How to measure the success of your manufacturing ERP implementation

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Measuring the success of ERP projects should not, therefore, focus on the only dimension of the ROI because ROI is actually just a consequential visible outcome. There are other dimensions that need measuring such as business models, relationships and processes with customers and suppliers.

In order to sustainably provide significant business value, we need to identify success metrics through which you can measure the success of an ERP project.

By looking at ERP implementation according to the different functions of your enterprise, you can easily monitor the success of the system in relation to departments. The KPIs should evolve the following 5 metrics.

Cycle time

For manufacturers, cycle time is one of the most important metrics as it measures how fast the business is responding to customer orders. Cycle time measures the length of time it takes to produce a good and deliver it to the customer from the moment the invoice is received. Faster cycle time demonstrates more effective processes and a higher customer satisfaction rate.

Demand forecast accuracy

Demand forecast accuracy is another important metric for measuring business success once an ERP system has been implemented. Effective ERP solutions should be able to accurately predict future demand based on historical numbers. The more accurate the ERP system can monitor the forecast and then keep track of the progress of reaching the predicted numbers, the more successful it is.

Schedule adherence

Another relevant KPI is schedule adherence, which measures how effectively the ERP allows the company to maintain its production schedule. An effective ERP system should bring the scheduled and the actual number closer together.

Customer satisfaction

How ERP affects the end customer is another necessary metric. Is the new process bringing customer satisfaction? Is the service getting better and faster? We can tell by listening to how customers respond and the increasing number of new customers or customers’ overall sentiment.

Labour benefits

Most companies underrate how the ERP platform has impacted labour while employees are end-users of the system. Are they satisfied with the new process? Does ERP enable staff to accomplish more in less time? Have companies been able to reallocate labour more effectively?

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