Employee Resource Plan

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Chapter-7

ERP Implementation Lifecycle


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Different Phase of ERP implementation are-

Pre-Evaluation Screening

Package Evaluation

Project Planning Phase

Gap Analysis

Reengineering Configuration

Implementation Team Training

Testing End-User Training

Going Live

Post Implementation Phase


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Company

Management

ERP VendorsPre-Evaluation Screening

Package Evaluation

Project Planning

Gap Analysis Reengineering Configuration

Implementation Team Training Testing End-User Training

Go ahead

Going Live

Post Implementation Phase

ERP im lementation Lifec cle


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1. Pre-Evaluation Screening Pre-Evaluation Screening is the phase which starts

when company decides to go for a ERP System, the

search for perfect solution starts.

It is very time consuming process to select few where

all claims be the best, it is just superficial study of

package.

Not all packages are same each has its own

weakness and strength.

While making the analysis it is good to investigate the

origins of the different packages.

Some packages can be good in some areas while in

other sectors they may not.

Once few packages are screened detailed evaluation

process starts.


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2. Package Evaluation Package Evaluation process is one of the most imp

phase of the ERP implementation , because the

package you select will decide failure or success of

project.

There is little room for error in this as ERP packages

are so expensive once purchased can not switch to

another.

While making the analysis the imp point is nothing is

perfect , imp here is whether it is a perfect fit orgoodfit.

It is impossible to get a system which will perform

exactly as the company does business but aim is to

get least no of differences.


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Few imp points to remember while evaluating software

includes.

Flexibility & Scalability.

Complexity

User Friendliness

Technology

Quick Implementation

Amt of Customization Required

Ability to support multi site planning & control. Local support infrastructure .

Total cost i.e license , training, customization etc.


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3. Project Planning Phase

This is the phase which plans that designs the

implementation process.

In this phase details of how to go about

implementation , schedules and deadlines etc are

decided.

Roles and responsibilities are identified and assigned.

This is phase which will decide when to begin, how to

do it and when the project is supposed to be

completed and what to do in contingencies. Their is a committee for this and which is suppose to

meet periodically through out cycle to review process

and chart future course of action .


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a. Project schedule

This is the phase that designs the implementation

process. In this phase the details of how to go about the

implementation are decided.

Time schedules, deadlines, etc for the projects arearrived at & the project plan is developed.

Roles are identified & responsibilities are assigned.

The resources that will be used for implementationefforts are decided & the people who are going to be in-charge of implementation are identified.

Team members are selected & task is allocated. This phase decides when to begin the project, how to do

it & when is it suppose to be completed.

Planning is done by the committee constituted by teamleaders.


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b. Decision of the phase

This phase plans what to do in case of

contingencies, how to monitor the progress of

the implementation.

This phase also decides what controlmeasures should be installed & what

corrective measures or actions should be

taken when things get out of control.


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c. Team leader

The project planning is usually done by acommittee constituted by the team leaders ofeach implementation group.

The committee will be headed by the ERP in-charge (i.e. the CIO or COO).

The committee will meet periodically toreview the progress & chart the future course

of action.


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PROJECT PLANNING PHASE

Project schedule

Decision of phase

Team leader

DESIGN IMPLEMENTATION PROCESS

TIME SCHEDULES, DEADLINES, ETC

RESOURCES ARE NEEDED AND IMPLEMENTATION IDENTIFIED

CONTINGENCIES, MONITOR THE PROGRAM, CONTROLMEASURES , CORRECTIVE ACTIONS

PLANNING IS DONE BY TEAM LEADERS

COMMITTEE WILL BE HEADED BY INCHARGE


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4. GAP ANALYSIS

Importance of Gap Analysis Gap analysis is a phase in the ERP

implementation, where the organization tries tofind out the gaps between the companys existingbusiness practices & those supported by the ERPpackage.

This is the process through which companiescreate a complete model of where they are now &

where they want to head in the future.


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Main objective

The main objective is to design a model, which

both anticipates & covers any function gap.

It has been estimated that even the best ERPpackage meets only 80% of the companys

functional gaps.


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Different ways of finding gaps

a. One of the most affordable, but most difficult,solutions entails altering the business to fit the

ERP package.

b. Another solution is that the company can simply

agree to live without a particular function.

c. Other solutions include:

Pinning your hopes on an upgrade or updating of

software.

Identifying a third-party product that might fill the gap.

Designing a custom program.

Altering the ERP source code.


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GAP ANALYSIS

Importance Main objective Different ways of finding

FIND OUT THEGAPS BETWEENBUSINESS AND ERPPACKAGE

COMPANY CREATESA MODEL

DESIGN A MODEL

COVERS ANYFUNCTIONAL GAP

ALTERING THE BUSINESSTO FIT THE PACKAGE

UPDATING SOFTWARE

IDENTIFYING A PRODUCT

DESIGNING A PROGRAM

LIVE W/O A FUNCTION

ALTERING SOURCE CODE


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5. RE-ENGINEERING:

1. It is in this phase that the human factors are taken into account.

2. Two different connotations

3. 1st one is the controversial, involving the use of ERP to aid indownsizing efforts.

4. There have been occasions where high level executives have invokedthe reengineering slogan & purchased an ERP package with the aimof reducing number of employees.

