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Investigation Of Implementing Enterprise Resource Planning System In Tonghua Iron & Steel Group

Posted on:2011-11-06Degree:MasterType:Thesis
Country:ChinaCandidate:H X WeiFull Text:PDF
GTID:2189360305457175Subject:Business Administration
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Resulting from creative thoughts in enterprise management, ERP has its own unique idea in management. Its primary thought is that the business process of a company is a closely connected supply chain, including supplier, producer, distribution network and customers and so on, on whose chain ERP shall carry out all its functions and achieve the aim of putting its ideas in management into effect.ERP stands by such management thought as concerns the supply chain of corporation and focuses on effective management in all the links of the supply chain. What's more, ERP divides the internal business of corporation into several interconnected, interactive supporting sub-systems, such as financing, marketing, production, quality control, service and maintenance. ERP manages and controls all the sub-systems through each module, and the intercommunication between modules helps to coordinate all the subsystems and gather them together. ERP attaches particularly great importance to controlling the flows of capital, goods and information, advancing the management of supply chain to the level of management of value chain.The process of putting ERP system into practice means not only establishing an advanced computer information system, but also means the processes of thoroughly implementing its management ideas and realizing its management approaches. Therefore, only when each of the links in the whole supply chain cooperates with united efforts and spreads with certain procedures, can the performance of ERP be secured.Firstly, a wide range and thorough research concerning the groundwork and quality of corporation's management is needed to be carried out. Only when getting a full, real knowledge of corporation's management and formation, can we realize which links to improve, set specific goals for implementing ERP system and determine which is the first module to start.Secondly, a well professional consulting firm needs to be selected. Selecting a well professional consulting firm to assist corporation in implementing ERP system is as important as a patient needs a surgeon to operate on his body precisely and safely. Generally speaking, in order to secure the success of performing ERP system, professional consulting firm should be equipped itself with a sharp business sense, plenty of business knowledge, expertise in ERP system and integrated implementing measures, so that it shall be able to analyze the process of key business and the main drives of corporation's development and make full use of software's functions to optimize the process of corporation's business.Thirdly, an appropriate ERP system needs to be selected. Selecting a proper ERP system is usually done with the assistance of a professional consulting firm. Given to the required sources in the process of installing ERP system and the current national situations, the corporation needs to ponder over many factors, such as the adaptability of the technological characteristics of ERP software to company's business process, the level of localization of the software, the time required in the midst of implementing ERP software, capacity of analyzing, ability to communicate information and updating of the software; at the same time, it also should take the following elements into account, consisting of successful cases of applying the produced software, its producer's reputation, stability and ability to implement the software and provide service, so as to select a well-running system which confirms to business characteristics of this field, corporation's own features and requirements.Lastly, installing and performance of ERP system. This step symbolizes the formal operation of the system, which often experiences several phases, such as training of the system, analysis of business, simulation testing and testing running. In the process of implementing the software, we can select certain modules from ERP software, install them and carry out to some extent in accordance with the specific demands and traits of the corporation, and then implement the whole system to full ??extent when we gain some experience.That TONGHUA IRON & STEEL GROUP carries out ERP system aims to combine the three elements (relevant personnel, technologies and management), flows of information, goods and capital together in the whole process of producing and managing and optimize them through using technologies in the aspects of management, production and information and internet in a comprehensive way, so as to help promote its level of management, increase the benefits and advance the company's competitiveness. Thus, on one hand , at the phase of planning and designing ERP system, guided by such lines of"collectivized operation and management"as the strategic commanding point, the most important comprehensive benefits and delegation of authority in managing and controlling of the GROUP, TONGHUA IRON & STEEL GROUP makes sure the integration of system, information sharing, avoids information island makes room for future expandability, so as to meet the demands from such levels of management and operation as"management level","operational level"and"information managing level". On the other hand, centering upon the business flow, with the requirements from business department opening ways for the informationized construction, TONGHUA IRON & STEEL GROUP integrates the functions of technology, business and management together, designs the business process with a sense of"marketing-orienting, customer-respecting"and avoids management island to achieve conformity in crosswise level with the assistance of informatization going through all the relevant functions.Regarding this project as a turning point, TONGHUA IRON & STEEL GROUP pushes forward management reforming, business integrating and business-process optimizing by means of introducing consultation from outside, materializes standardization, precision and efficiency with use of ERP system and settles down the main problems of the corporation as a start so as to promote the informatization of the corporation by sticking to the principle of unifying planning, but implementing the system step by step in the process; Meanwhile the GROUP makes full use of the functions of existing technologies and equipment of the corporation by abiding by the rules of focus on suitability for use, doing what is possible. The management consulting introduced from the other party shall be used in the teams of corporation's projects, offer reasonable advice to help the GROUP get a clear understanding of market's requirements and risks and improve the reputation of the corporation and achieve consensus in corporation's construction. Through examining the degree of attention to the construction of this project paid by the contractor and that of its fulfillment, the GROUP makes efforts to reach an agreement between the GROUP and the contractor so as to succeed in the construction of this project. In order to secure the construction and application of ERP project, TONGHUA IRON & STEEL GROUP particularly established a project team to draw up a controlling scheme for this project and set up a continuing safeguard system for ERP training and working. This project team shall be committed to coordinating and settling down problems rising in the process of ERP working and also supervising and assessing the operation of this system and the performance of rules.The implementation and use of ERP system is the process which will continue to optimize, it is the same with the management type and process. There is no denying that certain problems will rise from the above said process, so that it is inevitable to re-optimize the business process before ensuring the system work well. In the midst of re-optimization, the basic data of the system is required to continually update and the function configuration of applying system needs to be explored more in series. At the same time, combined with practical conditions in corporation's management, a re-exploration of distinctive features will be carried out. Under the circumstances, the information system of TONGHUA IRON & STEEL GROUP is going to transcend the limit of standard function of ERP system with much more improvement in functions and convenience in use. Our initial task is how to secure the well-running of the system after getting installed, so it is necessary to establish an information system and improve its operating, maintain the implementation of all the rules and regulations and supervise and assess what is done.ERP is not only a technology-oriented system, it is actually a complicated system to solve the problems concerning corporation's management with the support of ?information technology, but human being is the most powerful factor in this system. While the main problems of implementing ERP system lie in the contradiction caused between interests of departments and program promotion due to unharmonious coordination and in maladjustment of corporation's structure to the development of modern enterprise management. In response to such problems, our company should set up strategies for firm's development which agree with the implementation of ERP system, execute restructuring of firm's management and business process and pay more attention to management consultancy of the corporation. At the same time, our company should strengthen the training and controlling of project schedule and be wiling to invest enough money in training. The leaders of our company should make proper plans and perform project management with firmness and strong supervision, communicate with other counterparts and inferiors and analyze causes of errors in process of implementation timely and make careful conclusions for each phase.The implementation of ERP system is a combination of experience and theory. Through analyzing and concluding the successful experience of implementation of ERP system in other advanced firms, and referring to their planning and implementing schemes, it is more likely for us to succeed in implementing the ERP system, so that we are more able to make contributions for the constructions of corporation's informationizing and improve the whole competitiveness of companies in our country.
Keywords/Search Tags:Enterprice Informatization, ERP Design, ERP implement, Business Process Reengineering
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