Tuesday, July 27, 2010

Warning: "conditions" soft constraints


In the enterprise resource management, new ideas and new methods in an endless stream: from well-known MRP family, JIT, to so many people do not know the independence for the manufacture of the island, TOC, really pack "appearance of your Changba I" peak scene. And 98 years of talking about ERP is more growth momentum, the industry is that many non-billboards from the streets know the original three-letter combination and software related. So, can the level of 1000 million from the surface appearance of order out of a sense of meaning the main line running through it?

In my view, any kind of enterprise resource management concepts and methods of their essence, are based on certain constraints on corporate profit maximization as a comprehensive Solution. Members from this statement is not difficult to write formal mathematical definitions. Words, respectively, MRP from the starting material and time constraints require plans to meet the exact parts in place and timely delivery of products; developed to MRP II, the introduction of the equipment and capacity constraints, stress can not be divorced from actual production capacity to row process; the TOC (Theory of Constraints, theory of constraints) is the kind of blindly abandon the practice of cutting costs, allowing a reasonable amount of "inventory" (Inventory) and operating costs (Operating Expenses) the existence of limits was more relaxed, the focus focused on how to identify and break the "Ka Bozi" link, so the enterprise sales rate (Throughput) is maximized.

But the author and do not intend to compare this article in many different solution, but drew attention to the ERP applications in existence such an understanding: the situation in China is to make good use of the most basic MIS pretty good, although other kinds of references advanced, but invariably prove suitable for such conditions, or leave it at work the day after tomorrow. Obviously, this understanding is to maximize corporate profits in solving the equation, then append a constraint, given that it not as equipment Ji Taiwan, workers have Jige so specific, but the Shen Tou Dao management level, operational environment like the "retreat" level, so called: "conditions" soft constraints.

First, the issue of ERP applications, what is the situation in China?

Mr. Chen Huixiang in his "Critique of Chinese enterprises," a book Zeng Yi joke is to say: "China is an extreme state, our nation accustomed to an extreme way to think about the way thing and a Director of extreme child . Throughout the ages, as a matter of extreme and frequent loss of opportunity, Comparative Study and Integration-down, staggering forward to the opportunity to pass one another. "Regardless of whether this view is extreme, we have to admit, in the understanding of ERP The problem is not rare situations like this. Side emphasized that "where management thinking is applicable to all", there would argue that "the situation in China is the institutional reasons behind the combined management lacked a lot of" split on speech, no one convinced. NATO bombing of Yugoslavia by force is not as effective as the above argument also does not solve the problem, then why not calmly to analyze this "situation" in the end to "peace talks" course?

We believe that, can not "conditions" simply defined in a fixed state, it is because: The objective, firms geographically, the overall industry, the quality of corporate leadership team there and so many were Chaiyi, These differences Liao for Chu at different time and space coordinates De enterprise level, management level also showed from the "low" to "advanced" ladder Cengshifenbu, concrete can be expresses as follows: Jingzhengcelue, from Chengbendaoxiang to Chixu innovation; in the competition range, from the competition among enterprises to supply chain competition; the dominant form of capital, from the financial capital to intellectual capital; in the marketing idea, from product marketing to brand marketing; in management tools, from manual management to computer management; focus on management, from production management to customer relationship management; to change direction, from the capital restructuring to management reorganization. Therefore, both macro-level enterprise management gap between the existence of a specific business or micro continued dynamic development process, are described: from the "low" to "high" transition is the situation in China.

Second, how to in-depth debate?

Accordingly, the concept of the ERP can not be a word, but understood from the three levels, namely:

ERP is a computer technology consulting and U.S. assessment of the authority of the Group Garter Group proposed a set of standard enterprise management system system, its essence is in the MRP II formed the basis for further development of supply chain management thinking;
ERP is a comprehensive application of the client / server systems, relational database architecture, object-oriented technology, graphical user interface, fourth generation languages, network and communications information industry results, to ERP management as the soul of the software product;
ERP is an integrated enterprise management concepts, business processes, basic data, human resources, computer hardware and software in the enterprise resource management system.
In this way, the "ERP is suitable circumstances," also went to the in-depth discussion that followed decomposition shown in Figure 1:



Thinking implied in the management of ERP can "foreign things serve China" to promote the enterprise management level from "low" to "high" transition?
For the ERP software product developer, is to uphold the "upstream", based on the advanced management mode, or upstream, to in the "downstream" of the current situation of Chinese enterprise management as a starting point?
ERP management system can achieve "national conditions" soft constrained maximum solvable?

Figure 1 from "ERP suitable conditions" to in-depth debate

Now, these three issues will be discussed separately.

3, issue 1: ERP inherent "nature"

As Chinese enterprises should improve their management level, they inevitably have to absorb and learn all the advanced management theory and technology, and not to pursue this theory and technology grab the "West Wind" or "east." ERP was not born the product, as each of the management philosophy has been as popular, ERP which includes stand the test of time factor is built on previous experience and practice on the basis that the development from MRP to ERP few decade, ERP has indicated that the practice of this "advanced." It is noteworthy that thinking to make use of management software for the carrier may not necessarily, Shanxi Jingwei Textile Machinery Factory in the use of MRP II software prior to manually simulate the management process is an example. ERP Management and on the content of the discussions on the business impact has been seen in many newspapers and periodicals, not repeat them.

