Analysis of the Key Points and Difficult Points of ERP Implementation in Pump Industry

1. Introduction Economic globalization and the advent of an era of diversified markets require that enterprises must establish an efficient and dynamic rapid response system. Informatization is an inevitable choice for enterprises and a weapon and means to enhance the competitiveness of enterprises. However, the introduction of ERP system in the enterprise process, the implementation is an extremely crucial and most easily overlooked link. Because the success or failure of the implementation of the final decision of the full effect of ERP. According to incomplete statistics, there are three situations in all ERP system applications: only 10% -20% of system integration realized on schedule and on budget; only 30% -40% of system integration or partial integration is not achieved; ; Failed but accounted for 50%. Therefore, it is very important to fully grasp the key points and difficulties of ERP implementation and to adopt a scientific method of implementation so that the enterprise can successfully implement ERP to achieve its application goals. In addition, according to the authoritative department is expected that the next 3 to 5 years, the domestic pump industry will continue to maintain 11% to 12% growth rate. In particular, thanks to the active policies of the state and the stimulus of expanding domestic demand, the demand for major infrastructure projects in the national economy such as electricity, steel, petrochemicals and urban infrastructure continues to grow. The pump industry in our country will also grow at 2% 3% speed continued development. The rapid development of the pump industry puts forward higher requirements for the management of the pump enterprises. The enterprise information management system led by ERP is gradually being applied to the pump enterprises of all sizes; therefore, the difficulties in the implementation of the ERP system in the pump industry are analyzed and implemented The significance of success or failure has also been raised to new heights. 2, the characteristics of the pump analysis Pump is the mechanical energy into liquid energy, used to boost the liquid transport machinery. Pump is the most widely used in the national economy, the most common general machinery, in addition to water conservancy, electricity used in large numbers, especially in the most petrochemical production. From the division of industry point of view, the pump industry is a typical mechanical equipment manufacturing industry; from the basic types of manufacturing systems, a typical discrete manufacturing industry, the production process has a "processing - assembly" of the nature. 1) Characteristics of Pump Industry Products Pump products are complex in structure. Different from process industries, their products are not fixed, and the composition of products varies with the market. Due to the complicated product structure and heavy design task, not only the continuous development of new products, but also a large number of variant design tasks in the process of producing old products, the enterprises require strong product development capabilities, including pump performance, wear mechanism, resistance Grinding materials and other aspects of research capabilities. Although the production of each product needs to go through the blank manufacturing, machining, procurement of purchased parts, parts assembly and machine assembly process, but different manufacturing processes are still very different. In addition, the pump industry products also have a more distinctive features, under the pump structure changes in parts material is very frequent, basically each customer has its own designated parts of the personalized material requirements, resulting in a large pump products Some are one-time. 2) Pump industry management and management features Pump industry customers are more concentrated in the water conservancy, chemical, metallurgy, electric power, mining, coal, building materials and other industries, based on the particularity of these industries, orders and commodity parts combination of the order pattern is more common , There are usually general solutions for large-scale projects, project-based personal needs more and more urgent. In terms of sales, sales management is mainly conducted in the form of a combination of sales in the form of sales areas, industry-specific solutions and the like, and sales of standard products. 3) Pump Industry Production Management Features The pump industry has the same general-purpose machinery industry, but also has the pump industry's personality. Production methods include mass production of standard products, but also individual and small batch production. In the manufacturing mode, not only need to support multiple varieties, different batch production types, but also need to support the single-piece production type, inventory stock-type production and project-based personalized production model. Long product life cycle, short production cycle up to 1-2 weeks, long production cycle of more than six months. Production planning is difficult to control, resulting in frequent changes in the production process; Plus more personalized requirements, the production process of personalized management requirements, the production process is difficult to control. 4) Pump Industry Cost Accounting Due to the long sales cycle of pump products, some large-scale pump products can even be over a year's worth through the project payment collection, making the sales profit difficult to analyze. Coupled with the product structure and the high degree of personalization of the production process, especially for the project-type large pump products, cost accounting is particularly complicated, difficult to refine the management, usually only after the accounting. 3, the common point and difficult analysis ERP system in the implementation process has some common links that need special attention, it is implemented in different industries have the same importance. 1) The preparation of the basic data "Three-thirds of technology, seven management, twelve points of data", popular phrase in the ERP industry fully illustrates the importance of data in the ERP implementation process, and the basic data preparation is Most important, because the basic data preparation is to ensure the correct operation of the system key. The basic data in ERP include material code, bill of materials (BOM), organizational structure, warehouse property settings, etc. Before basic data preparation, it is essential to fully instill basic data preparation in the relevant business units and information center implementation team importance. In addition, the data preparation process, it is necessary to highlight the work efficiency and data accuracy of both. Each basic data preparation to be determined in advance to complete the time, and the implementation of the time and accuracy of the corresponding assessment. 