Evaluation Method for Enterprises EPR Project Risks

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1 , pp Evaluaton Method for Enterprses EPR Project Rsks L-Yongmng 1,2 1 College of Economcs and Management, Nanjng Unversty of Aeronautcs and Astronautcs, Nanjng, , Chna 2 Department of Fnance & Plannng, Jangsu State Farms Group Corporaton Nanjng Chna Abstract. Ths paper explans the studes of recent years on development of EPR system and the project rsk and then llustrates respectvely the external rsks and nternal rsks of EPR project based on the theory. Takng the EPR project of G company the author actually took part n as an example, the author frstly apples fuzzy evaluatng method to evaluate project rsks and draw a clear dstncton between the prmary and the secondary to acheve overall evaluaton for project rsk. And then the author worked out a plan for the man rsks of the project and appled multple management methods to control. And n practcal mplementaton steps, the author mplemented management method n every segment and dd supervsng and controllng to gan the lowest negatve nfluence resultng from rsks. Lastly, the author concluded the effects of rsks management, learned lessons and proposed perspectves. Keywords: ERP; Fuzzy evaluatng method; Project rsk; Rsk evaluaton 1 Introducton Rsks refer to varous potental, uncertan factors of actvtes or events whch may cause results that people do not expect. Project rsk s the uncertanty of project durng t s mplementaton process. When study on rsks, people pay more attenton to the loss or damage of actvtes or events. To avod loss or damage, one must grasp the reasons and nternal and external condtons of rsk events. The source of rsks s the reason whch create opportuntes for project to brng about loss or damage. The source of rsks can be classfed nto the nternal and external sources of organzaton or projects. Rsk s potental and can only brng about rsk event after possessng certan condtons whch are called transformaton condtons. Even the transformaton condtons are possessed, rsks may also not evolve nto event rsks and some other condtons are needed to brng about the actual rsk events and the latter condtons are called trgger condtons. Graspng the transformaton condtons, trgger condtons and ther process whch make rsks convert nto realty from beng potental s very mportant to control rsks. Controllng rsks s actually to control the transformaton condtons and trgger condtons of rsk events. ISSN: ASTL Copyrght 2016 SERSC

2 2. Rsk Indcators of Small and Medum Enterprses EPR Project To acheve the goals of small and medum enterprses EPR project, rsks of small and medum enterprses EPR project can be dvded nto two aspects accordng to the reasons of rsks, the one s the external rsk of project,.e. The rsks resultng from the external envronmental condtons that the company lves on, and the other s the nternal rsk of project,.e rsks resultng from the nternal reasons of project. The external rsks of project can be separated nto rsks of socal envronmental condtons and rsks of external resource condtons, and the nternal rsks of project can be separated nto four types, the frst one ncludes decson rsk such as rsks of software and hardware selecton, etc.; the second one ncludes management rsks and rsks of organzng structural adjustment, transformng management deas and reformng performance assessment system, etc.; the thrd one ncludes mplementaton rsk such as rsks n project organzaton stage, rsks n the aspect of tme and progress control, rsks of cost control and qualty rsk, etc.; the fourth one ncludes operaton rsks, system swtchng rsks and rsks of dsasters or accdents. The partcular rsk structure s showed by fgure one. Rsk structure of small and medum enterprses ERP project External rsks Hardware rsks Management rsks Implementaton rsks Operaton rsks Socal envronmental rsks External resource rsks Rsks of hardware selecton Rsks of software functons Rsks of hardware selecton Rsks of busness polcy change Rsks of reorganzng busness process and rsks n optmzng Dslocaton rsks Demand analyss rsks Rsks brought by project s mplementer Cooperaton rsks among the cooperaton of varous personnel Rsks of project tme and progress Rsks of mplementaton qualty Rsks of project cost Rsk of system set-up Rsks of applyng and mantanng Rsks of system mend and upgrade Rsks of accdents and dsasters Fg. 1. Rsk structure frame of small and medum enterprses ERP project Copyrght 2016 SERSC 351

