APICS Guidelines for ERP- Preface and Purpose
Implementation of an Enterprise Resource Planning (ERP) system is a major corporate project that must have a clear vision, well defined objectives and must have a predetermined reasonable rate of return on the investment. i.e.: The rate of return can be measured by the improvement in net income.
Studies are revealing. The majority of ERP implementations are failing to achieve the anticipated return on investment. According to Carol Ptak, past President of APICS, approximately 60 to 90 percent of companies implementing ERP systems fail to meet their ROI objectives.
The primary reason for such a high failure rate is not due to a lack of good ERP software, but rather to a lack of education regarding this rapidly evolving technology. Most manufacturing companies still do not fully appreciate the potential or the complexity of ERP systems.
Prior to computerized resource planning tools, manufacturing companies grew and prospered without the help of this technology. However, the competitive advantage offered by a properly implemented ERP system is so significant that companies who do not take advantage of this technology may have difficulty competing in the future.
Companies that are just getting started with ERP tend to believe that ERP software will automatically provide an ERP system. But the reality is that ERP software is just the toolset used to automate the processes that are part of a company’s ERP system.
An ERP system can best be defined as ‘the chain of integrated processes that form the business operations of a company, and when properly planned and executed, will maximize the company’s productivity and profitability.’
Managers within manufacturing companies need to understand supply chain principles well enough to define which ERP processes are useful relative to their specific marketing and manufacturing environments. Only then can an effective ERP Blueprint be developed.
It is extremely important to remember that ERP software is not the ERP solution. It is, however, an important tool used to automate many of the ERP processes defined in an ERP Blueprint.
A whitepaper/workbook is being developed based on APICS, proposing guidelines for defining and operating your ERP systems. The workbook is not specific to any specific ERP software package. As is known about our company, we are SYSPRO ERP champions. That being said, this document is ERP agnostic to enable better understanding, value and payback of your ERP experiences.
Most ERP software packages adhere to these APICS guidelines, although some may have a stronger orientation to a specific industry (vertical solutions).
Workshops using this workbook approach provide:
- Senior and middle management with a basic understanding of ERP so they can define realistic ERP objectives, accurately estimate the resources required for their ERP project, and determine how the return on investment will be measured.
- Education for middle management in the fundamentals of ERP so they can participate in developing a detailed ERP Blueprint.
- Operators with training on specific ERP work processes so they can properly perform their functions within the system.
Workshops can be used as the launching pad for a new ERP project, or they can be used to provide supplemental education to companies currently in the process of implementing an ERP system.
The mission is helping manufacturing companies increase productivity, efficiencies and profitability through ERP education and implementation.
The methodology used to achieve successful ERP results is built on our direct experience planning, installing, implementing and supporting MRP and ERP systems for manufacturing companies and SYSPRO STARS.
If your company is interested in improving profitability by implementing a fully integrated ERP system avoiding costly pitfalls, we can probably help. Simply contact us for an introductory meeting.
(Note: The workbook: EnterpriseWise™ Guidelines for ERP is targeted to be available in February 2013. Please check back frequently.)
Enterprise Mobility, a low-cost platform for integration known as BYOD, enhances and extends your ERP experience. What types of mobility devices are used in your organization to access your ERP? BYOD devices (Consumer devices are usually defined as a device acquired directly from a mobile service/cell provider and has no special sealing or drop resistance. Rugged devices typically are sealed against rain and dust, along with special design to resist a drop of 3 to 6 feet to concrete)
- Warehouse employees
- Management – middle and “C” level
- Sales and Marketing
- Manufacturing Operations
- Field Service
- Maintenance technicians
- Quality control
These questions are but a few in the Complete Enterprise (ERP) Self Assessment which includes over 300 questions. You can download the complete ERP self assessment here: