1st Edition

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

By Michael W. Pelphrey Copyright 2015
    380 Pages 137 B/W Illustrations
    by CRC Press

    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.

    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

    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.