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Enterprise Resource Planning Projects: Integrating BPM for ERP Success

Arul Nair

Arul Nair

Last updated 29/10/2020


Enterprise Resource Planning Projects: Integrating BPM for ERP Success

ERP and BPM are frequently viewed as something very similar, yet they are definitely not. At the point when a BPM framework is incorporated with an ERP framework, the BPMS includes a layer of the executives and control for measures over the whole association. A BPM can integrate frameworks, separate business zones, applications, and stores. 

Basically, BPM gives a more clear and more exact perspective on the association, permits workers to see the entirety of their processes, share measures across divisions – even over the flexible chain. 

The fact is that BPM oversees and improves business measures since that is actually what it's intended to do. Process libraries have existing arrangements, strategies, and structures. Process planning devices inside a BPM framework can:

  • Capture your processes in their current state 
  • Demonstrate compliance with quality certifications like ISO  
  • Assigns levels of risk to different process steps in order to mitigate possible process breakdowns 
  • Captures and visualizes value-adding and non-value-adding process steps by capturing and measuring time, effort, and cost data 
  • Assigns RACI (responsibility, accountability, consulted, informed) to processes  

A cycle guide can turn out to be incredibly intricate (contingent upon what level of detail you need), so it bodes well to utilize the correct apparatuses (a devoted BPM framework) to land the position right the first time. 

Your cycles and methods might be fizzling inside an Enterprise Resource Planning venture since they are difficult to utilize, not equipped for imparting adequately across offices, and difficult to appoint duty and danger too. 

In the event that a sales rep or call focus representative takes care of out a request structure with an inappropriate data, the start of this cycle (satisfying a request), will at that point be completed mistakenly at each ensuing advance of the request until the issue has been gotten and halted, or almost certain, the client sends an inappropriate item back to trade it for the correct one.

Here's an example of an erroneous order process: 

  • Manufactured – Shipped - Opened (by the customer creating an unsatisfactory response) – Returned – Re-ordered – Manufactured (a new product) – Shipped – Opened (less customer satisfaction) – Opportunity Lost (no customer referrals/word of mouth) 

Here's an example of a process working the way it should: 

  • Manufactured - Shipped - Opened (satisfactory response) - Opportunity (customer referral) 

There is more waste in this cycle than I have appeared - there is a lot of waste even in measures that work without blunders - however you get how exorbitant a Process failure can be by the fact that everything appeared in red above will be squander. None of it has esteem. Every last bit of it is unadulterated expense in time, cash and exertion and it accepts more than twice the same number of steps to convey the right item as a process filling in as it should. 

Missteps are excluded from measure steps since it is a cycle breakdown (measure breakdowns are not expected and don't include esteem); so any cycle that incorporates a bigger number of steps than initially proposed must mean expense in time, exertion, and cash that can never be recuperated. 

Great Process planning devices won't just distinguish measure issues and model the most ideal approaches to explain them, they likewise relegate hazard levels to measures so the most conceivably risky cycles can be a focal point of more difficult quality control and responsibility.

BPM enables an Enterprise Resource Planning System to like SAP since it oversees what goes on in Enterprise Resource Planning ventures all the more successfully. It permits viable guidelines for representatives, cross-office correspondence and as recently referenced, it integrates frameworks.

Enterprise Resource Planning Failure: Where Problems Commonly Arise

ERP frameworks like SAP are just comparable to the arrangement. The framework is intended to work with the data it’s given and if the data comes up short, there will be an Enterprise Resource Planning disappointment. Here are probably the most well-known issues that emerge after ERP execution:

  • Data Problems – Inaccuracy is a massive problem for ERP implementation and if something such as inventory is inaccurate then your ERP system will be useless. Duplicate part numbers and vendor numbers, and inaccurate costing data will cause an Enterprise Resource Planning failure
  • Undermining the System – The most accurate and efficient scheduling system in the world won't help you if it is being undermined by your workers or senior managers – assigning RACI to processes can help with this
  • Communication Problems – ERP systems work best across 'open' departments where teams communicate. However, if the sales team doesn't talk to the production team and the production team doesn't talk to engineering then process failure is inevitable – one of the best features of a BPM system is its capability of breaking down silos and creating a platform for effective communication across departments and throughout the supply chain  
  • Muddled Measuring – How does your organization measure efficiency? If the answer is  'many different ways', you might have a problem. Companies often suffer process breakdowns when asking managers to do one thing and measuring them in a different way. Asking a factory to ship products according to customer delivery dates and then measuring the plant in 'tons produced' may mean that the plant will maximize their tonnage by shipping large orders first before the earliest due dates 

Solving these problems involves implementing continual improvement solutions and solving business process problems.  

BPM is incredible at making a standard method of working in associations to improve representative proficiency (by taking a gander at the cycle as the issue), yet in addition connecting undertakings to the perfect individuals (through RACI) so associations realize who is mindful, who is responsible and who ought to be counseled and educated with respect to measures. 

This basically implies culture is made through a powerful cycle the board and quality is guaranteed through progress devices and organized correspondence across groups and divisions. 

It might sound tedious to update culture to incorporate each worker, yet the potential for development can be very fulfilling.

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About Author

With an experience of 12 years of quality management under his belt, he has been the keynote speaker at a vast number of webinars. He has been delivering knowledge to corporates through his work for a long time. He holds cutting-edge expertise in Six Sigma Consulting & Implementation, Process/Service Improvement Using Lean Six Sigma, Process Definition, Implementation & Compliance, Process Hygiene (ISO 20000), Quality Assurance and Program Governance. When it comes to content development, he brings a unique blend of creativity, linguistic acumen, and quality management knowledge to his readers in the technology space.

 
 

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