What is an ERP system? Planning of enterprise financial resources. ERP system structure

Historically, the ERP concept has become a development of the simpler concepts of MRP (Material Requirement Planning) and MRP II (Manufacturing Resource Planning). The main goal of the ERP concept is to extend the principles of MRP II (Manufactory Resource Planning) to the management of modern corporations. The ERP concept is a superstructure on the MRP II methodology. It has such an important feature as the ability to globally manage production, goods and services. This feature is very important for large international corporations, where subsidiaries and divisions interact with each other, while being located in different countries and regions.

The ERP concept includes:

The ERP (Enterprise Resource Planning) methodology has not yet been completely systematized.

Many companies have a wide network of remote production and non-production departments, which significantly complicated their organizational structure. The consequence of this was an increase in costs for maintaining complex and intricate logistics schemes for product supply.. As a result, there was a need to look for ways to solve problems of minimizing these costs.. The solution to this problem was systemsERP.

The ERP methodology is based on the principle of a single data warehouse (repository) containing all business information accumulated by an organization in the process of doing business, including financial information, data related to production, personnel management, or any other information. This eliminates the need to transfer data from one information system to another and creates additional capabilities for analysis, modeling and planning. In addition, any part of the information held by a given organization becomes simultaneously available to all employees with appropriate authority.

ERP-system – This is a set of computer programs that implement the MRP II methodology and are supplemented with tools for optimizing the management of production and sales units located in different countries.

The software tools used in ERP systems make it possible to carry out production planning, generate the flow of orders and evaluate the possibility of their implementation in the departments of the enterprise.

The ERP concept assumes that the system uses only one integrated program instead of several separate ones. A single system manages processing, distribution, logistics, inventory, delivery, invoicing and accounting.

The system for differentiating access to information, implemented in ERP systems, in combination with other company information security measures, is designed to prevent both external threats (for example, industrial espionage) and internal ones (for example, theft). Implemented together with a CRM system and a quality control system, ERP systems are aimed at maximizing the needs of an enterprise for business management tools.

According to the APICS (American Production and Inventory Control Society) Dictionary, the term " ERP-system"(Enterprise Resource Planning - Enterprise resource management) can be used in two meanings. Firstly, this is - information system for identifying and planning all enterprise resources that are necessary for sales, production, purchasing and accounting in the process of fulfilling customer orders. Secondly (in a more general context), this is - methodology for effective planning and management of all enterprise resources that are necessary for sales, production, purchasing and accounting for the execution of customer orders in the areas of production and distribution and provision of services.

According to the latest edition of APICS: “ERP is an approach for organizing, defining and standardizing the business processes necessary to enable an enterprise to use internal knowledge to seek external advantage.”

The ERP concept is still not standardized. When the question arises about classifying a specific management information system into the class of developed MRP II systems or into the ERP class, experts disagree, since they identify different criteria for a system to belong to the ERP class. However, summarizing the various points of view, it is possible to indicate the main features that ERP systems should have.

Translated from English, Enterprise Resource Planning (ERP) means “enterprise resource management.” The ERP system is designed to plan company resources needed for production, purchasing and sales.

The principle of operation of the ERP system is based on the creation, filling and use of a single database, which includes information necessary for all departments of the enterprise: accounting, supply departments, personnel, etc.

The functionality of ERP systems varies, but there are functions that are common to all software products:

1. Development of production and sales plans.
2. Maintaining technological specifications that provide for the operations and resources necessary for the production of a particular product.
3. Determining and planning needs for the production of components and materials, costs and deadlines for fulfilling the plan.
4. Purchasing and inventory management.
5. Management of production resources on various scales: from an enterprise or a separate workshop to a specific machine.
6. Financial management of the enterprise, management, accounting and tax accounting.
7. Project management.

Compared to other software solutions, the ERP system has a number of advantages:

• Creation of a unified information environment that significantly facilitates and optimizes the work of departments and management.
• The ability to distribute access rights between employees of any departments, from the head to the junior manager of the sales department.
• Availability of a wide range of solutions for organizations of various types and sizes.
• Ability to manage several divisions, enterprises, concerns, corporations.
• Compatible with various software products and platforms, high reliability, flexibility, scalability.
• Possibility of integration with systems and applications already used in the enterprise, in particular, with design automation systems, process control, sales, and document management systems.

