October 1996 € Volume 6 € Number 10

Successful System Implementation:
A Model for Continuous Improvement

By Thomas M. Kuehl, CPIM

Implementing an enterprise resource planning (ERP) system is an arduous task. With a typical project lifecycle measured in terms of months or possibly even years, many challenges and opportunities will arise during the course of the implementation. For those who succeed, the rewards can be great and exceed initial expectations. Not only have the objectives of the system implementation been accomplished, but also, the framework for continuous improvement has been firmly established. Allow your system implementation accomplishment to provide the impetus for continuous improvement.

Critical success factors

The elements necessary for a successful system implementation and related caveats are well documented. Less recognized is the potential importance and application of these critical success factors to the continuous improvement process. Upon further examination, the inherent significance and possible application of these critical success factors to the continuous improvement process is readily apparent.

• Executive commitment/support: Upper management is a driving force, openly committed and involved. Two-way communication is in place to allow the executive group to make tough decisions and occasionally flex its muscle to promote success. A "blessing" or "dictate" from above is enough to make things happen.
  
  
• Respected and effective project leader: The project leader is a proven helmsman with ability to remain focused and clear-headed while guiding the team through perilous and challenging implementation journey. The project leader has an intimate knowledge of the business and is trusted at all levels to lead with honor and integrity. The selection of the project leader should be based on ability, not on company politics.
  
  
• Use of proven technology: Select a tried-and-true "formal" implementation strategy. Formality and structure is at the heart of proven implementation methodologies. Reliable approaches pay meticulous attention to detail and provide a step-by-step documentation of the entire process. A non-disciplined and informal approach is an invitation to failure.
  
  
• Education: To advance the implementation and to effectively utilize the new system, a thorough understanding of the conceptual basis, current and established business practices and procedures, and the specific system applications is required. Of course, the level of educational detail required varies by function and level of responsibility. The contribution of education to the success of the system implementation project cannot be overstated.
  
  
• Allocation of resources: To be successful, it is necessary to allocate sufficient resources to get the job done. Fundamentally, resources may be classified as material and human. Generally, material resources are readily procured and are not problematic. However, because of a natural propensity to overload the internal labor sources rather than to procure external resources of support, it is common to under-allocate human resources. In any case, the insufficient allocation of resources will result in delay or deficiency.

Continuous improvement
The elimination of waste and the ongoing quest for excellence has become a mandatory business practice. Continuous improvement is accomplished by a perpetual examination of problems, analysis and identification of the causes, development of potential solutions, testing of results, and the standardization of improvements. In today's dynamic and challenging global business environment, a "project" is really never completed. For example, while you were successfully implementing your enterprise resource planning system, it is likely that new revisions of your software have become available and that business changes have occurred that require continuous improvement scrutiny.

Take full advantage of your successful system implementation project and use it as a model for your company's continuous improvement process. The critical success factors are understood, the infrastructure has been established, project participants have been prepared to act as facilitators, and external resources have become familiar with your business. Be inspired by the fact that the framework for continuous improvement has been firmly established in your organization. Keep the momentum of the successful system project going.

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Contributors note: Material submitted for this column must be original and no more than 650 words in length. Include a proposed title, short statement establishing your credentials, your name, company, business address and telephone and fax numbers. Send to: Henry H. Jordan, APICS Consultants Forum, 900 Secret Cove