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Overview of Enterprise Resource Planning

Overview of Enterprise Resource Planning 44
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MasonHarper,United States,Teacher
Published Date:17-07-2017
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IntroERPFactsRequirementsFrameworkModels . Lecture3: OverviewofEnterpriseResourcePlanning ...... 1 OranKittithreerapronchai 1 DepartmentofIndustrialEngineering,ChulalongkornUniversity Bangkok10330THAILAND lastupdated:November25,2013 ProMISv1.01/32IntroERPFactsRequirementsFrameworkModels Outline ... 1 IntroductionofERP ... 2 FundamentalFactsofERP ... 3 CreatingRequirementforInformationSystem Project ... 4 FrameworkforIS/ITProject ... 5 FundamentalofmodelsrelatedtoERP ProMISv1.02/32IntroERPFactsRequirementsFrameworkModels WhatisERP? Standfor:EnterpriseResourcePlanning Keyfunction:informationsystemforintegrationandbackofficeoperations Keyrationales:standardbusinesspractice,strategiccompetitive, technologyenabler DetailedDefinition . Abusinessstrategyandsetofindustry-domain-specificapplicationsthatbuild customerandshareholdercommunitiesvaluenetworksystembyenablingand optimisingenterpriseandinter-enterprisecollaborativeoperationalandfinancial processes ...... source:Gartner’sResearchNoteSPA-12-0420 ProMISv1.03/32IntroERPFactsRequirementsFrameworkModels EvaluationofERP source:www.arhum.com ProMISv1.04/32IntroERPFactsRequirementsFrameworkModels OverviewofERPsystem:Module Financials& Human Accounting Resources Central ............... Bolt-OnBolt-On Database EDI/webEDI/web CustomersSuppliers Sales&Inventory& DistributionManufacturing Architecture IndustrySolutions source:Mabertetal.2001.“ERP:CommonMythsVersusEvolvingReality”. ProMISv1.05/32IntroERPFactsRequirementsFrameworkModels KeyERPmodulesandoperation source:Jacob.etal2011. ProMISv1.06/32IntroERPFactsRequirementsFrameworkModels KeyERPmodules SAPModule FIFinancialAccoutring COControling SDSalesandDistribution MMMaterialsManagement PPProductionPlanning HRHumanResources source:www.ceeitandtelecom.com source:http://www.hareshpradhan.com ProMISv1.07/32IntroERPFactsRequirementsFrameworkModels Big5ofERPvendors OriginKeyfeaturesMarketshare ♯ y 19992011 SAPGermanyPioneerandlargestfirm32%28% OracleUSAFlexibility,Newcomer,but13%15% quicklygainingshare PeopleSoftUSAOriginallyfocusedonHR9%- BAANHollandEarlyERPVendor7%- J.D.EdwardsUSAInternetemphasis7%- MSDynamicUSASMEleader,.NET,good-12% service InforUSASpecializinginSCM-7% EpicorUSAExcellentinserviceindustry-5% source:Olson,D.2004 ♯ AMRResearchmarketshare24.2billionUSD y ERPMarketShareandVendorEvaluation2011 ProMISv1.08/32IntroERPFactsRequirementsFrameworkModels ERPcostbreakdown AveragecostRange Consulting30%20-60% Hardware25%0-50% Implementationteam15%5-20% Training15%10-20% Software15%10-20% source:Olson,D,2004 ProMISv1.09/32IntroERPFactsRequirementsFrameworkModels WhydoesacompanyimplementERP? Streamlinefinancial:speedprocess(CU-ERP),developmentofsupply chain,eOrdering, Integratecustomerorderinformation:ordertracking(USAA– empowerment) Reduceinventory:consolidatedorder,visualizinginventory,reducingdead stock, StandardizeHRprocess:reducingman-hour Standardizemanufacturingprocess:enforcepractice TypicalERPImplementationObjective Integration:financial,customerorder,accounting,purchasing Standardization:HRinformation,mergeprocesses,eliminatevariation Visualizinginventory:realtimeinventory,Smoothbusinessprocessflow& WIP, ProMISv1.010/32IntroERPFactsRequirementsFrameworkModels