Recently, there are more articles about ERP on the industry, which indicates that domestic companies are constantly enhanced by ERP, and ERP's application will face a new climax. However, in a certain industry meeting earlier this year, he passed a conclusion that the industry shocked: "China has invested 8 billion in Erp (Enterprise Resource Planning) or computer management system in the past 20 years. Renminbi, but there is no family success. "Many of the articles about ERP have quoted this statement directly, which directly affects many companies' views on ERP. It is necessary to make a clarification here.
First, what is the standard of success
Everyone reads a lot of articles on the discussion of the success rate of the ERP system, but most people may not know what the standard of the success of the ERP system is just what is the transcription of people. How to determine if it is successful? It is usually used to determine whether the ABCD level to determine whether the ABCD level thereof is determined to be successful. The following aspects are required:
1. Whether to fully use the functions of the system.
2. Do not fully integrate financial systems and production systems.
3. Does the senior management of the enterprise use the system to handle various services.
4. Work coordination between various departments and personnel according to the plan and control requirements.
5. Whether it has achieved obvious economic benefits.
We believe that A and B is successful, and these companies have basically achieved more than one. For example, the state-owned large enterprise Yizheng Bicyclic Piston Co., Ltd. decreased 11 million yuan in product stocks, and the purchase costs have dropped more than 10 million yuan, and it should be reduced by more than 20 million yuan. Class C and D level are unsuccessful. The systems of these companies use only partial functions of the system, usually only for statistical aspects; only the managers below the intermediate level use the system, basically no economic benefits. However, Class C and D users may have spend the same money as the A-level users. For example, a foreign manufacturing company in East China has implemented the ERP system from 95 years, and the method of dispatting project managers and consultants in foreign headquarters. This year, when the company visited, only the small part of the financial module was used, and the production module was basically not used, and the management of the entire enterprise was manually managed. Is a typical D-class user.
According to the ABCD level, most domestic applications of ERP systems in China are C-class or D. This is the industry that is not willing to see and admit. why?
Second, the health of the system is changing
The industry does not believe that the success rate of the ERP system is very low, and many consultants involved in implementation also believe that most of them are success, but companies and some experts don't think so. Why? The two sides ignore a very important point: the health of the ERP system is changing in the business.
Many companies using the ERP system, in the implementation phase of external consultants, the progress of the project is relatively smooth. After several months of implementation, the system switching is officially running. At this time, the ERP software and consulting company, the consultant believes that the system has been implemented. This is why many ERP software and consulting companies believe that the success rate is not low.
Over time, the business and personnel of the company have changed, and the corresponding business process of the ERP system.
It should also be adjusted. But many companies did not do this, at this time, the system starts with the actual outset, and then this situation will intensify. After two or three years later, when we examine the operation status of the system, it will conclude the conclusion of failure.
The East China Manufacturing Enterprises mentioned above, the product species is relatively small in 1995, and the business is relatively simple, so it seems to be implemented. However, with the development of the company, it is now nearly 100 kinds of products, and the business is complicated before, but the application of the ERP system has not further deepened as the company's development. In the investigation, the newly added products and raw materials of the logistics coding and material lists and other data were not input. The reason is that the employees of the relevant departments do not know how to adjust the system to adapt to the business changes, this is not imagined because of the lack of training . The situation they encountered is like a driver in a place where you are unfamiliar, you don't need someone to teach how to drive, and someone needs someone to refer to. How to change this situation?
Third, establish an annual system evaluation system (BSR)
Why does the situation described earlier? This is because ERP is a management system. After the implementation is completed, it is often handed over to each business unit, but the business units do not know how to incorporate the enterprise management target into the system. For example, after enterprise has developed new sales and production targets, the material plan parameters of the system should be adjusted accordingly. The business department does not know how much should be changed even if you know how to modify the system's parameters. In the past, the results would like to know.
Enterprises should recognize that the implementation phase is not very successful, and the continuous improvement in the future operation is also one of the important factors that determine success or failure. Establish an effective annual system review system is a good way.
As mentioned earlier, the driver of the lost driver does not open the destination; the ERP system that is not combined with the management goals of the company, and does not play the benefits. The purpose of conducting annual system assessments is to make ERP more than just information collection and reporting systems, but becomes a valid management tool.
The annual system assessment should include the following parts:
1. Contact with the company's senior management, understand the management goals of the company. This is the hardest step. When visiting a foreign-funded accessories company, I saw that this year's management goals and completion are listed in the publicity column of the enterprise. There are inventory turnover rates> = 4, manufacturing costs fall by 10%, management cost savings 300K dollars, etc. And the completion of the condition is not completed. When you ask the employee how to help implement the enterprise management target, no one knows that the ERP system they have used for more than four years is a resource that can help them, nor does it know how to apply this resource.
2. Invite an external consultant to conduct system operation status assessments. System health assessment cannot be used to check how the functionality of existing systems is used, and what problems, etc. In combination with the management goals of the company, the system is checked by targeted. For example, the target is inventory turnover rate> = 4, then check the parameters such as order batch, safe inventory, etc. in the system, and the development and implementation of production and procurement procurement.
3. Develop a next action plan.
Since 1999, the company has begun to provide an annual system assessment service to its users, which is included in the annual service contract. Senior consultants combine the management objectives proposed by senior executives in the enterprise, fully detect the health of the four-shift ERP system, and give appropriate recommendations how to apply the system to implement their management goals. Through this service, many four-class system users have implemented how to effectively combine enterprise management objectives and ERP systems to ensure successful operation of the ERP system.
