Home > Enterprise News > Company News > The Process of ERP Implementation

The Process of ERP Implementation

On November 9, 2006，all the high-level leaders and Middle-level cadres of Shenzhen Qiaohua Industries Limited gathered in conference room for welcoming the largest revolution in Qiaohua’s management history. The ERP project was launched officially on that day and the whole company was going to face the big changes in management process, working modes & concept, and so on.

Several years ago, the general manager, Mr. Yang Ruishi was fully aware of the importance of introducing a modern management idea and measurement into a private company who wanted to develop stably and rapidly in today’s fierce competition. The most effective way to achieve this goal was to introduce ERP software, which contained the advance management ideas and modes. However, he understood that building up ERP system was a huge system project, a long-term strategic project and a hard & complex task. Therefore, Mr. Yang established the implementing policy of Overall Plan, Unify Arrangement, Step-by-step Implementation, and Point Breakthrough. Meanwhile, he also determined the two-step implementation. Firstly, Qiaohua put forward the 17 modules that were closely related to production. They were finance module (including total amount, receivable payment, due payment, fixed asset, financial report, salary, salary management, and cost calculation), supply chain module (including procurement, sales, exports, warehouse storage, and inventory), production module (including production data, task, outside consigned production, and MTO). The second step was to, based on the first step’s outcome, perfect the 8 new modules, which includes production line management, equipment management, QC management, personnel management, salary management, attendance management, performance management and CRM.

With 2-year’s hard efforts, Qiaohua built up the ERP system from the initial data preparation, process optimization, issuing operation manual to implementing each module step by step. Finance, sales, procurement and production systems with 25 modules came into normal operation in May 2007. The main business transferred from manual operation to system operation. The overall ERP frame and the core business MRP (material requirement plan) had been finished, which unified the finance flow, information flow and business flow, and made all files to be shared. The implementation of ERP impelled the Qiaohua transferring from rough management to lean management, which highlighted the finance management as Qiaohua’s core.

Through the implementation of ERP, the company set up an effective and highly integrated system from raw materials procurement, materials storage management, production to sales. Under the help of effective integration of financial plan and cost calculation, Qiaohua realized the effective monitoring and accounting of logistics, information and finance flows.

Throughout the process of ERP implementation, Qiaohua had accumulated a lot of experience and trained some young cadres. Besides, it deeply felt that ERP was not a pure management revolution. Neither was a pure IT project. The successful ERP must be an organic combination of management experience, industry experience and information technology. Achieving this combination could bring with an effect of 1 +1 +1> 3.