Along with other systems that automate production, ERP greatly simplifies the process of enterprise management, resource allocation and sales planning.

When is an ERP system needed?

At the first stages of a company’s existence, there are no special needs for automation: all documents are developed using ordinary office programs, and in order to obtain this or that information, the manager just needs to call an employee. Gradually, the number of documents, the number of employees, the volume of operations is growing, and there is a need to create storage facilities and systematize data.

In an enterprise operating without an ERP, all documents are often stored unsystematically, which significantly complicates management. There are also common cases when some systems are installed, but they work exclusively for a specific department.

Accounting, HR, procurement and other departments have their own databases, and document flow between them is difficult. This directly affects work efficiency: in order to find out this or that information in the HR department, the accountant has to make a request by email or call the HR officer.

It is impossible to achieve effective management, optimization of resources of the entire enterprise and, finally, increasing the productivity of various departments in such conditions.

An ERP system is the optimal choice for enterprises of any scale, groups of companies, and companies with geographically distributed branches.
ERP system:

• significantly speeds up document flow between departments
• allows an employee with certain rights to gain instant access to information
• makes it possible to effectively manage the work of remote branches and employees.

Also, various accounting programs created solely for the generation of financial and tax reporting are often offered as alternatives.

It is quite simple to distinguish ERP from other systems. ERP system:

• integrates databases and tasks of ALL departments of the enterprise: from accounting and customer service to production and logistics;
• can help in performing any tasks of the enterprise;
• allows you to create a unified information environment.

The main task of an ERP system is to optimize the management of ALL enterprise resources, regardless of the form in which they are presented. This is a single system that includes solutions for accounting, engineering, procurement, personnel, warehouse, etc.

Such different ERPs

At the moment, there are two main concepts of ERP systems. These are ERP and ERP II.

The first refers to software that allows you to organize the work of an enterprise of any type and covers all production processes.

ERP II is a specialized management system that takes into account the key features of a particular enterprise. It is developed taking into account the tasks that need to be solved by a company of a certain size, type of activity, and form.

There is a huge number of ready-made software developments specializing in small firms, manufacturing enterprises, service companies, trade organizations, etc. There are ERP systems designed for one standard enterprise, a company with geographically remote branches, and even a transnational company.

ERP systems can have different structures. In particular, cloud ERP has recently gained the most popularity - it is more convenient, scalable and easy to use for medium and small businesses.

How to avoid unnecessary costs for an ERP system with the online program Class365

The implementation of a full-featured ERP system in small and medium-sized businesses may not be profitable, both due to the high cost and long implementation period.

You can automate the processes of a small company and avoid high costs using the online program Class365. The online service allows you to automate the work of a warehouse, retail outlets, and customer relationships. In the program you will also be able to manage all financial flows. This solution is optimal for wholesale and retail trade enterprises, service companies engaged in online sales.

The online solution is beneficial for the manager, since he will not need to additionally train staff. The program, despite its wide functionality, is surprisingly simple and employees can master it independently in no more than 15 minutes. In addition, the company will not have to squeeze into a tight budget to purchase a standard licensed application.

More and more enterprises of various sizes around the world are striving to implement a powerful management tool known as an ERP system into their work. Its use is intended to establish effective control and planning of all business processes that are strategically important for the organization, and to optimize the functioning of the main production and auxiliary facilities.

Concept of ERP and ERP system

The ERP business strategy (EntERPrise Resource Planning) represents the integration of all divisions and processes of the organization: production facilities, financial, personnel and customer departments and many others. This combination is primarily aimed at optimizing the distribution of various resources within the enterprise.

If previously this was a purely marketing concept, today an ERP system is most often understood as a class of specialized software. In a broad sense, it is a methodology for planning and managing all enterprise resources. Historically, the ERP strategy was formed on the basis of its predecessors:

• MRP - material requirements planning.
• MRP II - production resource planning.

In contrast, an ERP system can be used for very large enterprises, often geographically distributed. In this case, we are talking about corporate resource planning, since it pays attention not only to production, but also to comprehensive financial planning. An essential feature of the ERP system is also the possibility of its use in absolutely any enterprise, regardless of the specifics of the work, including those not engaged in production activities. Considering it as such, it should be noted that it is equipped with a more powerful set of technical means that facilitate or replace the decision-making process.

