1st Edition

Directing the ERP Implementation
A Best Practice Guide to Avoiding Program Failure Traps While Tuning System Performance




ISBN 9781482248418
Published April 2, 2015 by CRC Press
380 Pages - 137 B/W Illustrations

USD $105.00

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Book Description

Although many books outline approaches for successful ERP implementations, the data shows that most ERP efforts yield minimal return on investment (ROI), with most projects failing. Directing the ERP Implementation: A Best Practice Guide to Avoiding Program Failure Traps While Tuning System Performance supplies best practices along with a proven roadmap for improving the odds of system implementation success.

By adhering to the time-tested framework outlined in the book, your organization will be able to commit to the precepts and practices that lead to successful implementations. Supplying an innovative and fast-track, yet comprehensive, approach to ERP implementation success, the book provides practical guidance to help executive leadership do the right things along the ERP journey.

  • Explains how to engineer a project plan, generate requirements, and obtain a results-oriented commitment
  • Details the practical deployment framework essential for success and includes a variety of tools to position an organization for success
  • Describes how to ensure proactive involvement by the project team, executive sponsors, stakeholders, and working-level systems champions

Highlighting the essential planning ingredients that are frequently omitted from ERP implementation start-ups, the book provides readers with the planning framework and proven foundational methods and principles to ensure smooth planning and systems deployment, product quality, and maximum ROI.

The book covers everything from software selection and integration to common snags, traps, and black holes. Best practice tool sets include proven methods such as information workmanship standard, which defines quality; conference room piloting, which assists in matching teams to objectives seamlessly; education, training, and implementation framework, which addresses preparing the operating production environment; and project monitoring and deployment, covering project and risk management.

Table of Contents

PLANNING AND PREPARING FOR ENTERPRISE RESOURCE PLANNING SUCCESS

Creating a Project Plan
Planning Roadmap of Deliverables
     High-Level Acceptance Criteria (Accept1) 
     End-Point System Expected Results (ToBeResult2) 
     Rules of Engagement (RulesOfEngage3) 
     Risk Management Plan (RiskMgmt4) 
     Quality Assurance Plan (QA5) 
     Requirements Management Plan (RqmtsMgmt6) 
     Configuration Management Plan (CM7) 
     Training Plan (TrainingPln8) 
     Collaboration Coordination Plan (CollabCoord9) 
     Project Health Reporting Plan (ProjHealth10)
     User/System Documentation Plan (UserDoc11) 
     Knowledge Transfer Plan (KT12) 
     Communication Plan (Comm13) 
     Plan for Reviews (Toll Gates) and Walkthroughs (TollGate14) 
     Contractor Agreement Management Plan (CAM15) 
     Test Strategy (Testing16) 
     Business Information Assurance Plans (BIA17) 
          Information Systems Continuity Plan 
          Fault-Tolerant Plan 
     Software Implementation Strategy (SWImple18)
SoW—Managing Expectations through Project Life Cycle
Managing Change
Risk Management 
     Risk Management Strategy 
     Sample Risk Management Log, Mitigation Plan, Contingency Plan, and Risk Action Plan

Requirements Generation
Requirements Source
Requirements Generation Life Cycle
Attributes of Requirements
Process Engineering
Traceability Matrix
     Requirements Documentation
A Final Comment about Requirements Generation

Senior Leadership Collaboration Workshop
Rules of Engagement 
     Project Rules of Engagement
High-Level Review of Requirements
Visionary Functionality 
     Projected Future Variance 
     Cost-of-Change Analysis
     Triggers, Drill-Downs, and Simulations/Projections
Align Requirements Traceability to Committed Expected Results and Assign Accountability and Timetable for Achieving Results
Agree upon Measurement Scorecard

SECTION I WRAP-UP

SECTION II FOUNDATIONAL PRINCIPLES, TOOLS, AND STANDARDS

The Information Workmanship Standard
Definition of an IWS
Criteria for an IWS
Performance Measurements for Transactions, Documents, and Files
Job Functions Require an IWS 
     Documents 
     Return-to-Vendor Credit Document 
          RTV Credit Document Certification
Data Accuracy
End-to-End Process
Performance Goals and Objectives
Performance Accountability
Managing Performance Expectations
Certification
Systems Champions
Conclusion

The Conference Room Pilot
Definition of a CRP 
     Test Data Elements and Their Relationships 
     Educate and Train Users 
     Validate Policies 
     Test User Operating Procedures 
     Test Issue Resolutions 
          Alternative 1 Danger: Change the Current Operating System 
          Alternative 2 Danger: Change the Proposed System 
          Alternative 3 Danger: Defer Capability to a Later Implementation Phase 
      Try Something New Out for the First Time
Structuring the CRP
Deliverables Resulting from an Effective CRP 
     Statements of Issue Resolution 
     Functional Specification Input Document 
     Validation of Policies and Procedures 
     Software Application Certification 
     Enhancement Shakedown 
     Training prior to Cutover
General Points of Awareness
Conclusion

Education, Training, and Implementation Framework
Structuring an Education and Training Program 
     Perspective 
     Commitment 
     Setting Goals 
     Achieving Quality Education
     Planning for New ERP System Education 
          The Field 
          The What 
          How 
          Timing 
          Location 
     Achieving Overall Program Efficiency 
          The Education Coordinator 
          Selecting Instructors 
          Preparing Instructors 
          Preparing Students 
          Debriefing and Student Evaluation 
          Course Preparation
     Instructional Methods 
          Lecture 
          Demonstration 
          Discussions 
          Independent Study 
          Lesson 
     Ongoing Education
Implementation Framework 
      Overview 
          Project Planning and Control 
          Project Budget 
          Education Plan 
          Implementation Audits 
          Implementation Success Factors 
          Implementation Plan

SECTION II WRAP-UP

SECTION III PROJECT MONITORING AND DEPLOYMENT

Project Management
Visionary
Innovative
Flexible
Ingenuity
Agile
Exceptional Throughput
Nimble
Project Framework 
     Project Plan 
     Documenting AS IS 
     Project Schedule

Process Performance Management
Definition of Process Performance Management
Criteria for PPM
Job Functions Require a PPM 
     Data Accountability 
     Data Accuracy 
     Best Process Characteristics
Performance Goals and Objectives
Performance Measurements for Optimal "In-the-Trenches" Results
Performance Accountability
Managing Performance Expectations
Process Performance Measurement
Retooling Information Resource Management
Organizational Perspective
Parochial Performance Objectives
A Better Perspective—Value Streaming 
     Activities That Do Not Add Value and Lengthen the Process Time 
     Activities That Do Not Add Value but Perform Control Reviews 
     Activities That Add Value and Are Essential to Ensure Timely Customer Fulfillment
Refining, Streamlining, and Reducing Cycle Time 
     Refinement 
     Streamlining 
     Reduced Cycle Time
The "Vision" of the Business Process
Dreaming a Bit 
     Bringing Down the Job Description Walls
How Can a Radical Visionary Begin the Process?
Piloting Change 
     Hierarchical Structures 
     Productivity Incentive 
     Performance Measurements
Future Orientation 
     Lack of Leadership 
     Waste Management
     Intellectual Energy Conservation 
     Agility Deployment
Developing Action Plans That Deliver Effective and Orderly Change
Prioritizing 
     Attributes of Effective Action Plans 
          Ownership 
          Flexibility 
          Simplicity 
          Service 
          Responsiveness 
          Cost
Emerging Natural Work Teams
Natural Work Teams 
     Consultive Review of Process (Independent Observation)
     Consultation with Natural Work Team Downstream Nested Internal Customer 
     Daily Consultation with Internal Customer Users 
     Debrief with Functional Systems Champion
Process-Based Performance Measurements
Process-Based Performance Management
Performance-Based Compensation
Committing to the Journey

Snags, Traps, and Black Holes
Software 
     Strategic Concerns 
     Modifications 
     Interfaces and Integrations 
     Customizations
Hardware 
     Business Interruption 
     Backup and Recovery 
     Storage 
     History Retention
Database
     Database Sizing and Space Allocation 
     Performance Benchmarking and Tuning
Business Process 
     The Big Package Deal 
     Lack of Ownership 
     Cross-Functional, Matrix Management, and Stalls
Managing Third-Party Relations and SoW
Portfolio Management 
     Project Management 
     ERP Performance Management 
     Timely Decision Management
Data Accuracy
Resource Commitment Breaches
ERP for the First Time
Miscellaneous
CSFs while Approaching GO LIVE
Stabilization
System Tuning
ROI Tracking

