Project Management and ERP Implementation

Topics: Project management, Enterprise resource planning, Software testing Pages: 22 (6633 words) Published: June 19, 2014
I . Introduction.

ERP is acronym for Enterprise resource planning It have three words : Enterprise, Resource, and Planning. The Last two words are irrelevant compared to first word. ERP application system is helpful for planning and managing the resources. There are many other applications who does the planning and resource management. But it is the enterprise part which is most important in ERP application system. The ERP system was developed and derived from the previous MRP (Materials Requirement Planning) system and MRPII (Manufacturing Resource Planning) system. ERP is one of the most critical components in today's information which is business focussed and it's also one of the fastest growing markets in the software industry. Various companies are using ERP system as an information system to coordinate business related information. ERP also help to manage business related processes using a single and common database and shared management reporting tools.  It integrates the data and business processes of an organization into unified system. Usually ERP systems have many components including hardware and software, And to achieve integration, most ERP systems use a single common database for storing data related to various functions and business processes of the organization. ERP application system supports a efficient operation of business processes by integrating throughout a business tasks related to sales, manufacturing, marketing, delivery, Inventory, logistics, accounting and staffing etc As it runs on single database various department can share information and communicate with each other more easily.[1] For example suppose we are processing and tracking of customer orders But it is very difficult to track status of order in different departments at a times. But with ERP application any department can easily track the status of customer’s order through central database.[3] If the system is installed correctly then this integrated approach can have better outcome. Most vendor's ERP system for example SAP R/3 system is flexible enough so that implementing company can implement only FICO or Sales and Distribution module and can install other module like MM, PP etc. later.

2. ERP Implementation Lifecycle.

Organizations worldwide, whether public or private, are moving forward by implementing Enterprise Resource Planning (ERP) systems and other packaged. [5,6,7] ERP implementation lifecycle focus on the project which is carried out to make ERP systems up and running. ERP project goes through different phases like any other project. Most often these phases do not necessarily depend on one another in a sequence, i.e. one phase might start before previous phase has finished. Also all phases that will be discussed may not be applicable in all cases. The different phases of ERP implementation are :-

1. Pre-evaluation Screening
2. Package Evaluation
3. Project Planning Phase
4. Gap-Analysis
5. Reengineering
6. Configuration
7. Implementation Team Training
8. Testing
9. Going Live
10. End-user training
11. Post – implementation[10]

2.1 Pre Evaluation screening.

"This decision phase includes the definition of system requirements, its goals and benefits, and an analysis of the impact of adoption at a business and organizational level." [9]

When an organization want to implement an ERP application package then first it starts it's searching for a ERP system/ vendor which is suitable for its business processes. It is a very important procedure because there are many ERP vendors, who claims to have a system that is suitable for the organization and it's business process. The pre evaluation process should eliminate those packages that are not suitable for the company's business processes.[11] For smoother implementation organization should choose ERP system which is best for its specific business requirements. Organization can screen the few best packages which are available in...
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