Purpose of an ERP system in an enterprise

In order to decide on fundamental changes in the activities of their company related to the implementation of a management information system and the implementation of a new business strategy, management must clearly understand the necessity of this step, which should be expressed in the following key points:

• unwillingness to accept the current state of affairs;
• the existence of a need to use modern technologies to strengthen the position of a business entity in the market in a competitive environment;
• expecting to receive significant benefits from implementation.

First of all, the use of an ERP system is intended to facilitate the successful implementation of a similar business strategy, the implementation of which should ensure effective planning and management of enterprise resources. To do this, it is necessary to optimize the work of its departments, namely to achieve maximum consistency between them and reduce administrative costs. This can be achieved through the benefits provided by the information system. This:

• Increasing the transparency of business processes.
• Solving problems with organizing and finding the necessary information.
• Increasing the reliability and relevance of data.
• Increasing the speed of document flow between departments.
• Organization of a single information space between the head office and remote branches.
• Reducing the time required to complete documentation and eliminating possible errors.
• Increased speed of decision making at all levels.

An ERP system ensures an increase in the competitiveness of an object not only through the introduction of more efficient business processes into its work. Its use should also lead to a reduction in the overall costs of the enterprise. Advanced planning, modeling and analysis tools help optimize the resources of production activities, the financial sector, as well as the work of warehouses, transport and other departments.

Main features of work

In different companies, even those engaged in the same business, all business processes can proceed completely differently. The standardized work scheme offered by an enterprise management information system may differ significantly from what was previously used here. For this reason, considering it only as a software product is fundamentally wrong, since its implementation requires the company to undergo large-scale internal changes in the form of reorganization of existing business processes.

The conceptual features of these systems are directly related to their essence. Let us remember that the ERP methodology involves the consolidation of all vital divisions of an enterprise to organize the effective management of its resources. Such a combination is implemented within the information system through the presence of a single publicly accessible database. Information enters the repository only once, and subsequently can be repeatedly processed and used by various internal and external consumers. Compared to real life, in this case there is a reduction in the time and effort spent by enterprise employees on decision making. It should also be noted that the ERP system is not an automated technological process management system, but an integrated information system based on their abstract model, information into which is entered by real people.

The structure of the database, as well as the operation of the software package as a whole, must be arranged in such a way as to reflect the activities of all departments without exception. This approach makes it possible to monitor the totality of resources and business processes of an enterprise in almost real time, and therefore to carry out operational and strategic management of them.

One of the main tasks of ERP systems is to optimize the planning process and control over the implementation of the plan. Built-in intelligent algorithms greatly simplify its solution for its users. For example, planning and management of a manufacturing enterprise has many specific features associated with the heterogeneity of its components. Thus, at one plant there can be workshops operating both continuously and discretely. From this point of view, the implemented ERP-class system must be universal and contain a wide range of specialized modules.

Since modern enterprises today are often geographically distributed, it is very important that branches remote from the main office are provided with full access to general information. This is realized by the most advanced network technologies involved in the development of ERP systems, which also provide for the delimitation of user access rights to data stored in their information.

Functionality of ERP-class systems

Speaking about functions, we must not forget that any ERP-class product is an enterprise management system as a whole. The range of its capabilities will primarily depend on the scale and operating characteristics of the facility for the needs of which it is used. Let's consider the classic set of functions:

Production

• Maintaining design and technological specifications of manufactured goods or performed services in order to determine the amount of required materials and labor cost standards.
• Drawing up production plans.
• Planning and management of the technical capacities of an enterprise in various approximations: from individual units to workshops and production associations.

Finance

• Operational accounting, financial, management, tax accounting and controlling.
• Management of enterprise assets, including fixed assets, securities, bank accounts, etc.
• Comprehensive enterprise planning and control of its results.

Logistics

• Formation of planned indicators for the required volumes of materials, raw materials, parts, components in accordance with production plans.
• Supply and sales management: accounting for counterparties, maintaining a register of contracts, supply chain management, implementation of warehouse planning and accounting.

