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What are the risks before and after ERP implementation

ERP CHANGE MANAGEMENT

Activity

If you are new with this web log we request you to read preface first.

What are the risks before and after ERP implementation?

• The contractor cancels the contract or denies his liabilities.
  
• Managers or Process owners change during the implementation.
  
• The project exceeds the time limitation.
  
• The cost of the project exceeds the budget limit.
  
• The required infrastructure does not get ready by go live time.
  
• The servers get not ready in the right time.
  
• The power users do not follow up the system after it is live.
  
• The contractor or project team do not provide efficient support after go live.
  

 

What are the probable barriers and constraints for ERP implementation?

ERP CHANGE MANAGEMENT

Activity

If you are new with this web log we request you to read preface first.

What are the probable barriers and constraints for ERP implementation?

Change manager is to identify the list of probable barriers, which can be faced during the implementation before it gets started. For inventory business area, the most probable constraints can be listed as follows:

 

Many of the people working in this area are not so educated. Therefore, they are not capable to be trained with the new high technology system and use it.

Many of the users are not having the potential and capability of participating in the implementation process and following the changes in processes and practices. This is a serious issue when the users are mostly old and not fresh.

 

Change resistance is one of the most important stop points for any ERP implementation. This resistance can be due to different reasons, which must be identified by the change manager.

Some of the reasons are:

• The worries which users have about new system. We listed the worries in the previous section.
  
• The infrastructure required for smoothly using the ERP system is not available in the inventory locations.
•  This infrastructure refers to :
• Network infrastructure: Non-availability of network can postpone the actual use of the systems. This delay can cause the users to loose their interest and so the entire implementation will fail.
  
• Industrial Automation: ERP covers the automation layers 2,3,4 but not the layers 0,1. The low layers must be covered by industrial automation systems like PLCs, DCS, SCADA etc. Therefore, when these systems are not available it is very difficult to input data to ERP system and the users mostly cannot use it.
  
• Item coding structure is not there at all in the entire organization.
  
• Asset coding structure is not available at all.
  
• Some of the materials kept in warehouses and sub inventories are not measurable.  In the other words there are not measurement equipments for them. So transaction data for those items can not be captured in the system.
  

 

Change manager should plan to resolve the above barriers before the real implementation is started.