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ERP Implementaion 3 Phases for Small and Medium Sized Business

August 23, 2008

Phase I—Basic ERP:

This includes Sales & Operations Planning, demand management, Rough-Cut Capacity Planning, master scheduling, Material Requirements Planning, plant scheduling where practical, and necessary applications for finance and accounting. Also included here are the support functions of inventory accuracy, bill of material accuracy and structure, plus activating the feedback loops from the plant floor and purchasing.

Basic ERP is not all of Enterprise Resource Planning. Of and by itself, it will produce substantial results; however, key elements remain to be implemented. This phase normally takes about nine to twelve months to complete.

Phase II—Supply Chain Integration:

Included here are the processes that extend ERP both backward and forward into the supply chain: backward to the suppliers via techniques such as supplier scheduling and Internet-based business-to-business e-commerce; forward toward the customers via distribution requirements planning and vendor managed inventories (VMI). This phase usually requires three to six months, possibly more depending on the scope and intensity of the applications.

Phase III—Extensions and Enhancements to Support Corporate Strategy:

This phase covers the extension of ERP software capabilities further throughout the total organization. It can include completion of any finance and accounting elements not yet implemented, linkages to other business units within the global organization, HR applications, maintenance, product development, and so on.

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