Planning Functionality of an ERP System – Setting up of Planning Engine
In customer centric business environment, it is critical to have an effective plan to manage production capacity, materials availability and shipment schedules. The planning functionality of an ERP system provides organizations the means of meeting such customer centric approach. Planners are able to simulate alternate scenario planning wherefrom they determine which assemblies and components to […]
Production Module – Production Planning and Control
To support the need to reduce cost and time to market, greater emphasis is needed to control shop floor activities. Well-organized manufacturing process, resulting elimination of bottleneck and waste, necessitates greater reliance upon flexible and user friendly production planning and control system. The planning engine of an ERP system, through closed loop MRP/MRP II capability, […]
Going From People Driven To Process Driven
A process driven organization has certain obvious advantages over a people driven organization. Many old fashioned entrepreneurs still prefer to be people driven for the fear of losing control over their organization. However a large majority still aims as process oriented as the ultimate way to create an organization. Many have tried and failed because […]
The Bangladesh Growth Story
Historically, Bangladesh has been one of the most impoverished regions in Asia. The 1971 war of independence left Bangladesh with a huge financial deficit. The end result was that the country was facing extreme poverty and famine for many years after their independence. Even before the independence, West Pakistani politicians would often call Bangladesh (then […]
ERP – General Ledger and Accounting Management
Financial accounting module of an ERP package provides company wide control and integration of financial information. This module provides the ability to centrally track financial accounting data within a framework of multiple companies, languages and currencies. The General Ledger (GL) module is the heart of finance package of an ERP system. Through integration with logistics, […]
The Project Risk Assessment Matrix is one of the required documents to complete the Define phase of the DMAIC methodology.
The procedure has been designed in such a way to ensure that people implementing the project have given a thought to what can possibly go wrong and begin thinking of mitigation plans.
Here is a step by step review of how to prepare the Project Risk Assessment Matrix:
The first step in the process begins with the listing down of all the risks that the participants can think of. This is usually done in a brainstorming session.
Participants are typically given a list which contains common categories of risks. The participants are then advised to think of whatever risk they can foresee in the project category by category. This is done over and over again to ensure that the list is exhaustive.
Once the list of the possible risks that a project may face is available, the next step is to rate the risks.
The risks are rated on two parameters viz. probability of occurring and impact of occurring.
In both cases the score is given out of 5, with 5 being certainty that the risk will occur or have a very high impact if they do occur. The scores are then multiplied and then arranged in a descending order.
All risks are not equally important from the six sigma project point of view. Hence they need to be classified and efforts need to be focussed only on the ones that are priority. There is usually a standard matrix that classifies the risks into the following 4 categories based on the parameters:
There are three basic strategies which help mitigate risks successfully. They are:
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