AN AGGRESSIVE IMPLEMENTATION SCHEDULE

The question arises: “How long should it take to implement all of the
functions of Enterprise Resource Planning throughout the entire
company, from when we start until we’re fully implemented?” First of
all, it’s difficult to implement all of ERP, company wide, in less than
a year. Some companies have achieved Class A status in less than 12
months, but not many. Why? Simply because so many things need to
be done: massive education, data integrity, changing the way the business
is run. And, all the while, it’s not the number one priority.
On the other hand, for an average-sized or smaller company (division,
business unit), if it’s taking longer than two years, it’s probably
not being done correctly. As a matter of fact, if a given business unit
takes longer than two years to implement, the odds for achieving superior
results decrease sharply. It becomes more and more difficult
to maintain the intensity, the enthusiasm, the drive and dedication
26 ERP: M I H
necessary, and thus it’s harder to keep ERP pegged as a very high priority.
The world is simply changing too fast.
Therefore, plan on the full implementation of Enterprise Resource
Planning for a given business unit to take longer than one year, but
less than two. For purposes of simplicity and consistency, let’s routinely
refer to an 18-month implementation. Now 18 months is a
fairly long time. Therefore, during that period, early successes are
important, and thus we recommend that they be identified and aggressively
pursued. The most important early win is typically Sales &
Operations Planning (to be covered in Chapter 8), and another is inventory
record accuracy (Chapter 10).
On the other hand, some people feel an 18-month time frame is
too aggressive or ambitious. It’s not. It’s a very practical matter, and
also necessary. Here’s why:
Intensity and enthusiasm.
Because ERP will be implemented by the people running the business,
their first priority must be running the business, which is a fulltime
job in itself. Now their responsibilities for implementing ERP
will require more work and more hours above and beyond running
the business.
With a long, extended project, these people will inevitably become
discouraged. The payoff is too far in the future. There’s no light at the
end of the tunnel.
However, with an aggressive schedule, these people can see
progress being made early on. They can expect improvement within
a relatively short time. In our experience, the operating people—
sales and marketing people, foremen, buyers, engineers, planners,
etc.—respond favorably to tangible gains.
Priority.
It’s quite unlikely ERP can hold the necessary high priority over
three or four years. (Companies are like people; their attention spans
are limited.) As the project’s priority drops, so do the odds for success.
The best approach is to establish ERP as a very high priority;
implement it quickly and successfully. And then capitalize on it.
Build on it. Use it to help run the business better and better.