3 3 The Selecton of Rsk Evaluaton Methods for ERP System of EPR Enterprses The performance assessment for small and medum enterprses ERP applcaton refers to comprehensvely, systematcally and roundly evaluatng enterprses changes n varous respects after applyng ERP n advantage of the establshed ndcator system. For ERP s a responsble system engneerng ncludng many functonal modules and nvolvng each department of enterprse, thus there are some problems when the performance assessment for enterprses ERP applcaton s progressed, for example consderatons of a large of factors, the obscure relatonshp among factors, demands of partcular data from each department n enterprse to be samples and the dffcultes n solvng the weght problem among varous ndcators, etc. For these many characterstcs, ths study selected fuzzy comprehensve evaluaton to evaluate small and medum enterprses ERP rsks. Take the set consttuted by varous nfluental factors of ERP system as factor sets and sgnfy t by U: Among whch U u1 u2 u3 u m {,,,, } U u1 u2 u3 u m {,,,, } u represents th nfluental factor and m represents the number of factors. Generally speakng, each factor has dfferent mportance and mportant factors should be pad more attenton whle for those unmportant factors, even though one should pay attenton to them but there s no necesstes for one to value them too much. To reflect degree of mportance of each factor, a correspondng weght a should be allocated to each factor u. a 0 a 1 ; So, each weght a consttute a fuzzy set above U: a a a A a a a 1 2 m ( 1, 2,, m) u1 u2 um For the same factor, f dfferent weght s took, the result of assessment wll also be dfferent. To mprove the sutablty of weght, the author compared the nfluental factors of small and medum enterprses fnancng effcency and recorded the estmated value of relatve mportance of th ndcator to jth ndcator as a by whch the score results formed a group of fuzzy judgment matrx and then the author j 352 Copyrght 2016 SERSC

4 transformed ths scorng matrx nto one comprehensve judgment matrx and fnally obtaned the weght of each ndcator. To defne relatve mportance more clearly between two arbtrary ndcators, ths paper adopted rato scale method of 1~9 to present t. (see Table 1) Table 1. 1~9 rato scale method Relatve mportance Defnton Explanaton 1 Equally mportant Two ndcators are equally mportant 3 Slghtly mportant Be a lttle mportant 5 Qute mportant Confrm to be mportant 7 Obvously mportant Be Uncertanly mportant 9 Absolutely mportant Be mportant wthout doubt notce:2,4,6,8 Note: 2, 4, 6,8 The medan between two adjacent judgments Strke an average when there are two adjacent judgment values whch are dffcult to be fxed. 4 The Concluson and Perspectves of Small and Medum Enterprses ERP Project Rsks Management Small and medum enterprses ERP project n our country generally needs several months to be completed. Although t s system automaton s n constant promoton, rsks management has obvous effects n ERP project and has certan actual sgnfcance. It promoted the smooth transformaton of management level s deas. The mplementaton of ERP s the challenge to exstng management deas whch has changed company s management nerta followng the old routne and s a set of advanced and effectve management deas and methods. In the mplementaton of ERP project, there unavodably wll be reformaton needs n company s some aspects. Reformaton may cause the reorganzaton for responsblty power of orgnal organzaton structure whch may brng about conflcts among admnstrators. At ths moment, leadershp team n company must own overall conscousness and acheve agreement through communcaton, then take the management deas of ERP system as the gudng and apply relevant scentfc management method to promote the allround mprovement of company s management level. Only n ths way, the subjectve rsks of project can be reduced whch can make a postve envronment for the mplementaton and constructon of project. References 1. Wang, Y., Su, Y., Agrawal, G.: A Novel Approach for Approxmate Aggregatons Over Arrays. In Proceedngs of the 27th nternatonal conference on scentfc and statstcal database management, ACM, (2015) Copyrght 2016 SERSC 353

5 2. Hu, J., Gao, Z.: Modules dentfcaton n gene postve networks of hepatocellular carcnoma usng Pearson agglomeratve method and Pearson coheson couplng modularty [J]. Journal of Appled Mathematcs, (2012) 3. L, X., Lv, Z., Hu, J., Yn, L., Zhang, B., Feng, S.: Vrtual Realty GIS Based Traffc Analyss and Vsualzaton System. Advances n Engneerng Software. (2015) 4. He, J., Geng, Y., Pahlavan, K., Toward Accurate Human Trackng: Modelng Tme-of- Arrval for Wreless Wearable Sensors n Multpath Envronment, IEEE Sensor Journal, 14(11), , November (2014) 5. Ou, W., Lv, Z., Xe, Z.: Spatally Regularzed Latent topc Model for Smultaneous object dscovery and segmentaton. The 2015 IEEE Internatonal Conference on Systems, Man, and Cybernetcs (SMC2015) 354 Copyrght 2016 SERSC

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