ERP 03

Seminar (2730001)
Semerstr-3
Presented by
MIHIR SOLANKI
(140110746005)
SEMINAR-03 1
G.H.Patel college of
Engineering & Technology
Mechanical Engineering
Department
Enterprise Resource Planning

OUTLINE
1) ERP planning
2) Economic and strategic justification of project
3) Phases of ERP
4) ERP implementation LIFE CYCLE
5) STEPS for successful ERP implementation
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ERP Planning
1. STRATEGIC PLANNING & JUSTIFICATION
 Assign a project team.
 Examine current business processes and
information flow.
 Set objectives.
 Develop a project plan
2. PROCEDURE REVIEW
 Review software capabilities.
 Identify manual processes.
 Develop standard operating procedures.
3. DATA COLLECTION & CLEAN-UP
 Convert data.
 Collect new data.
 Review all data input.
 Clean-up data.
4. TRAINING AND TESTING
 Pre-test the database.
 Train the Trainer.
5. GO LIVE AND EVALUATION
 Develop a final Go-Live Checklist.
 Evaluate the solution

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 Any organization works to make profit
 Implementation of ERP package must help organization to improve
PRODUCTIVITY, EFFECTIVENESS & PROFITABILITY
 ERP package must meet all the business requirement of organization
and should be evaluated on ROR , B/C Analysis
 As implementation of ERP involves top level management and also
strategic decision and requires lot of time and money it must meet with
objective of firm in order to justify implementation

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PHASESOFERPIMPLEMENTATION Feasibility Study
Problem Definition
Systems Analysis
Detailed Design
Systems Design
Implementation/ Post
Testing
Maintenance

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ERP implementation Life Cycle
Pre-selection Process
Package Evaluation
Project Planning
Gap Analysis
Implementation
Team Training
Testing
Reengineering
End- user Training
Configuration
Going Live
Post – implementation Phase
AIM: Focus on successful
Implementation of ERP
system

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1) PRE EVALUATION & SCREENING :
 When the company has decided to implement the ERP the search
for the convenient and suitable ERP package begins.
 understand the criteria used in selecting particular ERP package
2 ) PACKAGE EVALUATION :
 All the packages shortlisted in previous step are evaluated on same
scale of criteria
 Objective of this phase is to find the package that is flexible enough
to meet the company’s need or in other words, a software that could
be customized to obtain a ‘good fit’.

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 Some important points for evaluating ERP software include:
1) Functional fit with the company’s business process.
2) Degree of integration between the various components of the ERP
system.
3) Flexibility
4) Complexity
5) User friendliness
6) Quick implementation
3) PROJECT PLANNING PHASE
 This is the phase that designs the implementation process. Time
schedules, deadlines, etc.

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 The project plan is developed, roles are identified and responsibilities
are assigned.
 The implementation team members are selected and task allocation is
done, The organizational resources that will be used for the
implementation are decided.
 How to monitor the progress of the implementation…???
4) GAP ANALYSIS :
 Most crucial phase for the success of the ERP implementation.
 Process through which companies create a complete model of where
they are now, and What they want to achieve through ERP
 Provides Path in which direction they want to head in the future.

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5) PROCESS REENGINEERING:
 This phase involves human factors.
 In ERP implementation, reengineering has two implications. The first
connotation is the controversial one, involving the use of ERP to aid in
downsizing efforts.
 In this case ERP is purchased with aim of reducing the number of
employees.
 The second implication is BPR , which will bring in IT application
6) CONFIGURATION:
 The unwritten rule of ERP implementation is, “synchronizing
existing company practices with the ERP package rather than
changing source code and customizing it to suit the company”.

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 In this case business process have to be understood and mapped in
such a way that the incoming ERP solutions match up with the overall
goals of the company.
 Configuring the system reveals both the strength and the
weaknesses of the company business processes.
7) IMPLEMENTATION TEAM TRAINING:
 For the company to be self-sufficient in running the ERP system, it
should have a good in-house team that can handle the various
solutions.
 Thus the company must realize the importance of this phase and
selects right employees with good attitude.

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8) TESTING:
 This is the point where testing a real case scenarios.
 The test cases must be designed to specifically to find the weak links in
the system and these bugs should be fixed before going live.
9) GOING LIVE :
 This is the phase where all technicalities are over, and the system is
officially declared operational.
 In this phase all data conversion must have been done, and databases
are up and running and the prototype is fully configured and tested.

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10) END USER TRAINING :
 This is the phase where the actual users of the system will be trained.
 The employees who are going to use the new system are identified and
their skills are noted & based on their skill levels are divided into
groups.
 The end-user training is much more important and much more difficult
than implementation team training since people are always reluctant to
change
“You can have the best technology in the world, but if you don’t
have a community who wants to use it and who are excited about it,
then it has no purpose.” Chris Hughes Co-Founder of Facebook.

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11) POST IMPLEMENTATION :
 This is the most difficult task as to sustain the change for Business
practices
 There must be technical people in the company who have the ability
to enhance the system when required
 Must have BACK-UP
 organization can only get the maximum value of these inputs
if it successfully adopts and effectively uses the ERP system.

References
• ERP Demystified , Second addition by Alexis Leon
• Enterprise Resource Planning by Ravi Shankar and
S. Jaiswal
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ERP 03

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