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POLITECNICO DI MILANO

SCHOOL OF INDUSTRIAL AND INFORMATION ENGINEERING

MASTER OF SCIENCE IN MANAGEMENT ENGINEERING

ENTERPRISE RESOURCE PLANNING(ERP) – IMPLEMENTATION,

TECHNICAL ISSUES, CAUSES AND IMPACTS

Supervisor: Prof. Alessandro Brun

Author: Gopala Sai Krishnan Lokesh Raj

858397

Academic year 2017/2018

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Table of Contents

1 INTRODUCTION: .............................................................................................................................. 6

2 ENTERPRISE RESOURCE PLANNING: ............................................................................................... 8

2.1 Evolution: ...................................................................................................................................... 8

2.2 1960s – Inventory control and scheduling: ................................................................................... 8

2.3 The 1970s – The MRP era: ............................................................................................................ 8

2.4 MRP-based systems ...................................................................................................................... 8

2.5 MRP II and master production scheduling .................................................................................... 9

2.6 ERP and sales and operations planning: ....................................................................................... 9

3 IMPLEMENTATION OF THE ERP SOFTWARE: ................................................................................ 10

3.1 IDENTIFING THE PROBLEM AND SCOPE DEFINITION: ................................................................. 10

3.2 PLANNING PHASE: ....................................................................................................................... 10

3.3 PROCEDURE REVIEW: .................................................................................................................. 11

3.4 DATA COLLECTION & CLEAN-UP: ................................................................................................ 11

3.5 TRAINING AND TESTING: ............................................................................................................ 11

4 MERITS OF ERP: ............................................................................................................................. 12

4.1 Reduction of Operating Cost: ...................................................................................................... 12

4.2 Improved Job Time...................................................................................................................... 12

4.3 Centralization of Information System: ........................................................................................ 12

4.4 ROI earlier than the software developed in-house .................................................................... 12

4.5 Ease of use: ................................................................................................................................. 12

4.6 Efficient business practices ......................................................................................................... 12

4.7 Ready-made elucidation for most of the problems: ................................................................... 13

4.8 Only customization required: ..................................................................................................... 13

4.9 Easy enterprise wide information sharing: ................................................................................. 13

4.10 Customer satisfaction ............................................................................................................... 13

5 CHALLENGES INCURRED................................................................................................................ 14

5.1 Selection of software .................................................................................................................. 14

5.2 Planning for Implementation Success ......................................................................................... 14

5.4 Business Philosophy Changes ..................................................................................................... 15

5.5“Mindshift” Issues ........................................................................................................................ 15

5.6 Lack of budgeting ........................................................................................................................ 15

6 STRUCTURE OF THE ORACLE JD EDWARDS SOFTWARE: .............................................................. 17

6.1 HOW THE DATA SELECTION IS MADE? ....................................................................................... 17

6.2 TABLES: ........................................................................................................................................ 17

CASE1: GENERATING A PURCHASE ORDER: ...................................................................................... 18

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CASE 2: CREATION OF A REPORT USING JD EDWARDS DEVELOPMENT ENVIRONMENT: ................ 21

CASE 3: MENU CREATION IN THE JDE WEB CLIENT: ......................................................................... 25

CASE 4: CREATION OF THE ONE PAGE IN JDE: .................................................................................. 28

CASE 5: UNLOCKING THE BLOCKED SHIPMENTS USING BLOCKED BUDGETS: .................................. 29

7. CAUSES AND STEPS TO OVERCOME APPLICATION ERRORS: ........................................................ 33

7.1 Error Analysis: ............................................................................................................................. 33

7.2 Causes: ........................................................................................................................................ 34

7.2.1 Load Testing: ............................................................................................................................ 34

7.2.2 Effects in other business modules: .......................................................................................... 34

7.2.3 Not assigning a project manager: ............................................................................................ 34

7.2.4 Mock go-live test: ..................................................................................................................... 34

7.2.5 Management Issues and Budgeting: ........................................................................................ 35

7.2.6 Data Accuracy: ......................................................................................................................... 35

7.2.7 Training and testing: ................................................................................................................ 35

7.2.8 Never run parallel systems: ..................................................................................................... 36

7.2.8 Employee retention programs should be practiced: ............................................................... 36

7.2.9 Customization Should Be Less Than 30%: ................................................................................ 36

8. OVERCOMING THE ISSUES: ........................................................................................................... 37

Big Bang Approach ............................................................................................................................ 37

Phased Approach .............................................................................................................................. 37

To Be or Not to Be ............................................................................................................................. 38

Change Management for End Users ................................................................................................. 38

9. CONCLUSION ................................................................................................................................. 40

REFERENCE ............................................................................................................................................ 41

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List of figures

Figure 1: Importance of communication ................................................................................................ 7

Figure 2 ERP Timeline.............................................................................................................................. 9

Figure 3: Implementation of ERP .......................................................................................................... 11

Figure 4: Problems in ERP implementation .......................................................................................... 16

Figure 5: Flowchart of JDE Manufacturing ............................................................................................ 18

Figure 6: Purchase order creation ........................................................................................................ 18

Figure 7: Company Selection ................................................................................................................ 19

Figure 8: Business Unit and UDC Selection ........................................................................................... 19

Figure 9: Order details .......................................................................................................................... 20

Figure 10: Version Selection ................................................................................................................. 20

Figure 11: Data Selection ...................................................................................................................... 20

Figure 12: Output Preparation .............................................................................................................. 21

Figure 13: JDE Development Environment ........................................................................................... 23

Figure 14: Picking Objects ..................................................................................................................... 24

Figure 15: Business View Creation ........................................................................................................ 25

Figure 16:Report Creation..................................................................................................................... 25

Figure 17: Interactive Versions ............................................................................................................. 26

Figure 18: Version details...................................................................................................................... 26

Figure 19:Version print ......................................................................................................................... 27

Figure 20: Home Menu ......................................................................................................................... 27

Figure 21: Task Creation ....................................................................................................................... 27

Figure 22: Task Relations ...................................................................................................................... 28

Figure 23: One Page report ................................................................................................................... 28

Figure 24: Home Menu ......................................................................................................................... 29

Figure 25: Account Testing.................................................................................................................... 29

Figure 26: Blocked Budget .................................................................................................................... 30

Figure 27: Password screen .................................................................................................................. 30

Figure 28: Branch plant Selection ......................................................................................................... 31

Figure 29: Cost Revisions ...................................................................................................................... 31

Figure 30: work order details ................................................................................................................ 32

Figure 31: Error Message ...................................................................................................................... 32

List of Tables

Table 1: Object and Non-Object Librarian Difference .......................................................................... 22

Table 2: Analysis Results ....................................................................................................................... 33

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ABSTRACT Every operation in a modern organization relies heavily on timely and

accurate information to survive in today’s competitive market. In fact, Information System serves as the life-line to the organizations, no decision can be taken

without information and thus the organizations are using Enterprise Resource Planning Software (ERP) for gaining competitive edge over their competitors. Technology is developing very fast, it opens new possibilities, but at the same

time it might create many obstacles for a company. Enterprise resource planning was a breakthrough innovation, which lead to improvement in a core of business

process. ERP is a business management tool used to improve and ease business performance. Research shows that an IT system, specifically Enterprise Resource Planning (ERP) systems, provides the necessary foundation for increased visibility

leading to better control as well as the effective and efficient management of internal and external facility operations (Chapman & Kihn, 2009). A well-managed

ERP can be a determinant of strategic competitive advantage as they can automate and integrate a variety of business processes, provide support for the usage of best practices, and share common real-time data throughout the

organization. This thesis represents about enterprise resource planning such as definition, functions, modules and impact of ERP implementation on the company.

Furthermore, it describes the employee reaction on changes, and it is supported with examples.

Hence this report deals with • Success factors of ERP implementation in the company.

• Organizations adaptability to the change • After effects in implementation

• Risks and opportunities to improve.

KEYWORDS: Enterprise Resource Planning(ERP), JD EDWARDS software,

Object Management Workbench(OMW), Big Bang Approach, Phased Approach

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1 INTRODUCTION:

In all ages, effective communication is imperative in maximizing business.

Communication is key in any organization. Whereas, a Poor communication can

lead to major sources of conflict, including reduced cooperation, client

mismanagement, reduced productivity, lack of respect and resignation by either

employees, clients or vendors. Today, in the corporate world, effective

communication plays a variety of roles in growing a business. This is especially

true when change is occurring. If there is ever a time when employees need to be

included in conversations it is when a big change is coming to the company, like

an ERP implementation.

Enterprise resource planning(ERP) systems or enterprise systems are software

systems for business management, containing modules supporting functional

areas such as planning, manufacturing, sales, marketing, distribution, accounting,

financial, human resource management, project management, inventory

management, service and maintenance, transportation. American Production and

Inventory Control Society (2001) has defined ERP systems as “a method for the

effective planning and controlling of all the resources needed to take, make, ship

and account for customer orders in a manufacturing, distribution or service

company”. “ERP systems are configurable information systems packages that

integrate information and information-based processes within and across

functional areas in an organization” (Kumar & Van Hillsgersberg, 2000). “One

database, one application and a unified interface across the entire enterprise”

(Tadjer, 1998). “ERP systems are computer-based systems designed to process

an organization’s transactions and facilitate integrated and real-time planning,

production, and customer response” (O’Leary, 2001).

The ERP field can be slow to change, but the last couple of years have unleashed

new technology trends which are fundamentally shifting the entire area. The new

and continuing computing trends have an impact on the growth of enterprise ERP

software especially in mobile ERP, cloud ERP, social ERP and two-tier ERP, etc.

Real time case study examples of using ERP software in various small and large-

scale companies are well discussed from functional, technical and back-end point

of view and critical effective ways of minimizing it.

1.1 Purpose and goals of this thesis:

Communication plays an important role in all the phases of the industry in maximizing its growth. Hence a clear understanding about the integration and

realization of the business needs is to be properly communicated in all 3 levels of the industry. More effective communication can improve ERP systems implementation success. ERP implementation training, transparency of ERP

implementation planning, top management support, professional competencies of project team members are very much important in considering improving

communication and implementing effective ERP.

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Figure 1: Importance of communication

The main aim and the goal of this thesis is to study the need of ERP evolution, its

structure, implementation process, its effects in the industries and the importance

in the modern era for the business growth. Exploration of ERP systems, their

implementation process and how it can be affected by obstacles, which occurred

during the process.

1.2 Methods:

“Qualitative Research is primarily exploratory research. It is used to gain an

under-standing of underlying reasons, opinions, and motivations. It provides

insights into the problem or helps to develop ideas or hypotheses for potential

quantitative research." (Wyse 2011, 1.)

A detailed qualitative research is made to study the goals of this thesis.

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2 ENTERPRISE RESOURCE PLANNING:

2.1 Evolution:

During the first half of the twentieth century, internal manufacturing

efficiency on the shop floor was largely sufficient for successful operations.

However, with increasing competition, companies have been forced to find new

ways to improve their operations and to look beyond the walls of the factory.

Today, firms need to be competitive in many areas, such as quality, delivery, cost

efficiency, and flexibility, and must therefore plan and control their operations

accordingly. The planning and control task has become more complex – lead times

are shorter, product life cycles are shorter, bottlenecks must be utilised more

efficiently, etc. The focus of planning and control for firms has expanded

successively over the last 50 years. New principles, techniques, and systems have

emerged that have allowed for new approaches. The developments in information

and communication technologies (ICT) have facilitated the gradual improvement

of computer-based systems for operations planning and control.

2.2 1960s – Inventory control and scheduling:

With the introduction of computers in the late 1950s and the early 1960s it

became possible to automate reorder point systems. Based on historical demand

data and forecasting models, it was possible to design statistically-based optimal

inventory control systems. Computer-based shop floor control methods were

developed to facilitate the use of scheduling and sequencing methods. In general,

methods were developed to optimise manufacturing operations based on the

existing conditions that were taken as a given.

2.3 The 1970s – The MRP era:

During the 1970s, material requirements planning was introduced and was

quickly widely accepted. It was considered “the new way of life in production and

inventory management”, which was the first detailed description of MRP logic as

well as such necessities as low-level coding. The use of dependent demand logic

brought an entirely new way of planning purchase materials and components, sub-

assemblies, etc., based on the bill of material (BOM). This also affected the nature

of forecasting in manufacturing firms, since dependent demand items did not need

forecasting. Since all manufacturing firms have manufacturing-related value-

adding operations, they also have relationships between purchase items,

intermediate items, and end products. Consequently, all manufacturing firms

could take advantage of MRP.

2.4 MRP-based systems

The computer-based systems for operations planning and control started to include MRP functionality. With MRP it was now easier to utilise a variety of lot-

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sizing techniques, dynamic lot-sizing models, such as lot-for-lot, period order quantity, fixed-period requirements, etc. The closed-loop MRP system included

capacity requirements planning (CRP) for evaluating the consequences of the material plan for capacity, and feedback from the execution functions so the

planning could be kept valid always.

2.5 MRP II and master production scheduling

The term MRP began to be applied to increasingly encompassing functions, leading to the use of the phrase “manufacturing resource planning” rather than

“material requirements planning”. However, the heart of any MRP II system was the fundamental MRP logic. The MRP II systems offered a broader structure for

operations planning and control, and the master production schedule; Many manufacturing firms were especially attracted by the available-to-promise (ATP) logic in the master schedule that allowed for a quick check of how much was

available for immediate delivery or at a point in time. At the end of the 1980s there were about 280 commercial software systems for MPC in the US and about

70 in Sweden. Most of these systems adopted the MRP II structure and included MPS and ATP functionality.

2.6 ERP and sales and operations planning:

The ERP concept – enterprise resource planning – was introduced by the

Gartner Group in 1990. Many MRP II systems were re-branded as ERP systems during the 1990s and were successively provided with increased information and communication technology functionality, and they served a broader range of

functions within the manufacturing corporation. With the switch from MRP II to ERP systems, the functionality of S&OP gained recognition in many manufacturing

firms. S&OP can be characterised as the long-term planning of production and sales relative to the forecasted demand and the complementary resource capacity planning. The planning object in S&OP is product families (groupings of products

having similar characteristics) and the planning horizon is typically 15–18 months with monthly planning periods. With a longer-term perspective, it became possible

to evaluate investments in production resources that take a long time to acquire with respect to structured plans for sales, operations, inventories, and backlogs.

Figure 2 ERP Timeline

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3 IMPLEMENTATION OF THE ERP SOFTWARE:

An EPR system is an integrated system that can manage both internal and

external resources in a business. The specific reasons companies invest in this technology vary, but typically, cost reductions and productivity enhancements top

the list. Because ERP systems integrate all aspects of a company’s operations, they decrease the order-to-cash cycle. The speed of the order-to-cash cycle determines how quickly a company gets paid for its good or services after the

sale. Typically, companies with fast order-to-cash cycles experience increased cash flow.

3.1 IDENTIFING THE PROBLEM AND SCOPE DEFINITION:

It is very important to locate the real objective for implementing ERP. The question is less about “why we should implement” and but more about “what ERP

should be implemented for?”. The Key Performance Indicators (KPI) must be analysed to understand the necessity of the software. The objectives can be many,

ranging from bringing in the transparency of operations to having financial control, supporting organic expansion, supporting acquisition or supporting common processes. As per a study, 61.1% of ERP implementations take longer than

expected and 74.1% of ERP projects exceed budgets which is because of the unclear definition of the ERP requirement. The ERP features must be evaluated in

accordance with the barometer of synchronization within the needs of company, depending upon the budget and core necessity. The ERP demand list should be generated which achieves a smooth ERP implementation.

3.2 PLANNING PHASE:

Preparation and planning stage is crucial, because it creates a basis for the whole process. At this stage many important things are considered and

established. ERP implementation project requires project plan, which includes the essential information about a project, such as:

• Budget;

• Scope; • Deadlines;

• Risks; • Objectives; • Implementation.

To make the project successful, all those aspects should be thought very carefully

and thoroughly. Even a good project plan can very often suffer from unpredictable risks occur and change the whole implementation process. To avoid that, every single detail should be considered.

Firstly, company needs to research its current situation, which helps to understand the company at the time of the project and how to align the project goals and the

company’s strategy. Furthermore, it is extremely important to identify a good project manager and a suitable project team which includes IT and ERP specialists. In international ERP

projects, companies usually have its own department created, due to the big amount of resources used.

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Moreover, establishing the right scope plays a big role in ERP projects as well as dead-lines, because time is of value and should not be wasted.

Finally, the implementation process should be thought beforehand and described in project plan with all the needed steps which helps to follow the project correctly.

3.3 PROCEDURE REVIEW:

3-5 days of intensive review of the software on every aspect of the ERP

software to fully educate the team on capabilities and identify gaps. Evaluate which processes that are manual and should be automated with the ERP system.

These procedures should be documented.

Figure 3: Implementation of ERP

3.4 DATA COLLECTION & CLEAN-UP:

Determine which information should be converted through an analysis of current data and Define the new data that needs to be collected. Identify the

source documents of the data. Create spreadsheets to collect and segment the data into logical tables. After it the manually collected data is entered into the ERP

database, then it must be reviewed for accuracy and completeness. Data drives the business, so it is very important that the data is accurate.

3.5 TRAINING AND TESTING:

After all the previous steps are done and checked, the test implementation

is needed to see if the system is working correctly. Test implementation requires a thorough preparation before starting. Test implementation itself

is made to identify all the possible obstacles that might occur in ERP system before the live implementation, otherwise it will cause a large loss of

resources

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4 MERITS OF ERP:

With Enterprise Resource Planning (ERP) software, accurate forecasting can

be done. When accurate forecasting inventory levels are kept at maximum efficiency, this allows for the organization to be profitable. Integration of the

various departments ensures communication, productivity and efficiency. Adopting ERP software eradicates the problem of coordinating changes between many systems. ERP software provides a top-down view of an organization, so

information is available to make decisions at anytime, anywhere.

4.1 Reduction of Operating Cost:

ERP systems have large-scale business involvement, internal and external

process integration capabilities. They can assist in achieving the strategic competitive advantages. With a centralized database and built in data analysis capabilities, ERP systems provide informational benefits to management decision

making. As ERP systems automate business processes and enable process changes, an organization may expect ERP systems to offer strategic advantage

through Cost leadership by Cycle time reduction, Productivity improvement, Quality improvement, Customer services improvement.

4.2 Improved Job Time: As the different parts of the organization relate to each other, people have

faster access to information and require less time to do their tasks and it helps to improve the time for decision-making.

4.3 Centralization of Information System:

As all the departments and the functions in the organization are integrated and linked to one single database, data needs to be entered only once into the

system which can then, be accessed by different departments according to their needs. For example, before taking an order from a customer, the sales representative can have access to information regarding availability of inventory,

credit rating of the customer, etc.

4.4 ROI earlier than the software developed in-house: Developing software in-house requires a great amount of investment,

experienced professionals and tremendous amount of time. As ERP vendors who have the required expertise, are basically off the shelf packages that companies

pick up that require minor customizations as per company requirements, and so they don’t involve an in-depth development like the in-house software. Hence the

ROI is received faster from the ERP system.

4.5 Ease of use:

The system of ERP is very user friendly where with the correct amount of training, it becomes easy for the employees to use the system.

4.6 Efficient business practices:

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The ERP system helps companies to carry out the different business functions and introduces business best practices. This helps to control and

introduce standardized ways to execute business processes.

4.7 Ready-made elucidation for most of the problems:

Most of the problems get resolved as the vendors who develop ERP software packages, take the best ideas from all their customers and incorporate them into

their products.

4.8 Only customization required:

ERP Systems are developed to suit the all businesses. But as every company

has a slightly different way of operating, only minor changes may be needed to customize the system to suit requirements.

4.9 Easy enterprise wide information sharing:

Once the information is entered into the single database, everyone in the

organization can access the information and view the same computer screen and have global visibility.

4.10 Customer satisfaction: Comparing the paper-based system, where the order moves from basket to

basket around the organization, and often caused delays and errors in processing

due to repeated entries by the different department but with the ERP system, the order process moves quickly through the organization and it helps to get the

orders to the customers faster and no waiting time is involved.

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5 CHALLENGES INCURRED

The part and parcel of Enterprise Resource Planning Implementation onto the

company are people. People have a crucial role in ERP performance. This fact

affects many aspects of implementation process and creates many obstacles.

5.1 Selection of software

The ERP provider chosen should have experience within your industry, take

the time to understand the business and be able to help you meet your business

goals. Many companies may consider themselves immune to this challenge as they

have already decided what they need and want in a new system.

There are multiple factors to consider on top of size, scope, and type, including

price and specific functionality requirements (there are often hundreds to

thousands of features and functions for each software system that each need to

be considered in terms of priority and utility).

ERP selection should be considered as seriously as possible because ERP system

choice predefines a company’s strategy. Thus, the two important milestones

processes are to find the right software to meet your business needs and the right

partner to support you in your ERP journey.

5.2 Planning for Implementation Success

Implementation is done in stages. Trying to implement everything at once will lead to a lot of confusion and delays. First phase is gathering of

requirements where Lack of proper analysis of requirements will lead to non-availability of certain essential functionalities. This might affect the operations and

reduce the productivity and profitability.

Depending on the sector in which the company operates in, the extent of complications can vary. So, it is very essential to bring onboard, an expert team of consultants to ensure the implementation process is smooth without glitches.

5.3 Technical Issues

Compatibility Issues with ERP Modules lead to issues in integration of modules. Companies associate different vendors to implement different ERP modules. Even if the ERP system meets all the business requirements and

expectations one of the potential downfalls could be the lack of testing. It is imperative that a sufficient amount of testing is carried out in the ERP

implementation to ensure it will perform when deployed. Testing will provide the opportunity to highlight any issues, so they are taken care of before the system

is fully implemented and live. Precisely the solution is a cloud or hosted delivery models can make the implementation much easier and less costly than with an on-premise solution, but there are caveats with going with an “as a service” option

(data security and software customization) and these need to be explored fully before a decision is made as to which delivery model to go with.

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5.4 Business Philosophy Changes

ERP implementation brings significant changes to a company’s conventional

business model and the daily practices which was been using for years or even decades. Take these examples of likely changes to business processes with a new ERP:

• some employees level of responsibility is dramatically increased, as with

the new system it is more difficult to fix erroneous data or typing errors; • new approaches to data reporting and mining and, thus, new managerial

principles and practices must be established; and business models and business processes might require large changes because of new real-

time opportunities and data availability.

Using forward-looking ideas and conceptions when implementing ERP, it is possible to get a return that is something much more appreciable than a simple change in format of data or an updated user interface. It is a great opportunity to

refresh the business and bring new ideas as well as laying a strategic foundation for your organization’s future.

5.5“Mindshift” Issues

Lack of Support from Senior Management will lead to unnecessary

frustrations in work place and causes delay in operations and ineffective decisions.

So, it is essential to ensure that the Senior Management supports the needed

transformation.

Gaining the interest of different groups and categories of system users well ahead

of the project’s start date and keeping them involved during the implementation

will help to encourage the “mindshift” required in employees for a successful

implementation.

Affected employees at all levels must become allies to the ERP project team for a

new system implementation, as ignoring users’ experience and concerns puts in

doubt the success of the entire project and can kill any excellent undertakings.

5.6 Lack of budgeting

ERP systems can help businesses increase efficiency and productivity, but

implemented badly could have the opposite effect, that is budgeting. One must

consider the financial costs to achieve the best results.

Cost Overheads will result, if requirements are not properly discussed and decided

in the planning phase. So, before execution, a detailed plan with a complete

breakdown of requirements should be present.

Investment in Infrastructure is very essential because ERP applications modules

will require good processing speed and adequate storage. Not allocating suitable

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budget for infrastructure will result in reduced application speed and other

software issues and delays.

Figure 4: Problems in ERP implementation

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6 STRUCTURE OF THE ORACLE JD EDWARDS SOFTWARE:

It can be seen the software as two different views:

a. As a point of view of the user, who will create the reports by for the actions he performs. For example, in generating a sales order or a purchase order. He is not given all the permissions to take the admin actions. He can specify

his needs and generate the order.

IT STARTS WITH °°R°°

He can perform the actions in the batch version with the short cut °°bv°° in the fast bar. This version has 2 options namely the proof and the final,

where by the first is given access to read the data and the second is given access to write the data in the table, so that proof acts like a preview of the

final, where by if it has error so that the main table doesn’t gets disturbed. The final part gets entered in the table and can be viewed by the programmer.

6.1 HOW THE DATA SELECTION IS MADE?

Data selection which is an important module, tells the system to select the data from the main data which merely acts like a filter to select the data which is needed for the process. So, it must indicate the document which it

must look for the data, and when the left-hand operator is equal to the right hand and or depends on the logical operators, it must satisfy the input given

in the right hand. When both the operations are true the data is selected.

b. As a view point of the programmer, who will create the software to run for the user, by indicating all the actions what he can perform from the back

end.

IT STARTS WITH °°P°°

He can perform the actions in the interactive versions with the shortcut °°iv°° in the fast bar

6.2 TABLES:

➢ TABLES are the important elements in the back end to check for the errors

and the analysis purpose. They can be reached by the fast search bar through the command of °°databrowser°° and in the dialog box of the °°per

tabella°° to find the table what we are looking for. The unique way to find the table is to filter according to the company, doc. type, and the doc. Number (which starts with the fiscal year and its 8 digits in the size, eg.

1700….)

➢ We use SQL to fix the tables, when error is in the tables.

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An example of the link between the supplier and the customer in JDE, particularly in the manufacturing module. By this way, all the modules have the

similar link between the customer-industry-suppliers.

Figure 5: Flowchart of JDE Manufacturing

CASE1: GENERATING A PURCHASE ORDER:

2. Start from the company of your choice: This case I took 0002distributionpurchase orderpurchase order.

Figure 6: Purchase order creation

3. Now enter inside the purchase order and purchase the goods. I specified the dates namely the delivery date, and the requested dates. More importantly select the branch plant and be sure to put the company number

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and branch plant in the filter and select the supplier by searching “v” in the supplier search bar and select the “ship to” where the goods get shifted.

Here you can also see if it must be approved by the higher authority so that it clears the approval.

Figure 7: Company Selection

Select the company in the beginning of the filter in the branch and plant.

Figure 8: Business Unit and UDC Selection

4. Now place the order and note down the order number for the later faster search in the end of the purchase order.

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Figure 9: Order details

5. Now the order is set, and it runs for the approval of the higher authority and its made by me since I have the admin rights.

6. So now the order is placed and its ready for the printing. So, go the printing section and search the company name and click in the “prova” version so that and its ready for the data selection and it take you the next tabs and

select the document type invoice and the select the company and give the corresponding left and the right-hand operators.

Figure 10: Version Selection

Figure 11: Data Selection

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Figure 12: Output Preparation

7. Now by the end of this the document is been done and printed.

CASE 2: CREATION OF A REPORT USING JD EDWARDS

DEVELOPMENT ENVIRONMENT:

Reports can be created with the JDE development environment, using objects,

batch applications, data structures and required business views. Reports are the

end of the batch application which the output can be printed and issued to the

required. For example, in this case the report has been made for the customers

to issue the cash requirements and it contains the information about the clients

and their due amount across the due time and the penalty if the money to be paid

is over-due.

Step by step process of report creation:

• Log in into the JDE development environment in the fast path search for

the omw (object management workbench). It is the application which helps

us to create the report and the required applications and locate your project

inside the application.

OMW PROJECTS:

Typically, a project has 2 components namely, the object and the owners.

Usually we must create a project first and then add the object in it, where after

which we can work on the object. The same object can also be assigned to different

projects and for that the user must be assigned proper roles, so that it permits

him to add objects in other projects. A project can contain many projects in it.

Rules of a user defines his accessibility in that project. Rules can be set for

an object, project and the user, limiting his access.

In simple words tokens are like keys, which every object possesses one token.

Hence, the user allocated for the object may check out the object if he has the

valid tokens. By this way he can try to check out the objects in the other project,

if he has the valid keys and one user can only be present inside the token.

JDE object includes of two kinds like, object librarian objects and non-object

librarian objects

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Object librarian objects Non-Object librarian objects

Batch applications and versions Menus

Applications, tables and media objects User defined codes

Data structures, business views, business function

Workflow objects

Table 1: Object and Non-Object Librarian Difference

1. UNDERSTANDING PROJECTS IN JDE OMW:

DEFAULT PROJECTS:

Default projects are the projects which appears for the first time when you open.

Their status never changes; hence it can’t be used to transfer objects. Here it’s

like a garage where we can create an object and later use it for another project

and it automatically stores object that are worked out of JDE??

To advance the status of the object, move the project from the default

project to a project.

We must create ourselves the required roles inside the default project as

we require.

2. LIFE CYCLE OF A PROJECT:

a) Create a new project based on the request.

b) Add the needed user for the project and assign the roles for the users.

c) Now drag and drop the objects that you need in the project from the default

project to the new project

d) To make the changes to an object you must check out and check in back so

that the changes gets effected.

e) When doing the check out, if some other projects are holding the tokens for

that object, you can it token queue where you can get notified when the

queue becomes free.

f) As the process proceeds through its life cycle, the status must be changed

and when the status is changed. Here, there is also possibilities that the

object gets shifted to another project.

g) You can give the completed status by giving 01, which also means that the

project is closed.

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3. SEARCHING PROJECTS:

4. CREATING A PROJECT:

a) Click on the add button in JDE OMW

b) In “add JDE object to a project”, click project and click ok.

c) Enter the project ID in the project revisions summary tab.

d) Give the completion dates and category codes and click ok to complete the

project

2) The next steps are adding the users to the project by clicking the search menu,

and find the respected users and pick them. Always verify that the destination

project in the project window is highlighted, if not highlight it.

3) Can also perform to change the project properties and removing the users.

4) Advancing a project is done by >>> button, so that it gets to the next state.

If the project is not moving to the next state, we must check the dependencies

that if contains any ESU and can be rolled up, so that the project gets updated

to the next status.

Figure 13: JDE Development Environment

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• The project status should be 21 if used for the development purpose, which

is always supposed to be in the status 11, hence after creating the project

it should be advanced to the next status for the pulling the objects and for

the development purposes.

• Next step is to add the objects inside the project. Hence to do this, we

should first check if the object is already in use or protected by any tokens.

If that’s the case, the next step would be asking for the last user to release

the token so that we can make our changes in the local object.

Figure 14: Picking Objects

• If the object is not in use, first assign a name for the object and add the

required objects in the projects. For this case in the creation of the report,

the needed objects are

➢ Data structure: where this object defines the processing

option of the entire report, and enables the user to give the

input, hence where by it process the inputs and customizes

the report with the logic given inside the definition of the

report. So, it’s a process to receive the inputs from the user to

modify and customize the report based on the user specs.

➢ Batch application: it’s the platform where the layout of the

report can be made and all the conditional and the logics of

the reports are to be inserted, so that it uses the process

option which will be from the user that is the inputs from the

data structure and prints the layout in the conditions

described. It has various inbuilt features for the report creation

and for the condition insertion.

➢ Business view: It holds all the tables inside and it can merge

two or more tables based on the report, creator hence all the

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information to be used inside the report. Tables can be

combined by using the primary key and can relate to the

required columns.

Figure 15: Business View Creation

Figure 16:Report Creation

Hence by designing all the applications inside the report that is modifying the data

structure, business view and batch application with the required input for the

customization, we can design the layout of the report.

CASE 3: MENU CREATION IN THE JDE WEB CLIENT:

To create a menu, from the menu shown or wanted to be created, go to

“iv” or “bv” for interactive or batch versions and then if available copy a version of it by entering the application and the version number and give a name to it.

Copy the name of the new version you have created. Now open the fast track to load p9000 and create the required folder under which it must be made and now

again create a new record for the options which you need to enter inside the folder and connect them with the version of the batches you have created before and add them inside the folder and save it.

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Note: it usually takes 30 mins to refresh for the actions made if the name of the folder is changed.

Copy all the applications and batches in the excel with the relevant application and

the batch number, and now try to create the same as follows.

1. If wanted to create an application, we must create a version relevant for the application, hence use the fast path and type “iv” and copy the version

of the application which fits well by giving the correct application number. Hence create as much version as much applications you have.

Figure 17: Interactive Versions

2. Next step is to create the application and connect it with the new version

which is created. Hence go the fast path to create the application by typing “P9000” and type the application number to see the product code

and use processing option from “iv” for the selected versions to grab the needed details.

Figure 18: Version details

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Figure 19:Version print

3. Now to put the applications in the required folder, pick the parent folder under which you are going to put the created applications, by typing in the task id as shown: pick the fast path of the purchase orders and add in the

task id

Figure 20: Home Menu

Use the below mentioned menu to put the created applications in it.

Figure 21: Task Creation

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Figure 22: Task Relations

Finally save it and you see the menu after a while updated.

CASE 4: CREATION OF THE ONE PAGE IN JDE:

An example of one page:

Figure 23: One Page report

Step 1: Go to manage content from drop down window in, the sign in options in top right and pick composed pages and then, pull all the required

applications and the batch for the layout.

Step 2: on the top left, click on save and the one page is visible after a log out and log in.

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CASE 5: UNLOCKING THE BLOCKED SHIPMENTS USING

BLOCKED BUDGETS:

1. The purchase order may not be seen in the shipments, because if it has been given an authorization from the budget where it is blocked. Hence the

prime needs are to check if it has a password to unlock.

2. Collect the password from the blocked accounts by entering the right code which is displayed in the ‘generic key’ and find the order which needs to be unlocked.

3. Firstly, look for the purchase orders and confirm it that it has the blocked

budget B1.

Figure 24: Home Menu

Figure 25: Account Testing

Then after this we must look for the key associated with this document number to

release the sblocco budget which can be done by selecting the application sblocco budget from “gestione acquite” menu and type the document number you are looking for and copy the highlighted field.

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Figure 26: Blocked Budget

Then go to the application of p42090 and find your document by typing the highlighted field and enter inside and copy the password and return to the same sblocco and find the document as done before and paste the password to release

the budget.

Figure 27: Password screen

CASE 6: INSERTING HARD ERROR ON THE WORK ORDER GENERATION

WITH WRONG COST METHOD:

Work order are created by the application p48013, which allows you to create a

product. It produces order generation report which can be sent to the job floor for

the assembly workers to start the manufacturing. To create a work order, we must

specify the required start and the end dates and the quantity to be needed.

Hence after creating a work order the next step would be adding the part list which

includes the required sub materials in manufacturing of the item. The required

proportion of the items are being given and then the next step is to give the

routing, which states the path, which the part list has to follow in the production

of the item.

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Thus, by giving the required part list and the routing the parent item is

manufactured in the specified days.

During the process of generating a work Order with program P48013 the process

associates the item cost method as (02/07 etc.) in F4801T fetching it from F4105

based on the inventory sales / inventory cost method code “I” associated to the

cost method.

P41026

Figure 28: Branch plant Selection

P4105

Figure 29: Cost Revisions

The work orders are generated also by the messages generated from the MRP,

P3411 MRP Application recalls P48013 to generate the WO from the message

therefore the control must be applied also when generating WO from MRP.

Work orders MUST be costed always based on cost method 07 for which the

manufactured items have stocking type “M” in F4102.

INSERTION OF THE HARD ERROR IF WO GENERATED WITH WRONG COST

METHOD:

Since the work orders are to be manufactured with the costing method of 07 which

is the standard cost, other than this costing method would fetch a wrong cost in

the account statements for the created work orders, since 07 is the standard cost.

