ERP Project Management

8 Steps to successful ERP Change Management

All implementation project managers must focus on people, processes and technology. It is the people aspect that is often the most complicated. Any enterprise software endeavor creates a wave of resistance. The difference between success and failure is determined by how you manage the change process.

There are many methods, but one useful method is the Kotter Change Management Methodology. This method was developed and documented by John Kotter, a noteable professor at the Harvard Business School. According to Mr. Kotter, the Eight Steps to a successful change are:

1. Create a Sense of Urgency
2. Pull Together the Guiding Team
3. Decide What you will do
4. Communicate for Understanding and Buy-in
5. Empower others to act
6. Produce Short-term wins
7. Don’t let up
8. Create a New Culture

His latest book, shown here uses a fable to illustrate how to manage change is a wonderful book that gives the high-level understanding of change management. Using a penguin colony in Antarctica as the setting, the author uses this analogy to any change occurring with groups of people. It is worth a read, but more importantly it is worth your project team reading and discussing together. Using the eight steps outlined above, with a cohesive understanding of how change affects teams, together you can undertake any enterprise software rollout.

Be sure to read John Kotter’s other books on Leading Change.

7 Free and Indispensible ERP Sites you can’t implement without

When entering into an ERP selection and implementation, the more you understand what you are getting into, the better. We have collected a few key sites that give a great basis for understanding and are resources we turn to now and again. We have also conscientiously stayed away from vendor references. What we show below are references to help you before you start talking with vendors.

1. CIO.com ABC An Introduction to ERP – This is an detailed article on all facets of an ERP undertaking. Looking at the cost factors, the project aspects, and the realities of ERP.

2. The ePMbook – The FREE ePMbook by Simon Wallace is a great resource for project management concepts. Broken into two sections – the Day Job and the Night Job; the Day Job is an exhastive look at project management and the Night Job is a quick guide to concepts such as Program Management. Well worth a read.

3. Software Advice – This is a very detailed synopsis of various ERP, CRM, BI, and other enterprise solutions. The site goes into detail as to what the software is, who it is targeted at, and provides contact info for each of the vendors. Get free demos, information, and price quotes.

4. Bridgefield Group ERP/Supply chain Glossary – A detailed glossary of terms for ERP and the Supply Chain.

5. ERP @ IT Toolbox – A great collection of articles and information. There are also discussions and various white papers. Just be careful of all the vendor sponsored information.

6. ERP Graveyard – You can’t keep track of the players without a scorecard. This site sizes up the acquisitions and mergers of all the ERP companies. You will be surprised at the long list of players in the Graveyard Scorecard!

7. ERPandmore.com Books – If you are going to attempt an ERP roll-out, you will want to read even more in depth than even these brief articles.

An Introduction to ERP

Here is a basic introduction to ERP. There are some good points to this article, but if you really want to know more, you should invest in some good ERP books.

An Introduction to ERP
Premal Vala

Information technology has transformed the way we live live in and the way we do business. Since last decade, I.T. has made a drastic change in our life. As compared to earlier stage, when computer was used just as a typewriter, nowadays users have become more intelligent and IT literate. Now the user knows that a PC can do many more things rather then just typing a letter in a word processing software or making balance sheets in excel. They expect more things out of their PC. During this phase of industry, every one of us must have heard the word ERP in one or the other form. It may be in title of any IT magazine or may be a point of discussion in any IT Seminar or may be in an advertisement of big IT Company. Thus in any form, we all have been through this word. In this short article, Ill try to concisely explain the basic yet important concepts relevant to ERP.

What is ERP ?

ERP is one of the most widely implemented business software systems in a wide variety of industries and organizations. ERP is the acronym of Enterprise Resource Planning. ERP is just not only a software. ERP definition refers to both; ERP software and business strategies that implement ERP systems.

ERP implementation utilizes various ERP software applications to improve the performance of organizations for

1) resource planning,

2) management control and

3) operational control.

ERP software consists of multiple software modules that integrate activities across functional departments – from production planning, parts purchasing, inventory control and product distribution to order tracking. Most ERP software systems include application modules to support common business activities like finance, accounting and human resources.

ERP Systems

ERP is much more than just a computer software. An ERP System includes ERP Software, Business Processes, Users and Hardware that run the ERP software. An ERP system is more than the sum of its parts or components. Those components interact together to achieve a common goal – streamline and improve organizations business processes. Most important factor for ERP system is the users. Successful implementation of any ERP System more depends on intelligent users who are going to use them, because any standard ERP Software would consist hundreds of input information for any particular business activity. Thus good knowledge of each entity of system to the users is most important factor in ERP Software.

