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Erp
 

Erp

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    Erp Erp Presentation Transcript

    • Enterprise Resource Planning
      • Enterprise Resource Planning - a software system that integrates core business areas such as manufacturing, distribution, financials and human resources.
      • Example: A warehouse in Singapore enters a customer order
        • data automatically flows to other areas of the company.
        • It would flow to the financial and accounting people in New York
        • Automatically update accounts receivable.
    • Enterprise Resource Planning
      • The order would also flow to the manufacturing operations in Europe instructing them to make another component.
      • Inventory levels would automatically be reduced in the warehouse and an order would be placed to replenish inventory .
    • Benefits of ERP
      • One common system - less duplication, more efficient
      • Customer focus - better customer service
      • Open communications among business partners
      • Adherence to standard business practices
    • Benefits of ERP
      • Y2K compliant
      • Removes need for in-house development
      • Good reporting capabilities
      • Support for multiple currencies and languages.
    • Disadvantages of ERP
      • High cost
      • Forced change of processes
      • Very complex software
      • Lack of trained people
      • Not Internet-ready
    • ERP Vendors
      • SAP - S ystems A pplications P roducts in Data Processing
        • 29% market share - Honda, IBM, Bank of Canada, P & G
      • BAAN - Dutch - 5% - Russell Stover Candy, Mercedez Benz, Boeing, Nortel
      • Peoplesoft - California - 6% - NBA, Adidas, Anderson Consulting, Hilton Hotels, NYNEX
    • ERP Vendors
      • Oracle - California - 10% - USPS, CBS, Nike, Kodak, Toronto Dominion Bank
      • J.D. Edwards - Colorado - 7% - Harley Davidson, Saab Automobile, BellSouth Cellular Corporation, Holiday Inns, Fox Television Stations
    • Success Stories
      • Autodesk (computer aided design software maker)
        • Reduced delivery time from two weeks to less than 24 hours
      • IBM Storage Systems Division
        • Reduced time to re-price – 5 days to 5 minutes
        • Time to ship a replacement part – 22 to 3 days
        • Time to complete a credit check – 20 minutes to 3 seconds
    • Success Stories
      • Fujitsu Microelectronics
        • Reduced the cycle time for filling orders – from 18 days to 1.5 days
        • Time to close financial books – from 8 to 4 days
    • Horror Stories
      • FoxMeyer Drug – software helped drive the company into bankruptcy
      • Dell computer – software will not fit its decentralized management model
      • Applied Materials – overwhelmed by the organizational changes involved
      • Dow Chemicals – spent seven years and 500 million dollars on R/2 – now starting again with R/3
      • Hershey’s – missed timely deliveries
    • Reasons for failure
      • Software logic and the company strategy may not match!
      • Examples – p. 125 of Devenport article