ERP System

How to measure success of your ERP project

Cycle time

For most manufacturing companies, cycle time is the heart of the business; a crucial KPI as it measures how fast the business is responding to customer orders. Cycle time measures the length of time from receiving an order to (produce &) deliver it to the customer. Faster cycle time shows better sync between the involved departments and leaner organization.

Demand Forecast Analysis

Demand forecast accuracy is another important metric for measuring business success once an ERP System has been implemented. An effective ERP System should help predict future demand based on historical trends. Ideally, ERP system can monitor the forecast and then keep track of the progress.

Plan Vs Actual: Scheduling

Another relevant KPI adherence to Production plan or schedule, which measures how effectively the ERP helps the company in creating and sticking to its production schedule. ERP should have a easy to establish schedule which should be fine-tuned to bring the actual number closer.

Customer satisfaction

How ERP affects the end customer sentiment. Is the new process bringing customer satisfaction? Is the service getting better and faster? ERP should be able to tell how customers respond by analyzing their periodic sales figures and feedbacks . How to increase sales from customers , reduce and number of errors and to eliminate issues causes of dissatisfaction.

Employee Engagement

Companies should strive to assess how the ERP System has impacted ERP users and other process owners in the organization.

Though not all employees are ERP users, but virtually everyone will have touch points and rely on information from the ERP . Have the users adopted the new system quickly or hanging on to legacy systems? Does ERP enable staff to accomplish more in less time? How effectively are you able to redistribute role and responsibilities amongst stakeholders owing to process changes? Greater adoption means system is working better than before.

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