ERP Implementation – Go-Live Metric Definition and Utilization
As this is continual area of emphasis for ERP go-lives that we are involved in, we thought we would re-iterate the importance of this topic, written about back in 2014 as the importance of it has not diminished!
The cutover to a new ERP system, or Go-Live, is often a difficult and stressful event for those involved. As the typical cutover weekend approaches and passes, teams often neglect the definition of what constitutes early tactical success over the first several weeks using the new system. Teams are focused on the complexities of data conversion, final testing, coordination of activities across sites, and final end user training and preparation.
One item that is often overlooked is agreement among the project team (internal and external) and management on how to measure business success during those first few weeks prior to stability. One could argue that success can only be measured over time, which is accurate at a macro-level. However, key reports must be agreed to as measurement tools during the initial period after cutover. These reports should be monitored daily.
Although the exact details and calculation of a metric will differ for each company, two of the key reports that should be considered are Order Fill Reporting and Production Earned Hours Reporting. An Order Fill Report will allow a company to compare the pre-cutover on time shipment and order fill performance against the post-cutover performance. Typically companies have established a minimum standard order fill rate and/or performance metric which can be compared to performance under a new system. Production Earned Hours allows a company to view attainment to a schedule and production quantity produced compared to the pre-cutover performance. There are other metrics that can be put in place, but these two are critical to monitoring the success and business continuity after the conversion to a new ERP system.
2020 Nucleus Research Report on ERP Technology