History of ERP

Enterprise Resource Planning (ERP) is the evolution of Manufacturing Requirements Planning (MRP) II in 1980s, which was mainly related to Manufacturing Industry and was designed to control manufacturing process and planning the required production with efficient output. Where as MRP is the evolution of Inventory Management & Control conceived in 1960s, which was mainly designed for management of Stocks in any particular industry. ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes like production planning and scheduling of delivery. In terms of technology, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.

Benefits of ERP

ERP software attempts to integrate business processes across departments ionto a single enterprise-wide information system. The major benefits of ERP are improved coordination across functional departments and increased efficiencies of doing business. The implementations of ERP systems help to facilitate day-to-day management as well. ERP software systems are originally and ambitiously designed to support resource planning portion of strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and lack of adequate integration of ERP with Decision Support Systems (DSS).

Famous ERP Software

No one from IT industry will be unknown from the word SAP. SAP is the most successful ERP Software. To name more here are some examples:

PeopleSoft www.peoplesoft.com

SysPro www.syspro.com

ORION Enterprise www.3i-infotech.com

Matrix www.matrixinfosystems.com

(In the past, we have implemented Matrix ERP solution for one of our clients)

ERP Failures

I couldnt conclude my brief guide to ERP without mentioning ERP failures. The failures of Crore rupees ERP projects are reported once in a while even after many years of ERP implementation.

There are four components of an ERP System –

1) ERP software,

2) Business Processes that ERP software supports,

3) Users of ERP systems, and

4) Hardware and Operating Systems that run ERP applications.

The failures in one or more of those four components can cause the failure of an ERP project. Discussions on each of the four topics will require new article, so I may come up with same in my next article.

Author:

By Premal Vala

Premal Vala is working as a Project Leader for Semaphore Infotech Pvt. Ltd, a renowned IT company based at Ahmedabad, India. You can contact on email:</span> pr****@se****************.com.

The Importance of Assigning Tasks and Resources in Project Management

One of the key success factors in an ERP, CRM, or other implementation is that there is good project management. This article touches on some of the features of managing the project: managing Tasks and managing Resources.

The Importance of Assigning Tasks and Resources in Project Management
John Reynolds

There are two major ways to estimate the lengths (i.e., durations) of tasks. The simplest way is to estimate the elapsed time of a task.

If someone says it will take him a week to do a particular task, he is probably offering an elapsed-time estimate. They generally mean that it will take him one work week to get a task done, not that it will take them 40 hours. When estimating elapsed time, people generally account for not working on the project tasks full-time, and for working on other, higher-priority tasks first.

In most projects, however, lengths should be estimated based on the amount of work, not the amount of time. That way, adding resources will shorten a task, and using resources only part-time will lengthen a task. Tasks that fluctuate like this depending on the resources assigned are called resource-constrained tasks.

There are several ways to estimate the resource time for a task. One is to let the project manager calculate the estimates based on an employees performance on similar tasks. Another is to let the employees performing the tasks calculate their estimates, generally based on how they performed on similar tasks. A third way to estimate is to use standard metrics for generic tasks.

Although many project managers like to follow the standards established by these generic metrics, their plans are generally more accurate when they and their employees do their own estimating. It usually takes three to five projects to become proficient, but the eventual accuracy is worth the delay. Sometimes tasks will not be resource-constrained and can be estimated based on the elapsed times. Examples would be training classes or project meetings. Even though two or more people may attend a class or meeting, the length of the task does not shorten. These types of tasks are called time-constrained.

Good project management requires excellent communication forms and documentation. Get professional project manager templates to help you with your next ERP, CRM, or other technology project.

If estimates are being provided from standard metrics or project managers, them resources (i.e., employees) should be assigned after task lengths are determined. If estimates are coming from the employees performing the tasks, obviously these steps will be reversed. Regardless of the order of these two steps, one or more employees should be picked for each task that is resource-constrained.

Employees assigned to multiple tasks are often scheduled for too much work while there are simultaneous tasks to complete and not enough work when there are no task assignments. To maintain a consistent workload, resources need to be ‘leveled.’ There are only two main ways to level resource allocations: by adjusting the task schedule or adjusting the resource assignments. Project management packages generally adjust the schedule to increase the amount of time it takes to finish the project.

Remember these basic principles for assigning task lengths and resources to improve your management proficiency.

John Reynolds has been a practicing project manager for nearly 20 years and is the editor of an informational website rating project management software products. For more information on project management and project management software, visit Project Management Software Web.

How to Select and Implement an ERP System

How to Select and Implement an ERP System
Michael Burns
WHAT IS ERP?

