Search and Selection of an ERP System

MSS will analyze your needs, generate a Technical Specifications Document (TSD) that specifies your requirements, schedule ERP vendor presentations and provide a Recommendation Report that will provide you with the best solution for your company.

ERP Software Search
An MSS PMP and cross-functional team will work together to ensure the best outcome for the project.

The most important step in selecting an ERP system is to completely and accurately determine the information processing and technology needs of your company. This is done by establishing your goals, studying the processes from order acquisition through invoicing and developing a Technical Specifications Document (TSD).

The purpose of the TSD is to record in detail your specific needs and goals and to translate them into an optimal technical design of the system you need. The TSD is what you will use to evaluate different manufacturing software packages and hardware alternatives, if needed. The TSD assures you that the needs of all interfacing departments have been considered and that no issue will be overlooked when various software solutions are considered. The TSD will allow you to shop the various ERP software vendors and have them quote to your specifications.

What is in a typical TSD?

• Project Narrative - Why are we here?
• Project Justification - Why should we pursue this project?
• Management Summary of findings and recommendations
• Functional Process Diagrams - How are processes currently being done? Can we improve efficiences?
• Hardware/Software Inventory - What do we have now and will we need to upgrade?
• Technical Requirements - Hardware, network, Internet considerations of ideal system, which includes proposed network configuration.
• Project Budget Guidelines
• Supporting Documents - Interview notes, authorization letters, etc...

Some common mistakes companies make are:

• Appointing a Project Manager who is inexperienced in performing a systems' analysis or who is already filling a full-time position and cannot dedicate the time needed to spend on this type of project
• Lack of involvement from the appropriate functional/management levels in developing requirements
• Relying solely on a software salesman to tell you what you need
• Focusing on the needs of only a few departments instead of taking a total enterprise approach. What might work perfectly for one department might not for another.
  
  

ERP Software Evaluation & Selection

Once the TSD has been developed and approved, MSS will research candidates, then generate a list of ERP systems for fit against the TSD. The software companies will be contacted, and presentations focusing on compliance to the TSD will be scheduled at your facility. An MSS rep will coordinate and moderate the presentations, keeping the focus on TSD compliance.
After each presentation, a weighted-average matrix is created for evaluating ERP system software packages. The weighted average matrix assigns two (2) values to each company requirements in the TSD. MSS refers to these values as the "Need Value" and the "Satisfy Value". The need value is a measure of how important a particular requirement is to your company. The satisfy value is a measure of how well an ERP system fulfills the requirements. Mathematical formulas are then applied to the values to establish an objective ranking of all the ERP systems evaluated.

Some common mistakes companies make are:

• Being overly influenced by a dynamic and enthusiastic sales presentation
• Dismissing a system that was evaluated first due to immature evaluation skills
• Keeping an objective viewpoint
• Not asking uniform questions of each ERP system software vendor
  

After the ERP presentations, three (3) systems will be selected for a more in-depth review. Software vendors will be contacted and presentations arranged at your facility for the Team.

MSS then generates a Recommendation Report which supplies a breakdown of the major pluses and minuses for each ERP system, including details of the requirements' matrices, costs and comparisons that will provide a solution for the best-fit ERP system for your company. MSS will make a specific professional recommendation based on the results of the evaluation exercise. The final ERP system will be selected by the Team based on performance to the TSD.

What's next: Implementing your new ERP System.

Manufacturing Systems Services
PO Box 251
Medina, OH 44258-0251
1-800-875-4654 · 330-725-0043 · Fax 330-725-0080