Prepared and presented by,

N. Ganesha Pandian,

Assistant professor,

Madurai School of management.

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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