Wednesday, July 22, 2009

Justification of the investments of ERP Part two: Intangible effects of the ERP

Intangible effects of ERP*

Intangible advantages or not - financial of an integrated system of the planning of entrepreneurial resource (ERP) can be looked at several prospects. For goals of illustration, the discussion will concentrate on the advantages for accountancy, the product and the design of process, the production, the sales, and the functions of the management operating system (put). From the total point of view of company, the ERP provides a framework to work indeed together and to provide a coherent plan for the action.

Each intangible effect could be measured in terms of economies. The maintenance of data doubles, for example, needs the time of personnel in entering data (and probably administrative time while determining which whole of data should be employed for decision making). By accelerating efforts have an obvious effect to spend the time of personnel. Those of the measured economies can also be employed to show impacts on financial results.

the *This is the part two of an article with four parts reprinted to maximize your system of ERP by Dr. Scott Hamilton. The transition from the theory and realities of the current systems of ERP, maximizing your system of ERP provides practical advices for the manufacture of management in various environments. Drawing on case studies from Dr. Hamilton 'a first hand experiment from S from the consultation with more than thousand companies, it covers common problems and solutions of operation so that the way indeed applies and employs systems of ERP. The book can be ordered on amazon.com. It on extract justification of the investments of ERP is presented in four shares:

* Quantifiable advantages of a system of ERP

* Intangible effects of the ERP

* Costs to apply a system of ERP

* Substitute or giving in application a system of ERP

Reprinted with the permission of the McGraw-Hill.

With a common database of ERP, accountancy does not require any more the double files and the superfluous data capture. The calculation of the costs of product, for example, can be carried out using the structures of product precise and up to date. Simulations of calculation of the costs of product can be employed to analyze the impact to change material costs, wages, and air attributions like the changes envisaged with the invoices and the routes. Differences between the real costs and standard are accentuated like dissensions. The order brought back dissensions help of the specific problematic fields.

Invoices of customer can be based on real forwardings (without data capture doubles), which helps the treatment of invoice speed. The sums to be poured can employ the buying order and the data of receipt for the set with three ways with invoices of supplier.

While transactions of manufacture are recorded, the financial equivalents are automatically produced to update the book. This provides a recording of complete audit of the totals of account to the documents of source, ensures the precise and up to date financial information, and allows the advance of reality against saved expenditure. The detailed activity of transaction can also be easily reached on the line for investigations of answer of account.

Since manufacture one can eliminate the transactions update automatically the book, the long manual entries. Closing procedures of end of period can be carried out in hours or days, rather than of the weeks. This improves reduced work of secretary of accountancy, and improves opportunity of the financial reportings.

Financial reportings can be easily adapted to the customer requirements to meet the needs for various decision makers. Financial projections can be based on detailed calculations of ERP for future conditions. The money planning cash, for example, can explain current and projected sale orders and purchases envisaged, as well as of the sums to be received and sums to be poured current. The tools of decision-making aid (such as assessments, graphic softwares and directors of data) can employ the financial data maintained in the database of ERP.

The database of structure of product offers machiner a control much larger of product and design of process, particularly in terms of technical ordering of change. Changes envisaged can be put in phase inside and changes of help can be communicated immediately.

The systems of ERP offer many analytical tools for the function of technology. By diagnosing the impact of the changes to materials and the resources, for example, the engineers can check where information used to identify the affected products. The efforts of reduction of completion period can employ the analysis of the critical path of critical path of the completion periods of article in the invoices with multilevel to turn the attention on these key components affecting the cumulative completion period of manufacture. Cost invoices with multilevel can be employed to concentrate efforts of reduction of the costs on articles of high values. Comparisons of Bill can be employed to accentuate differences between the products or the revisions of the same product like identifying conditions of the adaptation kit.

Configurations of product made on ordering of support of systems of ERP. The configurators based on the rules reduce the need for specialized assistance of the engineers, and make sure that personnel of sales (or even customers) can develop convenient precise configurations. Estimates of the costs and the evaluation for configurations of product made on order can also be quickly calculated.

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