How to define indicators in ERP planning

2022-07-30
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How to define the indicator

in ERP planning: "generally, when placing an order with a supplier, an enterprise will specify the percentage of spare parts to prevent the production scrap or quality problems from affecting the delivery date. However, in actual operation, it is difficult to control and complex; the supplier will send the spare parts as he pleases. If he has them, he will send them. If he does not, he will not send them."

when I first graduated, I worked as an ERP implementer in a manufacturing enterprise. At the beginning of my work, I accepted the major task of ERP project. At that time, I was nervous and excited. After taking office, the author carried out research without stopping, went to successful enterprises to learn from experience and negotiate with ERP manufacturers. After working overtime for a month, I finally worked out a plan

unfortunately, the boss called me back as soon as he saw it, He said: "I don't know technology, I don't care about theory, I just want specific indicators. I give you project funds, and you need to give me specific indicators, such as inventory turnover rate, accounts receivable turnover rate, order error rate, etc.

through some searching, the author finds that few people have done this quantitative indicator, and some are just studying indicators. There is no way, the author has to shift automatically: automatically switch to the appropriate range according to the load size to implement successfully According to their implementation evaluation report and the comparison of data before and after ERP implementation, some quantitative indicators have been obtained, such as sales order cycle, inventory turnover rate, etc. After working overtime for several days, I finally came up with a quantitative index of ERP; After the "top leaders" saw it, they also passed

got stuck in the negotiation with ERP manufacturers. The ERP pre-sales consultant said to me, we can't give you this commitment, and we will certainly achieve this target; Because ERP implementation is not only our business, but also depends on your cooperation; We can only say that we will significantly improve these indicators

in the end, the quantitative indicators have nothing to do

analysis:

after several years of project training, the author looked back and found that he had made several mistakes

first, we pay too much attention to financial indicators. We should know that the implementation of ERP is not only reflected in the financial statements, but also the reform of management methods and the optimization of processes. This is also what we should care about when implementing the assessment

second, when making quantitative indicators, there was no involvement of many technical P professionals in the cooperation between erteknor apex and FGH systems over the years, which was a bit of "unrequited love"

all kinds of plates, cast pig iron (Angang Group, Shagang Yongxing and other companies), casting processing, plate deep processing (Linzhou Auto Parts Industrial Park, Yindu District deep processing Industrial Park), automobile parts and complete vehicle assembly (Deli special automobile company)

from today's point of view, I think this was a failed indicator and a failed report. Is the quantitative index really feasible? The author thinks it is feasible. However, the indicators here are not just a few financial figures, but a broader range

measures:

how to define ERP implementation indicators? The author believes that this can be done. The following comments are only for reference

(I) the power of "professionals" should be used. The professionals I refer to here do not refer to ERP technical talents, but refer to professionals in enterprise management. If the enterprise has talents in this field, it is the best; If not, consult a specialized management consulting company. First, through business research, see what processes need to be improved. Generally, enterprises have some problems in these aspects:

(1) control of "accounts payable". For example, most enterprises pay on the * day of the next month after arrival, which leaves a loophole for suppliers. Originally, the delivery date was at the beginning of next month, so they tried their best to purchase goods at the end of this month. Therefore, when the enterprise warehouse checked at the end of the month, the inventory was often full. And the supplier can receive the payment one month in advance

(2) some enterprises also lack control over "over revenue", resulting in an increase in the final inventory of obsolete materials

(3) for the control of "spare parts", when placing an order with the supplier, the general enterprise will indicate the percentage of spare parts to prevent the production scrap or quality problems from affecting the delivery date. However, in practice, it is difficult to control and complex; The supplier should send the spare parts as he pleases. If he has them, he will send them. If he doesn't have them, he won't send them. Finally, when quality problems do occur and spare parts are needed, the warehouse does not have them

when conducting business research, the "top leaders" should personally participate, and the "professionals" should participate, sort out the processes one by one, list the loopholes in the processes one by one, and indicate the priorities, which processes must be optimized; Which processes can be put aside now and improved in the next few years

when selecting models, ERP manufacturers should drill one by one to see how they control; Find suitable control methods

(II) summarize previous problems. When planning, you should summarize the problems that often occur in previous business operations and summarize them; After the summary, show it to ERP manufacturers and ask them whether they can effectively control the occurrence of such errors

here, I take electrical accessories enterprises as an example. Generally, the following errors will occur:

(1) inspection standard. Because power safety needs to be stressed, more and more attention is paid to it, and the inspection standards of various countries are different; The products you export should comply with the inspection standards of the local country, otherwise they will be returned. These standards should be reflected and controlled in the whole purchase, sales, inventory and production process

(2) color, length. As the saying goes, "if you lose a penny, you will lose a thousand miles". If the diameter of your wire is one millimeter different, the customer's electrical appliance will not be able to plug in your wire, and it will be rejected

(3) environmental protection. With the increasing awareness of environmental protection in various countries, there are more and more customs clearance problems caused by environmental protection problems

list these problems one by one, discuss with ERP implementation consultants or ERP providers to see how they can effectively prevent these errors, and ask them to propose some control mechanisms

(III) analyze financial indicators. We should not only pay attention to the financial indicators, but also understand the influencing factors of the financial indicators. As mentioned above, the calculation formula of inventory turnover rate is sales cost/average inventory. Note that the denominator is average inventory, and the calculation formula is (month beginning inventory + month end inventory)/2

in order to receive the payment in advance, the above-mentioned supplier delivers all the goods that should be delivered at the beginning of the month at the end of the month, which will lead to an increase in the average inventory and a decrease in the inventory turnover rate. We have analyzed these problems clearly, put them on the table, and see how much money is involved in "the supplier delivers all the goods that should be delivered at the beginning of the month at the end of the month". If this amount is deducted, the inventory turnover rate will be improved. (end)

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