3 posts tagged “business processes”

In some ERP implementations the company will build an internal team taken from different parts of the business to review and build the business processes for the ‘to-be’ model. For my thoughts on getting the right team see my paper ‘Simply the Best (ERP Project Team Members)’.

Often the people drawn into the project team will take specific responsibility for different areas of the business. For example someone will take care of Sales, reviewing and designing the appropriate sales order processes, sales contract set up use, commissions and rebates etc. Another person will be responsible for warehousing whilst someone will understand and design the use for product configuration.

The approach will be for these people to undertake training in the ERP product and they will then design, with the knowledge they have gained, the best business processes to suit the business.

Whilst they will have had to gain an insight as to how the entire business system works and will have an appreciation of how their areas of responsibility interacts with that of their colleagues it is vitally important that they are not allowed to continue without reference to the work their colleagues are undertaking. Why do I say this?

Well, I have seen on a number of projects where I have been brought in to review progress, the following issue: Good modern ERP systems have multiple parameters that allow for many different ways of doing business. These will cover engineer to order, make to order, make to stock and a number of other business topologies – each with their own nuances.  Some business types will and can make good use of more than one of these and this is where the challenge can potentially lie.

In one example I came across there was a mis-match  between business processes designed by different people which meant that the overall process wouldn’t work. This example was because the product design and configuration was based around project type customised items whilst the production planning and warehouse management processes were based purely around an anonymous product philosophy. Unfortunately, this wasn’t discovered until after several months work had been undertaken by the team members.

This is why I recommend the appointment of a BPD Tsar on such projects (BPD = Business Process Design). This doesn’t have to be a formal role but it is someone, either internally or externally, that ensures that the business process works from end to end, and in the event of dispute between the functional area experts, has the final say in how the business process will look. Clearly this person should have a full appreciation of how the business works and should be able to overlay this on the functionality of the business system.

Sometimes this can be the project manager but typically it is not.

However, it is an important responsibility and it can save you months of wasted effort.  

If you have undertaken to implement a new ERP system, such as Microsoft Dynamics AX2009, then you will probably understand that you are about to review your business processes and this will potentially touch every part of your organisation.

ERP functionality has grown over the past decade from a focus on manufacturing and finance to encompass most of the activity in a business. It will be important to consider which activities you carry out will be included in your use of the ERP system. Ideally by using a single system with a single database you can enter data only once and therefore avoid duplication and avoid re-keying errors.

An important part of your project should be to identify all the projects within your business and document what they are intending to achieve and how they will achieve it. Whilst in smaller organisations this will be easy, larger businesses will probably need to go through a more formal discovery process.

The purpose of this project activity will be to determine if any existing project will be impacted by the implementation of ERP, for instance interfaces to supplier systems with a procurement project, if the project should be subsumed into the ERP initiative; for example the implementation of a warehouse data collection project or if a project should be suspended or halted indefinitely – the implementation of project management software in a engineer to order environment.

By undertaking this important activity you will ensure that there is no duplication of effort and that the best resources and minds are focussed on the single goal of getting the best out of your ERP system.

I eluded in an earlier blog as to how during the mapping of ‘as-is’ business processes that you sometimes come across pointless activities such as filling out multiple forms and then filing them to be later thrown away.
Over the years I’ve also come across pointless or inappropriate use of technology too. Not that the person themselves are necessarily to blame for it – perhaps they could have been trained better or the whole business process thought through more.
One of my favorites was watching someone sitting in front of an Excel spreadsheet on their computer and adding up the contents of several cells on a calculator and then entering the results into the cell where she wanted the answer. It was a revelatory moment when I did a simple formula and demonstrated the result. The user had never had it explained to them how a spreadsheet works.
On another occasion I observed a user with their computer, which was attached to an A3 output printer/scanner/photocopier. Firstly she completed the spreadsheet. When happy she printed it out on A4 paper. Then she took the resulting output and manually scanned the document to an application on her PC. She then manipulated the image on the screen to make it A3 size. The resulting document was then printed. Within minutes I had altered the original spreadsheet printer output settings and she was printing directly to A3. ‘Why’, I asked, ‘had she not been shown how to do this in the first place?’ The answer was that she used to have an A4 printer and then had to enlarge the sheet on a separate photocopier which was in another part of the building. Therefore the contention was that even though they bought the ‘new’ piece of equipment 18 months ago, it had still saved her a great deal of time!
Have you seen odd or inappropriate uses of technology? If so I’d love to hear them.