4, issue 2: two groups of developers and business users the risks and prevention

For the ERP software, there are two kinds of development ideas: First, the "interpretation of type", from general to specific, general software development, in the specific implementation of user-based and secondary development. More than this type of foreign ERP software, such as SAP CEO Dietmar Hopp said: "SAP will summarize its success to many factors, the most important factor is undoubtedly a wise decision SAP, specializing in standard software and practical skills in system implementation . "and those from specific to general" inductive "thinking, that is, tailored to specific business users, a significant number of development interest in software sales reached only after that will meet the general idea of the developers received several large single-year, wait until after substantial development experience may be sufficient to develop a universal way of software. According to software vendors and development capacity, the customer the actual requirements of the Bu Tong, the two approaches in some rationality has its own, but were also entails risks, including the pair of developers in terms of risk, but also corporate users may bear the risk.

These risks can be divided into four categories, corresponding preventive measures, as follows:

1, "into the implementation of" risk: for the "deduction-based" development of developers.

Standard software and business practices are inevitable differences between, so developers could easily modify the software repeatedly caught in the quagmire and debugging, in time, manpower inputs have exceeded expectations, that is facing "into the implementation of" risk. In addition, because business users do not understand the logic implementation of standard software, often suspected of practical application of software, software sales agreements made in installments and other additional requirements, it also gives developers recover their investment as soon as possible resulting in barriers.

Prevent "the implementation into a" risk, should pay attention to the following:

Strengthen advocacy and training, to employees to the implementation of the group to make effective changes in the environment in people to drive change, to reduce and resolve the implementation of the resistance.
Should be integrated in the implementation of the use of customized, functional adaptation, further development of methods to make software and enterprise users as soon as possible to achieve fit.
Enhance the flexibility of the software itself, configure easily, such as the ERP software in the dynamic enterprise modeling.
2, "Concept hollowing out" of risk: for the "deduction-based" development cases, the business users.

Business Management can not exist, or forced migration, it must rely on a variety of hardware and software based business. Can advanced business management concepts real for their own use, not only depends on the user of the software and the secondary development, but to strive to create the foundation upon which management of content. If only the pursuit of the surface of the "go live" (ie the software into the practical application stage), there is no staff to do the actual acceptance, or just listen to the advanced management idea, but not all the data, the system in time, it may form management concept of "Hollow", this concept is just "a gust of wind", difficult to carry on business in the long term, companies in the past of manpower, material and financial resources also end in vain.

The "idea hollowing out" of risk prevention, the key lies in the following three aspects:

Willing to consult on the implementation of training and investment, promote advanced management thinking in the enterprise and down to reach a consensus.
Leave room for future needs for the enterprise, can not expect the software downgraded on the electronic manual.
Actively carry out business process reengineering and optimization, will be more energy from the IT projects to manage projects.
3, "conflict and delays in the" risk: for "inductive" Development of developers.

Because this type of software developed with the specific needs of enterprises to consider more, so less resistance when implemented. But this does not mean that from smooth sailing, as enterprise customers continue to change the situation in which to develop more time to consider that may cause chronic problems in the settlement when the business is easy to accommodate, when the eradication of the problem difficult to avoid problems when making conflict lag behind some other period of extension to occur, time of occurrence of such conflict is the uncertainty of "conflict and delays in the" risk. Obviously, when this risk by the probability becomes verily, there will be follow-up support services for developers, complex, complaints from business users will be detrimental to the reputation of developers in the industry.

Reduce the "conflict and delays in the" risk, from the following aspects:

Note that the software development process for future upgrades and expansion room left.
Focus on a summary of each case, the positive accumulation of industry best practices.
Take the initiative to upgrade its software products, "management" gold content, gradually break from the perspective of the computer technician business management mindset.
4, "target erosion" risk: for "induction-type" development under the corporate users.

The implementation of ERP business users the main purpose is to effectively enhance the management level, but elevated levels are difficult to quantify to some extent described. Therefore, the use of "tailor" the software will be easy to forget to expectations, and difficulties in balancing the various interests of the lower face of the original target, the target of such enterprises may be subject to erosion and reduction in the risk of unconsciously said as the "target erosion" risk. This risk model shown in Figure 2, the figure, when the target erosion in consciously, the rubber band tension generated by immediately reducing, in turn, say, change the status quo power also decreased, the result is not only the overall target to lower, and change the status quo of power and strength will be reduced along with the implementation of ERP will not receive their desired results.


Figure 2 "target erosion" risk

For enterprise users, adhere to the principle of large, maintaining the original objectives from erosion is an important factor in the success of its implementation one. To guard against "target erosion" risk, must do the following:

The overall objective of the establishment of system implementation and sub-goals, and evaluate the implementation of the end of time
Enterprise transformation process focused on goals, not the pursuit of comfortable surface, "implementation of the shortcut"
In dealing with conflicts not give up the principle of
5, Issue 3: change "negative binding" to "favorable binding"

How to "conditions" soft constrained so that the solvability of the maximum value it? The key is to introduce outside the brain, to help businesses become "negative binding" for the "favorable binding." Outside the brain is the need to introduce, even if the business users may lead to risk factors for ERP implementation has been relatively unsuccessful, a clear understanding will still be encountered in the implementation process is difficult to separate issues. Enterprise users are experts in their fields, but the ERP implementation is not where most of the core skills, which is located within the external environment by the company's limitations and lack of opportunity to practice determined. The representative of the management consulting firm for the implementation of support for the power, the accumulation of expertise in this area can be expressed in:

Not only advanced management theories and techniques to understand the latest developments, but also the management of Chinese enterprises operating in different industries with extensive experience and profound understanding of business practice, while accumulated valuable experience in implementation, to ensure a number of pitfalls to be nipped in the bud state.
Not only focuses on the application of information technology, but also from the "outsider" perspective is more easy to identify, facilitate and promote business process improvement, and provide the renewal of ideas, business convergence, an integrated system to improve protection and so on.
Business users and software developers put up a bridge between, and the quality of the enterprise to implement ERP into control track.






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