Western Kentucky University TopSCHOLAR® Masters Theses & Specialist Projects Graduate School 8-2014 Implementation of a New Enterprise Resource Planning System Lacy Payne Western Kentucky University, [email protected] Follow this and additional works at:http://digitalcommons.wku.edu/theses Part of theBusiness Administration, Management, and Operations Commons,Industrial Organization Commons,Organizational Behavior and Theory Commons, and thePerformance Management Commons Recommended Citation Payne, Lacy, "Implementation of a New Enterprise Resource Planning System" (2014).Masters Theses & Specialist Projects.Paper 1401. http://digitalcommons.wku.edu/theses/1401 This Thesis is brought to you for free and open access by TopSCHOLAR®. It has been accepted for inclusion in Masters Theses & Specialist Projects by an authorized administrator of TopSCHOLAR®. For more information, please contact [email protected]. IMPLEMENTATION OF A NEW ENTERPRISE RESOURCE PLANNING SYSTEM A Thesis Presented to The Faculty of the Department of Architectural and Manufacturing Sciences Western Kentucky University Bowling Green, Kentucky In Partial Fulfillment Of the Requirements for the Degree Master of Sciences By Lacy Payne August 2014 ACKNOWLEDGMENTS This project would not have been possible without the assistance and guidance of numerous individuals. These individuals not only provided an abundance of information in regard to new system implementation, but also to flow and manufacturing. Chad, Shlomo, and Willy, made this process both educational and entertaining. There were many nights of planning, mapping and back and forth quarrels over which way to implement a process or department. Chad, my mentor and Vice President of Operations, taught me the importance of mapping every process. He gave me more training, information, and guidance about manufacturing and business than I expected to learn over the course of a career. Shlomo, InAccord’s creator, for the consistently provided guidance on flow and manufacturing principles; these mini training sessions were priceless. Willy, InAccord’s programmer, has eternal optimism and overall happiness, which made some hard days bearable. His ability to customize the program to work with the correct flow made the process of implementation wonderful. I’d like to recognize my thesis committee for offering guidance and quick responses during this process. Their thoughts and notes helped me to complete this thesis with ease. Last, but certainly not least, to my husband, Chuck, and my children, Carter and Knox for understanding the late nights and weekends spent on this project. To Chuck for undertaking the kids, all housework, and dinners while I worked on this project, I love you. ii CONTENTS CHAPTER ONE: INTRODUCTION ..................................................................................1 Company Roles and Logistics .............................................................................................6 Rationale ..............................................................................................................................9 Project Goal .......................................................................................................................15 Expected Results ................................................................................................................15 Assumptions .......................................................................................................................17 Limitations .........................................................................................................................18 Delimitations ......................................................................................................................19 Definition of Terms............................................................................................................19 CHAPTER 2: REVIEW OF LITERATURE .....................................................................22 CHAPTER 3: METHODOLOGY .....................................................................................30 Upgrading and Integrating .................................................................................................30 Processes and Procedures ..................................................................................................30 Requirements .....................................................................................................................30 Milestones ..........................................................................................................................31 CHAPTER 4: ANALYSIS ................................................................................................33 Setup ................................................................................................................................. 33 Master Setup ..................................................................................................................... 33 Resource Management Setup ............................................................................................ 34 Training ............................................................................................................................. 34 Training for the Production Department Employees ........................................................ 36 Sales Order Management for the Production Process.. ..................................................... 36 iii Item Management for the Production Process.. ................................................................ 36 Resource Management for the Production Process.. ........................................................ 37 Setup for the Purchasing Department Conversion. ......................................................... 37 Sales Order Management for the Purchasing Process.. .................................................... 40 Item Management for the Purchasing Process. ................................................................. 40 Resource Management for the Purchasing Process .......................................................... 40 PO Management for the Purchasing Department ............................................................. 41 Vendor Management for the Purchasing Department.. .................................................... 41 Setup for the Order Entry Department Conversion. ......................................................... 41 Training for the Order Entry Department. ........................................................................ 43 Sales Order Management for the Order Entry Process. .................................................. 43 Enter/Update Order for the Order Entry Process.. ............................................................ 43 Customer Management for the Order Entry Process. ....................................................... 44 Item Management for the Order Entry Process. ............................................................... 44 Master Setup for the Order Entry Process. ....................................................................... 