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ERP system upgrade must be presented in front of higher management; learn the best way to deliver your case presentation.

There are numerous system for your business, and it makes it hard to choose which one is the perfect and needed by your company. Lots of company has lost million dollar by choosing the wrong systems, that’s why you need to stay informed about what causes new system to fail, and this will prevent your company from failure with your own system. In this article we are going to show you the most common reasons why new manufacturing systems fail after implementation. 

 

  1. A faulty inventory item numbering scheme It is pretty common for a company to have more than one supplier, and your system need to have this option, multiple supplier capabilities, if not then the worst case scenario is your company will have out of stock item but the truth is there are items from other supplier. Lastly, it is a good idea for the system to have a cross-reference between your internal part number and each supplier’s part number
  2. Insufficient control of content for bills of material. Try to restrict unqualified people from using certain critical functions of the software by increasing the security system. Sometimes in practice the bills of material has the right components in theory, but then people on the shop floor start to personalize as they assemble.
  3. Inaccurate inventory on hand. The advantages of having integrated system is to reduce redundancy in your company system. But it has a drawbacks that if your inventory is miscounted from the start, the error will repeat itself throughout your system. So, you have to check inventory manually and shut down the system to solve the error. It is a good idea to have a function of correcting stock counts without having to shut down the system.
  4. Lack of agreement between engineering and manufacturing. Having an agreement between engineering and manufacturing is essential to set the same goals how to get to the goals. It is important to have buy-in from these two departments, and you can consult with your consultant to develop a thorough implementation plan, so that each of the departments are aware of this.
  5. Unrealistic expectations of what the system will be able to accomplish. Spending money for your investment wisely is a good way to buy what you need. For example, you do not want to buy a Ferrari to go on off-road, or buy a Hummer to use it in a track race. So, buying the functionality that your company need from a system, but not the most expensive system but yet you do not use the functionality.
  6. Failure to determine the company’s needs in accounting, manufacturing, engineering and data collection. Try to get a report of what needed and goals from each departments, before you implement the system. This mandatory step is not to be skip, as you can go back to this step but it will be too late. So, consult and ask to be train by your consultant before you make any move.

If you are thinking of implementing ERP system to replace your old system, all the data that your company has accumulated has a substantial value. Data migration is very important because the program needs all the data from the past, to create an accurate projections and figures for the future. Though, lots of company do not understand this important stage of ERP implementation.

Migrating company’s data from the old system to ERP system is indeed very important for starting a whole new set of better data management to be used as useful informations. This is actually an essential early step for new commercial software adoption. Some companies might think that business will be starting with a new data and those old datas won’t have any use, and also some possibilities that the data might be corrupted or stored in an old fashioned way. 

Here are some tips of what kind of data and how to make it “usable” by your ERP system.

Selecting relevant information

The more data to migrate from the old system to your updated ERP might be useful. But you might want to select some information, cause some markers or figures might be only valuable to the old system, which is accepted by the ERP system. There is also a possibility of changes in how the company operates and changes in business plans, so these old data might be useless in modernized technology

Scheduling

Scheduling a task for migration is important so that we are prepared with clean data so it will have plenty of figures and factors to work with. This is often neglected as there are many factors and variables to consider when we managing an ERP implementation. 

Perform conversions

Some conversion on the data might need to be performed because it might have different structure between the old legacy system and recent ERP system. Your company should be growing rapidly that is why you need ERP to keep up with the information, and of course your unit measurements might have expanded for greater levels of details. 

Creating Archive

Even though not all the data could be migrated to the ERP system after the implementation, it might be useful to create archives just in case we need some reference. Also it may not be as useful for making projections and adjusting operations immediately but it is good to have some record for recurring problems.

 

If you have outdated ERP software, you might want to upgrade it to a newer version. But in order to do that, the timing is very important or else you might wreak havoc on their efficiency and productivity levels and it could cost you more than what you have budgeted. Thus this is not to be taken lightly, as it requires a lot of time, money and effort.

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