Personnel

• Management of the personnel selection process.
• Operational personnel and time records, maintaining staffing tables, calculating salaries.
• Workforce planning.

• Maintaining sales plans.
• Management of pricing in various types of markets in order to form an adequate overall strategy for the enterprise, a transparent policy for calculating the cost of goods: taking into account discounts and special sales conditions.
• Planning and control of ongoing advertising and marketing activities.

Projects. Reporting

• Providing a wide selection of standardized accounting, financial and management reporting forms, as well as a flexible mechanism for creating custom ones.
• Drawing up a general strategy: step-by-step planning of the time frames, material, financial and human resources necessary for successful implementation.
• Monitoring of key project performance indicators.

Which companies can use ERP systems?

At first glance, it may seem that systems of this class are intended exclusively for large-scale industries, since they are more characterized by the high complexity of the structure of resource flows and processes of various types. However, there are situations where the use of MRP or MRP II classes may not be enough for a small enterprise. Today on the market you can purchase software products with various capabilities. Depending on the scale of the enterprise at which they can be effectively used, heavy, medium and light solutions are distinguished.

As for non-manufacturing organizations, ERP class systems are also applicable to them. For such enterprises, not too broad functionality will be enough. At the moment, there are small integrated or local varieties of systems that can meet the needs of trading companies or organizations operating in the service sector. It should also be noted that many developers also offer industry-specific products to their clients.

About classification methods

The most obvious way in which all ERP enterprise management systems can be classified is the scale of the organization where they can be applied. From this point of view, depending on the number of jobs, it is customary to identify solutions for:

• Large corporations (over 10 thousand people).
• Medium corporations (from 1 thousand to 10 thousand people).
• Medium enterprises (from 100 to 1 thousand people).
• Small enterprises (less than 100 people).

An important feature of the systematization of such information products is functionality. Depending on the volume of tasks being performed, there is the following generally accepted division into:

• Large integrated.
• Medium integrated.
• Financial and managerial.
• Local.

The local option is usually a unified boxed information product with a narrow focus, which has a relatively low overall cost. Most often, it covers one or more blocks in the field of finance of an organization or its accounting activities. Such systems are suitable for small manufacturing or trading companies.

Integrated information systems, depending on the scale of the target object, can be medium or large. They cover all business processes of corporate structures, namely interaction with suppliers and consumers, production of the final product, flows of materials and finances, relations with personnel, supply, storage and sales, project implementation and many others.

Modern market of ERP systems

All software products presented on the domestic market today can be divided into two main categories: Russian and imported. The differences between them lie not only in the place of creation, but also in functionality.

Powerful Western developments serve as standards for what is commonly called ERP-class systems. The most striking examples of these are products from SAP, Oracle, PeopleSof, SAGE, Baan, Microsoft Business Solution. All of them can be used on target objects of any level, including very large ones. However, their use by Russian companies can often be difficult due to the possible occurrence of the following problems:

• Unpreparedness of enterprises for a serious reorganization of existing business processes. It is difficult to exaggerate the scale of such changes. Business processes of foreign enterprise management systems are radically different from those commonly used in our country.
• There is an insufficient number of specialists capable of implementing the project of introducing an imported ERP system in Russia with the required level of quality.
• The high cost of using such solutions.

Despite the general lag behind their Western counterparts, modern Russian developments are gradually increasing their functionality. They are fully adapted to the work of domestic enterprises. And they can be successfully implemented if in a particular case a wide coverage of business processes is not required, but it is enough just to establish accounting for certain areas of activity using an ERP system. Examples of advanced domestic developments are products from 1C and Galaktika companies.

Looking to the Future - ERP II

The ERP II concept, which appeared some time ago, was the result of improving the ERP methodology. Enterprise resource planning and management remain among the main tasks here. However, the rapid development of the Internet, which initiated the emergence of a new methodology, left its mark, making traditional business partly electronic. ERP II is a combination of a classic enterprise management system with specific network commerce solutions.

It has now become extremely important to interact with your counterparties online. There are two important areas for this: and customer relations. Intracompany information ceases to be just that, goes out into the external environment and becomes the basis for cooperation with other business entities. The new concept in this case is formulated as management of resources and external relations of the enterprise. In addition to the ideological reorientation, ERP II systems received their own technological features.

