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During ERP Implementation

When implementing an ERP system. some users may alawys hv issues about their computer illiteracy, or may say that they have spent many years doing what rhey are doing now without help from an ERP system. Other users may say that their jobs will be threatened by the new system, or that they will not know how to do the job within the scope of such a system. Yet another group of users may stress values such as the importance of existing system, which may be jeopardized by the new ERP system and so on and so on..........

My personal point of view, all ERP users are expected to be reluctant to welcome the new system if they do not know how it works. Teaching each of the user groups how the ERP system works is important for them.

hands-on training is another important driver of ERP implementation success. Training offer a good opportunity to help users adjust to the change , it also helps to build positive attitudes toward the new system when they get to know the system more, training provides hands-on experience for the users: they appreciate the quality attributes of the system and its potential benefits and also of course the hard work spent by the consultant.

User Attitute problem

When i implementing an enterprise resource planning (ERP) system, i always found that the top management commonly faces an unwanted attitude from the users for many reason or another, they resist the implementation process. Resist to change = resist to improve , i think the top management should always proactively deal with this type of USER's ATTITUTE PROBLEM. The BEST BEST system doesnt work if ur user resist to improve.

Vivienna

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I don't have enough time

That's crap. The average billionaire has the same amount of time as the average bum. 86,400 seconds a day.
You're just doing the wrong things....

Manufacturing Processes Sample

In this sample, product A, product B, product C, and product D are packed using packing machines.

- There is a machine called Mixer 1 for the materials mixing process.
- There are 3 packing machines, Packer 1, Packer 2, and Packer 3 for the packing process.
- There is an inspector called Inspector1 for the inspection process.
- Materials of product A, product B, product C, and product D are set as Product A-Material, Product B-Material, Product C-Material, and Product D-Material.
- ProductA-Material, ProductB-Material, ProductC-Material, and ProductD-Material pass the mixing process.
- Intermediate items produced in the mixing process pass the packing process next.
- Then, items produced in the packing process pass the inspection process and finally ProductA, ProductB, ProductC and ProductD will be produced.

Learn from Others

Mistakes are costly when you make them, and valuable when you can learn from others mistakes.Learn from others. It's faster and cheaper.

Giving Wow! Service

It's not about one person doing something nice for a customer today. It's about the entire company advancing as one, in the name of one, in the name of all; for the benefit of one, for the benefit of all.

It's about pride, and winning, and being the best.

Make Wow! happen in your business.

The basic of Success

Success is not doing 5,000 things. It's doing the key few things 5,000 times.
Generate leads. Sell them. Deliver the goods and make people happy. Build your team stronger. And then keep doing it. Over and over again - for years

so, are you doing 5000 thing or 5000 times ?

Who and what do you need for an implementation?

1. Project Manager-This person must create and manage the project schedule, tasks and communication.
2. Implementation/Core Team-The core team should consist of a cross functional group that understands your business, the project goals and knows the history of the organization.
3. Systems-Determine what systems are required to support the new application. What interfaces are required to other applications?
4. Business Processes-Verify that current processes are documented. These will be the baseline to determine how well the new application meets your business requirements and how the new application will impact current processes.

Your Possibility Editor

Your beliefs filter out and edit out everything that is inconsistent with them. If you believe you can't, you'll never allow any "I can" messages in. If you believe it's black, right, or down you'll never see white, left or up. Are your beliefs limiting you?  Who created your beliefs? Who is the only one who can modify or change them?

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If things aren't going well for you...

If things aren't going well for you...


Look. There is no failure, only feedback. The market is saying "Doing this thing in this way at this place at this time right now gets you these results". It's for you to take the feedback and do something different to change the results. Sometimes, what we can do different is change what we expected. If we expected much more and we don't get it, we become frustrated and angry and bitter. Our self talk then becomes our worst enemy.

The idea that we are older now, so we should be in a whole different "higher" place, can really interfere with the how we think. Reset your thinking. End the pity party. Dust yourself off. Do something different. And do your work Get out there and help or serve someone.

