Class A ERP Implementation: Integrating Lean and Six Sigma

Chapter 3: Business Planning

OVERVIEW

The enterprise resource planning (ERP) business model starts with the top-management vision. In Class A ERP, the business plan is made up of at least three components: (1) strategic planning, (2) financial planning, and (3) business goals (Figure 3.1).


Figure 3.1: Top-Management Business Planning.

If we take business planning out of the ERP business model and look at it by itself in detail, it might be better depicted as a hierarchy of actions, only some of which are governed by the Class A ERP process itself.

Figure 3.2 depicts the elements in robust business planning and the processes that must exist for these objectives to take hold. The Class A ERP process itself does not dictate or prescribe methods for determining the vision of market success. Class A ERP performance does ensure the delivery of same. If a business expects a good-quality, sustainable experience within the performance objectives it has chosen, it just makes good sense that the business has processes in place that can deliver those results on a repeated basis. This means it must be easier to execute the process to the expected levels of performance than to not meet the goals.


Figure 3.2: The Elements in Business Planning.

There is an old saying: "Don't expect different results when you keep doing the same thing you did yesterday." There is a lot of truth to this. Too many businesses think improvement is about doing the same thing the same way, but working much harder and faster...

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