Re-engineering and ERP Implementation: Maximizing Efficiency and Quality

Cara Hrubes
MIS800
Assignment 5
Prior to computers companies performed tasks manually, and with a vast number of
steps. Overtime companies began to engage in process improvement methodologies such as
Six Sigma, Lean Manufacturing and Total Quality Management. The methodologies allowed
companies to maximize the efficiencies in a process, as well as maximizing the quality
produced. When implementing a system of any type, one of the key steps is to first define and
understand a process, and implement the right tool for the process, often times what occurs is
that companies will implement a system prior to finalizing a process.
Re-engineering is a series of steps to automate and improve a process. There are
multiple ways to re-engineer a process. In one example, the goal is to structure the process
around the outputs of the process, not the actual steps that are comprise the process. Another
example is to reassign tasks in the process to the individuals most involved, as seen in the
Accounts Payable process. Other organizations centralize processes against geographic regions
or teams that must work together through centralized collaboration systems.
The setup of an ERP is complicated and impacts almost all areas of an organization.
ERPs are also built using industry best practices. When implementing an ERP in an organization
where processes are broken, antiquated or do not adhere to best practices the system becomes
less efficient, and requires modifications and customizations. When a system is customized,
maintain the system becomes increasingly difficult. Once a system is implemented, modifying a
process may require reconfiguring the system, something that can be costly and ineffective.

Implementing an ERP requires a project management methodology, regardless of the
methodology the key phases are similar, requirements, design, development, testing,
implementation. The business areas are responsible for requirements and partner with IT
departments for design, implementation and testing. IT departments are solely responsible for
development. System implementation projects encounter failures and successes regardless of
the type of system, however, ERP implementation projects success or failure is dependent on
key areas, primarily businesses not recognizing the importance of the technical requirements of
the system. Often times the businesses put the requirements of the business areas over the
technical requirements.
ERP systems are based on a centralized database, multiple business areas write to the
same database. The business needs a common data dictionary, this is often difficult to achieve
because different business areas use terms and values differently thus creating challenges in
the system, challenges that users have a difficult time solving because users don’t want to
compromise. Users then begin to want the system customized, a process that is not always
feasible, and if so, becomes costly, impractical and time consuming.
Prior to implementing an ERP, the recommendation would be for an organization to first
establish the team involved in the project. Establishing the team not only means determining
what resources will be involved in the process, but also determining the decision making
process, and identifying roles and responsibilities for each resource. The next recommendation
would be to determine the goals and scope of the project. The primary goal may be to simply
implement the project, but should be evaluated for more details such as implementing a
system that results in reduction of staff hours. The goals should be clearly defined, and then