Often the problem is not the real problem, its your response; how you think about the problem becomes the real problem.

And that you have control over. Right?

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HP Color LaserJet 5225 / 5225DN

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Guts are for believers

If you firmly believe in your cause or the outcome that is sure to come, you will act with bravery. How much do you believe in your cause(s)?

Recoprocation

People are much more willing to help you if u help them firstt. They feel they should not take without giving in return, r u giving first ?

ERP is not just software

ERP ( Enterprise resource planning) is not just software for me. everyone hear a lot about ERP software but do you really understand what is ERP all about ?


ERP project is not as simple as installing a piece of software. So what else is involved ?


ERP Software is
33 % software
33% Implementation/training/ process
33% guidance


The software provides the basic foundation, it is basically the tool to get the information enter into the system. The best software system is the one that does what your company needs it to do.

Keep in mind that even the best system doesn’t work if you don’t set it up and use it properly. That’s why it is only 33% of the equation. Don’t get me wrong the software is important but not everything. it still depend how your company structure setup
Implementation/training/process
This portion is equation very important. How are you going to set-up, use and train on the system. A solid plan is needed here. Whether you use your vendor or your internal people, the person or people you lean on here should 

• 1-Have a deep understanding of your business and the flow of information through it. 
• 2-Understand the group of employees that will be interacting and using the system  
• 3-Deliver training in the method that best suits the individuals users.  
• 4-Understands the way the software works

Guidance


If you have never used or seen an ERP system and don’t have anyone internally who has, you will need to rely on your vendor here. Many organizations think they don’t need this but the reality is the project will cost less and take much less time with the proper guidance. There are many decisions to make when installing ERP, many forks in the road, choices are great but if you can’t visualize the outcome decisions become difficult.


Exposure to setting up and using systems here is critical. If you don’t have anyone internally to provide this for you make sure you do your homework with the vendor. Make sure the have the technical ability to understand your business and how information should flow.


ERP is not just software it is a combination of software, processes and procedures used to reduce waste, create efficiency and provide a platform for growth.

Conventional ERP VS Rental ERP

Conventional ERP Model  

• High capital expenditure
• Direct & indirect investments
• Ballooning costs
• Long implementation time
• Rigid 
• Limited access
• Upgrades at extra cost
• Limited licensing

Rental Model

• No capital expenditure
• No investments
• Low-cost subscription model
• Implement in weeks
• Scalable
• Access anytime, anywhere
• Free upgrades
• Flexible licensing  

What is a 'rental' or 'Web-based' ERP solution?

A Rental or Web-based ERP solution is managed and provided to organisations over the Internet, by a service provider or vendor, on a 'per month, per user' basis.

Here organisations are saved from a sizable upfront investment on the hardware and software installations normally required if an organisation opts for an outright purchase ERP solution (On Demand ERP). In this version, an organisation owns the ERP software and hardware infrastructure within its premises.

A rental or Web-based ERP solution proves very cost effective as an organisation pays just a per-user monthly rental, which is quite manageable.

Vivienna from erp2u.com

Tips by ERP gurus:

Here are a few tips by ERP gurus:


1. Create workable ERP implementation goals and plan. Be smart and create a process that has stages and involves all concerned at each stage. Test the ERP at every stage; this will smoothen out kinks when they are small.
2. The ERP implementation should be a hands on process for end users. Involve the employees who will handle ERP process in both planning and execution.
3. In case ERP is not in your skill set then get a ERP consult who will work hand in hand with your team. This will iron out the implementation process and give insights.
4. Give training in ERP importance. Include training costs in the ERP implementation budgets. A well trained team means a lot especially when the organization is new to ERP systems.
5. Tone down ERP ambitions to workable levels. Implement ERP in stages this will ensure returns on your investments. Teams often get carried away and push for going all the way in one go
6. If you are using a ASP for your hosting model then think about aspects like cookie cutter solutions and customization options.
7. Be smart and choose an ERP that is industry standards based.
8. Well before purchase find out about training and maintenance costs.
9. Look into aspects like expansion / upgrade possibilities.
10. Take a close look at your business processes and determine the changes you may need to implement to fit into the ERP software functions.
11. Before contracting with an ERP vendor do a market survey to determine vendor’s stability. Find out how long the vendor has been in the ERP business and his performance.
12. Ensure that the “return on investment” is in figures. Simulate the ERP suite and make calculations to verify figures. Never go buy promises that are not definite numbers.
13. Ask about customization assistance from the vendor. A good vendor must be willing to hold your hand through the ERP implementation process.
14. Get professional help in contract negotiations. Ensure that your interests are well protected.
15. Pay close attention to the ERP implementation, quality of data, workflow. Track the process during season and off season too.

