Directing the ERP Implementation

xxiii

Executive Summary

Too many ERP implementations fail. is does not have to be the case. ere is a plethora of

publications that discuss approaches to successful ERP implementation eorts, yet facts prevail that

the signicant investment in ERP has yielded small, if any, ROI. And many projects outright fail.

ere are a variety of reasons that companies miss the mark, not the least of which include the

following:

◾ Unrealistic expectations

◾ Lack of clarity of vision associated with ERP goals and objectives

◾ Lack of addressing process changes essential for project success

◾ Inadequate key performance indicators

◾ Lack of up-front commitment by senior management to detail specic expected results, for

example, don’t just say reduce inventory, but rather commit to a 40% reduction in inventory

◾ Lack of strict adherence to a best practice implementation methodology

◾ Inadequate system requirements denition

◾ Inadequate project system engineering

e purpose of this book is to provide a proven roadmap that gives the ERP implementation a best

practice process to improve the odds of system implementation success.

is book discusses essential planning ingredients that are frequently omitted from the ERP

implementation start-up. Without a solid planning framework, and meaningful and rigorous

expected results, the project monitoring and execution process tends to result in accid results.

is includes the need to engineer comprehensive requirements, which may be chained through

all phases of the ERP implementation steps. Early on, end-point system expected results need to

be clearly dened and results may be monitored throughout the implementation.

Once an eective planning framework is engineered, the book will elaborate proven founda-

tional methods and principles that position the company for a successful implementation. is

is like tree roots building a structure, which not only supports tree growth but allows for factors

such as winds, oods, and other environmental impacts to maintain structural integrity of the

tree. An ERP implementation must include similar elements to help ensure structural integrity

of the entities, attributes, and relationships essential for sound business practices. ese principles

and practices include the IWS, comprehensive prototyping through multilevel CRP ights, and

education, training, and deployment of a best practice implementation framework.

e capstone, to the frameworks discussed to this point, focuses upon project monitoring and

ultimately realizes the project and business process performance that yields signicant ROI.

xxiv ◾ Executive Summary

Every ERP implementation project experiences multidimensional drivers and dynamics, which

inuence success or failure. Few companies are adept at weaving an alignment of resources and

engineered framework into their ERP project plan, their deliverables, their education and training

deployment, and other essential process changes, while balancing their culture and persistence to

achieve success.

Many of the best practices documented in this ERP implementation roadmap are applicable

as best business practices transferable outside ERP projects. For example, the Section 1.2 on SoW

may be used in the product engineering process to assist design engineers achieve their design

deliverables on time and within budget.

Section I

is initial phase relies upon the client engineered processes that set the stage for success and

includes the following:

◾ Creating a project plan that clearly describes the ERP implementation process that will be

followed

◾ Delineating the expected results pursued

◾ A roadmap exhibiting goals, objectives, and short-interval schedules that lead to their

attainment and including commitments from the operational resources for such deliv-

erables as exceptional delivery performance, inventory optimization, and signicant cost

reduction

◾ A creative approach to generating the requirements essential for ROI attainment. is pro-

cess spans the traditional bulleted features, functions, and capabilities pursued, as well as

generating narrative statements for the Pareto class A functionality expected. Breaking down

bullets into narratives tends to elicit the formulas and logic and complex methods that are

essential in a robust design standard. Other by-products of a comprehensive requirements

generation include the following:

− A framework for a comprehensive traceability matrix that may be tracked through all

the implementation phases—design through deployment

− e ability to highlight end-point triggers such as activity-based costing drivers and

other elements that are central in experiencing exceptional ROI

Chapter 1

◾ Planning roadmap of deliverables

◾ SoW—Managing expectations through project life cycle

◾ Managing change

Chapter 2

◾ e art of generating requirements

◾ Categorization of requirements

◾ Requirements generation life cycle

◾ Traceability matrix—integrity between project phases: design, prototyping, customization,

testing, piloting, and delivery