01 erp intro & overview

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ERPEnterprise Resource Planning


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A Typical Scenario

Isla n d s o f In fo rm a tio n

&D ifficu lt to g e t tim e ly a ccu ra te in fo rm a tio n

Po o r in fo rm a tio n co n n e ctivity b e tw e e n d iffe re n to rg a n iza tio n a l u n its e sp e cia lly lo ca tio n s

, ,In a b ility to d rill u p a n d d o w n la ck o f g ra n u la rity,la ck o f kn o w le d g e o f ro o t cau se la ck o f in fo rm e d

( )bad decisions

&H e te ro g e n e o u s H a rd w a re S o ftw a re p la tfo rm s

S tick in g w ith o ld e v e n o b so le te te ch n o lo g y

R e sista n ce to ch a n g e in clu d in g E R P h o rro r sto rie sa n d N IH

, ,C ost of ch a n g e la ck o f in ve stm e n t fu n d in g


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Information Islands


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Disparate System Architecture


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Characteristics of UsefulInformation

R e le va n t ,reduces uncertainty improves decision making,and prediction confirms or corrects their expectations Reliable ,free from error accurately reflects the

organization

Complete does not omit important aspects of events itmeasures or reports on

Timely ( ) ,provided when and where it is needed!especially for forecasting eg the 3 day close

Understandable useful and intelligible format Verifiable would it withstand an audit?

-Accessible ( )provided when and where it is needed and TRANSPARENT


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What is ERP?

-facilitates company wide integrated,information sharing covering two to all

functional areas

,addresses the Enterprise s needs taking aprocess view of the whole organization

-Enables Enterprise wide goal congruenceby integrating functions under a common

platform

utilizes a single integrated database to,aid in data integrity single holistic

views and therefore improved service

,ERP is a software solution which


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The Origin: MRP vs. ERP

Manufacturing management systems haveevolved in stages from a simple means ofcalculating materials requirements to theautomation of an entire enterprise

Around 1980, over-frequent changes insales forecasts, entailing continualreadjustments in production, as well asinflexible fixed system parameters, ledMRP (Material Requirement Planning) toevolve into a new concept : ManufacturingResource Planning (or MRP2) and finally

the generic concept Enterprise Resource


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A n In te g ra te dA ccou n tin g S yste m

C o re E R PFu n ctio n s


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The ERP Evolution


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The Current Generation


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ERP II

Coined in the early 2000s, is often usedto describe the next generation ofERP software.

This generation is web-based andallows both employees and externalresources (such as suppliers and

customers) real-time access to thesystem's data.

EAS Enterprise Application Suite is anew name which include (almost) all

segments of business using COTS
http://en.wikipedia.org/wiki/2000s_(decade)http://en.wikipedia.org/wiki/2000s_(decade)


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Manufacturing Engineering, bills of material,scheduling, capacity, workflow management,quality control, cost management, manufacturingprocess, manufacturing projects, manufacturing

flow Supply chain management Order to cash,

inventory, order entry, purchasing, productconfigurator, supply chain planning, supplierscheduling, inspection of goods, claim processing,

commission calculation Financials General ledger, cash management,

accounts payable, accounts receivable, fixed assets

Project management Costing, billing, timeand expense, performance units, activitymanagement

ERP Functionality (1)


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ERP Functionality (2)

Human resources , ,Human resources payroll, ,training time and attendance benefits

Customer relationship management , , ,Sales and marketing commissions service customercontact and call center support

Data services " - "various self service, , /interfaces for customers suppliers and or employees

Access control management of userprivileges for various processes


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ERP Advantages


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ERP Drawbacks

C o stly so ftw a re

La rg e in fra stru ctu re to im p le m e n t

D e d ica te d te a m to im p le m e n t

Tim e co n su m in g to im p le m e n t

S p e cia lize d p e o p le to m a in ta in

C u sto m izatio n is n o t re co m m e n d e d b u t n e e d s to

b e d o n e to su it o rg a n izatio n a l n e e dE x te n sive u se r tra in in g


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The Supply Chain:

Consumer

Retail

Distributor

Manufacture

MaterialsSupplier

Finance Balance sheetCapital Costs

ControlProfit/Loss

Machines Operating resources Human resources

anaging Resources


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, .Pharmaceuticals Inc

Inbound Logistics

Operations

Outbound Logistics

&Marketing Sales

Service

ERP: The Supply Chain

.Smith Supply CoInbound Logistics

Operations

Outbound Logistics&Marketing Sales

Service

Customer PharmacyInbound Logistics

Operations

Outbound Logistics&Marketing Sales

Service

The linking of these separate value chainscreates a larger system known as a supply

chain.

Information technologycan facilitate

synergistic linkagesthat improve theperformance of each

.company s value chain


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G Steele Case Study


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G Steele Case Study


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Key Benefits


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Key Success Factors


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Key Success Factors

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