ERPmythsVSrealities MythsRealities •HolygrailofIS •no: ∃improvement/replacment, legacysystem •Simplifiedprocess •depend:lv.customization, adoptingofbestpractice •Reducingcosts&workers •depend:,BPR, •Integratingall,locally&globally •depend:scopes&scalesof implementation ProMISv1.011/32IntroERPFactsRequirementsFrameworkModels FailedERPprojects Hershey:aclassicalIT/ISfailure Effects:delayedshipments12%saledecline&29%inventorycost Rootcauses:highexpectation,multipleITvendors,projectscheduling FoxMeyerDrug:aclassicalERPfailure Effects:lateorder,incorrect&lostshipments15millionlose Rootcauses:highexpectation,projectmanagementscheduling Nike:ashoesgiantstumbled Effects:failedordersystem80-100millionlosesales Rootcauses:highcustomization,notestingplan Whirlpool:ERPstumble(HersheyII) Effects:failureinfullscalesystem&delayshipmentsorderingmistake Rootcauses:highexpectation,communication ProMISv1.012/32IntroERPFactsRequirementsFrameworkModels ERPriskfactors Organizationfit:insufficientofresources&failuresofredesignprocessand dataintegration Skillmix:insufficienciesofstaffs,re-skilling,internalexpertise,business analysis,andretainERPqualifieddeveloper Management:lacksofchampion,communication,andcontrol Softwaredesign:lacksofrequirements&integration Involvement&training:lackoffulltimecommitment,end-usertraining, changemanagement Technologyintegration:attempttobuildbridgewithlegacysystem Projectmanagement:lackofmeasurementsystem Socialcommitment:inabilitytorecognizeproblem source:“Riskfactorsinenterprise-wide/ERPproject”Sumner,M2000. ProMISv1.013/32IntroERPFactsRequirementsFrameworkModels ERPsuccessfactors 5mostImportantfactors 1Budgetreliability: 2Companyexpectation: 3Implementationtime: 4Schedulereliability: 5Processknowledge: ProMISv1.014/32 source:’ARoadmapforE-BusinessImplementation’Ming-Ling,C&Shaw,W.H.2005IntroERPFactsRequirementsFrameworkModels Strategic&TacticalSuccessFactors StrategicTactical •Topmanagementsupport •BPR&softwareconfiguration •Changemanagement •Training&jobredesign •Implementationstrategy •Projectteam •Consultantselection •Balancedteam •Visioning&planning •Communicationplan •Projectchampion source:’ERPimplementation’Finny,S&Corbett,M.2007 ProMISv1.015/32IntroERPFactsRequirementsFrameworkModels Terminology Bestpracticeapplicationdeemedthebestwayforacertainprocess(coined bySAP) Best-of-breedmixingERPmodulesformdifferentvendor Positivedisastertechnicallysuccessful,butgetcriticismfromkeyusers Negativedisastertotalfailure(abandonmentormajorreversal)ofproject VanillaERPprojectabasicversionofERPwithnoorminimal customization Customizationmodifiedsoftwaretomeetspecificrequirementsofan organization FederalizationtailorERPdifferentlyforeachregionalunitofanorganization ProMISv1.016/32IntroERPFactsRequirementsFrameworkModels IT/ISprojectlifecycle Architecture Whattodo&WhyStrategy Requirement Standard Howtodo;Cost;Justification Framework Model .................. Appropriationline Withintime&budgetImplementationProjectMgt Maintenance businesschangeSupportBPR HelpDesk source:Akeetal.2004.“InformationTechnologyforManufacturing.” ProMISv1.017/32IntroERPFactsRequirementsFrameworkModels SystemDevelopmentLifeCycle source:Motiwalla,L.andThompson,J. ProMISv1.018/32IntroERPFactsRequirementsFrameworkModels ImplantationMethod source:Motiwalla,L.andThompson,J. ProMISv1.019/32IntroERPFactsRequirementsFrameworkModels Three-tierArchitectures source:Motiwalla,L.andThompson,J. Pro:scalable,flexibility,security, Con:hardware,complexity ProMISv1.020/32