Implementation of an integrated enterprise management system

The organization in which I worked, and which will be discussed in the future, is a large geographically distributed state research institute with more than 3500 employees, founded in the 50s of the XX century with a rich history, established organizational structure, methods and means of work.

The company is one of the leading in its industry, equipped with modern research, production, technological and testing equipment, allowing to perform work on the manufacture and research of developed products. But the software of the enterprise management systems left much to be desired.

Basically, it was developed in the 70s of the last century and did not meet modern standards and requirements. Everything operated on the EC computer. The equipment occupied huge areas. It took a huge amount of time to obtain the required reporting. 

 

The system stored only some of the information required for work, often failed and failed. Not to mention the fact that the operators were employees whose age was close to retirement or had already crossed this milestone. To quickly solve local problems, various inexpensive software was purchased, which further aggravated the situation, led to complete confusion, loss of data and time. Of course, it was necessary to restore order, to create a single information space within the enterprise.

In this regard, the top management decided to implement the Integrated Enterprise Management System (IUP) at the enterprise. It is very important when making such a decision who is its initiator, who takes the first step. In our case, it was the top management, and to be more precise, directly the director of the enterprise. He turned out to be quite an "advanced" leader, with an interest and understanding related to various kinds of innovations. He monitored the IMA project, held regular meetings and was aware of all the significant activities of the project.

If management is interested in implementing large-scale systems, this largely determines the success of the project. If the initiative comes exclusively from below, and the management does not have time for this, then even if the decision to launch the project is made, it will move forward with great problems and may not be completed at all.

Integrated Enterprise Management System (IPMS)

An integrated enterprise management system is a set of integrated applications that comprehensively, in a single information space support all the main aspects of the enterprise's management activities - resource planning (financial, human, material) for the production of goods (services), operational management implementation of plans (including supply, sales, maintenance of contracts), all types of accounting, economic activity. Also, the ISMS is the centralization of data in a single database, a mode of operation close to real time, the preservation of a common management model for enterprises of any industry, and the support of geographically distributed structural units of the enterprise.

Thus, if the organization has a multi-level management system and includes several geographically distributed divisions or branches, then it is quite difficult to manage, and most importantly quickly and timely make the right management decisions, it takes a lot of time and effort. Therefore, the company needs a system that helps in solving such problems. Such a system is the Integrated Enterprise Management System (ISMS). 

 

Information is generated in the ISMS for making management decisions, conducting financial and economic activities. ISMS stimulates the optimization of business processes of the enterprise, contributes to increasing the efficiency of the organization's divisions, creating a single, promptly controlled information space.

ISUP or KIS?

As a rule, it is considered that the ISMS and the KIS (Corporate Information System) are practically the same thing. It's not that. I believe that the ISMS is the basis of the CIS, in fact the foundation. ISMS is a universal solution without taking into account the specific features of any enterprise or industry, a set of functional blocks and modules. KIS is a solution aimed at a specific customer, i.e. unique.

The construction of KIS begins with the introduction of ISMS. Only when the ISMS covers all internal and external spheres of activity of a particular enterprise, makes a full adjustment to its specifics, works out all the mechanisms of interaction, adds means of supporting decision-making, it will be possible to say that the CIS has been formed.

The path from the ISMS to the KIS is quite complicated. Both positive and, importantly, negative experiences are acquired. Enterprises that have passed this way to the end, indeed, receive dividends in many areas (improving management efficiency, reducing costs, building an optimal structure, improving the skills of employees, as a result of improving the activities of the enterprise and increasing its competitiveness).

A very important factor affecting the duration of the journey from the ISMS to the CIS is the choice of a development company and supplier of the ISMS.

How we chose the ISMS

There are dozens of solutions in the field of automation of the enterprise on the market. The most famous are: BAAN, SAP R/3, Oracle Applications. In Russia, the most popular are: SAP R/3 and Galaktika.

The company's management decided that it was necessary to buy a system located in the middle or lower price segment of the market, the developer of which would provide the program code for the possibility of further development of the system by his IT department.

How to choose the right ISMS is described in many articles. Everyone who faces this problem reads them and makes a choice in their own way. Our company was no exception. We did not conduct a thorough evaluation of the proposals, did not do their SWOT analysis. 

 

One of the companies-developers of the ISMS was especially persistent, stated that in their system all functional blocks and modules work without problems, and what is additionally necessary for our company will be implemented within six months. We were very gullible. As a result, we purchased a "raw" solution, the elimination of errors and the refinement of which took a huge amount of time. Therefore, I declare responsibly: organize presentations of the decisions under consideration, do not rush to accept any proposal, collect as much information as possible, hold a tender, analyze all the risks! Choose not a software product, but a comprehensive solution.

If possible, conclude a contract for the survey of your enterprise by a consulting company, the results of which will be built models of business processes of the enterprise "as is" and "as it should be". After analyzing these models, it will be easier to choose a PMI. At one time, we thought it was a waste of money and we didn't need it. Subsequently, this was regretted more than once. As a result, we spent more money and time.

It will also be useful to contact enterprises that are already implementing the systems in question.

Implementation of ISMS

After long and painful procedures for eliminating errors, refining and configuring the system we purchased, we still began to implement it. A working group was created, which included the majority of employees of the IT department (10 people) and two or three "advanced" specialists from each area involved in the implementation.

In total, there were 19 people. We did not force anyone to participate in the working group, we included only volunteers in it. At the same time, of course, their qualifications and experience were evaluated. We developed a motivation system. We worked out the issues of communication between the members of the working group.

But then we were flooded with new problems, which we suspected in advance, but did not think through the mechanisms of solutions. In this regard, another conclusion: it is necessary, before purchasing the system, to describe the algorithms for solving all the problems that are associated with the implementation.

