Large size companies anywhere in the world tend to have access to good IT talent which can carry out an ERP implementation in a planned and managed way. But the scenario for small and medium size companies is very different. First one needs to answer the question whether they need ERP or not. Most of the small size companies in the world do not need an ERP. They need Business Automation systems till they grow to a certain size.
Let us discuss the specific steps that I recommend one should take to implement ERP in SME.
- Work with account consultant to finalize Chart of Accounts first. Chart of accounts must ensure compliance with laws of the land. If this is not finalized then any changes to this results in having to change data which is error prone.
- Start next on Fixed Assets of the company. Get all existing FAs entered in the system using right depreciation schedule permitted by law. Provide customer with couple of reports that give them information they need to know that the information got entered properly.
- Once accounts are set up, start purchasing module implementation. Sub divide the implementation into multiple flows (e.g. Import, Local purchase etc..). Trying to implement complete purchasing cycle is treacherous due to the amount of activity that needs to be done. You want to select certain flows, get those delivered and then move to the next flows.
- After purchasing, next should be inventory. Once material management is addressed, major pain areas for most of the businesses in SMEs will be addressed. There are very few SMEs that struggle with managing sales. That is a goos problem that they know how to handle. Inventory implementation will include QA at the time of receipt, material rejection etc.
- Manufacturing should be handled last. This is for the simple reason that in the SME sector, there are very few companies who optimize Manufacturing while implementing ERP. In other words, there are no major gains to be had when one implements ERP for the first time. ERP in manufacturing starts showing results once the organization is used to ERP and data residing in ERP.
It is my belief that ERP implementations in SME will benefit greatly by using the basics of Agile methodology.
- Demonstrate the product
- Make list of changes to make. Get the list prioritized. Put non-critical items in the marking lot. Get critical items completed and demonstrate the product back to the key users.
- Once accepted, implement the module.
Above article is written due to the experience the consultant had in getting systems implemented. Hope this article allows successful implementation of many ERPs.
Let us discuss the specific steps that I recommend one should take to implement ERP in SME.
- Work with account consultant to finalize Chart of Accounts first. Chart of accounts must ensure compliance with laws of the land. If this is not finalized then any changes to this results in having to change data which is error prone.
- Start next on Fixed Assets of the company. Get all existing FAs entered in the system using right depreciation schedule permitted by law. Provide customer with couple of reports that give them information they need to know that the information got entered properly.
- Once accounts are set up, start purchasing module implementation. Sub divide the implementation into multiple flows (e.g. Import, Local purchase etc..). Trying to implement complete purchasing cycle is treacherous due to the amount of activity that needs to be done. You want to select certain flows, get those delivered and then move to the next flows.
- After purchasing, next should be inventory. Once material management is addressed, major pain areas for most of the businesses in SMEs will be addressed. There are very few SMEs that struggle with managing sales. That is a goos problem that they know how to handle. Inventory implementation will include QA at the time of receipt, material rejection etc.
- Manufacturing should be handled last. This is for the simple reason that in the SME sector, there are very few companies who optimize Manufacturing while implementing ERP. In other words, there are no major gains to be had when one implements ERP for the first time. ERP in manufacturing starts showing results once the organization is used to ERP and data residing in ERP.
It is my belief that ERP implementations in SME will benefit greatly by using the basics of Agile methodology.
- Demonstrate the product
- Make list of changes to make. Get the list prioritized. Put non-critical items in the marking lot. Get critical items completed and demonstrate the product back to the key users.
- Once accepted, implement the module.
Above article is written due to the experience the consultant had in getting systems implemented. Hope this article allows successful implementation of many ERPs.
Looking for SAP system, contact Alenu Group Today! at (65) 6884 5030
No comments:
Post a Comment