Which Tier of ERP software is Right for You?

For your understanding, ERP Software classified into three categories: Tier I, II and III.

Tier I
These are the most well known of the software packages such as SAP®, BAAN®, ORACLE®, and PeopleSoft®,...... These software packages handle everything from the banking industry to supermarkets.

Characteristics include:

Used by many Fortune 500 companies. Tier I vendors are starting to market to midsize manufacturers. In some cases, they sell software purchased from other vendors. Other vendors offer a subset of their own software under the assumption that smaller companies don’t need as much functionality.

Used by large international companies In a lot of cases a full time “team” is required on the part of the company implementing the software.Implementation teams are usually augmented with third party consultants

Usually priced by modules and by number of users

Tier II - this is where ICIM ERP fits
These vendors are a good fit for most small and midsize manufacturers. The software provided by these vendors offer rich functionality and run on a variety of technologies. Expect higher involvement from these vendors or their representatives in the implementation of the software. For companies with any type of complexity in manufacturing, sales or engineering processes; software packages in this Tier would be a good choice.

Characteristics include:

• Offer a high degree of functionality.
• May be targeted to a specific industry. Some software packages were first developed to support a specific industry. These work well in their particular industry but struggle when used outside that industry.
• The software is normally sold through a Value Added Reseller (VAR). The same VAR will offer implementation services as well (see note below).
• A significant amount of consolidation has taken place amongst Tier II vendors. It is not uncommon to see one vendor offer many different ERP packages.
• Usually priced by user

Tier III
These vendors offer what is often referred to as “canned” software. If across the board, standard business practices are used throughout the company or if all that is required is accounting and light inventory control, these packages will probably be a good fit.

Characteristics include:

• Easy to use screens.
• Installation CDs. Usually windows based.
• Self-taught tutorials are usually the extent of the training.
• Many times priced by module.

Why Choose Custom Software?

Why Choose Custom Software?

To meet the software needs of your business, there are two main paths:
Buy software “off the shelf”
Build custom software

In most cases, off-the-shelf makes the most sense, and it should be your default choice:

buy off-the-shelf software is usually faster than getting custom software developed. Even complex installation and configuration it typically faster than developing new software.

buy Off-the-shelf software is generally cheaper than developing your own. The development cost of an off-the-shelf package is distributed among multiple firms, possibly many firms worldwide. These many customers more than offset the extra cost of mass production and distribution. Comparatively, with custom software your business alone bears most of the costs.

Off-the-shelf software typically has years of testing and years of production use, as well as feedback and improvement, giving confidence that it actually works.

Off-the-shelf software may include a money-back guarantee in case it does not meet your needs.

There are good reasons, though, to consider custom development, especially in mid-sized or large companies. Under the right circumstances, these advantages can make the decision to develop software the best choice.

When come to "Build custom software " it is a Exactly the Software You Want

The features might not actually work.
The features might work but still not meet your needs.
The features might interact with each other badly, even though they work in isolation.

Custom software, though, is almost infinitely adaptable to your needs. A custom development firm will develop the features you request, and will make them interact properly for your specific needs only.

To Get Different Results, Use Different Software
If you are running a for-profit business in a competitive industry, you have an added incentive to consider custom software. With off-the-shelf software, you will end up using the same software that your competitors are using.

