ERP Implementation Strategy

Ivy Stephen
Sunday, 18 June2017
 Agenda

 Introduction
 Current business process
 Proposed process flow diagram/ application-Model
 Data collection
 ERP System Evaluation and Selection
 Gap Analysis and customization
 Data Migration
 User Acceptance Testing
 Training and Testing
 Pilot run
 Go live
 Question & Answer
 Required Modules

1. HR & Payroll Module

 Employee Masters – Own and Hire/contract employee masters
 Document Management – masters and expiry tracking (Passport, visa , EID and
health card management)
 Employee camp Management
 Employee travel allowances– Sector and allowances
 Leave Management
 Attendance Management
 Salary Allowances
 Cost allocation – visa, camp, tickets and others
 Payroll process and Journals
 WPS & Bank transfers
 Final Settlement process
 Required Modules

2. Finance

 Accounts Masters
 General Ledger
 Supplier Masters
 Customer Masters
 Accounts Payables
 Accounts Receivables
 Cash Management
 LC Management
 Guarantees
 Required Modules

3. Supply Chain

 Supplier Master
 Supplier category
 Payment Category
 Requisition
 Comparison
 Approvals
 Issuance of LPO
 Required Modules

4. Inventory Management

 Resource Master
 GRN
 Bill Booking
 Stock/ inventory
 Stock Returns ( Return to Supplier)
 Material Issue
 Material Return
 Stock transfer (Store to Store Transfer)
 Physical Inventory
 Stock Adjustment
 Required Modules

5. Fixed Assets

 Asset Masters – Own and Hire

 Asset Category
 Resource Code
 Depreciation detail
 Asset Insurance detail
 Warranty Tracking
 Maintenance schedule
 Asset Time sheets
 Billing – Internal and External
 Service and work order Management
 Asset Disposal/Sale
 Required Modules

6. Project Management and Billing

 Project Master
 Resource Master
 Cost Code Master
 BOQ Master
 Budgeting – Activity/cost code wise budget
 Execution and costing
 Subcontract Management
 Payment certificate
 Project Billing
 Required Modules

7. Plant and workshop Management

 Fleet Requisition
 Approvals and LPO Process
 Time sheet process
 Idle assets tracking
 Project billing
 Hire Billing
 Service/WO Request
 Work Order Process
 Spare Parts Request and Process
 Preventive & Corrective Maintenance
 Maintenance Billing
 Required Modules

8. Manufacturing and Sales

 inquiries and quotations

 Sales Order
 Delivery and Shipment
 Invoicing and Billing
 Why do we need an Integrated Business Application

 Increasing productivity while eliminating duplication of job.

 Information available on few clicks.
 To make faster month-end & year-end close.
 To Reduce Payroll cycle time and make it faster and efficient.
 To Ensure Data integrity & consistency
 To Increase functionality resulting in improved efficiency and effectiveness of
different business processes.
 To Minimize the risk of disturbing business operation.
 Historical & Analytical data.
 Business Intelligence.
 For Better Control over the business.
 Secured and reliable Database.
Proposed integrated system - Model

Plant and
HRMS & Payroll Budget Workshop
Management

General Ledger

FA AR Cash Project
AP Costing
Management

Projects Project Billing Procurement Inventory

Management Management

KPI & Dashboard

Integrated
Estimation Contract Business intelligence
Planning
Management Self-service
Selection of an Implimentor

 Experience in the same business domain

 Local Presence.
 Reference.
 Team size.
 Post Implementation support.
Requisites Of successful ERP implementation
 Top management assumption regarding project ownership.
 Strong and multi-talented project management.
 Active risk management.
 Tight project controls on schedule and scope.
 Capable and committed project team members.
 Good external consultants.
 Smooth and tactful transition management.
 Properly timed and managed process changes.
 Proper balance of IT and business emphasis.
 Adequate project planning.
 User involvement.
 Appropriate and timely training.
 Clear and measurable project objectives.
 Open communication to the entire company.
 IT infrastructure- High end server, LAN & WAN.
 Manpower Assessment Study.
 Negotiating a total, firm cost in advance.
 Sufficient budget for software license, Implementation fee, hardware and
other resources.
 ERP Organizational Chart - model

End User

Secondary User

Primary User

Module Owner
CFO

Project Cash Fixed

Module Payable Receivable GL
Costing Management Asset

Process
Planning & Operation

Division/Dept
Finance
Methodologies 0f implementing ERP systems

 The implementation of ERP systems of all modules

The Big Bang happens across the entire organization at once. The
big bang approach promised to reduce the
integration cost in the condition of thorough and
careful Execution.

 This approach is applied when we do not share many

Modular Implementation common processes across the departments or
business units. Modular Implementation reduces the
risk of installation customizing and operation of ERP
system by reducing the scope of implementation.

 The process-oriented implementation focuses on the

Process-Oriented Implementation support of one or a few critical business processes
which involves a few business units.
Plan…….

2017 2018
July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug

Financials (GL,AR,AP,CM,FA)

HRMS (HR,PYR)

Distribution (PO,Inv)

Support

Projects (PM, Proj Costing

,Proj Billing

Plant & Workshop

Management

Support

Business Intelligence

Integration with Planning

Application
Benefits of ERP & how to get the ROI

 Help in reducing the operating costs-

It reduces the operating costs, such as lower inventory control cost, lower
production costs, lower marketing costs and lower help desk support costs.

 Facilitate Day-to-Day Management-

ERP systems offer better accessibility to data so that management can have can
have up-to-the-minute access to information for decision making and managerial
control. ERP software helps track actual costs of activities and perform activity
based costing.

 Support Strategic Planning-

ERP systems is 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 with
Decision Support System.
 Golden Rules of ERP Implementations (The Do’s)

 Plan and Quantify the Objective / Output to be achieved from the Implementation and
Communicate them at all levels
 Set realistic expectations from the implementation
 Involve all key members of respective department / division at the initial stage, itself
 Prioritize business functions in case of conflicting interests
 Be open to changes
 Document all the Processes, Procedures and Policies
 Train the concerned people thoroughly in accordance with the anticipated roles and
responsibilities
 Take periodic review to monitor progress of the project
 Sign-off at every milestone
Q&A