explain limitations in ERP IMPLEMENTATION
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Answer:
The various limitations of enterprise resource planning (ERP) software include the following:
Expensive System - One of the main limitations of Enterprise Resource Planning (ERP) systems is that they can be extremely costly. Not only does the actual software and implementation incur costs, but other requirements such as computer hardware, updated network equipment, and security software may incur additional costs. It is important to carefully evaluate the different options of ERP systems and other related systems to choose the one that will be the best fit for your organization in terms of features offered but also in terms of costs.
Training Inefficiency - Skills, experience, manpower, and optimum utilization of resources are key within a manufacturing operation. Without these factors, it is difficult to have your operation run efficiently and smoothly, which is why proper training in ERP is imperative in order to make the system work appropriately. A substantial amount of companies attempt to save money by not providing enough expenses for enterprise resource planning training for employees. This will result in inadequate cognizance of the particular Enterprise Resource Planning vendor package being utilized and may lead to mishandling of the technology by employees resulting in the loss of valuable information.
Degree of Customization - Another limitation of ERP systems comes from their ability to be customized to fit your business needs. The degree of customization available can be limited and usually depends on the brand of software chosen as some systems have more customization options than others. However, most ERP systems offer very little customization or will charge additional fees for the extra features requested. It is therefore important to consider your business needs and the standard features of ERP systems when considering them.
High Implementation Times - Implementing a new operating system can be a challenging task for any company. Depending on the complexity of the business operations, the total implementation and training time can take over a year. Implementation times and costs of ERP softwares are crucial to consider as the time required for the implementation may disturb the normal functionality of the organization and risk incurring a potential loss in business during that time. It is therefore important to consider the implementation time when evaluating different ERP or other softwares that require an implementation to ensure that you will have significant returns in profits once implemented.
Inter-connectivity of Departments - Although having inter-connectivity between various departments in an organization may seem like an asset, it can also pose disadvantages to the company. This is especially true if there are inefficiencies within one department as it will lead to inefficiencies in other departments. If one department is affected and becomes inefficient, it can affect the overall efficiency of the company. It is therefore important to choose a software that will optimize your company and improve its efficiency to avoid causing problems in multiple departments.
Explanation:Due to the limitations of ERP systems, many manufacturers benefit from integrating their ERP system to an Advanced Planning and Scheduling (APS) software.