Erp selection criteria

Management Information Systems

Evaluation criteria

Functional fit with the company’s business processes Degree of integration between various components of

the ERP system Flexibility and scalability Complexity User friendliness Implementation time Multi-site planning and control Technology – Client/server, database, security Amount of customization required Local support Total costs including costs of license, training,

implementation, maintenance, customization and hardware requirements

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ERP Product selection Criteria

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Technology

Support

Costs

5 StrategicRequirementLevels

Functionality

Goal:To select theMost Suitable Software Package Solution

Vendor

ERP Success criteria The firm & optimistic approach of the

Management- on adapting the ERP product driven methodologies- on customization- on monetary commitments

The dedicated Team Good Training Strict adherence to the Project schedules Right technical infra-structure Change Management

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ERP Benefits

Easier access to reliable information

Automate tasks to perform various business functions

Elimination of redundant data and software packages

Improved communication between departments, internal and external organizations

Better capabilities of forecasting, planning, scheduling, and control 1

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Reduced Time

Reduction of lead-time (Supplier Side)◦ The elapsed time between placing an order and

receiving is known as the lead time. Reduction in cycle time (Customer Side)

◦ The time between receipt of the order and delivery of the product

On-time shipment

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Improved Customer satisfaction

Whether the product or service includes the features that are most important to the customer

Whether the company can respond to the customer’s demands in a timely manner, a criterion that is especially important for custom products and services

Whether the product or service is free of defects and performs as expected

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Reduction in quality costs Internal failures costs – costs of scrap, rework,

re-inspection and low production yields for non-conforming items that are detected before they leave the company

External failure costs – Warranty claims, repairs and service costs that are result when the failures are detected in the market place

Appraisal costs – costs of inspection on arrival, during manufacturing, in laboratory tests, and by outside inspectors

Prevention costs – design and development of new quality equipment, evaluation costs of a new product or a service, training of quality personnel

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Improved resource utility

The efficient functioning of the different modules in the ERP ensures that ◦ the inventory is kept to a minimum level, ◦ the machine down time is minimum, ◦ the goods are produced only as per the

demand ◦ and the finished goods are delivered to the

customer in the most efficient way Thus, the ERP systems help the

organization in drastically improving the capacity and resource utilization

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Increased flexibilityFlexibility of the organization as a

whole by automating most of the processes

Organizations will need to design new products or redesign existing products quickly and efficiently

Product flexibility is the ability of the operation to efficiently produce highly customized and unique products

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Improved information accuracy and decision-making capability

To survive, thrive and beat the competition in today’s competitive world, one has to manage the future

Managing the future means managing the information

organizations have to harness IT’s full potential ◦ to deliver high quality information to the

decision-makers at the right time◦ to automate the process of data collection,

collation and refinement

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Campus Overview

907/A Uvarshad, GandhinagarHighway, Ahmedabad – 382422.

Ahmedabad Kolkata

Infinity Benchmark, 10th Floor, Plot G1,Block EP & GP, Sector V, Salt-Lake, Kolkata – 700091.

Mumbai

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.

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Thank You