enterprise resource planning and csfs

Enterprise Resource Planning: Implementation Procedures

and Critical Success Factors

MA561: Seminar in Accounting Information Systems

PIKUL PRAKHONGKIT 1412353010

RUNGNAPA RUNGTANANRAK

1412353003

PUTSACHA AKSORNSOROT

1332353001

Why ERP? Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution

Why failed? ERP Module

implementation

procedures

success factors

software selection

ERP

Business process

reengineering

Project

management

Enterprise resource planning (ERP)

systems are highly complex

information systems. Many ERP

implementations have been classified

as failures because they did not

achieve predetermined corporate

goals.

Critical

Factors

ERP

Reduce

Costs

Shorten

times

Increasing

competition

Expanding

markets

Reliable

delivery

Supply

chain

Expand

Product

Why ERP? Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution

Why failed? ERP Module Critical

Factors

1960 1970 1980 1990

• Manufacturing process

• Inventory

• Production

• Material planning

MRP system

• Sales

• Production

MRP system

• Financial statement

MRP II system to be

expanded to incorporate

all resource planning for

the entire enterprise.

Why ERP? Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution

Why failed? ERP Module Critical

Factors

Sales and

Marketing

Order management

Pricing

Sales management

Sales planning

Operations

and Logistics

Inventory management

Materials management

Plant maintenance

Production planning

Project management

Purchasing

Quality management

Routing management

Shipping

Vender evaluation

Human Resources

Human-resource time accounting

Payroll

Personnel planning

Travel expense

Financials

Accounts Payable and Receivable

Asset Accounting

Cash management and forecasting

Cost-element and cost center accounting

Executive information system

Financial consolidation

Funds Management

General Ledger

Product-cost accounting

Profitability analysis

Profit-center accounting

Standard and period costing

Why ERP? Critical

Factors

Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution


Excellent

project

management

Critical factors for

successful ERP

implementation

ERP

Clear

understanding

of strategic goals

Commitment

by top

management

Organizational change management

A great

implementation

team Data

accuracy

Extensive education

and training

Focused

performance

measures

Multi-site

issues

Why ERP? Critical

Factors

Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution


13 SELECTION

PROCESS

5. Create the request for proposal (RFP)

1. Create the vision 2. Create a feature/function list

3. Create a software candidate list 4. Narrow the field to 4-6 serious candidates

6. Review the proposals

7. Select 2-3 finalists

8. Have the finalists demonstrate their packages

9. Select the winner

10. Justify the investment 11. Negotiate the contract

12.Run a pre-implementation pilot 13. Validate the justification

Why ERP? Critical

Factors

Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution


1 2 5

6

7 8 9 10 11

3 4 Train on the conference room pilot

Security and permissions

Implementation steps

Why ERP? Critical

Factors

Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution


77% 75% 73%

Reasons

Why implementation 3

Poor Planning Change Business Goals

during the project

Lack of Business

Management Support

Why ERP? Critical

Factors

Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution


10 The Reasons why ERP Implementation Failed

Strategic goals are

not clearly defined Top Management is not

committed to the system

Implementation project

management is poor

Organization is not

committed to change

Implementation

team

Training user are

unable to satisfactorily

Data accuracy

is not ensured

Performance

measures

Multi-site issue are

not properly resolved

Technical difficulties

“bugs”

Why ERP? Software

Selection

ERP

Steps

Case study

Huck Inter., Inc.

Abstract ERP

Evolution


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enterprise resource planning and csfs

Technology