Goodies Depot

Implementing an ERP system is a complicated task to achieve, in fact it is time consuming for planning, consulting and in most cases 4 months to 1 yearor even longer. However, a large, multi-site or multi-country implementation may take years. ERP systems are extremely wide in scope and for many larger organizations can be eventually complex. Implementing ERP software is typically not an “in-house” skill, so even smaller projects are more cost effective if specialist ERP implementation consultants are employed. Implementing an ERP system will require significant changes on staff and work practices. While it may seem reasonable for an in house IT staff to handle the project, it is commonly advised that ERP implementation consultants be used, due to the fact that consultants are usually more cost effective and are specifically trained in implementing the ERP systems.

To implement ERP systems, companies often seek the help from third-party consulting companies. These firms typically provide three areas of professional services: consulting, customization and support. One of the most important traits that an organization should have when implementing an ERP system is ownership of the project. Because so many changes take place and its broad effect on almost every individual in the organization, it is important to make sure that everyone is on board and will help make the project and using the new ERP system a success.

Data migration is one of the critical activities in determining the success or failure of an ERP implementation. Unfortunately, data migration is the last phase before the production phase of an ERP implementation, and therefore receives minimal attention.

The following are steps of a data migration strategy that can help with the success of an ERP implementation:

Step 1 : Idebtification of the migration data

Step 2 : Data migration timeframe determination 

Step 3 : Generate the data templates 

Step 4 : Freezing the tools for data migration

Step 5 : Decision on migration related setups

Step 6 : Decision on data archiving

ERP stands for Enterprise Resource Planning. It is the planning of how business resources (materials, employees, customers etc.) are acquired and moved from one state to another.  ERP is a way to integrate the data and processes of an organization into one single system. Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems use a unified database to store data for various functions found throughout the organization. An ERP system supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management (CRM).

The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. In fact, ERP systems are used in almost any type of organization.

An ERP system is based on a common database and a modular software design. The common database can allow every department of a business to store and retrieve information in real-time. The information should be reliable, accessible, and easily shared.

ERP software system must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization, most ERP systems cover several functions.

Today’s ERP systems covered a wide range of functions and integrate them into one unified database. Ideally, Functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were stand alone software applications, usually hosted with their own database and network.

Navision reporting tools is suck and hard to use. Unlike Crystal Report or other reporting tools, Navision report was executed line by line, therefore we programmer having nightmare generate and design reports to meet some client requirement. ( for example the Total or SUM of the amount calculated MUST appear at bottom because of the line by line execution. )

We can’t create cross tab table, resize the field one by one, can’t highlight object for resize, miss alignment when adjust the position….

Navision Reporting probably need 1 hour to be complete where only 5 minute job using other reporting tools, is it a wasting of time ?

Looking forward to seeing some great improvement in the coming Navision version …

Pros of ERP

Advantages of ERP Systems

Disadvantages of ERP Systems

In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface.

some advantages of implementing an EPR system:

• design engineering
• A totally integrated system
• The ability to streamline different processes and workflows
• The ability to easily share data across various departments in an organization
• Improved efficiency and productivity levels
• Better tracking and forecasting
• Lower costs
• Improved customer service
• order tracking from acceptance through fulfillment
• the revenue cycle from invoice through cash receipt
• managing interdependencies of complex Bill of Materials
• tracking the 3-way match between Purchase orders, Inventory receipts, and Costing
• the Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.

Some security features are included within an ERP system to protect against both outsider crime,  A data tampering scenario might involve a disgruntled employee intentionally modifying prices to below the breakeven point in order to attempt to take down the company, or other sabotage. ERP systems typically provide functionality for implementing internal controls to prevent actions of this kind. ERP vendors are also moving toward better integration with other kinds of information security tools.
 
Cons of ERP

Here are some of the most common obstacles experienced:

The major problem with ERP systems are mainly due to inadequate investment in ongoing training for involved personnel, including those implementing and testing changes, as well as a lack of corporate policy protecting the integrity of the data in the ERP systems.
The common problems with ERP systems are :

• Customization in many situations is limited
• loss of competitive advantage due to Re-engineering of business processes to fit the “industry standard” prescribed by the ERP system.
•  ERP systems can be very expensive.
• Technical support can be shoddy
• High accuracy needed in other applications to work effectively. A company can achieve minimum standards, then over time “dirty data” will reduce the reliability of some applications.
• Once a system is established, switching costs are very high for any one of the partners.
• The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale.
• Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.
• ERP System may be too complex measured against the actual needs of the customer.
• ERP’s may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.

Enterprise resource planning (ERP) is the planning of how business resources (materials, employees, customers etc.) are acquired and moved from one state to another.

ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II. From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide back end processes. From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.

An ERP system supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management. 

An ERP system is based on a common database and a modular software design. The common database can allow every department of a business to store and retrieve information in real-time. The information should be reliable, accessible, and easily shared. The modular software design should mean a business can select the modules they need, mix and match modules from different vendors, and add new modules of their own to improve business performance.

Ideally, the data for the various business functions are integrated. In practice the ERP system may comprise a set of discrete applications, each maintaining a discrete data store within one physical database.

ERP In the 1960s

In 1960s, Inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory management include inventory requirements identification, setting targets, providing techniques and options replenishment , item usages reporting , inventory balances reconcilation , and inventory status reporting .

ERP In the 1970s

In 1970s, Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.

ERP In the 1980s

ERP n 1980s advanced to Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.

ERP Evolution In the 1990s

In 1990s, ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources.