Important Questions and Answers: Implementation of Enterprise Resource Planning

ERP IMPLEMENTATION

1. What are the different phases of ERP implementation?

·        Pre-evaluation screening

·        Package evaluation

·        Project planning phase

·        Gap analysis

·        Reengineering

·        Configuration

·        Implementation team training

·        Testing

·        Going live

·        End user training

·        Post-implementation

2. What is gap analysis?

Gap analysis is the most crucial phase for the success of the ERP implementation. It is the process through which companies create a model of where they are now, an din which direction they want to head in the future.

3. What are the general four phases of an ERP implementation?

·        Understanding the problem

·        Defining solutions

·        Getting down to work

·        Going live

4. Give the hidden costs in ERP implementation?

·        Training

·        Integration and testing

·        Data conversion

·        Data analysis

·        ERP consultants

5. State the main members of an implementation team.

·        Executive committee

·        Project management team

·        Work team

·        Technical support team

·        Administrative support team

6. What are the skills the people who implement the ERP should possess?

·        Knowledge of how to organize and run a project of this magnitude

·        Enough experience in handling problems and issues that arise during the implementation

·        Good people skills and excellent training skills

·        Good leadership skills

7. Who are vendors and give their role?

Vendors are people who have invested huge amounts of time and effort in research and development to create packaged (ERP) solutions. The vendor should supply the product and its documentation as soon as the contract is signed and the vendor should impart training to its clients’.

8. Who are business consultants and specify their role?

·     Business consultants are professionals who specialize in developing techniques and methodologies for dealing with the implementation and with the various problems that will crop up during the implementation.

·     Consultants should guarantee the success of the project and should be able to satisfy the company management with its needs.

·     They should add value to the project.

9. State some key points of the contract with the vendor, which should be addressed.

·        Value of the software and conditions of payment

·        List of deliverables (software, documents etc.)

·        Cost of implementation training

·        Cost of end-user training

·        Annual maintenance fee

·        Warranty or guarantee terms

10.            State some key points of the contract with the consultant, which should be addressed.

·        Profile of the consultants’ team with the resume of each member

·        Consulting fee and payment details

·        Implementation methodology

·        Time schedule and the implementation budget

·        Terms and conditions of knowledge transfer and employee training

·        List of deliverables (reports, manuals, knowledge bases etc)

·        Project monitoring and status reporting systems

11.            What is a data warehouse?

A data warehouse is a database designed to support decision-making in an organization. It is updated batch-wise and is structured for fast online queries and summaries for managers. Data warehouses can contain enormous amounts of data.

12. What is data mining?

Data mining is the process of identifying valid, novel, potentially useful and ultimately comprehensible knowledge from databases that is used to make crucial business decisions.

13. Why is the pre-evaluation screening required?

There are hundreds of vendors claiming a solution that is ideal for your company. Analyzing these packages, though a time-consuming process would give a viable solution needed.

14. Define action plan.

A document used to guide the implementation of business process improvements. It contains tack assignments, schedules, resource allocations, assignments and evaluation criteria.

15. What is an activity?

A named process, function or task that occurs over time and has recognizable results. Activities use up assigned resources to produce products and services. Activities combine to form business processes.

Part B

1.     Briefly explain the evolution of the ERP system?

·        Strategically Alligned

·        Cost

·        Change Management

·        Match with Technology

·        Risk factor

·        Business Process

·        Practical Ability

·        Vendor selection

·        Flexibility

·        Benefit

2.     State the steps involved to select the ERP systems?

1.     Formation of objectives

2.     Formulate the list of process

3.     Evaluate the vendors

4.     Provide request for proposals

5.     Queries to the vendors

6.     Evaluate the proposals

7.     Choose two or three Finalists

8.     Demonstrate packages

9.     Finalize the winner

10.                      Validate the investment

3.     Briefly explain the different phases of ERP implementation process?

Many tools are available to help manage implementation projects. Process mapping,described previously, is perhaps the most critical. For an ERP implementation to go smoothly and provide value, it is critical that a company understand both its current processes and the desired state of the processes after implementation.

SAP provides Solution Manager, a set of tools and information that helps companies manage the implementation of SAP ERP. In Solution Manager, the ERP implementation project is presented in an Implementation Roadmap, consisting of the following five phases:

• Project Preparation (15 to 20 days)

• Business Blueprint (25 to 40 days)

• Realization (55 to 80 days)

• Final Preparation (35 to 55 days)

• Go Live and Support (20 to 24 days) Different phases of ERP implementation

·        Pre-evaluation screening

·        Package evaluation

·        Project planning phase

·        Gap analysis

·        Reengineering

·        Configuration

·        Implementation team training

·        Testing

·        Going live

·        End user training

·        Post-implementation

4. Write down the framework of ERP?

·        Infrastructure

·        IT Maturity

·        Business size

·        Management commitment

·        BPR Experience

·        Manufacturing Area

·        Management Commitment

·        Government policy and regional Environment

5. Give the hidden costs in ERP implementation?

·        Training

·        Integration and testing

·        Data conversion

·        Data analysis

·        ERP consultants

6. State some key points of the contract with the vendor, which should be addressed.

·        Value of the software and conditions of payment

·        List of deliverables (software, documents etc.)

·        Cost of implementation training

·        Cost of end-user training

·        Annual maintenance fee

·        Warranty or guarantee terms

7. What are the factors used for Successful ERP Implementation?

·        Involvement of Top Management

·        Product selection

·        Process management

·        Integeration

·        Reengineering

·        Implementation time

·        Implementation Costs

·        Training and education

·        Team composition