Since the word ERP was invented by Gartner Group in the United States, the media has spared no effort to promote ERP. People gradually realize that ERP, as an advanced management tool, is one of the most powerful weapons to help enterprises adapt to the modern competitive environment. However, the high failure rate of ERP implementation has become an open secret in the industry. Generally speaking, the failure rate of ERP implementation in the world has reached more than 70%, and about 50% of the projects give up halfway.
Since 198 1 Shenyang No.1 Machine Tool Works introduced the first set of MRP-II software, ERP has been popularized and applied in China for more than 20 years. The number and composition of ERP software service providers have made great progress: in terms of quantity, from the initial few to dozens now; In terms of composition, there are well-known foreign ERP service providers such as SAP and Oracle, as well as many domestic manufacturers represented by UFIDA and KASI. Domestic enterprises' understanding of ERP system has also gone through the development stage of never understanding, from doubt to recognition. With the vigorous promotion of many ERP suppliers and the urgent need of many enterprises to improve their management level, more and more enterprises have introduced ERP systems. So what is the application effect of ERP in enterprises? According to statistics, in all cases of ERP system application, there are three situations: 10%-20% successfully realized system integration on schedule and according to budget; 30% ~ 40% of them are not integrated or only partially integrated; But the failure accounts for 50%, and the successful cases are mostly foreign-funded enterprises. Therefore, there are too pessimistic statements such as "100% ERP failure rate" and "go to ERP to die, don't go to ERP to die".
Reasons for high failure rate of ERP
Why ERP has such a high failure rate, people began to analyze the reasons in order to find a good solution to this problem. In the ERP implementation system, it is generally believed that there are some problems in the demand side (customer), contractor (ERP service provider) and ERP project process: ERP suppliers have problems such as uneven level, poor quality and weak consulting ability, and enterprises that implement ERP also have problems such as insufficient preparation and insufficient understanding of ERP; there may be problems such as lack of detailed design and plan implementation in the ERP implementation process connecting customers and ERP service providers. If the hidden dangers in these three links are not solved in time, there will be conflicts in the implementation, which will eventually lead to the failure of the implementation. In the three links of ERP implementation system, the problems existing in the demand side (customer) and the contractor (ERP service provider) are problems in their own development process, and there are many influencing factors that cannot be solved in a short time; The last link-the implementation process of ERP-is the key to the success or failure of ERP projects at present. If this link is properly managed, it can effectively make up for the shortcomings of the first two links.
ERP implementation is a typical project, and the most fundamental purpose of project management is to ensure that the requirements of time, technology, funds and performance indicators are met. Complete the predetermined goal with the highest efficiency as far as possible to satisfy the stakeholders, so strict and complete project management process is the guarantee of its success.
Next, the author analyzes the problems existing in ERP implementation from the whole process of project life cycle. The so-called project life cycle refers to the different stages of the project development over time, which are specifically divided into: determining the demand; Propose solutions; There are four stages: executing the project and ending the project. Not all projects have to go through the above four stages, which depends on the content, nature and complexity of the project, but it is certain that ERP implementation projects not only have to go through the above four stages, but also carefully implement the work of each stage, so that the project can be successful.
The first stage of the project life cycle is to determine the requirements. Customers should be clear about the problems and needs, and make clear that such needs meet their own needs and are beneficial to themselves after implementation. After the demand is identified, the proposal request is put forward, so that the service provider can understand the needs and hopes of customers, thus laying a good foundation for the follow-up work. In some ERP projects, customers often pay the least attention to this stage and prescribe drugs without taking the pulse. When enterprises want to import ERP system, they are not prepared enough, have no clear understanding of whether it is suitable to import ERP system in the development stage of enterprises, do not pay attention to the investigation and identification of needs, and are unwilling to take the time to clarify the purpose and expected problems of using ERP system. Therefore, they rush to cooperate with service providers, and the result is often counterproductive. The first stage of an ERP project is often a time-consuming stage and a very important stage, because it is the foundation of the whole project. If customers want an ERP project to be successful, they must implement it seriously, and if necessary, they can use external professional consulting forces to carry out this work.
In the second phase of the project life cycle, the service provider should put forward a solution according to the demand put forward by the customer, and the customer will choose among the service providers in the candidate range and finally sign the contract. This stage of ERP project is the process that service providers contact with customers and get to know each other. There may be some problems at this stage: customers don't cooperate enough with the research of service providers. Although leaders attach great importance to it, middle and lower managers sometimes deliberately cover up problems because of communication reasons; On the other hand, service providers don't pay attention to this process and don't investigate customers' needs, so it is difficult for them to make a difference in the face of customers with imperfect basic management, and they often become software providers.
After the customer and the service provider try to sign the ERP service contract, they enter the third stage-the project implementation stage. In the project implementation stage, a detailed project plan should be made, and then the plan should be implemented to achieve the project objectives. In the ERP project implementation stage, the service provider will make a complete project implementation plan, but this plan may not be well communicated with customers, so there may be conflicts in the implementation process. If the contradiction is not solved well, there will be uncooperative situation, so it is difficult to complete the project smoothly. As a service provider, in order to avoid this kind of risk, the clause "Party B will not be held responsible for the delay caused by Party A" is often added to the contract. However, it is difficult to accurately define the reasons in actual implementation, and how to integrate the customer and ERP service provider's project executives into a team to implement the project is also an old problem at this stage.
The fourth stage-the end stage of the project, the whole process of the project should be properly summarized, especially the post-evaluation of the project, so as to evaluate the project performance and sum up experience for the follow-up work. After the implementation of ERP project, it will enter the daily operation stage, and service providers need to provide continuous services to customers. At present, the domestic economy is in the process of transformation and development, and the organization, business and management of enterprises are changing almost all the time, which requires that ERP itself should be able to adapt to these changes and constantly upgrade to ensure the long-term operation of ERP systems. At this stage, many customers and service providers who implement ERP have not paid enough attention to it, which is one of the reasons why the failure rate of ERP is often high.
Weaving Level Project Management —— Tasly's Successful Practice
Tasly Pharmaceutical Co., Ltd. (600535) is a modern Chinese medicine manufacturing enterprise. Since its establishment, it has experienced a process from small to large. In 2004, the company's net assets were 65.438+0.2 billion yuan, with 2,900 employees and sales of 65.438+0.3 billion yuan. The sales of compound Danshen dripping pills, the main medicine, exceeded 654.38 billion yuan, making it one of the most popular traditional Chinese medicines in China. Since 2000, Tasly has explored project-based work in the development and production of new projects and new products, and implemented project management. ERP project is a key project under this background. In the whole project implementation of ERP, we always operate according to the concept and method of project management, which finally makes the ERP system run successfully and comprehensively improves the management level of the enterprise.
1. Comprehensive investigation and evaluation
Tasly made a comprehensive evaluation of its own needs and development stages before introducing ERP system. At that time, Tiantuli experienced a rapid development stage after starting a business, the enterprise management structure was basically perfect, and the company was on a new development platform. The company's internal information construction has begun to take shape, and the basic hardware conditions have also been met. Judging from the composition of enterprise managers, the proportion of people with bachelor degree or above accounts for 70%, and the use of daily office computers has become very skilled. At this time, the management of the company proposed to introduce ERP system to comprehensively improve the company's management level and boost the company's all-round development.
Before the implementation of ERP, the logistics, production, quality and other aspects within the enterprise were systematically investigated to understand the current basic workflow and further clarify the demand for ERP system. Based on the company's needs, we made extensive contact with ERP service providers and finally decided to cooperate with Hollysys to meet the actual needs. At the beginning of the cooperation, the focus of communication between the two parties is that ERP system should be flexible to adapt to the actual situation of the enterprise and the management changes of the enterprise, because only by adapting to the changes of the enterprise can we really talk about optimizing enterprise management and improving management efficiency. Facts have proved that the implementation principles determined by both parties in the early stage are the basis for the successful implementation of ERP system.
2. Efficient project management team
In the process of implementing ERP, everyone emphasizes that "ERP is the top project" to strengthen the implementation of ERP. However, in the implementation, there are often phenomena such as wrangling and shirking. This is because it is not enough to pay attention to it. It is necessary to turn ideological attention into practical action. An efficient project management team is the organization to implement the project. Tasly's ERP project team adopts a matrix organizational structure. The project manager is the senior manager of Tasly, the implementer of Hollysys Company as the project contractor is a member of the project team, and all relevant functional departments of Tasly also have personnel as project members. The biggest feature of this project team organization is that the project manager is the senior manager of the company, responsible for the progress and quality of the project, which solves the cooperation and communication problems of all relevant departments to the maximum extent, which also solves the most headache problem of ERP service providers and the problem of ERP service providers in the same project team, which also makes communication smoother, enables information to be transmitted and enjoyed quickly, and solves the implementation obstacles caused by information asymmetry. In practice, this organizational form of project team is very successful.
