Enterprise Resource Planning
Upcoming SlideShare
Loading in...5
×
 

Enterprise Resource Planning

on

  • 452 views

 

Statistics

Views

Total Views
452
Views on SlideShare
451
Embed Views
1

Actions

Likes
0
Downloads
47
Comments
0

1 Embed 1

http://www.slideshare.net 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Enterprise Resource Planning Enterprise Resource Planning Presentation Transcript

  • Enterprise Resource Planning Selected Slides from Jacobs et al, 9 th Edition Operations and Supply Management Chapter 14 Edited, Annotated and Supplemented by Peter Jurkat
  • Enterprise Resource Planning (ERP) Systems
    • Enterprise Resource Planning Systems is a computer system that integrates application programs in accounting, sales, manufacturing, and other functions in the firm
    • This integration is accomplished through a database shared by all application programs
    • Goal is to have a single master data base (except for partitions and replications) so that the entire enterprise is working off the same, continuously updated, data
    14-
  • McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved . Major Vendors Do not grow your own ERP unless you want to get into the ERP business!!!
    • Usually based on three tier architecture interconnected with private/public network
      • client (desktop, laptop, hand held, largely common across organizations)
      • Application servers (apply the business logic – many common, some unique)
      • Back- end data base (permanent storage carefully controlled – data base management system common, data unique)
  • SAP R/3 System Functional Components R/3 System Functional Components 14- Corporate Services Human Capital Resources Operations Financials
  • SAP R/S 3
    • Financials
    • Financial (retrospective) and managerial accounting (prospective)
    • Internal Controlling and Audit
    • Financial Supply Chain Management
    • Human Capital
    • Payroll
    • Benefits administration
    • Applicant data administration
    • Personnel development planning
    • Workforce planning
    • Schedule & shift planning
    • Time management
    • Travel expense accounting
  • SAP R/S 3
    • Operations
    • Materials management
    • Plant maintenance
    • Quality management
    • Production planning & control
    • Project management system
    • Corporate Services
    • Asset management
      • Investments
      • Real estate, property
      • machinery
    • Building operations and maintenance
    • Travel planning, reservations
  • SAP R/S 3
    • Operations
      • Customer relationship management (CRM)
      • Manufacturing
      • Supply chain management (SCM)
      • Supplier relationship management
      • Product life cycle management
      • Mobile business applications
    • User extensions using NetWeaver:
      • application builder from SAP for integrating business processes and databases from a number of sources (vendors and home grown)
      • common brand name for all the SAP products that follow the SAP R/3 ERP software
      • delivers two completely independent (and incompatible) development frameworks
    • Can run entirely on SAP servers
  • ERP in the Service Sector
    • ERP systems have been developed for health care, government, retail stores, hotels, and financial services
    • Also called efficient consumer response (ECR) systems
    • Objective is to tie sales to buying, inventory, logistics, and production
  • The Good News: ERP Systems
    • provides integration of the supply chain, production, and administration – can reduce transaction costs and increase speed and accuracy of communication
    • creates commonality of databases
    • can incorporate improved best processes – e.g. , JIT and systems integration
    • increases communication and collaboration between business units and sites
    • has an off-the-shelf software database
    • can be implemented module by module
    • may provide a strategic advantage for a limited time
  • The Bad News: ERP Systems
    • Are very expensive to purchase and even more so to customize
    • May require major changes in the company (and you know how easy that is!!) and its processes to implement
    • Can be so complex that many companies cannot adjust to it
    • Involve an ongoing, possibly never completed, process for implementation
    • Require expertise in limited supply with ongoing staffing problems
    • But it may be a necessary evil for competitive purposes