Erp selection criteria - Unitedworld School of Business

2. Management Information
Systems

3. 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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4. ERP Product selection Criteria
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Technology
Support
Costs
5 Strategic
Requirement
Levels
Functionality
Goal:
To select the
Most Suitable
Software
Package Solution
Vendor

5. 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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6. 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
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7. 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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8. 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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9. 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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10. 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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11. Increased flexibility
 Flexibility 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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12. 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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13. Campus Overview
907/A Uvarshad,
Gandhinagar
Highway, 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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