What’s is Microsoft Dot NET ?

Microsoft .NET (pronounced “dot net”) is a completely new development platform. There is a lot of press and hype about .NET. What will .NET do for you and your company?” Microsoft has incorporated many significant improvements into this completely new platform.


This platform offers many tangible benefits for both manufacturing companies and ERP developers:

.NET insulates software developers from the different operating systems so its easier to deploy, install, maintain
It runs faster, is more secure and hacker-resistant

The .NET platform makes it easier to leverage the Internet and conduct E-Commerce with your supply chain
.NET-based systems will be reduce the cost of software ownership

Many ERP vendors with products using outdated technology will require a huge development cost and a complete rewrite to fully incorporate .NET. Many vendors will add minimal .NET functionality to be able to state their products use .NET.

Select the best team members for ERP project.

Select the best team members for the project.


The better the project team members, the better the project’s results. Having knowledgeable, team-oriented people on the project will be invaluable for success. Remember the following criteria for selecting team members:

1. Choose Members Based on Knowledge and not Tenure
2. Keep the Group Size Between Five and Ten People
3. Identify Not Only the Team Members but Departmental Back Up Representatives as well
4. Choose Members Who Can Dedicate the Time Required for Project Participation
5. Choose Members Who are Well-Liked, Well-Known, Considered Knowledgeable, and   Respected within the Organization
6. Choose Positive Individuals Who Welcome Change

Selecting team members who are the least valuable to the organization to be on the project team because it will minimize the disruption to daily operations will doom a software selection project before it begins.

BANK RECONCILIATION

BANK RECONCILIATION MODULE
Manage all bank-related transactions through a single, automated process and ensure fast access and tight control for mission-critical financial information.

The Server: Do you have what you need?

It is highly recommended that mid-market accounting packages reside on their own dedicated server.


Your Partner will be able to provide you with the minimum system requirements, but servers come in “Honda Civic” to “Rolls Royce” versions – so you will need to rely on a trusted IT advisor.

If you decide to set up a portal (a secure online site to view data) for your system, this may require an additional server called an IIS server.
 
If you have a large number of reports, and run them on the same server as your application, it can dramatically impact performance. The result is frustrated users and complaints.

Plan ahead and distribute the processes evenly across multiple servers if necessary.

pros and cons of GST registration

If a company is not required to register, is it beneficial to register for GST?


It depends. If you are required to register for GST, you have no choice. Otherwise however, you should consider the following pros and cons of GST registration:

Benefits
To the government

1. It generates a stable and predictable tax income in both good and weak economic environment.
2. It is an efficient tax due to the comparatively lower cost of administration and collection.
3. It allows the Government to lower corporate and personal income taxes(going to propose when GST implemented)  This leads to overall economic growth.

To businesses and individuals

1. Most large, established businesses are GST registered - getting your business GST registered is often a signal to customers that your business is an established business and has certain size.
2. GST is a fairer tax system. It taxes the self-employed and wage earners only when they spend their money.
3. Cost of doing business is reduced, thereby contributing to lower prices. Businesses do not suffer a tax cost due to the multi-stage credit mechanism since the real taxpayer is the end-user.

Drawbacks

1. The disadvantage of GST registration is the administrative burden that comes with discharging the duties and responsibilities of GST registration.
2. One must either study the intricacies of GST or pay an accountant to undertake this work which in some cases can be a reasonably high cost.
3. Being GST registered effectively increases your selling price by 4%. Your customers who are not GST registered would not be able to recover the GST you charge. So although your costs are reduced because you can recover GST, your customers might not be too pleased.
4. GST can be a burden to lower income groups, especially during times of high inflation when the 4% tax is paid on the increasing price of daily essentials.

GST when exporting goods or services out of Malaysia

Must a Malaysia company collect GST when exporting goods or services out of Malaysia?


No. Export goods and services are called zero rated supplies and GST tax is not applicable.

GST registered

If a Malaysian company is not GST registered, can it collect GST tax?