Hence, I created an application which could restrict the user from creating a work

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order other than the cost method 07 and the items other than type “M” would not

be able to manufacture as the work order.

RESULTS: STK TYPE: P; Cost Method: 02; ERROR: Cost Method Invalid

Figure 30: work order details

STK TYPE: M; COST METHOD: 02; ERROR: COST METHOD INVALID

Figure 31: Error Message

They stay invalid for the cases of WR as below, if other than 07 costing method are selected for STOCKING TYPE:M, P.

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7. CAUSES AND STEPS TO OVERCOME APPLICATION

ERRORS:

This chapter deals with the causes of different kinds of errors both in

technical and functional and development parts and deals with a detailed

analysis.

7.1 Error Analysis:

The major root can be classified broadly into, the ERP Package itself, its application, the top management and finally the data collection. The

main effect was the challenge faced in the implementation of the ERP system. These problems needed to be addressed through a more precise

tool which will bring out the exact areas of shortcomings in the whole

system.

This analysis presented below is based on a survey taken during implementation of the software with a list of questionnaires and tabulated

results. The issues that occurred during the implementation phase as well as the phase after implementation. Each of these issues were segregated

based on the module in which they originated and the frequency with which

they occurred in these modules.

Bin Error Frequency Cumulative %

SD 53 40.45802

FI-CO 35 67.17557

MM 25 86.25954

HR 10 93.89313

PP 4 96.94656

BASIS 4 100

Table 2: Analysis Results

This analysis a majority of the error frequency is from the modules of SD

which is sales and distribution, where more needs of paying attention is

required.

More forms of errors in implementation and post implementation are

discussed in the causes.

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7.2 Causes:

7.2.1 Load Testing:

Any system can run with a handful of users — but it becomes difficult when

it is fully loaded with users, batch jobs, and EDI. Most ERP systems today

handles a typical user load, and the only way to determine for sure is to

load test the system. The most accurate way to load test a system is with

load testing software and scripts and with real users. If you just use scripts,

you won't see the effects of user mistakes, and if you just use people, you

can't really simulate the effect of batch jobs and EDI. But if you can't do

both, pick one and run with it. Either one will be 10 times better than doing

nothing.

7.2.2 Effects in other business modules:

Today, everything is electronically packaged to address as many "similar"

issues as possible. This can be a problem because the change we need may

be a small part of a much larger fix or Electronic Software Update (ESU).

An ESU can touch thousands of objects and with the advent of ESUs, it

must be thoroughly understood the impact of the change and regression

test every business process, even if it was working properly before the

change where introduction of additional "opportunities" into production

environment is not needed.

7.2.3 Not assigning a project manager:

A lot think they can save money by eliminating the consultant PM and doing

it themselves. For an upgrade, this is penny-wise and pound-foolish

decision. A consultant PM's focus is on upgrades, so they can navigate

pitfalls ahead of time and can make the difference between an on-time/on-

budget system and a perpetual money pit.

7.2.4 Mock go-live test:

A mock Go Live is the time when you find out whether everything will go as planned. It is the point when you capture timings for all the different Go

Live tasks. If you don't practice under the same conditions you'll have when you plan to go live (e.g., if Go Live is on a weekend, then mock Go Live

needs to be on a weekend), where you will run into issues that you never

planned for, including:

• Do I have access to all on a weekend? • could we run into backups or maintenance windows?

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• will the office be open and is the AC on?

Some of these may sound trivial, but under pressure and have spent millions, of dollars on a new system, the last thing you want is to be delayed

because you missed something that was easy to catch. So lways eliminate

as many variables as possible is recommended.

7.2.5 Management Issues and Budgeting:

ERP projects are initiated by the top management, but studies prove a lack

of support from them during the post implementation phase of ERP systems. This is very serious because managerial participation is very much

required during development, implementation and post implementation

phases despite verbal communication and assurance.

The top management allocates less funding for coping up with issues that

comes out during post implementation phases which can lead to severe scenarios. Because, if the number of bugs increases in the system then it

may need serious improvement which requires significant costs. End users should be properly trained to understand the ERP system and should be

able to troubleshoot in minimum and trivial cases. So, end users should understand how the system works rather than mugging up what input and

commands should be given. This will reduce the number of wrong attempts in working with the system. Training to end users are not considered very

important by the management.

7.2.6 Data Accuracy:

For Multiplex to perform a make-over to the new ERP system, data had to

be collected from the distributed Servers, had to be reconciled, mapped into the database of System in its standard format and finally the data had

to be uploaded. The problem on-site was that inappropriate data was

provided by each of the different branches hence making reconciliation a major issue. Hence, strong management direction is needed for the

managers at each of the branches so that adequate and appropriate data

is duly provided.

7.2.7 Training and testing:

The core team trains a set of people who are responsible for day-to-day transactions called the End Users. It was observed that the second leg of

training which is provided to the end users was not carried out properly and emphasis was not laid upon it. This triggered a strong resistance to change

for the new system being installed and caused reduction in employee

motivation.

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7.2.8 Never run parallel systems:

Parallel system could hamper the proper integration of organization data and led to data mismatch in other modules as well. As a result, support

system provided by the vendor became obsolete and difficult to implement.

Hence, use of parallel systems should be avoided outright.

7.2.8 Employee retention programs should be practiced:

After the training provided to the staff and within some days of the system going live, some trainees from the organization quit the company causing

great losses in the form of shortage of key resources i.e. trained staff. This big percentage of employee attrition rate and it is not possible for a

company to hold back any of its employees even with the most stringent

contract.

7.2.9 Customization Should Be Less Than 30%:

Customization Services involves any modifications or extensions that

change the working of ERP system. Customizing an ERP package can be very expensive and complicated where the packages have very generic

features, such that customization occurs in most implementations. Customization work is usually undertaken as “changes requested

beforehand” software development on a time and materials basis. But ideally, experts in the ERP implementation field have suggested that

customization should be less than 30%.