Solving the issue of choosing a system

Choosing software of this level is an extremely responsible process. An incorrect decision on this issue, especially for large-scale projects, can entail significant time and money costs in the absence of the expected result.

Effective implementation of a large-scale system, which, for example, should ensure the effective management of a manufacturing enterprise, will necessarily require business process reengineering. It is important to prevent a situation in which, upon completion of the program implementation procedure, it collects unused data or does not solve the necessary problems. For this reason, it is better to invite a team of experts proven in this matter to cooperate.

There is a certain list of criteria on the basis of which the project team, in agreement with the administration of the target company, can make an optimal, cost-effective decision on the issue of choosing a software product:

• Compliance of the technical and functional capabilities of the system with the main goals of the enterprise.
• The total cost of ownership must fit within the budget allocated for these purposes. In addition to the cost of purchasing the system, this includes operating and other types of indirect costs.
• The implemented ERP-class information system must meet all generally accepted technical requirements, which means it must be scalable, reliable, resistant to possible failures, and have anti-virus and anti-hacker protection.
• The supplier must guarantee subsequent maintenance and support of the installed software.

The process of implementing ERP class systems

The implementation of ERP systems at enterprises accompanies the implementation of strategies of the same name. This procedure, depending on the scale of the target object, usually lasts from several weeks to several years. An organization can carry out implementation on its own or use the help of companies specializing in this. The main stages of this process can be distinguished:

1. Primary organization. Here it is necessary to determine strategic goals, objectives and indicate the expected effect of implementation for a specific organization. Based on this data, it will be possible to draw up a technical plan for the project.
2. Project development. At this stage, an analysis of the current activities of the organization takes place: its promotion strategy, business processes. Based on its results, a system model is built, and appropriate clarifications are made to the work plan.
3. Project execution. Since the rules for conducting business processes are dictated by the implemented ERP system, they are transformed here in accordance with unified requirements. If necessary, reporting forms and algorithms for transferring data from previously used accounting programs are developed. If at the previous stages it is revealed that the system functions for the object are insufficient, it is improved. Finally, user training and preliminary testing are carried out.
4. Start-up. During use, possible errors and malfunctions are identified and eliminated.

An ERP-class management system today is not just a copy of expensive software installed on all computers in an organization, but also the main driving force of a promising business strategy. Its selection should be made based on the existing needs and capabilities of the target object. The further success of the entire business as a whole depends on the correctness of the decision made and the implementation of subsequent implementation steps.

An ERP system (Enterprise Resource Planning) is a company's resource management system. Read how to choose it, what are its advantages and disadvantages, how much does it cost and what to consider for successful implementation.

What is an ERP system and why is it needed?

ERP system stands for Enterprise Resource Planning. An ERP system, in simple words, is a company’s resource management system. They are usually implemented at large enterprises with complex production, an extensive branch network, a large range of products, and an increased volume of warehouse operations. Their main advantage is that they allow you to combine several tasks: you can simultaneously account for and plan funds, as well as track their movement; and evaluate labor productivity at the enterprise. In addition, all processes become transparent.

ERP provides:

1. Integration of all business processes according to uniform rules within one system;
2. Prompt receipt by management of information about all aspects of the enterprise’s activities;
3. Planning and control of the organization’s activities (short-term and long-term plans of various departments are linked to each other).

As a result, the efficiency of business management and its competitiveness increase.

The ERP system is also convenient in that it can be implemented in parts (modules), automating, for example, first production and then work with personnel. The set of modules covers all areas of activity, which allows you to automate almost all business processes.

The experience of enterprises that have been successfully implemented shows that as a result, warehouse inventories are reduced (by an average of 21.5%), labor productivity increases (by 17.5%), and the number of timely completed orders increases (by 14.5%). In addition, the investment attractiveness of a business increases, especially for foreign investors who always want it to be transparent.

Pros and cons of an ERP system

Resource management systems have two serious disadvantages: they are usually expensive and time consuming to implement.

Expenses should be considered by company management as strategic investments that will not immediately bring additional profit. Typically, payback comes only after a few years.

The high cost consists of several components:

• the price of one license, that is, in fact, the price of one workplace, ranges from $1,500 to $8,000;
• the price for consulting services, implementation and support ranges from 100–500% of the cost;
• user training price – from $1000 per week.

