The ERP implementation life cycle consist of;
Pre evaluation Screening
Project planning phase
Implementation team Training
In order to develop a new ERP package the available packages should be evaluated before coming to the solution But this pre evaluation should be done with a chosen number of packages since there are hundreds of packages and vendors are available In this stage packages that are not suitable for the company’s business process should be eliminated and only the identified necessary ERP s should be studied extensively using brochures, product literature, white papers, web sites, etc…
This is a most critical phase since the success or the failure of the project depends upon the package Evaluation and selection and the direction of the entire implementation as well as the outcome will depend on this.. Since there is no ERP s which matches 100% with the organization’s business requirements, the objective of this phase is to identify a package that gives a ‘good fit’ by satisfying most of the core requirements. Package evaluation committee should be set up including members such as functional experts/end-users from affected division, top management (CIO, COO, CEO, CFO), and external impartial consultants.
At this phase It is necessary to prepare the entire roadmap of implementation with milestones fixed and resources needed. This purpose of this is to prepare a detailed plan about the implementation. Setting up implementation teams as steering up committee, operational committee and task allocation are done in this phase. The project planning is usually done by a committee with team leaders of each implementation group. The time schedules as when to begin, when to be completed is also estimated within this phase. The project plan also includes payment schedules, required resources etc...
Gap analysis determines where the company is at present moment and the direction which they are planning to go in the future. That is also called as ‘would be’ process compared with the existing process .That enables to find out deficiencies in the existing process and also highlights the improvements in the ‘to be’ process in terms of efficiency and cost reduction. Usually 20% of the company requirements can not be delivered by using an ERP system. To fill this gap some solutions will be rearranged to fit the ERP system, with the hope of getting upgraded by the vender , identifying third party product which can fit –in with the gap or by designing a tailored program and altering the ERP source code.
This is the next stage of ERP implementation and has two different interpretations. 1.Reengineering involves for the downsizing effort of the BPR. to reduce the workforce. It is better to position BPR as productivity enhancing, cost cutting measure rather than downsizing tool. 2.Business process reengineering approach, which consist of technical implementation and business process implementation.
This is the main functional area of the ERP implementation. In order to do this the business process needs to understood and mapped to arrive at solutions which will match with overall goals of the company. So the business process should be documented, describing each process flow in detail, with business rules such as credit policy, pricing policy and others, which will serve as a guideline for configuring and customizing ERP modules. Each and every process is tested by the consultants and verifies the compliance in order to match the goals of the company. For this purpose prototype is taken as “to be “model. As well as it highlights the areas that cannot be automated. ERP venders use different tools in modeling the process...