Large enterprise ERP implementation failure case

At the end of the ninety s of a spring, I was in a famous software developers in a large manufacturing enterprise won a national 863 CIMS project, ERP is listed as part of it, and another CAD, CAPP, PDM system, the whole CIMS system into near. I as the implementation of the ERP consultant, participate in the whole process of the project, in more than a year and a half of the implementation of the process, the ERP had a deeper understanding. Especially in ERP implementation of state-owned enterprises in a deep understanding and visceral, and find a lot of problems, and it is these problems led directly to the failure of implementation.

In the past few years, about the implementation of ERP article, but a lot of the true feelings are not much, a lot of the implementation of the article about lack of execution details description, or is an armchair strategist, or is pure east west picking things copy, few from rooted in practice really feeling. The reality very vivid the concrete practice, become dry dogma, strictly speaking, the practical application of ERP not much reference.

The author has the development experience and long-term ERP implementing ERP experience, compared to a deep understanding of ERP. Here, according to from already in the process of the implementation of the experience, tell you a true in state-owned large manufacturing implement ERP story, their own in practice the first-hand information for contribution and Shared out. For the reason of understanding can be, the paper will be hidden to the manufacturers of true name.

A, project background

This is a value of about eight hundred million machinery manufacturing enterprise, have a worker seven thousand people or so, including technical personnel more than six hundred people. The structure of the organization for the five group, ten seven, three room, nine factory, a scientific research institutes, there is a hospital affiliated nursery school, elementary school, social welfare institutions and laundries. Since the middle of ninety s, enterprise years of losses, fortunately ShuDaGenShen, is not yet big energy-sapping. Recently, because of defense orders surge, the military export situation involving, enterprise and restore the vitality, the product time demand exceeds supply. But because the inefficient management, causing the rising costs, the output value is big, the benefit is generally. This is the enterprise to the reasons on one of ERP.

Developers are a new software enterprise, with about one hundred and twenty people software developers. In recent years, modeled after a famous foreign software developed his own ERP software, and the project was the developers of the third big projects.

The project by the national project, on 863 CIMS plan (it is said that included in the plan will get the country a certain amount unpaid funding), which determined the project financing source for self-raised + the competent dial the + national funding.

Second, in the process of implementation

Foreign about the implementation of ERP dividing the stage is reasonable, it is only in the every stage of the work is done, to guarantee the success of ERP implementation. Now I combine the program to analyze my experience of ERP implementation.

1. Leadership training

ERP system is regarded as a project, the enterprise top leadership training is a project is very important work. And the reality is how to do? Developers should be said from the start, pays great attention to the enterprise a job, but not for the import advanced management concept, but put a lot of energy on the public relations. This is worth nearly ten million yuan project rightly caused much home for the software vendors, and the project should not be subject to tender, this is the companies of the public relations work left wide performance stage. Companies with the situation to offer performance, at that time you will go on stage I sing, all sorts of means vary. And extremely important concept of ERP is quite careless work introduction to slide over. Just please a mechanical manufacturing experts made of the principle of CIMS project speeches, but not to make any form of ERP concept of import work from the start on the future of the failure of the curse.

Caused by this situation has both the reasons:

On one hand, developers implementation team has not been perfected yet, the author as the only development experience and management experience with the implementation of consultants, already engaged in the development of work, and who want to run the multiple projects and the implementation of the difficulty is very big. After all, the domestic ERP software is emerged in recent years, developers can understand the institution of modern manufacturing management and has a high level of computer amphibian talents. In addition, together with the developers considered subjectively in public relations activities of their work enough to ensure the smooth implementation of the work of follow-up, also don't want to be in this area too big human, material, as to reduce cost. In addition to make a lecture outside, there is no made management theoretical aspects of training.

On the other hand, the enterprise ERP project leadership of motivation complex. Of course also want to through the ERP raise the level of management, in addition to compare follow suit and deeper unknown motives. Enterprise management personnel of all levels of this is also so for all up and down the ERP project 'lack of confidence and enthusiasm.

2. The requirement analysis

The demand analysis of the developers work are very careless. Still is from convinced that their public relations inputs can guarantee the project success (here's success is received developers understand project money), as far as possible to reduce the cost spending developers, the demand analysis work is to cope with the basic project approval and do, for secondary development basic not meaningful.

