes may be made by people, but most of
them are caused, or at least permitted, by faulty systems and processes. This means
that the root cause of such mistakes can be identified and eliminated, and repetition
can be prevented by changing the process.1
Management of resources for the change effort is important with TQM because
outside consultants will almost always be required. Choose consultants based on
their prior relevant experience and their commitment to adapting the process to fit
unique organizational needs. While consultants will be invaluable with initial
training of staff and TQM system design, employees (management and others)
should be actively involved in TQM implementation, perhaps after receiving
training in change management which they can then pass on to other employees. A
collaborative relationship with consultants and clear role definitions and
specification of activities must be established.
In summary, first assess preconditions and the current state of the organization to
make sure the need for change is clear and that TQM is an appropriate strategy.
Leadership styles and organizational culture must be congruent with TQM. If they
are not, this should be worked on or TQM implementation should be avoided or
delayed until favorable conditions exist.
Always keep in mind that TQM should be purpose driven. Be clear on the
organization's vision for the future and stay focused on it. TQM can be a powerful
technique for unleashing employee creativity and potential, reducing bureaucracy
and costs, and improving service to clients and the community.
Conclusion
TQM encoureges participation amongst shop floor workers and managers. There is
no single theoretical formalization of total quality, but Deming, Juran and Ishikawa
provide the core assumptions, as a "...discipline and philosophy of management
which institutionalizes planned and continuous... improvement ... and assumes that
quality is the outcome of all activities that take place within an organization; that
all functions and all employees have to participate in the improvement process;
that organizations need both quality systems and a quality culture.".
The purpose of Organization Process Definition is to develop and maintain a usable set
of telecommunications process assets that improve process performance across the
services and projects and provide a basis for cumulative, long-term benefits to the
organization. Organization process definition involves developing and maintaining
the organization's standard telecommunications process, along with related process
assets, such as descriptions of telecommunications life-cycles, process tailoring
guidelines and criteria, the organization's telecommunications process database,
and a library of telecommunications process-related documentation
The process begins with you stepping into line, and ends with you receiving your
receipt and leaving the store. You are the customer (you have the money and you
have come to buy food), and the store is the supplier.
The process steps are the activities that you and the store personnel do to complete
the transaction. In this simple example, we have described a business process.
Imagine other business processes: ordering clothes from mail order companies,
requesting new telephone service from your telephone company, developing new
products, administering the social security process, building a new home, etc.