ERP Implementation: Methodology for SMEs in India

<h1>ERP Implementation: Methodology for SMEs in India</h1>Author: <a title="Ajay Joshi" href="http://www.articlesbase.com/authors/ajay-joshi/284058.htm">Ajay Joshi</a> Large size companies anywhere in the world tend to have access to good IT talent which can carry out an ERP implementation in a planned and managed way. But the scenario for small and medium size companies is very different. First one needs to answer the question whether they need ERP or not. Most of the small size companies in the world do not need an ERP. They need Business Automation systems till they grow to a certain size. Let us discuss the specific steps that I recommend one should take to implement ERP in SME. - Work with account consultant to finalize Chart of Accounts first. Chart of accounts must ensure compliance with laws of the land. If this is not finalized then any changes to this results in having to change data which is error prone. - Start next on Fixed Assets of the company. Get all existing FAs entered in the system using right depreciation schedule permitted by law. Provide customer with couple of reports that give them information they need to know that the information got entered properly. - Once accounts are set up, start purchasing module implementation. Sub divide the implementation into multiple flows (e.g. Import, Local purchase etc..). Trying to implement complete purchasing cycle is treacherous due to the amount of activity that needs to be done. You want to select certain flows, get those delivered and then move to the next flows. - After purchasing, next should be inventory. Once material management is addressed, major pain areas for most of the businesses in SMEs will be addressed. There are very few SMEs that struggle with managing sales. That is a goos problem that they know how to handle. Inventory implementation will include QA at the time of receipt, material rejection etc. - Manufacturing should be handled last. This is for the simple reason that in the SME sector, there are very few companies who optimize Manufacturing while implementing ERP. In other words, there are no major gains to be had when one implements ERP for the first time. ERP in manufacturing starts showing results once the organization is used to ERP and data residing in ERP. It is my belief that ERP implementations in SME will benefit greatly by using the basics of Agile methodology. - Demonstrate the product - Make list of changes to make. Get the list prioritized. Put non-critical items in the marking lot. Get critical items completed and demonstrate the product back to the key users. - Once accepted, implement the module.About the Author: ERP Consultants India provides ERP selection, implementation and project management services. With prolifiration of ERP tools in the market, it has become imperative to have rigorous evaluation and selection process. ECI provides that service in India.

For additional details please visit our website at <a target="_blank" href="http://www.erpconsultantsindia.com">http://www.erpconsultantsindia.com</a>

Phone: (0265) 2343406
Email : <a href="mailto:ajoshi@erpconsultantsindia.com">ajoshi@erpconsultantsindia.com</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/information-technology-articles/erp-implementation-methodology-for-smes-in-india-1446525.html" title="ERP Implementation: Methodology for SMEs in India">ERP Implementation: Methodology for SMEs in India</a>

Large size companies anywhere in the world tend to have access to good IT talent which can carry out an ERP implementation in a planned and managed way. But the scenario for small and medium size companies is very different. First one needs to answer the question whether they need ERP or not. Most of the small size companies in the world do not need an ERP. They need Business Automation systems till they grow to a certain size.

Let us discuss the specific steps that I recommend one should take to implement ERP in SME.

- Work with account consultant to finalize Chart of Accounts first. Chart of accounts must ensure compliance with laws of the land. If this is not finalized then any changes to this results in having to change data which is error prone.

- Start next on Fixed Assets of the company. Get all existing FAs entered in the system using right depreciation schedule permitted by law. Provide customer with couple of reports that give them information they need to know that the information got entered properly.

- Once accounts are set up, start purchasing module implementation. Sub divide the implementation into multiple flows (e.g. Import, Local purchase etc..). Trying to implement complete purchasing cycle is treacherous due to the amount of activity that needs to be done. You want to select certain flows, get those delivered and then move to the next flows.

- After purchasing, next should be inventory. Once material management is addressed, major pain areas for most of the businesses in SMEs will be addressed. There are very few SMEs that struggle with managing sales. That is a goos problem that they know how to handle. Inventory implementation will include QA at the time of receipt, material rejection etc.

- Manufacturing should be handled last. This is for the simple reason that in the SME sector, there are very few companies who optimize Manufacturing while implementing ERP. In other words, there are no major gains to be had when one implements ERP for the first time. ERP in manufacturing starts showing results once the organization is used to ERP and data residing in ERP.

