Implementing an ERP System

Implementation is the activation of your ERP system across one or all elements in your manufacturing process. Individual modules within an ERP system, such as Sales Management, Materials Management, Production Management, etc., represent the elements.

Implementation Objectives:

• Bringing the ERP System usage into your daily operation
• Realizing Return-on-Investment of your purchase
• Standardizing "key" processes
• Determining a method for transferring data from existing systems, if necessary
• Improve manufacturing efficiencies by identifying chokepoints & bottlenecks
• Recommending personalized executive management reports
  

A typical implementation includes the following tasks:

• Formation of a cross-functional team which oversees the implementation plan
• Data gathering
• Exception definition (identification of areas in which ERP system does not meet needs)
• Development and management of the implementation plan, including the training schedule
• The pilot/prototyping program

Example of an implementation plan:
The following is an example of some of the elements covered in the implementation plan. While only some of the sub-elements are shown, these will give you an idea of the contents of an implementation plan...

• General Ledger
  • Analyze current G/L practices
  • Analyze current G/L practices
  • Review how ERP system updates G/L
  • Determine when to start interface from G/L to inventory
  • Identify monthly/quarterly/yearly procedures
• Inventory
  • Determine how to calculate costs for manufactured & purchased parts
  • Train on entering parts and bills of material
  • Perform physical count
• Quoting
  • Review current quoting practices and standardize
  • Set up quote templates
• Sales Orders
  • Train on entering sales orders
  • Link sales orders to jobs
• Shipping/Receiving
  • Review current shipping/receiving procedures
  • Packaging codes
  • Train on receiving purchase orders
• Accounts Receivable
  • Train on entering payments and credit memos
  • Review impact on G/L
• Purchasing
  • Review current purchasing practices and standardize
  • Train on entering purchase orders
• Accounts Payable
  • Train on entering payments, credit memos and misc. charges
  • Review impact on G/L
• Job Management
  • Assess existing routings and train on entering routings
  • Determine what to do with existing WIP
  • Train on entering jobs/linking to sales orders
• Scheduling
  • Review scheduling priority codes
  • Discuss use of forward vs. backward scheduling
• Auditing
  • Perform ongoing audits of ERP system information
  • Develop audit reports
  • Define procedures to facilitate in-house auditing

An MSS PMP will generate an implementation schedule using project management software detailing all tasks to be completed along with resource allocations, costs, timetables and relationships with other tasks.

Project meetings are held with the cross-functional team to review the status of each element of the implementation plan and assign corrective actions, if necessary. Project meetings are chaired by MSS. A weekly Project Report and the updated Implementation Project Plan are used as a meeting focus. All Project documents are stored on a dedicated, secured web site, allowing access to all Team members.

MSS specializes in ERP software implementations including, but not limited to...

• Epicor Software Corporation - Vantage
• Epicor Software Corporation - Vista
• DBA Software - DBA Classic
• DBA Software - Ezijobz

Some common mistakes companies make are:

• Appointing a Project Manager with little or no experience with project management tasks
• Failing to monitor and modify the project implementation plan
• Holding infrequent and/or irregular project implementation meetings
• Not developing a comprehensive project implementation plan or identifying task dependencies
  

What's next: Training your employees to use your ERP System.

Manufacturing Systems Services
PO Box 251
Medina, OH 44258-0251
1-800-875-4654 · 330-725-0043 · Fax 330-725-0080