What is Project and Project Management

The project is a set of actions aimed at achieving the intended goal in the conditions of time and resource constraints.

Project management is a methodology for organizing, planning, managing, coordinating labor, financial and material resources throughout the project cycle, aimed at effectively achieving its goals through the application of modern methods, techniques and management technology to achieve the results defined in the project in terms of the composition and scope of work, cost, time and quality.

Enterprise Project Management Standard

The transition to modern project management tools in the enterprise cannot be carried out without the creation or modernization of the existing project management standard.

The enterprise project management standard is a set of documents explaining or prescribing how, in what sequence, in what timeframe, with what templates it is necessary to perform certain actions in the process of project management.

In our case, there was a department (network management group) in the enterprise that carried out continuous discrete planning on the basis of network models developed in the divisions. All network schedules were drawn on millimitrates and transmitted to the network management group (GSU), after which the GSU operators entered the data from them into the computer. 

 

The regulatory framework governing the work of the GSU was developed in the 70s of the last century, and its description was covered with a huge layer of dust. It seemed that this was only read when it was written. After working on it, it was concluded that it could not be modernized. 

 

Therefore, it was necessary to create all the regulatory and regulatory documentation from scratch. And we started with a corporate standard for enterprise project management. Its composition is described below in the chapter "Stages of implementation of the enterprise project management system".

Project Management Systems

Project management systems are systems that provide information support for the life cycle of projects, effective planning and management of work progress, compliance with predetermined standards and requirements.

There are dozens of project management systems. The most common are Microsoft Project, Primavera Project Planner, Spider Project, Open Plan.

Enterprise Project Management System

To create an enterprise project management system (DUPP), we analyzed the functionality of all the project management systems listed above, built models of business processes of the enterprise's project activities and, on the basis of this, drew up a technical task for the development of the project management module (UP) of the ISUP.

Developed in accordance with the terms of reference, the UE module is the basis of the SUMP. The SUPP itself was formed only after configuring the parameters for integrating the PM module with all other PMS modules.

THE SUP allows you to carry out scheduling and management of any projects of the enterprise, as well as to form and receive the required reporting on them.

The implementation of the DTP ensures the adoption of informed and proven decisions, allows you to execute projects faster, better and at a lower cost, as well as always have the most complete and diverse information about the projects being implemented.

The SUPP consists of three main blocks - subjects of management, objects of management, control processes.

Subjects of management

As subjects of management, we consider all active project participants who interact in the development and adoption of management decisions (managerial and technical personnel of the enterprise allocated for the implementation of the project).

Objects of management

The objects of management are:

Project folder – a set of projects of the enterprise, organized in a hierarchical structure.
Tempapka is a set of projects of the enterprise, organized into a hierarchical structure on a thematic basis.

The project is a set of interrelated activities designed to achieve the set goals with the established requirements for the budget, resources within a given time.

Stages of the project life cycle (stages) are logically interrelated works of the project, in the process of completion of which one of the main results of the project is achieved.

Project Management Processes

Project management processes are divided into five groups:

• Initiation processes – ensuring decision-making, recognizing (understanding) that a certain project must begin and it is necessary to involve resources in its implementation.
• Planning processes – creating and maintaining a workable scheme for achieving the goal for which the project was undertaken.
• Execution processes – coordination of various kinds of resources for the implementation of the project plan.
• Control processes – verifying the achievement of set goals by tracking and measuring progress and taking corrective actions if necessary.
• Completion processes – formalize the acceptance of project results and bring the project to the appropriate end.

Implementation of SUPP

The simultaneous introduction of all the functionality of the DUPP could be a big problem, because most end users have just begun to master new technologies. Therefore, it was decided to consistently implement the planning and management functions in the use, from simple to complex.

We decided that we should start with planning and controlling time parameters, then master the functions of cost planning, and only after that move on to resource planning and control. It was decided to start the implementation with units with sufficiently qualified employees. Having received the first group of users who mastered the system, we proceeded to the distribution of the new technology to the rest of the enterprise.

DUPP operation technology

Work with the projects of the enterprise takes place in the HM module and is carried out in two phases:

• phase of project formation;
• project execution phase.

At the phase of "project formation", the project is initialized: the authorized start of the project or the next stage of its life cycle (stage), planning: the direct formation of the structure and list of works, their durations, the definition of milestones, links between the works within the project and with the work of other projects, leading projects, project groups are appointed, performers are appointed for work (from the employee directory of the "Personnel" module of the ISMS).

The basis for starting any work is the foundation document, which is created and stored in the "Document Flow" module of the ISMS, but is available in the RM module for viewing and assignment. For each work, it is possible to form a budget item (a sample from the budget items of the "Finance" module of the ISMS) for further creation of the project budget. You can assign resources to the work (from the "Resources" directory of the ISMS). After preparing the schedule, the project is agreed and approved. The module provides the following four stages of project status:

• In development;
• Under approval;
• Ready for approval;

Approved.

After passing the above stages, the project goes into the "implementation phase", in which the project is directly executed: the implementation of the project plan, project control: monitoring, identifying cases of deviation of the actual implementation of the project plan, from the planned and taking corrective actions, as well as the completion of the project.

Any changes in the "execution phase" are logged and for each change (adjustment) a corresponding base document is created in the "Workflow" module with the possibility of viewing in the NC module.

Findings

The implementation of a project management system within the framework of an integrated enterprise management system is a very complex, time-consuming process. In this regard, in conclusion, I will list the main factors affecting the timing and success of the implementation project:

• obtaining maximum information on the implementation project;
• analysis of all possible risks;
• clear and high-quality description of all implementation procedures;
• development of enterprise project management methodology;
• high-quality selection of participants in the implementation team, organization of communications;
• training of the implementation team and company personnel (end users)
• PR.