A long and complex ERP implementation is usually due to the need for a major overhaul of the company's operations. It cannot be implemented in an enterprise where business processes are not streamlined (see also about). That is why a preliminary independent study of the enterprise by a consulting company is required. This will make it possible to understand whether it is possible to implement any system at a given enterprise or whether business processes must first be adjusted. If this stage is skipped, the company risks losing huge amounts of money if the system installation is unsuccessful or delayed.

If the study reveals that the organization is ready for installation (that is, all business processes are sufficiently streamlined), you can begin to draw up a work plan. At the same time, management must determine which functional areas and which types of production need to be covered and which reports to prepare.

It is advisable to draw up a document “Requirements for an ERP system” for use primarily within the enterprise. It must formalize and describe all its essential characteristics. Only after this should you start making a choice.

According to statistics, only 30% of all implementations are successful, that is, the costs are recouped. However, your company has a chance to improve these disappointing statistics. To do this, you need to take into account other people's experience. Let's talk about everything in order.

Implementation methods

There are several methods for implementing the ERP system.

1. Phased implementation - only a few related business processes are automated. With this option, the risk of failure is relatively low.
2. “Big Bang” – installation entirely and immediately. This is a very risky option, which is preferable for relatively uncomplicated production. This method requires an intensive testing phase, since it is necessary to carefully check how error-free all business processes are automated.
3. Deployment - putting it into effect in one area of ​​production (in a department, branch, etc.), and then spreading to other areas. The deployment itself at each site can be carried out as a phased implementation or as a “big bang”. The risk in this case is usually insignificant (if you do not overdo it with “big bangs”).

It is necessary to carefully analyze which of these ERP implementation methods is most optimal for your company (take into account the costs and experience of other companies), and only then proceed with the choice.

Choosing an ERP system

Today on the Russian market there are several automated enterprise management systems from both Western and domestic manufacturers. Which ERP is better - Western or domestic? Opinions on this issue are very contradictory. Let's highlight the strengths and weaknesses of both options.

Of course, the strength of Western platforms is a clearly defined sequence of actions during production planning. The main drawback is the need for modification taking into account national characteristics. For example, in order to maintain accounting records and prepare reports in accordance with Russian rules, it is necessary to modify the settings of the “Finance” module.

In addition, Russian enterprises where production is carried out according to design and technological documentation (for example, machine-building and instrument-making plants) are required to use the ESKD (Unified System of Design Documentation) and ESTD (Unified System of Technological Documentation) standards. Western automated control systems do not support these standards. Therefore, improvements are needed at the software level. This requires additional costs that should be considered in advance.

Russian systems and their implementation are much cheaper than Western ones. And, of course, domestic specialists take into account Russian specifics.

When choosing an integrator - a company that carries out installation, you need to take into account two factors: its competence and experience in automating enterprises in similar industries or specific business processes. You should also pay attention to what professional services the integrator provides (consulting, business process optimization, project management, performance assessment, staff training

Installation costs

When forming a preliminary project budget, it is necessary to take into account that the costs include not only the cost of the program itself (shell, user licenses, etc.) and the services of a system integrator. The estimate will also include the cost of customization taking into account existing business processes, the cost of user training services (and for large companies also a training center and support service), the cost of purchasing or renting additional equipment, as well as possible costs of attracting third-party consultants. And finally, it is worth taking into account the costs of the motivational part (including deductions) for project participants.

The project budget should include possible cost overruns. Both customers and representatives of consulting companies, as a rule, consider it quite normal if actual costs exceed the planned ones by 10–15 percent, but in practice these discrepancies are larger.

When installing ERP, companies face necessary, but sometimes unexpected, costs. For many, this is the cost of staff training, which is often comparable to the cost of the system. However, workers almost always have to learn a new set of processes rather than just a different software interface, which increases costs.

Another surprise may await the enterprise when checking connections between modules and other programs. Organizations, as a rule, already have software packages for procurement, production planning, barcoding, etc. If additional configuration of the ERP system is required to ensure compatibility with these programs, a sharp increase in costs for integration, testing and maintenance of the software is inevitable.