No. Goods and Services Tax in Malaysia can only be collected by GST registered entities.

claim back from the tax authorities

When paying GST tax collected from customers, can your company offset the GST tax charged by its suppliers?

Yes. The GST charged by a company to its customers is known as output tax whereas GST paid by the company to its suppliers is called input tax. What you pay to (or claim back from) the tax authorities is difference between your output and input tax.

are your company need to register go GST ?

Are your companies required to collect GST tax?

unless your company is mandated to register for GST if your annual turnover exceeds RM500,000.00

General Accounting Discussions: DEVELOPMENT OF CHART OF ACCOUNT

Basically there are two approaches to prepare the chart of account of a company.


1) In the first approach, cost heads are separately opened for the cost of goods, administrative expenses,
.marketing and business promotion expenses. In this case grouping of chart of account is kept in mind at the time of data entry and the list of chart of account also becomes lenghty.

2) In the second approach, cost heads are not repeated. A generic list of cost heads are prepared and these are linked with the departments and products / projects. Software itself pick the relevant department and product / projects to prepare the desired grouping. In this approach data entry operator is not required to look at the groupoing because it is processed by system itself.

Kindly provide your comments that which one of the approach is the best one with its justification.
And which one approach is being used in the current scenartios by large organizations.

VIvienna

GST - what does it mean for a company?

If you are GST registered, you are required to collect GST tax from your customers for the goods and services rendered by your company and then pay the collected tax to goverment .

As an example, if you charged $1,000 for your goods or services to a customer, you must invoice your customer $1,040 ($1,000 for your service plus 4% GST).

This GST amount in the invoice (appropriately must be called a Tax Invoice) collected on behalf of goverment from your customer must be sent to Malaysia tax department on a montly, quarterly or half yearly basic via GST tax filing.

Remember These Important Points on GST

The Goods and Services Tax (GST) applies to most goods and services. going to implements at 4%.

The GST is a value-added tax, because the government only receives tax on the increase in the value of the good at each stage of distribution.

Zero-rated items are goods and services that at the time of this lesson have the GST percentage set of 0%. Sellers of zero-rated goods and services will receive a rebate of any GST they paid in acquiring those goods and services from their suppliers while sellers of GST exempt goods and services will not.

A GST Payable account is kept in the general ledger. This account is a record of the tax collected on sales (credited) and paid on purchases (debited). The balance represents what must be remitted to the federal government.

GST collected on sales - GST paid on purchases = GST remitted to the Government.

A credit balance in the GST Payable account is remitted to the government on a monthly, quarterly, or annual basis depending on the size of the business.

If there is a debit balance, the company will receive a refund from the government because it has paid more on purchases than it has collected on sales

Taxable Period

Taxable period is a period where a taxable person is liable to account and pay tax to the goverment his GST Liability.

The standard taxable period is on a quarterly basic but a person may apply or be allocated monthly or half yearly taxable period. Taxable period are proposed as follow

1.Category A - Monthly Submission of GST Return - Non Standard taxable period of 1 month for taxable person with annual taxable tunover exceeding RM5 million or any export based traders who may suffer cashflow problems if they file their returns on a quarterly basic subject to approval.

2.Category B - Quartely Submission , standard taxable period of 3 month for all taxable person with annual taxable turnover not exceeding RM5 million

3.Category C - Half yearly Submission , Non standard taxable period of 6 month in special cases subject to approval.

A taxable person may after being assigned a category apply in writting to the Director General to be assigned to any other category at the absolute discretion of the DG.

Introduction of GST

The Malaysian Goverment in its 2010 Budget Speech annouced the final stage preparation for the introduction of the Goods and Service Tax which is expected to take ffect from mid 2011.

This proposal will integrate the present Sales and Services Taxes into a single broad based tax on consumption to be called the Goods and Service Tax (GST)

GST is a consumption tax and it collected at every stage of production and distribution chain unlike the present tax system which is a single stage tax and it also impose when goods are imported into Malaysia.