Page 56 - MetalForming August 2014

Guidelines for Navigating the ERP Terrain
Tackling Change Management
Implementing or upgrading an ERP system represents a good opportunity for a manufacturer to create lasting business change within the organization. That’s why ERP change management is so important. Defined as “a structured and formal approach to change within an organization,” the goal:
Optimize business benefits and reduce the risk that comes with an ERP-system upgrade or change.
To tackle change management, begin by thinking about ERP as more than the infor- mation-system end game or final destination. Rather, consider the ERP system as the means to an end--the tool to enable improved business performance. Place the empha- sis on leveraging modern technology to streamline operations and to improve employee productivity and business performance, reflected in improved profitability.
Key steps along the way to effective change management include organizing a cross-functional ERP selection team, to help gain internal consensus and participa- tion. Success requires engaged commitment from the shop floor, shipping, account- ing, the front office, inventory, quality, production and every other department within the company.
Finally, ensure that the ERP project gains sponsorship within the entire enterprise. We see direct correlation between the involvement of a CEO or other executive sponsor and the overall success of the ERP project. The more involved the sponsor, the better the chance of ERP success.
Look for industry expertise. Com- panies should align with an ERP vendor with proven success in your industry. Make sure the vendor addresses critical issues, including regulatory mandates, customer requirements and other key considerations.
Ask for recent references and a prod- uct direction statement that explains how they plan to be the leader in that industry. Short-list the vendors who can most easily accommodate a com- pany’s distinctive processes and look for a flexible solution that fits with existing systems. It makes no business sense to force-fit an ERP solution to a specific industry.
Consider ease of use and screen- layout design. The system should be easy to learn, navigate and use, with an intuitive look and feel.
Successful ERP implementations require user acceptance, and we’ve found that easy-to-use screens, com- mands and reports all help users adapt to and accept a new system. Look for
simplified screens and data displays that shop-floor workers will find intu- itive, enabling them to quickly get up and running.
Evaluate Business Intelligence fea- tures. To turn information into knowl-
edge, seek systems that offer BI fea- tures that help users take action, put- ting relevant data in the hands of those able to make improved business deci- sions. For example, look for features that make data actionable by visually
LEAN PRACTICES, REAL RETURNS:
The ROI of Global Shop Solutions ERP
| Improved Labor
With Global Shop ERP, companies experience labor cost reductions of up to 25% while also shortening delivery times and improving quality.
| Smarter Purchasing
Our ERP’s Automated Purchasing feature can cut
expenses per item purchased by up to 5%.
| Inventory Control
Save time and money by reducing the need for manual inventory counts, and improve accuracy by automating inventory managment.
| Better Cost Accounting
Accurate, efficient, real-time cost measurement
can help you secure jobs through more effective bidding.
54 MetalForming/August 2014
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