How to Define ERP Project Scope
Episode 7: (8:05)
Why does ERP project scope matter to today’s manufacturing and distribution organization? And what needs to be considered when it comes time to define ERP project scope?
In this episode of Ultra’s ERP podcast, host Jeff Carr breaks down the key areas to focus on when it comes to defining the ERP project.
As Jeff so clearly articulates, defining the ERP project is key before any efforts to identify vendors. His guidance covers the specific “value streams” so important to today’s streamlined operations.
ERP Value – Four Critical Value Streams
To get teams aligned to define ERP project scope, Jeff kicks off the ERP podcast with a look at the critical value streams within a manufacturing or distribution organization. They include:
- Order to Cash flow of processes – covering quotations, RFPs, purchase orders, work orders that get pushed to the shop floor, as well as production, quality, shipping, invoicing
- Procure to Pay flow of processes – management of forecasting, material requirements, purchase reqs, receiving, Accounts Payment, inventory management
- Design to Deploy – centered around engineering and product development. Information is tracked in a stage-gate development process.
- Hire to Retire – the human resources value stream that works through recruiting, hiring, performance management, self-service HR systems and processes like payroll, time tracking, benefits.
When looking to define ERP project scope, what are the manufacturing technology solutions that need to be considered?
Listen as Jeff breaks down the process to define an ERP project scope in terms of the following systems.
- Financial, General Ledger, Costing
- Human Resources
- Marketing – Customer Relationship Management
- Plant maintenance, equipment asset tracking
As Jeff notes in the podcast, each of the categories is critical to examine for a project to generate the most value.
Listen and Learn to Define ERP Project Scope
As an ERP project gets underway, management must clearly define ERP project scope so that they understand the ROI of improved business processes throughout the organization.
As Jeff notes in this episode of the ERP podcast, defining scope must come before evaluation, vendor demos and other areas of an ERP project, to help the organization get the finish line for the best chance for success during implementation.