Conclusion
Appendix of Terms
Term Definition

SECTION III WRAP-UP

Appendix A (Chapter 1)
Communication Plan 
     Communication Strategy 
     Purpose 
     Objectives 
     Format 
     Communication Principles
Sample Risk Management Log, Mitigation Strategy, and Contingency Plan
Sample Risk Action Plan

Appendix B (Chapter 4)
Sample Job Function Information Workmanship Standard
     Receiving Associate 
          Background 
     Information Workmanship Standard 
          Receiving Memo 
          Material Transfer (Dock-to-Stock) 
          RTV Shipping Document (RTV Credit) 
          Receipts-in-Process Locator 
     General Accuracy Guideline 
     Departmental Certification 
     Recertification
Sample Department IWS 
     Material Management Department 
          Background 
     Information Workmanship Standard 
     Certification
Sample IWS Written Exam

Appendix C (Chapter 5)
Sample Education and Training Matrices 
     Organizational Function versus Business Process Matrix 
     Individual by Transaction/Feature Matrix 
     Transaction/Feature by Session Matrix
Example of a Conference Room Pilot 
     Overview 
     Session Deliverables 
     CBS Conference Room Pilot Guidelines 
     CBS CRP Scenarios

Appendix D (Chapter 6)
Education Matrix Forms 
     Organizational Function versus Business Process Matrix
Procedures Training and Education Planning Matrices
Developing Objectives and System Measures
Cutover Checklist for a Formal ERP System
Start-Up Final Checklist
ERP Implementation Guide 
     Introduction 
     Overview of a Successful ERP Project
General Considerations for Systems Design
Maximize the Benefits from Using the Checklist
Module Checklist 
          Item and Product Structure 
          Inventory 
          Forms 
          Purchasing 
          Sales Order Entry
          Master Scheduling
          Work Orders 
          Work Center/Router
          Material Requirements Planning 
          Cost Accounting 
          Outside Processing 
          Purchase Requisition 
          Vendor Supplied Material 
          Tooling Control 
          Product Change/New Product 
          Example of a Module Checklist 
          "Blank" Module Checklist Form
Sample Questions Asked When Reviewing Operational Documents for Procedural Impact
Questions for Review When Formalizing a Cost Accounting System

Appendix E (Chapter 7)
Project Core Team Members’ Roles and Responsibility Matrix (RACI)
Sample High-Level Project Schedule
Sample Requirements Tracking 
     Completed by Phase 
     Completed by Team
Sample Integrated Data Environment Report Diagram
Sample Data Mapping Form
Sample Milestone Progress Report

Appendix F (Chapter 9)
Overarching Goal of Project Success

Index

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Author(s)

Biography

Michael W. Pelphrey obtained his BA in business administration from California State University, Fullerton, California, and his MS in finance from West Coast University, Los Angeles, California. He has over 30 years of experience with a broad and varied background in the ERP marketplace. Not only has he been a user of ERP solutions, but he was also a director of technical and business consultants at Comserv, a leading ERP software company located in Stuart, Florida; an ERP project manager; an ERP business architect; and a partner at BDO Seidman, an accounting and consulting practice. Functionally, he was the president/CEO of a mid-market just-in-time manufacturing firm with nine divisions spread across the United States.

Throughout his career, he has supported, in varying degrees, over 300 ERP projects for Fortune 500 companies as well as mid-market and small businesses. As an executive and business architect, he was highly successful at driving dynamic gains in revenue and profit and market share in small to Fortune 500 arenas. As an expert in IT Program Management, he focused upon cost/schedule deliverables, customer service, and collaborative team proficiency. In addition, he was awarded IT Employee of the Year for Operational Performance (Fortune 100 Company).

He has been a frequent article contributor and speaker at the American Production and Inventory Control Society, the American Society for Quality Control, and the Society of Manufacturing Engineers.

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