Read over the "How to Consider, Select, and Implement an ERP System" GUIDE ONE (see the attachment).
Write a summary and what you have learned from the whole book.
Then make about 3-4 slides PowerPoint presentation for chapter 6, and write down every word you gonna say in the presentation.
EZ_GUIDE1_FINAL_150429.indd The IMAE Business & Academic ERP Implementation Series How to Consider, seleCt, and implement an erp system GUIDE ONE Dr. Jill O’Sullivan • John Rico • Dennis Goldensohn IMAE Publications A Division of DMMSI Associates, Inc. IMAE Business & Academic ERP Implementation Series How to Consider, Select and Implement an ERP System by Dr. Jill O’Sullivan, John Rico and Dennis Goldensohn Copyright © 2014, IMAE All rights reserved. No part of this book may be reproduced or transmitted in any form by means, electronic, mechanical, photocopying, recording, for information on getting permission for reprints and excerpts or otherwise, without the prior express permission of the Publisher, except as permitted of the 1976 United States Copyright Act. ISBN: 978-0-9912142-2-8 LOC Control Number: 2015900763 Screenshots: courtesy of Synergy Resources LLC, MS Office Suite 2010, Infor Visual 7.1.2. Permissions granted by INFOR® | Editor/Interior Layout/Cover design by Bernita J. McGoldrick IMAE, IMAE Publications, Institute of Manufacturing and Academic Excellence, and DMMSI are trademarks and Division of DMMSI Associates, Inc. For Product Information, or Permissions as expressed above, Contact DMMSI at: DMMSI Associates, Inc., 320 Carleton Avenue, Suite 6200, Central Islip, NY 11722 www.instituteforimae.com 3THE IMAE BUSINESS & ACADEMIC ERP IMPLEMENTATION SERIES • GUIDE ONE Foreword Whether you have an ERP system or are looking to replace your legacy system with a modern ERP system solution there are many benefits associated with this consideration. Some of these are improved customer service, cash flow, operations management, quality, production and visibility. Continuous im- provement will be an easier task with the proper use of the ERP system. Undertaking an ERP project requires that there is going to be total commitment from upper manage- ment, and a very well structured project plan. In considering the needs the company has for this ERP solution, the company must understand what the differences are between the many ERP solutions providers, and what the goal and deliverables will be. This ERP Guide will break this down into simple and manageable steps so that you can take the proj- ect from its inception through the selection of an ERP software provider-reseller to the implementation process. This will give your company the ability to use this new investment for better customer service, improved process controls, increase in customer retention, reduced lead times, improved inventory management, which will also enhance cash flow. Although this may seem like a daunting task, if the project is broken down into manageable steps this will significantly help the end user select, prepare, and implement an ERP solution for your company. 5THE IMAE BUSINESS & ACADEMIC ERP IMPLEMENTATION SERIES • GUIDE ONE iCon guide This symbol states that this is a very important concept that should be considered and should be fol- lowed! This symbol tells that awareness should be made of ‘what can happen’ and ‘why.’ Take this into consideration when moving on in the implementation process. This symbol recognizes an area of hazards in ERP thinking. Since this is important, the concept stated should be reviewed to understand why it is used in the implementation process and what the outcomes might be. Before going any further—STOP. Know that this symbol stresses this concept in this section is important and why! This symbol represents an idea that should be considered in the implementation process. This symbol represents documenting procedures, policies or work instructions. This symbol represents an opportunity to think about how this information can help you. *Important parts of this guide that will be highlighted in NOTES Boxes. 7THE IMAE BUSINESS & ACADEMIC ERP IMPLEMENTATION SERIES • GUIDE ONE about tHe autHors Dr. Jill O’Sullivan is an Assistant Professor at Farmingdale State College in New York, where she teaches ERP, Management Information Systems, Operations and Supply Chain Management, and Strategic Management. She is first past president of APICS NYC/LI and the Faculty/Student Advisor of the Student Chapter at Farmingdale State College. She serves on the Advisory Editorial Board of the Journal of Systemic, Cybernetics, and Informatics (JSCI). Dr. O’Sullivan serves on the UASGC CTE Advisory Board, the Regional Industry Council on Long Island P-Tech Industry Committee, and is an original member of the Manufacturing Executive Leadership Council, servings as Judge for the ML Awards. Jill is the Founder/President of JJKT Consulting Services and previously founded JJK Sales, a Manufacturers Sales company representing the northeastern chapter regions. Her company specialized in custom manufacturing, assembly and electronic component products for a diverse customer base of Industrial/OEM, Distributor/Wholesalers, Value Added Reseller, Military/Aerospace, Government and Medical companies. Formerly a Purchasing and Materials Manager on Long Island, Mrs. O’Sullivan has acquired more than 24 years of experience in Operations and IT in military, aerospace, government and commercial companies. Jill is married to John and has two sons, Kyle and Tom. (Oliver) John Rico has been in the Manufacturing, Production and Materials Management field for over 30 years. He has worked in several different types of business environments that include: Aerospace, Pharmaceutical and consumer based products. John has been through several major ERP implementations, of which he chaired two very successful projects and served as a task team leader on another. John has been through many software upgrade implementations and ISO 9000 implementations. He has seen successes and failures and as a result knows what works and what does not. John received my certification from American Production and Inventory Control society as CPIM early in his career and it has served as a solid founda- tion for all his future learning experiences. John has been through a great deal of formalized training in preparation for implementations and “Train the Trainer” programs. Dennis Goldensohn has been employed in the manufacturing industry for the past 44 years, with the past forty one years with Arkwin Industries, where he serves as the Production Control Coordinator for the Manufacturing facility. Dennis lends his expertise to Arkwin in the areas of Lean facilitator, trainer, and the company photographer. Dennis was also part of Arkwin’s ERP Implementation team. Dennis is a graduate of Farmingdale State College with a BA Degree in the Management of Technology, Sigma Beta Delta, and recipient of the Farmingdale-SUNY Alumnus of the Year award for 2012 for his contributions to institution of Education and continuing professional development. Dennis is a member of the APICS New York City-Long Island chapter and is the past president of the chapter. He is a sought after guest speaker in the areas of manufac- turing, particularly in the field of Lean training. Dennis is a member of the Long Island Society of Manu- facturing Engineers-SME chapter. Dennis serves in the P-Tech program as the chairperson of the Industry Partner subcommittee. Dennis and his wife, Ellen, have a son and a daughter, and two grandchildren, where they have lived in Levittown, New York, for the past 28 years. Dennis is an avid semiprofessional photographer. Dennis has been a dedicated volunteer for the Diabetes Research Institute for the past 30 years. 9THE IMAE BUSINESS & ACADEMIC ERP IMPLEMENTATION SERIES • GUIDE ONE table oF Contents Foreword 3 About the Authors 7 TABLE OF CONTENTS 9 Chapter 1—ERP/MRP/MPS 11 Chapter 2—Setting up a steering committee 19 Chapter 3—Training and Education 25 Chapter 4—KPI’s Current State of the Company Assessment 33 Chapter 5—Writing Procedures 39 Chapter 6—Assessing Data Integrity 45 Chapter 7—Ok, we did our assessment, now what? 51 Chapter 8—Creating a Project Plan 57 Chapter 9—Conference Room Pilot 61 Chapter 10—ERP Meetings 65 Chapter 11—Flowcharting your Current AND FUTURE State 69 Chapter 12—What Could Possibly Go Wrong? 77 Chapter 13—Solutions: System Parameters and Variables 85 Chapter 14—Summary and Path of Continuous Improvement Outline 93 References 107 Glossary 109 Figures and Tables 123 11THE IMAE BUSINESS & ACADEMIC ERP IMPLEMENTATION SERIES • GUIDE ONE CHapter 1 erp/mrp/mps OVERVIEW: SYSTEM SETUP (SYSTEM VARIABLES OR PARAMETERS) Before we get into some detail on important inputs to your ERP system it is vital we speak a little bit concerning setup. All systems have, what is known as, Parameters or System Vari- ables that need to be reviewed and set based on your business model. There can be as many as 60 to 100 or more of these system variables and it is critical to understand their influence on ERP output. Some will be as simple as setting up your calendar and defining whether or not you will be func- tioning in calendar days or business days. Others, more complicated, will ask if you want the system to generate planned orders when a demand exists or to first recommend a reschedule of an existing order if one exists. You will need to speak to the software provider and get a list of these variables, understand their impact to system output and decide how best to set them. This needs to be done with the input of the entire steering committee. (Chapter 2) The variables are often process related and will pertain to one or more aspects of the overall ERP process. The entire ERP implementation budget requirements must be considered for evaluation and approval. Enterprise Resource Planning or ERP is the most recent evolution of the original Material Requirements Planning or MRP. Material Requirement Planning sought to fulfill a fundamental need and that is to be- come more effective and efficient in managing material flow. At its core, it is meant to manage the time phased receipt of material based on actual or forecasted demand. In its simplest form, the time phasing of material receipts is determined by the specific build requirements for the end item. This is the sequential chain of events that is required to take a group of individual parts and put them together to create the item that is sold to the customer. This time phasing is a function of the end items Product structure. The product structure represents a bottom up build from individual part numbers through sub assembly build to final assembly. Final assemblies and sub-assemblies are made up of either purchased parts or make items that are assembled or manufactured in house or a combination of the two. The respective