Cost Estimate and Accounting in ERP
February 12, 2025
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Introduction Purchase of raw materials is an integral part of any business, i.e. manufacturing organization or service organization. Purpose of raw material is to be converted into finished goods for selling, but after purchase and before selling, they need to keep in safety and good care. The timeframe of storage can be short period or […]
Introduction For efficient, effective and economical operation in a manufacturing unit of an organization, it is essential to integrate the production planning and control system. Production planning and subsequent production control follow adaption of product design and finalization of a production process. Production planning and control address a fundamental problem of low productivity, inventory management […]
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After the Japanese wave of business process management came the concept of Business Process Re-engineering which rocked the world of BPM. The idea of BPM and the resultant benefits have been mentioned below: What about Those Companies That Did Not Change As said earlier, the Japanese companies were able to understand the dimension of time […]
An ERP system is a process and not an end in itself. Perfunctory Implementing of ERP system will not boost efficiency. Reasons for failure of an ERP project such as lack of commitment from management and employees, lack of communication, knowledgeable employees not available for the project, are mostly organizational issues and have nothing to do with technical matter. Hence, to alleviate the risk of failure due to organizational issues, adoption of proper change and risk management process, plays a crucial role.
Implementation of ERP necessitates a broad based organizational change which is more disruptive than incremental. Change management effectively deals with the process of managing such changes, and broadly encompasses all major segment of the organization such as:
Effective change management is interconnected with risk management which minimizes risk of failure and ensures avoidance of unpleasant surprises, both during implementation and post implementation phases.
Processes of change/risk management: Starting with project kick off, following Processes should be beneficial:
ERP implementation is a complex process as it involves both technological and functional issues. Pre defined plan for managing the associated risk and effectively changing process of the organization will go a long way to ensure success of the project.
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