Consulting fees are also a major expense, but to avoid unexpectedly high costs, the consultant's responsibilities should be clearly stated in the consultant's contract.

Reasons for unsuccessful implementation of ERP systems

Many enterprises, in order to save money, rely only on their own information service or invite third-party specialists to work temporarily, trying to save on consultant services. Unfortunately, this often leads to work dragging on for several years, and the company losing time and resources. The fact is that the introduction of resource management systems involves the reorganization of all business processes, and such a task is often beyond the capabilities of internal and freelance specialists.

However, if company management decides to completely entrust the ERP installation to a system integrator, another mistake is possible. All functions are transferred to consultants. The experts themselves take a distant position - they say, they will do it, and we’ll see. But even the most qualified consultants cannot see and know the entire state of affairs in the company, and in the end it will be the company’s personnel who will have to work with the system. The success of the project depends equally on the consultants and on the company itself. Therefore, it is better when both parties are responsible for the results.

Problems may arise if a large organization installs the entire system (the “big bang” method). Experience shows that failure in this case is almost guaranteed. A sudden change in operating principles is stressful for the entire enterprise, so the process should under no circumstances be artificially accelerated. Staff must gradually become accustomed to the changes that ERP brings. Therefore, it is better to first choose phased implementation or deployment methods.

You must be prepared for employee resistance. This is one of the main problems that management faces. It is due to the fact that employees have significantly more worries for a long time. In addition, their mistakes, thanks to innovations, become noticeable to all participants in business processes and, above all, to management (see. ).

And lastly, after installation, do not expect a quick and “miraculous” transformation of the company. As we have already noted, the effect of ERP implementation is a matter of time. The main positive result of the first stage of the system’s operation is that it will force you to debug and improve all business processes. And this is already a lot.

User support and motivation

It is worth highlighting two important aspects of automation: training and user support, as well as motivation. It is logical to train the implementation team first to work with the new IT system, and then organize a user training center (if the company is large) or hold a series of face-to-face meetings if there are not many employees. You can also teach remotely, using webinars, recorded courses and other opportunities.

After implementation has taken place, it is necessary to provide users with a constantly updated library of instructions, for example, on a corporate portal.

You also need to remember about motivation. The implementation of any ERP system requires enormous labor costs from participants, so unmotivated personnel, including in ordinary positions, will significantly increase staff turnover.

An ERP system is a set of integrated applications that create the conditions for automating an enterprise’s business processes for accounting, control, planning and data analysis. The operation of the product is based on the principle of creating a common storage place for important corporate information for the purpose of its subsequent transmission and processing. All divisions of the company have access to such data: financial, production, personnel, planning and others.

Thanks to the centralized collection of information at all stages of the enterprise’s operation, it is possible to significantly optimize production resources. Installing an ERP system is justified by the presence of useful functions:

• the ability to formulate production and sales plans;
• optimization of the amount of inventory in the warehouse and calculation of purchase volumes;
• determination of parameters for the amount of raw materials, taking into account the time required to fulfill the production plan;
• support of technological processes of product creation;
• distribution of production capacity for small and large projects;
• organization of management and financial accounting.

The principle of constructing ERP systems

The structure of the ERP system consists of several levels. The first of them contains basic elements, the second contains auxiliary (or extended) elements. According to this classification, it is most convenient to present the principle of operation of the product.

The basic element includes a module for production management:

• drawing up a plan for using capacity;
• determining the required amount of raw materials;
• warehouse inventory management and purchasing process.

Extended elements are a collection of the following management modules:

• supplies - forecasting demand for products, logistics in the warehouse, production and sales process, managing the list of contractors;
• production cycle - maintaining the process from design to disposal;
• personnel - planning salary levels, drawing up a work schedule, determining staffing and working out employee motivation;
• communication with counterparties - marketing, sales management and other CRM functions;
• sales - distribution of sales channels, orders, prices and transport;
• finance - formation of the general ledger, distribution of data among accounts payable to debtors and creditors, accounting and reporting.

The ERP system scheme is based on the movement of documents through the listed modules. Initially, primary documents enter the common database for processing as raw data. After sequentially overcoming all production stages, they are transformed into the following form:

• analytical reports;
• graphs and diagrams;
• accounting financial statements;
• forecasts and plans for the next year.