erp course: introductionpeople.cs.aau.dk/~dolog/courses/erp2007/lecture1.pdf · 2 sales and...
TRANSCRIPT
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ERP Course: Introduction
Peter Dologdolog [at] cs [dot] aau [dot] dk5.2.47Information SystemsSeptember 5, 2006
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2Peter Dolog, ERP Course, Introduction
ERP Course Organization
2 hours lecture (Mondays, Wednesdays – 10:15 – 12:00 or 14:30 – 16:15)2 hours lab (Mondays, Wednesdays – 8:15 – 10:00 or 12:30 – 14:15)0.2.12Lectures in 3 themes:
• ERP domains• ERP architectures and deployment• Advanced Topics: SOA, WMF, WS-C
6 LabsTime to consult: Labs, LecturesOFBiz lectures and technology advisor: Klemens Schwartz
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3Peter Dolog, ERP Course, Introduction
Lectures 1 Introduction and Course Organization + ERP Package Technology2 Sales and Marketing Module + ERP Package Technology3 Accounting and Finances Module4 Production and Material Module5 Supply Chain Management Module6 Human Resources Module7 Knowledge Management and Learning8 Analysis Patterns I 9 Analysis Patterns II 10 ERP Systems Development 11 Re-Engineering12 Management of ERP Projects 13 Workflow Management Systems14 Enterprise Application Integration 15 Service Coordination Protocols
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4Peter Dolog, ERP Course, Introduction
Labs
1 5 – 17 Sep. 2007 Installing and customizing an ERP package OFBiz
2 19 Sep – 26 Sept 2007 Sales and Marketing Module
3 1 Oct – 8 Oct 2007 Acounting and Finance Module
4 10 Oct – 24 Oct 2007 Production and Material Management
5 29 Oct – 31Oct 2007 Human Resources
6 5 Nov – 12 Nov 2007 Supply Chain Management and Integration
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Overview of the ERP Course
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6Peter Dolog, ERP Course, Introduction
A Company
Enterprise
Human WorkForce
Technology Know How
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7Peter Dolog, ERP Course, Introduction
What is ERP Sytem
A system of software tools to manage enterprise dataA packaged business software system to
• automate and integrate majority of business processes• share common data and practices• produce and access information real time
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8Peter Dolog, ERP Course, Introduction
A Company
Enterprise
Human WorkForce
Technology Know How
DATA
Material Resources
HumanResources
ProductionTechnology Finances CustomerProduction
Process
Enquire, Evaluate, Manage, and Improve
ERP
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9Peter Dolog, ERP Course, Introduction
Integrated processes
Supply ChainReceivingInventory ManagementCustomer Order ManagementProduction PlanningShippingAccountingHuman Resource Management…
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10Peter Dolog, ERP Course, Introduction
Sales and Marketing
Sales,Contacts,Accounts,Business opportunitiesMeetings with contactsCampaignsAnalysing Sales and Marketing Performance
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11Peter Dolog, ERP Course, Introduction
Accounting and Finances
Main BookAccountsTransactionsInvoicesPaymentsAnalysing Financial Performance
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12Peter Dolog, ERP Course, Introduction
Production and Material
ResourcesMachinesProduction RunMachine PlanningWarehousingProduct ConfigurationsAnalysing Performance of Production and Material…
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13Peter Dolog, ERP Course, Introduction
Human Resources
Requirements for Human ResourcesCompensations and PayrollsHiringFurther Education…
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14Peter Dolog, ERP Course, Introduction
Supply Chain
Managing Data Across Organizational BoundariesManaging SuppliersAnalysing Performance of Suppliers
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15Peter Dolog, ERP Course, Introduction
KM and Learning
Knowledge acqusitionTechnologies for knowlege managementTechnologies to support electronic learning
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16Peter Dolog, ERP Course, Introduction
Analysis Patterns
Group of concepts representing common construction in business modeling [Martin Fowler: Analysis Patterns]
May be domain related or spanning across several domainsConceptual models linked to interfaces rather than
implementationsRepresent a good starting point for any projectUsed for communication in project team
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17Peter Dolog, ERP Course, Introduction
Analysis Patterns and ERP
Patterns in account modeling – accounting and financiesPatterns in organizational hierarchies – human resources, Observation and measurements in corporate financeInventories and acounting – accounting and financePlanning – in production planningTrading, contracts – customers and supliers…
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18Peter Dolog, ERP Course, Introduction
ERP Systems Development
Combination of packaged deployment and customizationBusiness process change vs. product customizationIntegration with other software which exists and is used on placeFocus on proper analysis of organizational structures and work
processesDeploying the whole package or just one module to be
integrated with the existing systems
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19Peter Dolog, ERP Course, Introduction
Re-Engineering
Re-engineering from business point of view and from technicalpoint of view
Understanding and optimizing the primary activities behind themodules (value chain) and how they interact with secondary(supporting) activities
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20Peter Dolog, ERP Course, Introduction
Primary activities
Flow of orders and invoicesProcess for approving an investment or a purchaseApproval of a new production planCredit authorization proceduresand so on
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21Peter Dolog, ERP Course, Introduction
Secondary activities
Ho electronic mail communication is organizedHuman resources organization/skillsUse of technology in the work processesOn-line links to suppliers databases
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22Peter Dolog, ERP Course, Introduction
Workflow Management Systems
Systems that manage and execute work activitiesWorkflow automationBusiness or workflow model as activity graph or event flows