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3. Perfect project management information system
The characteristic of organization-level project management is that there may be multiple projects in the organization at the same time, which will lead to the problem of resource allocation. When the use of resources conflicts, how to ensure the smooth completion of the project? Tasly set up a project management office to coordinate resources and manage projects. Tasly's Project Management Office (PMO) works under the direct leadership of the general manager, and consists of directors of the company, managers of various functional departments and project management professionals. The project management office has established a perfect multi-project management information system, and its work focuses on collecting and putting forward project suggestions, selecting and confirming projects, reviewing project plans, coordinating project resources, supervising project implementation, and managing relevant documents and reports. Especially in multi-project management, the priority of enterprise projects is selected by combining the factors such as the conformity of projects with the company's development strategy, the relevance with the company's key work, the scope and complexity of projects, and it is divided into three levels: A, B and C according to the importance and management scope of projects. Through the hierarchical management of projects, the start-up time and scope of different levels of projects can be adjusted according to the actual resource situation to ensure the resource demand of key projects. ERP project is the A-level project of the company, and it is the key guarantee project. It has been supported by PMO resources from beginning to end in the project implementation.
In the process of ERP implementation, according to the requirements of the company's PMO management system, the project team made a detailed project plan. In the project plan, the milestone plan of ERP project is defined, the work structure is decomposed, and who is responsible for each work package and when it will be completed. On this basis, the Gantt chart of project implementation is made and the critical path is determined. In the project plan, the possible risks in the project implementation are also analyzed, and the risk response plan is formulated. The project plan is jointly worked out by both parties, thus avoiding conflicts in the implementation process. According to the requirements of detailed project plan, the progress of the project and the completion of key points are tracked and managed during the project implementation. Once the project is abnormal, it will immediately remind the project manager to pay attention and ask for timely countermeasures. Strict project management information system ensures the success of project implementation.
4. Continuously improve as needed
After the implementation of the first phase of ERP, the ERP system has realized the functions of purchasing plan formulation, purchase order management, raw material receiving and acceptance, inventory management, production plan formulation, production plan execution and production process management, QC, QA, sales order management, delivery management and so on. On the basis of ensuring the stable operation of the first phase of the ERP project, and in line with the principle that the ERP system should aim at the actual situation of the enterprise and flexibly adapt to the changes of enterprise management, the two sides completed the integration of logistics platforms, which made the ERP system play an increasingly important role.
In the integration of logistics platform, the functions of purchasing, warehousing and production modules are expanded respectively, and JIT(justn Time) of material distribution is realized. The production material demand information is transmitted to the electronic version in the warehouse through the ERP system, and the warehouse carries out regular, fixed-point and quantitative distribution according to the demand. After the warehouse inventory is reduced, the ERP system connects the material demand information with the supplier through the B/S platform of the WAN, and the supplier transports the corresponding materials to the company warehouse according to the demand. With the completion of this system function, production and supply are closely combined, dull materials are reduced, and the turnover of inventory funds is accelerated. Through the implementation of the system, the number of food suppliers has decreased by 10, the response time of food supply has been shortened by 50%, and the inventory funds have been saved by nearly 10 million yuan throughout the year, so that the implementation of ERP projects has seen tangible benefits. It is very important for pharmaceutical enterprises to control the logistics trend of products. Another work of logistics system integration is the activation of product logistics bar code system. This work is carried out by ERP service providers, Tiantuli and barcode system service providers. While the new bar code tracking system is enabled, the functions of the production and warehousing module of the original ERP system are expanded, and the scanning and storage of products and the logistics bar code information in and out of the warehouse are connected with the ERP system, thus realizing the integration of the production system and the ERP system. Continuous improvement is the only process of pursuing Excellence. Natural forces constantly improve themselves in the unremitting pursuit of ERP, and have also been widely recognized by the society:
(1)ERP project was approved by the Ministry of Science and Technology as one of the modern integrated manufacturing system technology projects, and was supported by the national subsidy of 863 project with 600,000 yuan.
(2) Tasly's "Internet/Intranet-based Modern Chinese Medicine Industry Supply Chain Management Information System Construction Demonstration Project" won the fifth place in the enterprise information defense meeting of the High-tech Department of the National Development and Reform Commission.
The successful practice of ERP in Tiantuli benefits from the successful application of organizational project management. I believe that more and more enterprises will use the concept of project management to organize the implementation of ERP, and more and more enterprises will truly feel the efficiency and benefits brought by ERP.
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