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Overcoming the 10 Major Problems with ERP Systems!

By Keith Launchbury CFPIM, CIRM

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June 2003, Page 6

After treating attendees to "The ESSENTIAL Elements of World Class Manufacturing",  Mr. Keith Launchbury provided an excellent PDM on May 15 on the problems and some misunderstandings about ERP.  He introduced The Three Aspects of any Business: (1) The Organization Perspective,  (2) The People Perspective, and (3) The Technology Perspective as well as the Need for Integration.  He defined ERP as "A retitled MRP system purporting to provide complete system functionality for the whole organization from one software vendor."   He went on to point out that "ERP is a Core system, not a Complete system!", how it should be labeled as Enterprise Resource Management and the aspects of ERM. He discussed ERM Opportunities, Problems, Benefits and Costs.  He highlighted the problems listed below and explained how and why they develop, as well as provided solutions.

1.                                The System is Integrated - The Organization is Not

A.            Alignment of the Organization               B.            Common Vision, Mission, Goals and Rewards

C.            Consistent Policies and Procedures        D.            Effective Performance Measures

 

2.                               People still work in functional areas

A.            Integrated Resource Management           B.            Empowerment

C.            Process Action Teams                            D.            Project Goals

 

3.                               No one understands the complete system

A.            Needs Assessment                                  B.            Education

C.            System Training                                      D.            Skills Assessment

 

4.                               The System is too complex

A.                                          Simplify the system (ERP Lite!)           

B.                                           Select and use only those data elements required to support current business systems

C.            Use ERP as a core system                      D.            Add other modules where needed

 

5.                               The System is Oversold

A.                                          Define Business Requirements              

B.                                           Conduct a Full Load Complete Systems Requirements Check

C.            Identify Applications Not Met              D.            Create Realistic Expectations

 

6.                               Implementation is a huge investment

A.            Simplify the system                               B.            Reduce Project Support Staff

C.            Do Not Pay for Software Errors            D.            Do Not Reinvent the Wheel

 

7.                               The System doesn't do all the things we need

A.            Join a Systems User Group                    B.            Share Common Problems

                                    C.    Do Not Write Custom Code for Common Problems

                                    D.    Pressure the Supplier to Get It Right

 

8.                               It is very difficult to access the data

A.            Create a Data Warehouse                        B.            Provide Data Mining Capability

C.            Design Standard Inquiries                       D.            Create Exception Reports

 

9.                               The data base is powerful but the reporting is weak

A.            Create a Complete Data Dictionary       B.            Provide User Query Capability

C.            Develop a Paperless System                  D.            Make It User Friendly

 

10.                            Technology is only part of the solution.

A.            Create an Integrated Enterprise              B.            Educate the Workforce

C.            Implement the Basic Disciplines            D.            Enforce Effective Policies & Procedures

View the entire presentation!

We sincerely appreciate Mr. Launchbury proving the full  powerpoint presentation: {link here}.   Please contact him at Keith Launchbury & Associates at www.keithlaunchbury.com , e-mail: klaunch@aol.com  or phone: 954 / 946 - 5201 if you have questions or need consulting assistance.

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APICS TOPICS - The Educational Society for Resource Management Wichita Chapter 71 · June 2003, Page 7
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