graphsUsually used for workflow automation of administration
processesBinding the functionality of workflow management to functions in
ERP system (sending a notification, mail, document to anotherunit, task for another person,…)
Principles and practices in using workflow management
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23Peter Dolog, ERP Course, Introduction
Management of ERP Projects
Risk resulting from complexityTechnologyLack of User InvolvementLack of Management InvolvementMethodological issuesCommunicationManagement of the risks within the projects
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24Peter Dolog, ERP Course, Introduction
Enterprise Application Integration
Client/ServerThree Tier ArchitectureN-Tier ArchitectureRPCMessaging
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25Peter Dolog, ERP Course, Introduction
Service Coordination Protocols
Automatic ConversationsInteractionCoordinationProtocolsCoordination Architecture
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Motivations for ERP
Mary Sumner: Enterprice Ressource PlanningChapter 1
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27Peter Dolog, ERP Course, Introduction
HistoryTypes of Systems Time Purpose Systems
Reorder point systems 1960to forecast future inventory demand
to manage high-volume production of few products
Material Requirement Planning Systems (MRP) 1970
demand-based planning manufacture of products
focus on marketing, grater production integration and planning
MRP-II 1980MRP + capacity planning
quality and process control
MRP-II + manufacturing execution planning (MES) 1990
adaptations of production schedules to meet customer needs
focus on the ability to create and adapt new products to customer needs
ERPlate
1990
integrated business process support throughout the enterprise
integrates supplier, manufacturing, and customer data throughout the supply chain
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28Peter Dolog, ERP Course, Introduction
ERP as Integrated System
The goal is to provide quick and effective access to informationFrom standalone systems to integrated system to support
business processesCommon information modelStandardized interfaces
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29Peter Dolog, ERP Course, Introduction
Systems AttributesInformation Systems – integratedCoordination – accross business functionsDatabases – same meaning across multiple functionsMaintanance – uniform, changes affect multiple systemsInterfaces – standardizedInformation – consistent real time informationSystem Architecture – client/serverProcesses – consistent business processes based upon an
information modelApplications – single applications to support certain business
function
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30Peter Dolog, ERP Course, Introduction
Business Attributes
Cycle time (time and cost reduction of business processes)Transactions processing (reduced costs of multiple updates)Financial ManagementBusiness Processes (conforms best practices)Productivity (improvement in financial management and
customer service)Supply Chain Management (linkages with suppliers and
customers)eBusiness (web interface to integrated system)Information (cross functional data accessed uniformly for
planning and control)Communication (facilitates organizational communications with
customer and supplier)
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31Peter Dolog, ERP Course, Introduction
Some Examples of Benefits
Responses to customer billing inquiries in real time at IBM Storage Product Company (before 15-20min)
Simplification of processes at Boeing, real time access to dataacross the organization at Diebold
90% reduction on cycle time for quitations at Fujitsuand so on
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32Peter Dolog, ERP Course, Introduction
Business Benefits from ERP
ERP Performance OutcomesSweedenAverage
U.S. Average
Quickend information response time 3.81 3.51
Increased interaction acrosss the enterprise 3.55 3.49
Improved order management/order cycle 3.37 3.25
Decreased financial close cycle 3.36 3.17
Improved interaction with customers 2.87 2.92
Improved on-time delivery 2.82 2.83
Improved interaction with suppliers 2.78 2.81
Reduced direct operation costs 2.74 2.32
Lowered inventory levels 2.6 2.7
Scale from 1 - 5
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33Peter Dolog, ERP Course, Introduction
Motivations to Implement ERP
Replace legacy systemsSimplify and standardize systemsGain strategic advantageImprove interactions with supliers, customersEase of upgrading systemsLink to global activitiesRestructure company organization
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34Peter Dolog, ERP Course, Introduction
Tangible benefits of ERP implementation
Inventory reduction 32%Personnel reduction 27%Productivity improvement 26%Order management improvement 20%Financial close cycle reduction 19%IT cost reduction 14%Cash management improvement 11%Revenue/profit increase 11%Transportation/logistics cost reduction 9%Maintanance reduction 7%On-line delivery improvement 6%
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35Peter Dolog, ERP Course, Introduction
Intangible benefits of ERP implementation
Information/visibility 55%New/improved processes 24%Customer responsiveness 22%Integration 13%Standardization 12%Flexibility 9%Globalization 9%Y2K 8%Business performance 7%Supply/demand chain 5%
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36Peter Dolog, ERP Course, Introduction
Cost-Benefit Analysis
ERP implementation is an investment decisionIt must create measurable benefitsTo compare costs of software, services and internal costs to
tangible and intangible benefitsRecurring and non-recurring costs
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37Peter Dolog, ERP Course, Introduction
ERP costs components
Software 24.2% – 30.2%Hardware 17-8% – 18.5%Consulting 24.1% – 30.1%Training 10.9% – 13.8%Implementation team 12.0% – 13.6%
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38Peter Dolog, ERP Course, Introduction
Lab 1
OFBiz• Understand the installation process of OFBiz and its
technological platform• Install the OFBiz• Understand OFBiz architecture• Understand customization strategy• Design your own page/forms with own menu and different
frames• Implement your own design in OFBiz