3. BPR

In this project implementation process, whether or not the user developers out to carry out enterprise management process restructuring work. The author knows in state-owned enterprises to enterprise business flow of fundamental restructuring is almost impossible, but a little improvement are not and to successfully implement ERP also almost impossible, as implementation consultants, the author has put forward the workflow of the enterprise improvement suggestion, but appeal remained a dead letter, and hate no news. An especially surprising is stationed in the enterprise in our time, the enterprise has just completed the organization to adjust, seems to be the job has nothing to do with our fundamental, enterprise under the same old story by three five divided by two is enough. Its organizational structure is still high impersonal mechanical structure, we are in this management environment, ERP implementation in.

4. Project organization

Project organization viewed formally is the most like it. Founded the level 3 project organization, enterprise as a leading group leader, the core group, each department project team also have heavyweights as leader. But the actual work up is not so one thing....... A it's leader, but from beginning to end in only two meetings, and is also big words to say some hot aberrant mandarin, the polite, say that finish and get out. And the rest of the person-in-charge of ERP knowledge is short of, in the business meeting, said some of the reason often NiuTouBuDuiMaZui words, not solve any problem. And the most ridiculous, the enterprise information, director of the centre of the specific charge, project that is an uneducated man. Although it is a computer graduate from college, but know nothing about technology. This person seldom studying business, full brain turn is how to curry favor with leadership, please the superior. The author work there more than a year, never saw he had a computer to do a proper business, even the typing. If by chance sit in front of the computer, affirmation is playing games (and to bring their own operating system such as the poker game).

5. Implementation plan

Because involving multiple CIMS system, the organization of extremely heavy plan, idea very much, should be the PERT technology for project management. But actually it is not to do so, still press traditional method management project. The whole plan is very briefly, only a broad schedule, each system split, and mutual communication. And in the contract project, CAD, CAPP, PDM system to another package well-known software developers, different software developers use of development tools, different way to work each different, coordinated very difficult, often appear chaos, and developed system and our ERP system can't effectively integrated, form each other is the contact information island.

6. The training

Had mentioned in front management training of problem in the work, this is just talk about the operation of training work. Should say this training work management concept of training than is much better. We organized the of the various departments of operator training class, from the computer basic knowledge began with system training, and a strict exam, qualified issued the accountant. To participate in training the are some grassroots women, different leadership of numbness and lazy, they showed high enthusiasm, the active work overtime often learn late at night. It is because of their help that make us in extremely detrimental to the environment, also can stick to the normal work. They have done, often let us exclamation this is China's backbone. But a problem in training is noodles don't wide, not continued expansion of training, another problem is not the managers at all levels in, a direct impact on the implementation work.

7. Data preparation

The importance of data for no obvious now, as the implementation of consultants, the author in various occasions reiterated the importance of the basic data, and ask the enterprise take feasible measures to ensure that. Because of our insist, enterprise aspects of this problem also showed a lot of attention. The layout of the whole factory inventory inventory, the stock account, things had a more thorough inventory. We should say, after the big the inventory, the enterprise is check lose more clear, but still can't achieve system online requirements. The reason is the enterprise for many years of practice is more extensive production management way, some basic data of the system requirements, the enterprise did not complete records. For example, the parts and components manufacturing the lead time, purchasing the lead time without a accurate data, especially purchasing the lead time have no history records material, no manufacturing economic batch and purchasing economic batch concept. The author had to personally finishing the vast multitude of data, conduct analysis force confirmed the order cost, every time inventory cost, so as to develop economic manufacturing batch, economic batch purchase and lay the foundation.

In addition, we found in the work, the many parts of the process standards, cost standard, loss standards are formulated in the seventy s, have already can not adapt to the market now. In short, the data preparation is serious, but because the basic management of the poor and in general can't achieve system online requirements.

8. Secondary development

Since there is no business process to restructure, we have had to software made bigger modification. In the early implementation, we insist on enterprise business process according to the requirements of the ERP reform, both parties of the dispute raged. After a period of stalemate, developers boss sent to our words: the user is god, the user to us what to do, don't go on unnecessary conflict. And so, we have to follow the god's will, as software bigger rotate degree amended so ERP software with the characteristics of dense state-owned enterprises.

