Software Implementation Projects And Six Sigma

Software Implementation Projects And Six Sigma
Tony Jacowski

Six Sigma concepts were originally developed for use in the manufacturing sector, but are now increasingly being used in the services sector as well. Use of Six Sigma concepts in the software industry has become quite common, but what many people do not know is that Six Sigma concepts can also be used in software implementation. People who have experience in software implementation projects know that such projects often do not take off as planned and may be subjected to schedule overruns and recurring problems. This is why many software companies opt for employing Six Sigma concepts during the process of software implementation at a clients site.

Common Implementation Problems

The two most common problems faced during software implementation projects include customer requirement problems and schedule estimation problems. By employing Six Sigma concepts in software implementation projects, professionals can better understand the needs and business objectives of the client. This way, they can make sure that the software implementation project is successfully completed within the stipulated timeframe. Employing Six Sigma will also ensure that no additional costs are incurred during the implementation process.

Understanding Client Requirements

Software products are normally designed for increasing the efficiency of a business process in accordance with the goals and objectives of the client. Most of the problems related to the software arise during the implementation stage when the client finds out that the software is unable to achieve desired objectives. This situation arises when the client passes vague information about requirements to software developers or when developers are unable to clearly comprehend client requirements.

Six Sigma helps in avoiding problems during the software implementation stage by bridging the gap between actual requirements of the client and what is eventually understood by software developers. Many people believe that Six Sigma is only limited to the use of statistical methods. What they do not know is that Six Sigma follows a disciplined approach that can solve any type of problem, whether it is quantitative or qualitative. This is evident from software companies that have successfully employed Six Sigma concepts in solving qualitative problems that arise during software implementation projects.

Generating Schedule Estimates

Schedule estimation is another common problem faced during software implementation. Mistakes in schedule estimation can affect the outcome of an implementation project; as such projects are often required to be completed in a specific timeframe and within available budgets. Implementation projects are often delayed because planners make the implementation schedule without considering indirect factors that might affect the project. Planners often fail to foresee that implementation can get affected due to the size of the software, location where it is being implemented, internal politics, authority, and governance.

Employing Six Sigma concepts in preparing schedule estimations will help planners to effectively include all these factors which may indirectly affect software implementation projects. Based on the past records of the client, Six Sigma statistical tools will generate an efficiency chart, which provides details about all types of problems faced with the client during software implementation projects. The chart displays the time taken to resolve such problems and techniques that were employed to solve such problems.

The chart also displays any additional time or costs that went into the completion of the project. Planners can use the information given in the chart for giving due consideration to all the indirect factors that can affect software implementations. This will help in generating true schedule estimates, necessary for the success of software implementation projects.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

A Closer Look at the ERP Software Solution

Here is a basic overview of ERP. For people just starting it is a beginning primer on ERP software.



A Closer Look at the ERP Software Solution
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 80s. MRP was the evolution of Inventory Management and Control, which was conceived during the 1960s. 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 Michael Piotrowski, President of Ontech Systems to discuss a new ERP business solution for your company today.

The ERP Software Market – What’s It All About?

Veronica Fredriksen

This DeveloperEye.com market study gives an overview of the ERP applications market, the key players as well as the benefits and obstacles with implementation of an ERP solution.

London, UK (PRWEB) March 31, 2005 — In general, Enterprise Resource Planning (ERP) software attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs.

ERP combines all departments within an organisation (HR, Manufacturing) together into a single, integrated software program that runs off a single database. In turn, the various departments can more easily share information and communicate with each other.

When one department finishes with an order, it is automatically routed via the ERP system to the next department. To find out where the order is at any point, you need only log in to the ERP system and track it down.

Segments within the ERP software Market
The ERP applications market falls into three primary segments by customer size: Enterprises, Mid-Market and Small Companies. The major ERP application vendors to each segment group is illustrated below:

Market Segment ERP Vendors

Enterprises:
SAP, Oracle/PeopleSoft

Upper Mid-Market:
Microsoft, Lawson, SSA Global, Geac, SAP, Oracle/PeopleSoft

Lower Mid-Market: Microsoft, Epicor, Exacta, Sage, NetSuite, SPA BusinessOne

Small Companies: Sage, Intuit, ACCPAC, NetSuite

Key Players
SAP is the market leader in the ERP applications market. SAP and Oracle have been in intense competition for customers in recent years. After Oracle’s acquisition of PeopleSoft, they are now ranked as the second leader of the ERP software market. SAP is holding the leadership within vertical sectors such as Government, Financial Services, Healthcare and Education across the European countries.

When looking at the leading ERP vendors for the European countries, SAP is the market leader in Germany, Spain and Italy. Oracle, on the other hand, has a strong market leadership in certain segments within the UK and France.

Most industry analysts are watching i2 Technologies, Siebel Systems, Broadvision, Ariba and CommerceOne as ERP solution providers that would like to have their share of the market.

In addition, there are also predictions that the ERP battle amongst ERP solution providers will move rapidly to the mid-market as Microsoft begins to actively compete with vendors such as SAP and Oracle for market share.

Benefits of implementation of ERP solutions
Integrate financial information – To avoid receiving conflicting information from the Finance-, HR- or Manufacturing Department, the ERP system creates a single version of the truth that cannot be questioned because everyone is using the same system.

Integrate customer order information – ERP systems can become the place where the customer order lives from the time a customer service representative receives it until the loading dock ships the merchandise and finance sends an invoice. By having this information in one software system, organisations can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time.

Standardize and speed up manufacturing processes –
Standardizing a company’s processes using a single, integrated computer system can save time, increase productivity and reduce head count.

Reduce inventory – ERP helps the business process flow more smoothly, and it improves visibility of the order fulfilment process inside the company. In turn, this may lead to reduced inventories of the stuff used to make products (work-in-progress inventory).

Standardize HR information – Especially in companies with multiple business units, HR may not have a unified, simple method for tracking employees’ time and communicating with them about benefits and services.

ERP software challenges
·There is often a gap between package functionality and business needs
·ERP environments are costly to maintain
·ERP Implementation is costly and time consuming
·Larger companies typically have multiple ERP packages and vendors
·Integration of systems is complex
·Companies Are Simplifying Their ERP Environments

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