When the ERP system is about to be switched, victory seems within reach. However, there's also a saying of "a miss is as good as a mile," and it's not uncommon for things to go wrong at the last stage. In this article, I summarize the "three dos and three don'ts" regarding what needs to be done and what shouldn’t be done during the switch.
1. **Adequately Prepare Data; Don’t Cut Corners**
“The success of ERP relies 30% on software, 70% on implementation, and 120% on data.” Many people have heard this statement and understand it, but they may not know how to ensure that data preparation is sufficient. Indeed, the requirements for data preparation can vary depending on the choice of different software systems and consultants, but the differences are not significant. The key lies in how detailed the data preparation is. For example, planning parameters for materials should be defined strictly for each item, and these parameters should align with reality. Otherwise, the planning function of the ERP system cannot run smoothly.
2. **Persist in Using the System; Don’t Randomly Create Alternatives**
There is no perfect thing in the world, and ERP is no exception. Theoretically, ERP can cover all aspects of enterprise management, but in practice, this is not always the case. Even if it’s possible, it’s a process, and usually, it cannot be achieved within a few months of implementation.
3. **Have an Emergency Response Plan; Don’t Run Parallel Operations**
Many people prefer to run parallel operations for some time after switching to the new ERP system, believing it to be the safest approach. This belief is widespread and has caused much harm. Running parallel operations has more disadvantages than advantages and must be abandoned as a misconception.
Parallel operation may stem from the requirements of accounting computerization, which demands that “before using computers to replace manual bookkeeping, computerized accounting and manual bookkeeping should run synchronously for a certain period of time and produce consistent results.” Since government departments require financial departments to run parallel operations for a period (usually three months), although I believe this parallel operation is unnecessary, there’s no room for negotiation. However, even so, only the finance department needs parallel operation, and this does not mean that the entire ERP system, especially production management, requires parallel operation.
One reason supporting parallel operation is that the new system is just starting to be used, and to ensure normal business operations without being affected by data preparation, system stability, or personnel familiarity, it is necessary to run the old system alongside the new one for some time. While this may seem reasonable, it is not practical upon closer inspection.
Take planning as an example. If you were originally using manual planning and now use MRP planning, there will certainly be differences between the two. Which plan should be followed when issuing actual orders? How can both systems run in parallel?
After the ERP system goes live, original documents such as orders, inbound/outbound warehouse slips, shipping slips, and material requisition slips are generated from the system. In the company's business activities, it is impossible for both new and old original documents to circulate simultaneously. Without original documents, the old system has no basis to operate.
The production system has high requirements for data timeliness. Inventory numbers may differ between the new and old systems, and both could be correct, just reflecting inventory data at different time points. The financial system settles accounts at the end of the month, so as long as the monthly closing balances match, it’s acceptable. However, the production system requires real-time consistency. Can the company afford the resources required to maintain parallel operations of new and old production systems to ensure real-time data consistency?
This article originally appeared on [Bit.com], and the original link should be preserved: http://cio.chinabyte.com/328/11165828.shtml
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