It is my belief that ERP implementations in SME will benefit greatly by using the basics of Agile methodology.

- Demonstrate the product

- Make list of changes to make. Get the list prioritized. Put non-critical items in the marking lot. Get critical items completed and demonstrate the product back to the key users.

- Once accepted, implement the module.

ERP Consultants India provides ERP selection, implementation and project management services. With prolifiration of ERP tools in the market, it has become imperative to have rigorous evaluation and selection process. ECI provides that service in India. For additional details please visit our website at http://www.erpconsultantsindia.com Phone: (0265) 2343406 Email : ajoshi@erpconsultantsindia.com

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/information-technology-articles/erp-implementation-methodology-for-smes-in-india-1446525.html

Article Tags: Erp Implementation, Erp Consultant, Erp Consulting, Erp Selection

Related Videos
Related Articles
Ask / Related Q&A

Play

How to Use Grooming Implements - Cairn Terrier

Play

How to Use Grooming Implements - Soft Coated Wheaten Terrier

Play

Policymakers and Implementers

Play

How to Implement Http Session Listener

Play

Adobe InCopy CS2 - How to Implement InCopy in a Publishing Workflow

Latest Information Technology Articles
More from Ajay Joshi

How to Communicate With Other Electronic Devices on Your PC

By: Colon Bolden | 27/12/2009
One of the things that makes computers so useful is the fact that they can communicate with other electronic devices. Via cables and telephone lines, your computer can talk to printers, fax machines and to other computers.

Pass4side 70-642 Exam Training materials

By: Adela1987 | 26/12/2009
Pass4side 70-642 Practice Testing Software provides you an easy online solution to your Microsoft 70-642 Exam Preparation. With Pass4side 70-642 Practice Testing Software is tested on all Windows Platforms and contains the more recent Microsoft 70-642 Exam Objectives. You can use Pass4side 70-642 Practice Test on any PC with most versions of Windows and take the tests in two modes. One is Practice Mode and the other is learning mode for Microsoft 70-642 Certification Exam. You can check your ans

Pass4side Apple 9L0-509 exam Training

By: Adela1987 | 26/12/2009
The Question and Answers are in PDF format that makes it easy for a student to study on any system. The 9L0-509 Dump Exams provide you with a 100 success guarantee. Each resource available from Actual Tests Cram has been hand crafted by our team of practicing IT Professionals. It is certain that your Pass4side Download 9L0-509, Q and A, and brain dumps are the highest quality, and customized to make the learning experience the best choice you can make in preparing for your Certification.

Pass4side 70-290 exam Braindumps

By: Adela1987 | 26/12/2009
My suggestion is the best use of Pass4side, the money unless you are relatively well-off time.Many people think that long experience in the use of questions is not, Pass4side provides Microsoft 70-290 exam study materials,such as Microsoft 70-290 Braindumps, 70-290 Study Guides,70-290 exam Questions with Answers, 70-290 Training materials, 70-290 free demo and so on.

Pass4side 312-50 Study Guide

By: Adela1987 | 26/12/2009
So you can get the exams from various resources but the logical and the precise explanation to your study guide questions is only here. 312-50 Study Guide page all the necessary 312-50 exam guide can be found. And it not only includes free 312-50 but it also contains 312-50 study guide and practice exams.

Pass4side 000-001 practice tests

By: Adela1987 | 26/12/2009
Pass4side 000-001 Practice Questions are designed with questions, coupled with precise, logical and verified answer. Pass4side.com’s 000-001 practice exam provides you with an examination experience like no other. To take a more authentic exam, you would have to take the exam itself, in an exam center!

Pass4side 220-601 training tools

By: Adela1987 | 26/12/2009
The CompTIA 220-601 Study Guide will take you from weak to geek in our 100% guaranteed solution for getting your head wrapped around the 220-601 exam content and theories. The 220-601 guide is the perfect prelude to using the 220-601 exam simulator. Designed to work together for the ultimate learning and comprehending experience – the 220-601 study guide is training done right!

Pass4side N10-004 study guide

By: Adela1987 | 26/12/2009
Many IT specialists were not able to obtain the N10-004 certificate from the first attempt, which was the result of poor preparation for the examination, using preparatory N10-004 study guide of poor quality. Our N10-004 practice exams and study questions are composed by current and active Information Technology experts, who use their experience in preparing you for your future in IT area.