Maximizing Return on Investment Using ERP Applications

APPROACH TO THE ANALYSIS PROCESS

As a starting point, during the study, each of the analysis teams must compile a list of insights and/or decisions that have been made or recommended. These should, as much as possible, be expressed in clear terms such that the discovery and the effects are understood by the group. The entire group should first review these and agree that they are valid observations or modify them so that agreement is achieved.

It is worth noting that if the group decides to make any significant modifications to the observations/recommendations, these modifications/recommendations should be discussed with the original study group to ensure that any strong arguments for or against the changes are considered. As a comprehensive program is developed, it makes no sense that basic issues remain contentious at this point. Discussion points must include

1. A complete list of all recognized potential for Return on Investment. This includes the obvious cost areas, such as materials (inventory), manufacturing parameters (capacity, yield, and accuracy), headcount (both line workers and management), contract costs, and others. It should also include revenue-enhancing areas, such as increased sales, reduced returns, new products, and so on. Although costs are more easily quantified, it is also necessary to create estimates of contributions to profitability based on revenue-increasing actions. It is important that the study group include someone (or more than one person) who ...