ERP is a term that is widely used yet probably not well understood. It stands for Enterprise Resource Planning and although it was initially targeted to manufacturing companies, today it encompasses any product that can be used across an enterprise. When implemented effectively, ERP enables companies to break down traditional organizational silos, replacing them with a tightly integrated horizontal structure in which strategy, organizational structure, process and technology are closely aligned. Applications can include financial, distribution, manufacturing, human resources, payroll, and project costing.

There is a lot of confusion between an accounting system and ERP. In the past, an accounting system was limited to just Continue reading How to Select and Implement an ERP System

ERP Books

ERPandMore is pleased to announce the opening of our new ERP Bookstore. Containing the latest books on Enterprise Resource Planning, Customer Relationship Management (CRM), Product Lifecycle Management, and Process Improvement topics, this new bookstore is your resource to finding the information you need to successfully navigate a project.

You can find this new bookstore off of our home page by clicking “Books” or by going directly to:

http://www.erpandmore.com/books/

We hope you find this a valuable information resource!

Challenge Of ERP Implementation Q & A

This is a good commentary on the challenges of an ERP Implementation. It can be summed up in that it is a technological, financial and human challenge that requires extensive change management.

Challenge Of ERP Implementation Q & A
Rick Maurer
Question: ERPs seem like a good idea, so why is return on investment so low?

Answer: Resistance often kills many of these new systems. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this ‘improvement.’ ERPs take away the old tried-and-true ways of working. Even though some of these cobbled together systems aren’t all that good, people understand them. When they are asked to give up what they know and what they can rely on, you often get resistance to using a new software system.

ERPs also threaten the fragile balance of power and control. The old system allows departments and some individuals to
control the type of information that gets out – and control the way data gets disseminated. The new system destroys all of that and that can be threatening.
One manufacturing plant has spent millions on an ERP, and kept throwing money at the technical parts of project, with no success. What they failed to Read more…

About the Author:
Rick Maurer is an advisor to organizations on ways to lead Change without Migraines. He is author of many books on change including Beyond the Wall of Resistance. His web site offers over 100 free tips and tools for leading change successfully. www.beyondresistance.com

ERP Software Solution: A Closer Look at What It Is

ERP Software Solution: A Closer Look at What It Is
Mike Piotrowski
ERP Solution

Information technology has not only transformed the way we live in modern society, but also the way in which we do business. Enterprise Resource Planning, often referred to as ERP, is becoming one of the most commonly used software systems in several industries and organizations. The object of this article is to provide pertinent highlights about exactly what ERP is.

The definition of Enterprise Resource Planning refers to not only software but also the business strategies employed as part of the implementation of ERP systems. This implementation makes use of various software applications in order to improve the performances of organizations in resource planning, control of operations, and control of management.

ERP software contains several software modules that work to integrate vital activities across operating departments. An ERP System not only includes the ERP Software but also the business processes and hardware that make this system work. These systems are more than the sums of their parts as the many components work together in order to achieve one common objective-to provide an organization with a greatly improved and streamlined business process.

History of ERP

ERP has been well over 20 years in the making. This system is the result of the trial, error, and growth of Manufacturing Requirements Planning (MRP) during the 80’s. MRP was the evolution of Inventory Management and Control, which was conceived during the 1960’s. ERP has grown beyond the coordination of manufacturing processes into the integration of back end processing on very large scales. From its origins as a legacy implementation ERP has morphed into a new and improved client-server architecture.

Benefits of ERP

This software attempts to bring all aspects of the business into one single enterprise-wide database or information system. This allows instantaneous information and communications to be shared between multiple departments. The primary benefit of this is a greatly improved efficiency in business operations. Implementing this system will not only help communications between departments but in day-to-day management functions as well. ERP is an ambitious design that also supports the resource planning part of corporate planning as this is often the weakest link in strategic planning as the result of the inadequate integration of ERP software with Decision Support Systems.

ERP Failures

It would be quite rude to conclude without at least mentioning the fact that failures in this system are occasionally reported in one of the four components of an ERP System. These systems are: ERP software, Business processes supported by the ERP System, Users of the ERP Systems, and the hardware and/or operating systems upon which the ERP applications are actually run. The failure of one or more of these components has the potential to cause the entire ERP project to fail.
Ontech Systems of Milwaukee Wisconsin, is committed to making a difference in your business through the productive use of computers, networks, software and the vast array of products and services we offer. Contact Mike Piotrowski, President of Ontech Systems to discuss a new ERP business solution for your company today.
Provided By: Computers and Technology