5. While every implementation is going to involve some change in jobresponsibilities, so it is the best to treat ERP as an investment as wellas cost-cutting measure, rather than a downsizing tool.

6. Downsizing is a business practice that may have its place, but itshould not be cloaked within the glossier slogan ofreengineering.

7. The 2nd use of the word re-engineering in the ERP field refers to anERP implementation model initially designed & used.


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The BPR approach to an ERP implementationimplies two separate, but closely linked

implementations involved on an ERP site i.e. atechnical implementation & a business processimplementation.

The BPR approach emphasis the human elementof necessary changes within the organization,

which is generally more Time consuming & has received its share of

criticism for creating bloated budgets & extendedprojects.

The ERP market shifts to a mid-market focus & asall implementation are becoming more costsensitive; the BPR approach has come under somereal scrutiny.


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RE-ENGINEERING

Human factor taken into account

Downsizing effort

BPR APPROACH


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6. CONFIGURATION

IMPORTANCE OF CONFIGURATION

This is the main functional area of the ERPimplementation.

Business processes have to be understood &

mapped in such a way that the arrived solution

matches with the overall goals of the company. THE PROTOTYPE

a. A prototype- a simulation of the actual business

processes of the company- will be used.

b. The prototype allows for thorough testing of the to

be model in a controlled environment.


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c. As the ERP consultants configure & test theprototype they attempt to solve any logisticalproblems inherited in the BPR before the actual go-

live implementation. STRENGTHS & WEAKNESSES

a. Configuring a companys system revealsnot only the strengths of a companys

business process but also- & perhapsmore importantly- its weakness.

b. It is vital to the health of the company & tothe success of the ERP implementationthat those configuring the system are ableto explain what wont fit into the package &where the gaps in functionality occur.


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CONFIGURATION

Main functional area

Solution match with goals

Prototype-allows for thorough testing

Attempt to solve logistical problem

Configuring reveals strengths & weaknesses

Important for success of ERP implementation


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7. IMPLEMENTATION TEAM TRAINING

When the configuration is taking place the implementation team isbeing trained not how to use the system, but how to implement it.

This is the phase where the company trains its employees toimplement & later run the system.

The ERP vendors & the hired consultants will leave after the

implementation is over. Good in-house team For the company to be self sufficient in running the ERP system, it

should have a good in-house team that can handle the varioussituations.

Thus, it is very vital that the company recognizes the importance ofthis phase & selects those employees who have the right attitude-people who are willing to change, learn new things & are not afraidof technology- & good functional knowledge.


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8. TESTING:

This is the phase where you try to break the system. Here we reach a point where we are testing real case

scenarios.

The system is configured & now we must come up with

extreme case scenarios- system overloads, multipleusers logging on at the same time with the same

query, users entering invalid data, hackers trying to

access restricted areas & so on.

The test case must be designed specifically to find theweak links in the system & these bugs should be fixed

before going live.


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9. GOING LIVE

On the technical side, the work is almost complete-

data conversions is done, databases are up &

running, & on the functional side, the prototype is fully

configured & tested & ready to go operational. The system is officially proclaimed operational, even

though the implementation team must have been

testing it & running successfully for some time.

But once the system is live, the old system isremoved & the new system is used for doing

business.


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10. END USER TRAINING:

Success & failure

The success or failure of an ERP system depends on how theactual users use the system.

The most successful implemented ERP packages fail due to lack of

end user training. People are divided into groups

ERP system changes the job descriptions of the people, so it isimportant to identify the people who are going to use the system.The current skills of the people are identified & they are divided intogroups.

Every group is provided training on the new system.

Training sections

The training section gives the overall view of the system & how theindividual actions will be affecting the entire system.


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Every employee is also provided with the

training of the job profile which he is going to

perform.

The training section should address about thenew technologies & how people will be

successful in making the change over.

Atleast the end user training is important

because the success of an ERP systemdepends upon it & this phase is equally difficult.


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END USER TRAINING

Success or failure

Lack of training

Change job description

Groups all formed & training provided

Training gives over all view of system

Employee provided training

Address new technologies

Important & equally difficult


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POST IMPLEMENTATION (MAINTENANCE

MODE): Important factors

One important factor that should be kept in mind is that the postimplementation phase is very critical.

Once the implementation is over the vendors & the hired consultantswill go.

Necessary enhancements & upgrades There should be people within the company who have the technical

processes to make the necessary enhancements to the system as &when required.

The system must be upgraded as & when new versions ortechnologies are introduced.

Training is needed Everyone who uses these systems needs to be trained on how they

work, how they relate to the business process & how a transactionripples through the entire company whenever they press a key.

The training will never end; it is an ongoing process; new people willalways be coming in & new functionality will always be entering theorganization.

Maximum value for these input Living with ERP system will be totally different from installing them.


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POST IMPLEMENTATION

Most important & critical factor

Vendors & consultants will go

Necessary enhancements & upgrades are made

Training is needed for those who use the system

Training is an ongoing process

Maximum value for this input


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IMPLEMENTATION TEAM TRAINING

Team is being trained for implementation of system

Run the system

Vendors & consultants leave after implementation is over

Good in-house team for handling various solutions

Select employees who have:

RIGHT ATTITUDE

WILLING TO CHANGE

LEARN NEW THINGS AND NOT AFRAID OFTECHNOLOGY

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Employee Resource Plan