Three, management conflict

It focuses on the talk in implementing ERP in each stage of the existing problems. But these problems are derived directly a series of two management mode of conflict, the following problems do some analysis on these discussions.

1. The dispute of ideas

In the process of implementing, we have been in advanced and practical ideas to the struggle of the center. Because whether management theory, or rich professional experience made the enterprise eurosceptics have to admit that the author's management idea is advanced. But they said they that a set of although not advanced but it is practical and effective. Support their reason is the mode according to the ERP restructuring production, will give the production operation system has overload lead to chaos. However, the author specifically told them, it is precisely because the enterprise continue 30 years of constant management system makes enterprise can't cope with the challenge of the new century. It is because of the old production operation system enterprises have to just make the seams. And, this is the low efficiency of overload, could not cope with the market growing challenge, one day it will be thereof is thoroughly collapse. If wait until enterprise completely lost competitiveness, again to restructure, may be too late. In order to convince them, the author of the enterprise production scheduling model for them a detailed analysis, pointed out that the issues clearly.

For many years, this enterprise production scheduling model is plan target or order contracts goal...... Check for...... inventory semi-finished products library The factory issued monthly production plan...... The workshop production scheduling instructions...... The workshop to the materials demand planning...... ShengChanChu examination and approval...... Branch examination and approval... The workshop execution. Here you can see that, in advance production plan, the traditional way of making enterprise production planners only looking at a influence factor, which make plans this point can be used in the assembly of the finished product immediately semi-finished products inventory count. But the underlying material inventory quantity is not one of enterprise production plan makers consideration, but to lower factory or workshop to decide for themselves, because the information sharing between different departments can't, and out of all kinds of their own interests, the lower the proposed materials demand planning often take more, omission phenomenon, is not accurate. And above inventory data are in static data, do not consider the quantities of materials will arrive. The plan links, wearied of examination and approval of the change of the market response is slow. Another big problem is the traditional production management mode not production capacity calculation, only roughly estimated by experience, not make detailed production capacity demand plan.

Above these work though of some touches, however constrained system, the enterprise is difficult to business process of radical rethinking and then design.

2. The dispute of interests

Even if is not BPR, I still perceive the ERP project to enterprise managers at all levels of the benefits of divided, with no business process reorganization, did not appear to interest the distribution of big shocks, but a special kind of interest to the struggle of the undercurrent, from the start in various forms in the dark surges.

Because enterprise leadership style for ZhuanZhiXing, making important decisions made by the factory director a word, a pen decision. Especially the project decision, caused the other leading discontent, especially the production factory director in charge pay model selection system has been ruled out, from this and bit quarrels with his deep, has been to implement ERP to take passive attitude. And the factory workshop, regulators are a lot of people worry about ERP system implementation of the following management that they too transparent, go against using machiavellian to manage subordinates, they take a wait-and-see attitude negative.

3. Extensive and precise wrangling

According to the principle of ERP, we want to make the links to the precise control. To α products as an example, the product of the BOM 17 layer by 127 material composition. Among them are manufacturing a product, outsourcing and 采购件, some manufacturing a process to dozens of ways. About how to develop the products of BOM, we and production management department of heated argument broke out. First, we and the enterprise concerned personnel decision research, according to the parts of the α product list is divided into 17 layer BOM 127 materials, production management department at first because of the working principle of ERP sketchy, also did not object. But in practice is performed, up and down a burst cries of dissent.

