Dry. Russ Elizabeth Companies have many business requirements that must be met for them to compete and thrive above their competition. These business requirements would affect how the any new information system created. Requirements that Ordain face are to produce enough items, ship items by due date, and pay employees on time. This is currently being completed by Ordain but the process is tedious and has a high probability for error. To make the company more proficient and to cut labor costs were implementing the ERP system.
The main purpose of ERP system is to collect all of the data that is entered by the different branches. Ordain is a manufacturing company and producing items is how they make money. Many factors come in to play when you are trying to make money off of manufacturing goods. Labor costs and transportation costs all have to be accounted for when figuring out how much to charge for a product. With implementing the ERP system labor costs can be calculated to the minute. Also, with the ERP system production can be calculated, which gives Ordain the opportunity to cut labor costs.
If all of the data is real time then they would know how many items they need to produce for that day and how many items have all ready been produced. That gives them to opportunity to send employees home early. On the other side this would allow for Ordain to let the employees know if overtime was needed as they would know if they are behind on production. Ordain has demand to meet their clients requirements while making a profit. Installing the ERP system will help Ordain meet their client expectations while making a profit.
Every company needs to have employees and most state/countries quire that you pay those employees in a timely manner. If the state/country doesn’t require you to pay them in a timely manner, then most employees will take that into their own hands. With the ERP system employee payroll will generated automatically and will cut down on accounting labor. Also, with the ERP system the sales employee will be much happier as their number will be accurate at the end of payroll. This allows for accounting to see accurate sales data and for the sales employees to receive accurate bonuses.
Requirements that Ordain face are to produce enough teems, ship items by due date, and pay employees on time. With the ERP system all of the requirement won’t be so tedious and will save Ordain money on labor costs. Having the ERP system isn’t used to full potential until all of the branches are on the system as Ordain wouldn’t be looking at real time data. Due to these factors the system will be implanted in all branches of Ordain as quickly as possible. All employees will take mandatory training classes on how to use the system on the dates provided by their managers.