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8. OVERCOMING THE ISSUES:

Some of the possible countermeasures to deal with the issues in post ERP

implementation phase are,

Organization should allot some money or funding for such adverse scenarios. The testing process should be rigorous and if possible then it

should introduce the system to the actual end users. In some software development methodology like agile methodologies, it let the end users

get involved into the development process. There should be proper user management, technical and managerial support available for the post

ERP implementation phase. Monitoring for user interactions with the ERP implementation and monitoring of the bugs where Proper change control

management should be planned and followed. Rather than competing

the project management phased with implementation, maintenances should be included. Training to the end users should be provided in a

better and engaging way. People should understand the system and how

it works, better understanding will lead to better utilization.

Big Bang Approach

Here all the business functionalities are rolled out at one go, significant

savings can be realized in terms of time and money. A responsive corporate culture to accept and implement change is required greatly. A team that

understands the impact of change across an organization and can make decisions keeping the big picture in mind is required. However, it is

important to know that this approach also poses huge challenges to an

organization. Typically, end users resist change or are not able to keep pace with the new system. Lack of data or incorrect data in the beginning creates

a negative impact in their minds, which develops resistance towards the

system.

Phased Approach

A phased approach rolls out fewer business functionalities at a time. This approach has long roll out duration as well as significant spending in data

conversion. In a phased approach, since the system changes gradually, there is a large scope of user acceptance and user training. This approach

can be useful when organization complexities do not allow big bang rollout. There are several examples when core retail modules such as

merchandising management, financial systems, and price and promotion management have been implemented in the first phase. Modules such as

data warehouses, as well as planning and forecasting have been

implemented in the next phase.

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To Be or Not to Be

Addressing business processes remains a huge challenge for companies. There are two options for companies to pursue. In the first option, a gap

analysis is needed to find out which AS-IS processes will not be matched by the ERP supported processes. This poses a challenge if ERP supported

processes do not bring significant value and the end user of ERP resists the adoption of new processes. Though it is assumed that people will adapt to

new processes quickly, resistance becomes a big obstacle, as many do not see any value additions in their day-to-day work or improvement from their

previous processes. All such issues need to be addressed carefully and a

proper program needs to be put in place. Some of the suggested steps

would be:

• Identify to Be processes and affected user groups

• Create an extensive training plan to ensure the comfort and familiarity with new business processes

• Receive feedback from the user group • With the second option, a company would want to retain its processes

and may decide to customize the ERP package. This decision is preferred when the processes involved with the retailer offers a

competitive advantage. Such customization is a time and money -

consuming task. In some cases, customization will mean tinkering with the core of an ERP and may result in destabilizing the ERP

system. Enough cases have been reported where poor customization has resulted in implementation failure. It should be noted that when

a software vendor develops software for an industry or big business,

it cannot incorporate all the required business processes.

Change Management for End Users

If everything falls in place, the biggest challenge still comes from the end user perspective. It is easy to understand this when you see a new system

implemented. There are always a few people who are used to working in silos that feel threatened. At times, people will need to provide data when

a new process becomes part of their responsibilities, although they may not need that data in their daily operations. Issues of owning the data and

accessing the data need to be addressed. Trust and rivalry among

departments is another issue. These and other issues demand positive changes in management practices from the project's inception. An open

line of communication among functions at all level needs to be promoted to foster a common understanding of the system and its benefits. Some

recommendations are:

• Identify the functional silos • Initiate early involvement with user groups during implementation

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• Create an open communication channel across functions to build trust and confidence

• Encourage active participation in designing new processes and buy in • Receive feedback from management

• Many users need training and time to become productive on a new system. Early involvement of such users during the design phase and

business processes defining will help them understand the system. An education and training program needs be provided to help with

learning the new system. Above all, milestones need to be defined to gauge their system readiness and to give them enough confidence in

the systems

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9. CONCLUSION

As ERP systems continue to diffuse globally partly due to the need for

firms to adapt to the changing business environments and other reasons to adopt such systems it is logical to expect that firms should pay attention to

issues related to how to assess the success of their ERP systems. ERP adopting organizations should seek knowledge about which dimension of

success and contingencies to watch out for in such assessments, and they would also want to know how different organizational stakeholder groups

view the success of such expensive technologies. ERP has some long-term and short-term planning capabilities, but its limited capacity for planning

and scheduling is generally most apparent on the day of operations. It’s not easy for planners to handle disruptions and last-minute changes;

rescheduling is cumbersome and time consuming. ERP systems do not make it easy for planners to explore what-if scenarios, analyse planning

requirements, or get feedback on the quality of planning decisions with

reference to business goals.

In addition, ERPs tend to focus on the present; they handle poorly

future planned or predicted changes. ERP systems are typically based on

what is assumed to be “best practice” – it reflects standard and generic processes across industries, rather than on-the-shop-floor realities and the

unique challenges facing distinct industries. This one-size-fits-all approach means that implementation involves fundamental change to business

processes. It also means that the system cannot be configured to fit real-world business environments, which are often less than ideal and vary

greatly from industry norms. While almost any organization can use the standard ERP approach for invoicing, this is not the case in areas such as

planning and scheduling, where there tend to be a greater number of industry-specific and customer-specific constraints. Customization of ERP

systems is possible, but it’s generally the responsibility of the user, as are testing and fixes once the system has been modified. Most ERPs are not set

up in a way that allows for easy upgrades or modifications, meaning

customization is more likely to lead to instability and unpredictability.

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https://www.techrepublic.com/blog/10-things/10-critical-erp-upgrade-mistakes/

http://smallbusiness.chron.com/role-effective-communication-maximizing-business-24199.html

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https://www.linkedin.com/pulse/critical-success-factors-erp-implementation-ray-hu/

http://www.tandfonline.com/doi/full/10.1080/00207543.2012.761363

https://www.tutorialspoint.com/management_concepts/enterprise_resource_planning.htm

http://ieeexplore.ieee.org/document/5395031/?reload=true

https://link.springer.com/chapter/10.1007/978-3-642-24358-5_29

http://www.erpsoftwareblog.com/2013/08/the-negative-effects-of-duplication-and-manual-error/

https://www.quora.com/A-poorly-functioning-ERP-system-causes-errors-delays-and-unnecessary-

work-arounds-Should-a-CEO-get-a-new-IT-system-or-an-ERP-system