The USA Principle:
A Philosophy for Implementing Your ERP System On Time And On Budget

Cover illustration
By Karl M. Kapp, Ed.D., CFPIM, CIRM

Pages: 41
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Why do so many implementations of enterprise resource planning (ERP) systems fail? What can a company do to make sure its ERP implementation is a success? Karl Kapp, Ed.D., CFPIM, CIRM, answers these questions in "The USA Principle: A Philosophy for Implementing Your ERP System On Time and On Budget."

A conceptual framework is necessary to provide a sequence for automating organizational systems with ERP software. The framework must follow a simple set of proven and effective rules.

The first rule of the proposed implementation philosophy is for the organization to gain an understanding of its existing business processes. The second rule is to simplify overly complex processes. The third rule is to automate only after the first two rules have been followed.

These three rules are referred to as the USA Principle. Understand the processes within the business, Simplify those processes, and only then, Automate those processes. This simple, effective philosophy focuses an organization on the business needs driving the implementation and leads to implementation success.

Author bio:

Karl M. Kapp, Ed.D., CFPIM, CIRM, frequently speaks, writes, and consults on the convergence of learning, technology, and manufacturing. He is an assistant professor of instructional technology at Bloomsburg University in Bloomsburg, Pa.

Karl spent five years as a director of training at an ERP software development and implementation company. He was responsible for the design, development, and delivery of a training curriculum intended to help manufacturing organizations deal with the complex changes brought about by the implementation of an ERP system. He has conducted ERP training classes on-site at over a dozen different manufacturing plants, including such Fortune 500 companies as Lockheed Martin and Eaton Corporation. During that time, he discovered through observations and first-hand experience, the USA Principle — Understand, Simplify and then Automate.

Karl has published feature articles in a number of manufacturing trade magazines including APICS—The Performance Advantage, Manufacturing Systems, National Productivity Review, and The EDI Forum. Karl has made presentations at the local, national, and regional level on a variety of topics concerning the convergence of learning, manufacturing, and technology.

Karl received his Ed.D. from the University of Pittsburgh in the Instructional Design and Technology (ID&T;) program. The field of Instructional Design and Technology primarily focuses on the application of adult learning theories to the systematic design, development, delivery, and evaluation of instruction in a corporate environment. This background has helped Karl to develop effective and efficient methods to assist organizations with ERP implementations.


Table of Contents
Preface
• Failed Promises
• Why All the Implementation Failures?
• An Implementation Philosophy
Chapter 1. MRP To ERP Evolution
Chapter 2. ERP Dataflow
• Business Plan
• Resource Planning
• Production Plan
• Sales and Operations Plan
• EDI and Customer Orders
• Master Production Schedule
• Rough-Cut Capacity Planning
• Material Requirements Planning
• Detailed Capacity Planning
• Shop Floor Execution or Production Activity Control (PAC)
• Shop Floor Scheduling
• Manufacturing Execution System
• Issuing Material to Jobs
• Financial Modules
• Costing Modules
• Summary
Chapter 3. Business Needs Analysis
• Business Analysis
• Soft Skills Training
• Summary
Chapter 4. Business Process Simplification
• Simplification
• Leveling Demand in the Master Schedule
• MRP Explosions
• Inventory Accuracy
• Bill of Material Accuracy
• Housekeeping
• General Process Simplification
• Summary
Chapter 5. Automation
• Automation Concerns
• Avoiding the HAL Syndrome
• ERP-Enabling Technology
• Graphical User Interface
• Relational Database
• Fourth-Generation Language (4GL)
• Open Systems
• Client/Server and Open Systems
• Object-oriented
• Summary
Chapter 6. Conclusion
About the Author
References

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