Erp: Making It Happen The Implementers’ Guide To Success With Enterprise Resource Planning

TE AM FL Y

ERP: Making It Happen
The Implementers’ Guide to Success with Enterprise Resource Planning

Thomas F. Wallace Michael H. Kremzar

John Wiley & Sons, Inc. New York • Chichester • Weinheim • Brisbane • Singapore • Toronto

Copyright © 2001 by Thomas F. Wallace and Michael H. Kremzar. All rights reserved. Published by John Wiley & Sons, Inc. Published simultaneously in Canada.No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriateper-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008, E-Mail: PERMREQ@WILEY.COM. This publication is designed to provide accurate andauthoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional person should be sought. This title is available in print as ISBN 0-471-39201-4 For more information about Wiley products, visit ourweb site at www.Wiley.com

Contents

Acknowledgments How to Use This Book PART I—INTRODUCTION CHAPTER 1 Enterprise Resource Planning CHAPTER 2 The Implementation Challenge PART II—COMPANY-WIDE IMPLEMENTATION CHAPTER 3 Company-Wide Implementation—Overview CHAPTER 4 Software CHAPTER 5 Getting Ready CHAPTER 6 Project Launch

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Contents

CHAPTER7 Initial Education CHAPTER 8 Sales & Operations Planning CHAPTER 9 Process Definition CHAPTER 10 Data Integrity CHAPTER 11 Going on the Air—Basic ERP (Phase I) CHAPTER 12 Going on the Air—Supply Chain Integration (Phase II) PART III—QUICK-SLICE IMPLEMENTATION CHAPTER 13 Quick-Slice ERP—Overview CHAPTER 14 Quick-Slice ERP—Implementation PART IV—BEYOND ERP IMPLEMENTATION CHAPTER 15 Operating ERPCHAPTER 16 The Strategic Future (Phase III) APPENDIX A The Fundamentals of Enterprise Resource Planning APPENDIX B Plant Floor Organization Formats: Job Shop versus Flow Shop APPENDIX C Sample Implementation Plan

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APPENDIX D ERP Support Resources Glossary Index

349 351 365

Acknowledgments

There are somany people to acknowledge when a book like this is complete. All of those who contributed to the earlier MRPII book certainly played a role, albeit indirect, in this new effort. Many others who are active in the field provided insight through their books, papers, or talks. For sake of brevity, we are going to focus on this book and hope that all of those who built the foundation of the earlier workswill still feel ownership for this one. As the final draft developed, we asked a handful of people to help us with input on the quality of our effort. Their insightful feedback has been extremely important. Gary Abyad Chief Operating Officer Clopay Plastic Products Company Mike Friedman Director of Product Supply The Procter & Gamble Company Mike Landrigan Chief Financial Officer Innotek, Inc. JerryClement Principal The Oliver Wight Companies Chris Gray Principal Gray Research Jim Rice Leader, MIT Integrated Supply Management Program
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Acknowledgments

Travis Rushing Director, Commercial Products Product Supply The Procter & Gamble Company

Bob Stahl Principal Partners In Excellence

Our sincere thanks go to all of you for taking the time to pour over the manuscript...