The Importance of Pre and Post Cutover Metrics for ERP Implementations
Posted on: June 27, 2019 | By: Tim Lovely | QAD Practice News, Microsoft Dynamics GP, ERP Selection, QAD Manufacturing, QAD Business Process, QAD Distribution, Professional Services, Microsoft Dynamics Manufacturing, QAD Financials, Microsoft Dynamics CRM
Defining specific pre and post cutover metrics is an important step in the planning of a new ERP system. ERP implementations are often seen as projects which reduce on-time shipment performance or throughput, for example. The Project Team needs the ability to reference pre cutover metrics and easily compare them to the same cutover metric to assess the positive or negative impact of the cutover.
The Project Team (internal and external) and management need to agree on how to measure business success during those first few weeks after cutover 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.
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