Because for a long time, enterprise's inefficient management, manufacturing procedures, long flow, links, manufacturing process always have various losses. Together with lax management, responsibility, discrepancies on often push unloaded, with reason unknown, responsible persons not clear. The workshop and the workshop, between each workshop and factory factory factory and between, between statistics long-term inconsistencies, after many large-scale artificial inventory, still find no clear reasons. The whole manufacturing process as a black box, the production of leadership only know how much input from the source of raw materials, and finally how much output finished product. And in the middle of the loss of details not clear, such as the specific loss is a department, which processes, how much and for what reason, loss, responsible persons who is unclear. The leadership of the enterprise very want to through the ERP system to control the whole process of production, understand the above problems. So to do this, we must combine BOM level had fine as far as possible, of course, is required to the BOM of each level of material control, each require a responsible persons input received every day, the number of raw material processing complete number, processing loss number, unprocessed complete several, qualified number, processing loss reason of the data. Production line to every part of each person is controlled, all state, this of course with the original optional, lax work patterns vary widely. So, from production management department of management personnel to the production line of the workers refused to carry out with a variety of reason. Among them, a ridiculous reason is ERP system work patterns produce too much control documents, waste paper. Faced with a cries of dissent, the author calm analysis, on the one hand, there is a two management mode of the change will bring oscillation, and more profound interest conflict at all levels. As the company's top leadership certainly hope through the ERP system more effectively to the following operation surveillance, but some lower-level managers, workers of course not willing to accept this kind of unilateral supervision. Top and middle and lower level between, between workers and there was deep conflicts, and ERP system in the implementation of some extent has compounded the conflict. This is also not beforehand BPR brings an obvious consequences, if prior the reasonable management to improve, the interests of the parties to the combination, will not lead to the general against results. Face strong opposition from some lower-level, state-owned enterprise management weaknesses expose, senior leaders also dare not forcibly push. Finally, by the developer and the leadership of the enterprise after discussions ruling, reduced levels, reduce control links. So the BOM structure layer α product reduced to nine layer 86 materials.

4. Procurement policy struggle

According to the ERP management thinking, ought to be in need of time to need departments to provide need quantity and variety of materials. In principle, requirements for also can't take off material can't for early. However, the actual situation of enterprise is the production of raw materials to demand for the unit quarter to purchase. That is, the quarter in most of the raw materials needed for production in the quarter purchasing in position. This can make enterprise long-term stock turnover, slow, and once the market changed, the adjustment of the production and it needs some already purchase material, it will cause the inventory, and adjust the production has urgent need and have no money to buy raw materials. To solve this problem, the author puts forward the ERP strictly according to the material requirements planning of the generation of the purchase order to purchase the solution. But the purchasing department but think, because this enterprise purchase funds, usually by credit procurement policy. And some relatively tight credit dependent on business personnel's service material ability, the ordering cycle is not sure. This leads to can't formulate correct purchasing the lead time.

According to the purchasing department questions, based on his own experience judgment, purchasing department questions must have exaggerated composition. On this question, the author please purchasing department lists can't guarantee the supply on time of material list. Purchasing department provides up to 26 kinds of material list, and almost is to have a major impact on production of materials. Get in the list, the author and not be intimidated, but the procurement department of 26 kinds of materials listed the market conditions made detailed investigations. After the author for more than half a month of job, concluded that only two kinds of material purchasing the lead time is hard to define. Another 18 can very convenient sure, there are six after efforts to also can be sure. However, due to the management of the state-owned enterprise inherent barriers, the author's investigation results are on the shelf, and brought not due procurement policy adjustments.

Four, infrastructures

As he had developers expected, despite the above problems, project or implement "success". In the developers and enterprise jointly "hard", this project through the national 863 "experts" group of appraisal, and in various media who. Developers fulfiled to earn money, authorities also got a lot of advantages. And for enterprise, leaving the workers of is what? I recently had and the implementation of the friendship forged in the friends by phone, know CAPP, PDM Nick had aside, the production plan and sales ERP purchasing module, still not play a role. 's inventory management, personnel management, financial management, and also can play some role, but the enterprise pay and get really isn't proportional.

Through this implementation, the author deeply understand to traditional management system in the successful implementation of the probability of enterprise ERP almost to zero, the corruption of the academic enterprise officials with the corruption that even deng xiaoping kiss their group of 863 plan also became's flesh.

The above is my in a year and a half in the implementation of get experience, although a lot of ink talked about the non-technical problems, however, ERP is not a simple itself is a computer program, and is a management project. From the view of management have to study these problems, only to face up to it may solve it, but the author speaking here but is a portion of an iceberg, it should be said, is not an isolated coincidence, but quite common lies in the state-owned enterprise, can be expected, to complete the state-owned enterprise's information reform, is a long way to go and work