Problems Of ERP Implementation And Necessary Actions
What are the benefits or problems of ERP implementation? When a company becomes bigger, management of the company needs some strategic information for strategic decision making. Contemporary database, if not well designed or developed, cannot provide them with sufficient information for those decisions. ERP (Enterprise Resource Planning) systems have solved this information need.
It presents numerous fact and figures for the management for its strategic decision making. But, ERP systems, if not well thought at the time of its development, can produce more problems than to ease the pain of the management. There are many problems of ERP implementation.
I think the management should assess and evaluate of its existing system before going for a new system as there are many predicaments or problems of ERP implementation process. Both risks and rewards are present there. In the light of Oracle EBS R12.1, I will suggest the implementing management in few areas before it goes for ERP Systems or ease the problems of ERP implementation.
I will describe step by step but first I want to say about the three important Data Masters. Data Masters many be Supplier related, Item related, Operation or Process related, Price list related, Assets related, Human Resources related.
- Item Master: Item Master is one of the key areas. All items should be properly organized in terms of Inventory organization, Item code, Item Name, Description, Pack size, Unit of measurement, conversion factors etc. If Item Master is faulty by any property of the item, entire supply chain module and Process management and costing will be in danger. No operations will be run smoothly. On day 1 itself, the project will be in threat.
- Assets Master: Evaluate your existing assets (including machines) register and arrange all the assets org, location, and cost center-wise with unique ID and at cost. Because, OPM production, Costing and other dependent modules will go wrong, if otherwise.
- Payroll: Arrange all human resources org, location, and cost center-wise with unique ID. Because, Costing and other dependent modules will go wrong, if otherwise.