ERP Software Solution

The 10 Golden Rules Critical To The Success of Your ERP Software Solution Implementation!

Choosing an ERP software is a major business decision. Take a tour and see the evolution of enterprise software. Then read the 10 Golden Rules by scrolling downwards.

1. ERP Software and Workflow

Alpha ERP is an integrated package of business software system that processes transactions on a single software platform and a single database. The latest web based ERP is designed with systematic workflow. Alpha ERP software comprises of CRM, HRM, FRM, MRP and SCM and other supporting modules.

2. What does an ERP System do?

• It integrates information across all departments
• It facilitates the flow of information among the different functions and processes of an enterprise
  » functions: manufacturing, finance, human resource
  » processes: order entry
• Tracks a wide range of events in the enterprise in an integrated fashion
• Plans future activities based on these events
• Supports analysis of trends in these events, to improve the performance of the enterprise.
• It allows users to input data in one location, that can be processed with other data and accessed as informational reports in a real-time environment
• ERP allows users to share common data and practices across the entire enterprise
• It allows users to re-engineer the majority of its processes

3. Drivers of an ERP Investment

Business processes:

• Complex, ineffective business processes
• Business processes are not integrated
• Need for a set of tools for planning and monitoring the various functions and processes in a company
• Opportunity to re-engineer business processes

Strategy:

• Globalization
• New products, new services
• Need to be more responsive to customers
• Cost structures too high
• Poor quality or visibility of information
• Foundation for e-business

Competition:

• Competitors have an ERP System

4. Evolution of Enterprise Software
	Before 1980: The applications typically come from multiple vendors and run on multiple platforms Companies are managed along functional lines Task oriented applications In 1980s: Functional applications Some integration

In 1990s:

• Cross-functional applications

• Integrated applications

• Versions for the client-server architecture

Now and beyond:

• 100% Web based with workflow built-in

5. Evolution of ERP Software

• ERP has its origin in the manufacturing industry

1960s - Inventory Control

1970s - MRP

1980s - MRP II

1990s - ERP

2000 - Extended ERP

Inventory Control:

• Most common approach:
  » If the inventory drops below a minimum quantity, it is replenished with the Economic Order Quantity (EOQ)

• Disadvantages
  » Very large inventory investment
  » Unreliable with a highly varying demand rate
  » Large investment in safety stock
  » Requires forecasts for all items
  » Based on past demand data
  » Material obsolescence is more likely

MRP:

• Material Requirements Planning
  » Calculates component requirements based on the Master Production Schedule (MPS), Bill of Material (BOM) and inventory data
  » Determines batch sizes for purchasing and manufacturing, and sends out purchasing / manufacturing orders for them at the appropriate times

Closed-Loop MRP:

• Considers material and capacity requirements

• Prior to releasing production orders to shopfloor, it adds the planned workload to existing workload, and compares it with the available capacity

• Assesses whether work should be rescheduled in order to smooth out any peaks in capacity utilization (CRP)

MRP II:

• Manufacturing resource planning
  » Closes the loop with sales, financial and operations planning
  » Includes the allocation of production equipment and labor
  » Can manage changes in the production plan
  » Includes JIT capabilities

ERP:

• Enterprise resource planning
  » ERP software go beyond the barrier of manufacturing organizations
  » Data are generated as a result of diverse transactions and integrated to be used by multiple users,
  multiple purposes and at multiple places

6. ERP Software Components:

• Financial

• Human Resources

• Sales and Distribution

• Manufacturing

• Materials Management

• Logistics

• Reporting

The 10 Golden Rules Of ERP Software

1. Relationships matter: The most important ERP solutions help you improve your relationships with customers, suppliers, and employees. Go for web based ERP which connects your Customers, Suppliers and Employees.

2. Size matters: Big companies like Microsoft, Intel, Polo and Sony are winners. Small companies in specific niches can be, too. But being in-between is hard. Large companies pumps in resources unless and until they succeed. Small companies mostly lack vision and resources. Mostly they break if project is extended beyond 6 months because of resource shortages.

3. Velocity matters: Getting a quick solution is more important than finding the perfect solution. The key is to get a solution that works. First implement solution, make it workable as it is and then only customize if necessary is a way to go.

4. Integration matters: The ideal ERP software solution works for your whole business and not just one department. That means always go for web based ERPs as your ideal e-Business solutions instead of parts & pieces here & there.

5. Technology matters: Existing systems matter, but don't let them dictate your future. Investment in large number of client PCs are very high in any organization. So buy solution that allows you to work on your existing Hardware Infrastructure. A 100% web based that has workflow built-in is desired.

6. Partners matter: When choosing an ERP software solution, you want a partner that you can trust to stick around. Select your System Integrator or ERP Consultant with great care. Your ERP Projects success greatly depends on this people.

7. Uptime matters: No one cares how good your system would have been if it had been working. So start working on whatever you have. Later on keep on adding new things to it. Train and re-train people for change. It is way of life....

8. Security matters: You must make sure that private information is kept private.

9. Flexibility matters: Listen carefully to your customers and suppliers so that you can be prepared for the changes that will come. Select an ERP solution that can be customized very fast without writing programs or coding.

10. Bottom line matters: While retail B2C (Business to Consumer) business increases revenue, B2B (Business to Business) reduces cost, B2E (Business to Employees) business increases productivity. Go for the maximum gain or the greatest reduction of pain or greatest productivity & efficiency.

 ERP Software