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12 Tips for successful implementation of ERP in a Manufacturing Company

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<strong>12</strong> TIPS FOR SUCCESSFUL<br />

<strong>ERP</strong>/MRP IMPLEMENTATION IN<br />

A MANUFACTURING COMPANY


1. COMPANY SIZE MATTERS<br />

Not every company is ready to implement an <strong>ERP</strong>/MRP system anytime.<br />

This is especially true <strong>for</strong> micro-companies (up to 10 employees). Such<br />

companies may not have enough resources and competence <strong>for</strong> the <strong>ERP</strong>/MRP<br />

system <strong>in</strong>stallation and operation.<br />

Also, the outcome <strong>of</strong> us<strong>in</strong>g an <strong>ERP</strong> s<strong>of</strong>tware <strong>in</strong> such company can be less than<br />

expected.


2. AVOID MICROTASKING<br />

<strong>ERP</strong>/MRP system is <strong>in</strong>tended to solve major problems associated with<br />

manufactur<strong>in</strong>g, so try to identify important tasks, s<strong>in</strong>ce they will have the most<br />

impact while focus<strong>in</strong>g on micro-automation will lead to more complexity <strong>of</strong> the<br />

<strong>implementation</strong> project.<br />

Set a limited number <strong>of</strong> major <strong>implementation</strong> project goals which should be<br />

closely related to the bus<strong>in</strong>ess processes and problems that you want to solve.<br />

Don’t waste time and energy on tasks which look nice, but have a small impact.<br />

Goals should relate to the bus<strong>in</strong>ess, rather than automation itself.


3. ALLOCATE ENOUGH RESOURCES<br />

The <strong>ERP</strong>/MRP system <strong>implementation</strong> process is a one-time, but quite a big<br />

project, so allocate resources accord<strong>in</strong>gly.<br />

Set a project manager <strong>for</strong> the <strong>implementation</strong> process with enough time<br />

resources, as well as with experience <strong>in</strong> <strong>ERP</strong>/MRP s<strong>of</strong>tware.<br />

All heads <strong>of</strong> departments that will use the system should be <strong>in</strong>cluded <strong>in</strong> the<br />

<strong>implementation</strong> project team.


4. <strong>ERP</strong> IMPLEMENTATION STEP BY STEP<br />

Depend<strong>in</strong>g on your company’s size and structure, you can implement the<br />

system by module, by functionality and by personnel, <strong>for</strong> example.<br />

Example:<br />

In the beg<strong>in</strong>n<strong>in</strong>g the managers report about f<strong>in</strong>ished manufactur<strong>in</strong>g orders on<br />

their own be<strong>for</strong>e pass<strong>in</strong>g this function to l<strong>in</strong>e workers.


5. DATA CLASSIFICATION<br />

Th<strong>in</strong>k over data classification and categorization.<br />

Create logical product groups.<br />

It is near impossible to change data classification after <strong>in</strong>stallation.


6. KEEP TESTING &<br />

IMPLEMENTATION APART<br />

Have a clear understand<strong>in</strong>g – are you test<strong>in</strong>g, or implement<strong>in</strong>g the <strong>ERP</strong> with<br />

real data already.<br />

Us<strong>in</strong>g real data dur<strong>in</strong>g the test<strong>in</strong>g period will make the process overcomplicated.<br />

Clean<strong>in</strong>g the database if the data are mixed with test data might be<br />

problematic.


7. CUSTOMIZATION IS NOT THE<br />

ONLY WAY<br />

It is practically impossible to f<strong>in</strong>d an <strong>ERP</strong> solution that would suit all the<br />

needs and align perfectly with your exist<strong>in</strong>g bus<strong>in</strong>ess processes and<br />

documents. In most cases you have to adapt or customize.<br />

Though customization might seem as the simplest solution, on practice<br />

adapt<strong>in</strong>g your bus<strong>in</strong>ess processes could be more effective, and may deliver<br />

better results <strong>in</strong> the long-run.


8. KEEP ALL FUTURE USERS<br />

INFORMED ABOUT PROJECT GOALS<br />

AND SCHEDULE<br />

Make sure that all the users that will be <strong>in</strong>teract<strong>in</strong>g with the <strong>ERP</strong> system<br />

have a clear understand<strong>in</strong>g <strong>of</strong> <strong>implementation</strong> goals and schedule.<br />

This means that one general meet<strong>in</strong>g <strong>in</strong> the beg<strong>in</strong>n<strong>in</strong>g <strong>of</strong> <strong>implementation</strong><br />

should be held with periodic communication to follow.


9. USERS MUST BE TRAINED<br />

Every person <strong>in</strong>teract<strong>in</strong>g with the <strong>ERP</strong> s<strong>of</strong>tware should be aware <strong>of</strong> what<br />

one is do<strong>in</strong>g. Usually the first one or two tra<strong>in</strong>ed users pass the knowledge<br />

to others.<br />

Another option would be s<strong>of</strong>tware vendor’s tra<strong>in</strong><strong>in</strong>gs.


10. EXPERIENCE WITH <strong>ERP</strong>/MRP<br />

SYSTEMS HELPS<br />

The <strong>implementation</strong> project team leader should have prior experience with<br />

us<strong>in</strong>g and/or implement<strong>in</strong>g <strong>ERP</strong> systems <strong>in</strong> your specific <strong>in</strong>dustry.<br />

If you don’t have such a person, then it is good to f<strong>in</strong>d a partner consult<strong>in</strong>g<br />

company with such experience.


11. NO RUSH – TEST & TEST AGAIN<br />

Test <strong>in</strong>tensively prior to start us<strong>in</strong>g an <strong>ERP</strong> system <strong>in</strong> production mode.<br />

It is much easier to fix errors dur<strong>in</strong>g the test<strong>in</strong>g period than dur<strong>in</strong>g operat<strong>in</strong>g<br />

with real data.


<strong>12</strong>. KEEP OLD SYSTEM FOR A WHILE<br />

It is better to use the old system <strong>in</strong> parallel with the new one <strong>for</strong> at least 1-2<br />

months after hav<strong>in</strong>g implemented the new <strong>ERP</strong> s<strong>of</strong>tware.<br />

This helps to make sure that the new solution has been configured and is<br />

be<strong>in</strong>g used properly, <strong>for</strong> example the reports <strong>in</strong> old and new systems are<br />

identical.<br />

Also, <strong>in</strong> case <strong>of</strong> major issues with the new system you will be able to roll<br />

back to the old.<br />

Hope this helps! Let us know if you have any questions.


MRPEasy Cloud <strong>ERP</strong>/MRP Solution<br />

• Production plann<strong>in</strong>g and report<strong>in</strong>g<br />

• Supply cha<strong>in</strong> management<br />

• Stock management<br />

• CRM<br />

• Managerial statistics, bus<strong>in</strong>ess <strong>in</strong>telligence<br />

• Integration with onl<strong>in</strong>e account<strong>in</strong>g solutions<br />

Easy to deploy and use! Visit us @ www.mrpeasy.com

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