44 Setup for the Engineering Department Conversion .......................................................... 45 Training for the Engineering Department.. ....................................................................... 46 Sales Order Management for the Engineering Process .................................................... 46 Item Management for the Engineering Process ................................................................ 46 Resource Management for the Engineering Process ........................................................ 46 Training for the Project Management Department .. ........................................................ 47 Sales Order Management for the Project Management Employees. ................................ 47 Item Management for the Project Management Department.. .......................................... 48 iv Training for Shipping/Hardware Cage/Receiving Employees. ........................................ 48 Sales Order Management for Shipping/Hardware Cage/Receiving. Processes ............... 48 Item Management for Shipping/Hardware Cage/Receiving Processes ............................ 48 Resource Management for Shipping/Hardware/Receiving Processes. ............................. 49 Training and Setup for the Inventory Process. ................................................................ 51 Inventory for the Project Management Department.. ....................................................... 52 Inventory for Owenership and Banking Processes. .......................................................... 52 Deployment ....................................................................................................................... 54 The Production Department Deployment.. ....................................................................... 54 The Production Department Followup............................................................................. 55 The Purchasing Department Deployment. ...................................................................... 57 The Purchasing Department Followup. . ........................................................................ 57 The Order Entry Department Deployment.. ..................................................................... 58 The Order Entry Department Followup ............................................................................ 58 The Engineering Department Deployment ....................................................................... 59 The Engineering Department Followup.. .......................................................................... 59 Inventory Processes and the Shipping Department Deployment ...................................... 60 Inventory Processes and Shipping Department Followup. ............................................... 61 Flow Benefits Delivered by Implementation .................................................................... 62 Outcome of Production Implementation.. ......................................................................... 62 Outcome of Front Office Implementations. ..................................................................... 62 Position Changes. .............................................................................................................. 63 Outcome of the Project Management Implementation ......................................................64 v Outcome of Inventory and Shipping Implementation. ......................................................64 CHAPTER 5: SUMMARY................................................................................................66 Future State of Improvements ............................................................................................67 Final Recommendations.....................................................................................................69 APPENDIX B – INACCORD BASIC TRAINING ..........................................................75 APPENDIX C – SCANNING and PRINTING STATIONS .............................................78 APPENDIX D - ENTERING PARTS INTO INACCORD ...............................................80 APPENDIX E – FUTURE STATE OPTIMIZER .............................................................81 REFERENCES ..................................................................................................................83 vi LIST OF FIGURES Figure 1. Project Management Department Current Process Map .................................. 10 Figure 2. Front Office Department Current Process Map ................................................ 11 Figure 3. Production Department Current Process Map .................................................. 12 Figure 4. Process of Inventory Current Process Map ...................................................... 13 Figure 5. Shipping Department Current Process Map ..................................................... 14 Figure 6 Mehrjerdi's Phases for Successful Implementation of an ERP (Mehrjerdi, 2010, pp. 312-313) ...................................................................................................................... 29 Figure 7. Proposed Purchasing Process Map .................................................................. 38 Figure 8. Proposed Order Entry Process Map ................................................................. 42 Figure 9. Engineering Process Maps ............................................................................... 45 Figure 10. Shipping Process Map .................................................................................... 50 Figure 11. Hardware Process Map ................................................................................... 51 Figure 12. Inventory Process Map ................................................................................... 53 Figure 13. Company Process Map ................................................................................... 74 Figure 14. Home Screen of InAccord. ............................................................................. 75 Figure 15. Sales Order Management in InAccord2. ......................................................... 75 Figure 16. View SO Screen in InAccord. ........................................................................ 76 Figure 17. Home Screen for Resource Management. ...................................................... 77 Figure 18. Resource Management Screen. ...................................................................... 77 Figure 19. Scanning Station (without Serial Number) Screen. ........................................ 78 Figure 20. View SO Screen ............................................................................................. 78 Figure 21. Screen for Scanning/Creating Serial Numbers ............................................... 79 vii Figure 22. Step 1 and 2 of Future State Optimizer Process Map. .................................... 81 Figure 23. Step 3 and 4 of Future State Optimizer Process Map. .................................... 82 viii