2) Project Implementation Monitoring and Feedback Mechanism Implementation When the implementation of both sides of the implementation plan to implement the next push, if the following department did not follow the requirements or do not fully follow the requirements to do will have a resistance to the successful implementation of ERP, the establishment of project feedback and monitoring mechanism is to play this effect. Weekly planning will be useful in conjunction with the wrap-up meeting to seek out departmental support for arranging weekly tasks and reflecting the problems encountered during implementation. In addition, the implementation plan implementation process, as far as possible to take "first and secondly loose" strategy, especially for those who do not enforce the enterprise; and this point in the beginning of the project should be controlled, or behind the control or management can not be Strength. 3) Business Process Reengineering and Software Functionality Adaptive Software product and customer's actual demand will always have some discrepancies. ERP system to standardized and standardized business processes as a precondition, so if you want to successfully apply the ERP system, you must re-design and optimization of business processes. However, the reorganization of any business process is for enterprises to pay the price, therefore, requires the software product features set to adjust the process of restructuring and enterprise integration, select the best combination of points, in order to meet the requirements of both sides of the premise Under, so that the cost of the business to a minimum. Of course, taking into account the necessary restructuring of the company's future development needs to be resolutely pushed forward. 4) Training The importance of training in the implementation of ERP is well known, and at different stages of implementation, training of different content for different people organizations should be trained. However, the implementation experience of the ERP project shows that the implementation consultant of the software enterprise firstly carries out the team training of the client enterprise and then they train the end-user of the enterprise again. This two-level training not only can reduce the work of the consultant Volume, but also help customers for the system of post-maintenance. In addition, the training after the assessment and reward and punishment is also a very crucial part, to be implemented. 4, the individual points and difficulties Analysis of pump products, processes and orders of the characteristics of the decision of the pump ERP implementation process has its own special points and difficulties need to be personalized link. 1) Material Classification, Coding and Configuration The complexity of the pump product structure adds some difficulty to the pump enterprise ERP implementation of material classification. Can be classified according to the product line, subdivided into finished products, spare parts, roughing under each series, subdivided by common parts and non-common parts under the parts; also can be directly divided into finished products, semi-finished products, Categories, and then in all major categories and then specific sub-categories and subcategories. In short the material classification according to the actual situation of enterprise materials, but also take into account the system in the future authorization of the material category, the financial account settings and other factors, and let classification determined earlier, or behind the coding work can not be carried out. As the pump business is mainly produced according to the order, so many products and the corresponding coding is one-time, and as the customer needs changes, many purchased parts of the coding needs to continue to add in the follow-up, companies need to arrange staff of relevant departments Familiar with coding and maintenance work as soon as possible. In addition, for some frequently-changing material-related information to consider not placed in the coding, and placed in the configuration information, such as adjusting the pumping pipe, adjusting the length of the protection tube, motor and bearing manufacturers, paint color and so on. For the finished product parts and components of the material combination information, as the case may be. Some pump companies often change the quality of finished products parts often have six or seven kinds, and each part of the material changes in three or four kinds of circumstances, through the combination of a pump which may appear inside the parts material combination information Of course, there are many combinations that do not happen at all. If the material combination information into the code, it will generate a large number of forever useless coding, and need to spend energy to BOM them; if the material combination information into the configuration, the number of material coding will be greatly reduced, in advance Do not need to enter a lot of useless BOM data, but some work to maintain the latter part of the BOM. 2) The most prominent feature of the customer BOM pump industry is the personalization and diversification of customer orders, which requires that the ERP system can generate corresponding sales orders according to customer requirements in the sales management subsystem and configure the corresponding material composition structure (Customer BOM) to ensure that plan decomposition and subsequent quota picking corresponding BOM data. Moreover, the individual needs of customers, some pump components under the structure of the product is mandatory, and some are more than one election, some optional, so the software features set to meet the customer's personality Demand. 3) Order changes and plans, work order adjustments According to statistics, some pump business sales orders change the total orders as high as 80%. The types of order changes include: â‘  change the delivery method, delivery location and other external parameters; â‘¡ increase the number of products in the sales order or add new products; â‘¢ reduce the number of products in the sales order, and even cancel the sales order; â‘£ sales orders The unit price or delivery time of the product is changed. The first situation is better handled, if the order has been audited or decomposed, issued a work order, do a direct change notice to the relevant departments can be; the second case requires additional sales orders, and new documents To be associated with the original order (for example, by the same contract number), then MPS is generated for the new order, and is decomposed and the work order is issued. The third situation also needs to add the new document and the original order, only the quantity in the order , The amount should be offset with the original order, and notify the relevant departments with the change notice to adjust the work order execution plan; the fourth case when the unit price changes, but also need to add new documents

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