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Transcript of 2.5 Enterprise Resource Planning
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7/25/2019 2.5 Enterprise Resource Planning
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MBA
INFORMATION SYSTEMS
ENTERPRISE RESOURCE PLANNING
Assignment
Enrolment number: MBISMCT!"#"$
Sel% &e'l(r(tion
I declare that the assignment submitted by me is not a verbatim/photo static
copy from the website/books/journals/manuscripts.
Signature of the student
Signature of the faculty concerned
)* Outline t+e (r'+ite'ture o% ERP (n, e-.l(in ,i/erent inter%('es*
Ans0er:
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7/25/2019 2.5 Enterprise Resource Planning
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
ERP Ar'+ite'ture:
( applications are most commonly deployed in a distributed and oftenwidely dispersed manner. )hile the servers may be centrali*ed+ the clients
are usually spread to multiple locations throughout the enterprise.
,enerally there are three functional areas of responsibility that is distributed
among the servers and the clients. !irst+ there is the database component -
the central repository for all of the data that is transferred to and from the
clients. $hen+ of course+ the clients - here raw data gets inputted+ reuests
for information are submitted+ and the data satisfying these reuests is
presented. astly+ we have the application component that acts as the
intermediary between the client and the database. )here these componentsphysically reside and how the processes get distributed will vary somewhat
from one implementation to the ne0t. $he two most commonly implemented
architectures are outlined below.
T0o1tier Im.lement(tions
In typical two-tier architecture+ the server handles both application and
database duties. $he clients are responsible for presenting the data and
passing user input back to the server. )hile there may be multiple servers
and the clients may be distributed across several types of local and wide
area links+ this distribution of processing responsibilities remains the same.
T+ree1tier Client2Ser3er Im.lement(tions
In three-tier architectures+ the database and application functions are
separated. $his is very typical of large production ( deployments. In this
scenario+ satisfying client reuests reuires two or more network
connections. Initially+ the client establishes communications with the
application server. $he application server then creates a second connectionto the database server.
$he SA( #/1 System architecture consists of three layers' Presentation+
Application+ and Data Storage.
$he following diagram illustrates the function served by each layer and how
the layers work together'
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
Present(tion
$his is where users of the SA( #/1 System will submit input to the SA( #/1
System for the processing of business transactions. It is also where the
output from these transactions appears as output 6elds+ reports+ tables and
spread sheets.
"n the desktop level+ #/1 o7ers a user-friendly graphical interface called
SAPGUI. $he system also integrates alternative interfaces for optimumcompliance with your reuirements. $his includes integrating common (8
applications. Information e0change is also carried out through the Internet+
9iosk touch screen systems and telephone applications.
A..li'(tion
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
An application is a logically independent component residing at the host
operating system level within the SA( #/1 client/server environment. $his
component is represented by an application server in the SA( #/1 network.After a user initiates a reuest at the presentation level+ logic is invoked to
service and process that information. $he application logic modules can
reside on one centrali*ed host machine or be distributed over several
physical host machines within a particular SA( #/1 network.
$ypically+ the update and enueue processes reside on the database server
in the application layer. In most cases+ the message+ spool and gateway
processes will also reside on the database server. $he database server may
also be referred to as the :central server;.
"n the application level+ #/1 o7ers sophisticated mechanisms to optimally
use high-performance system resources. $he system implements
interconnections between various applications so that they are practical from
a business perspective. #/1 closes the gap between the e0acting concept of
a business transaction and transactions from a data processing perspective.
&(t( Stor(ge
"n the database level+ #/1 e0clusively uses relational database systems by
various manufacturers. #/1 is able to utili*e the most advanced features of
each database vendor
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
$he #/1 presentation software displays the graphical user interface using the
tools provided by the relevant presentation environment =frontend operating
system@.
&(t(b(se inter%('e
$oday+ large amounts of data are usually administered using relationaldatabase management systems =#BMS@. $hese systems store the data andthe relationships between the data in two-dimensional tables+ which areknown for their logical simplicity. $he de6nitions of the data+ tables+ andtable relationships are stored in the data dictionary of the #BMS.)ithin ABA(+ SA( "(& S is used to access application data in thedatabase+ independent of the corresponding #BMS. $he #/1 databaseinterface converts the open S statements from the ABA( statements intothe corresponding database statements. $his means that applicationprograms written in ABA( are database-independent. ative S commandscan be used in ABA(.)hen interpreting open S statements+ the #/1 database interface checks
the synta0 of these statements and automatically ensures the local SA(bu7ers in the shared memory of the application server are utili*ed optimally.
ata freuently reuired by the applications is stored in these bu7ers so that
the system does not have to access the database server to read this data. In
particular+ all technical data such as ABA( programs+ screens+ and ABA(
ictionary information+ as well as some business process parameters usually
remain unchanged in a running system+ making them ideal bu7ering
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
candidates. $he same applies to certain business application data+ which is
accessed as read-only
$o make the #/1 System independent of the database system with which you
use it despite the di7erences in the S synta0 between various databases+
each work process on an application server has a database interface. $he #/1
System communicates with the database by means of this interface. $he
database interface converts all of the database reuests from the #/1
System into the correct Standard S statements for the database system.$o do this+ it uses a database-speci6c component that shields the di7erences
between database systems from the rest of the database interface. %ou
choose the appropriate layer when you install the #/1 System.
$here are two ways of accessing the database from a program - with "pen
S or ative S.
O.en S)L
"pen S statements are a subset of Standard S that is fully integrated in
ABA(. $hey allow you to access data irrespective of the database system that
the #/1 installation is using. "pen S consists of the ata Manipulation
anguage =M@ part of Standard SC in other words+ it allows you to read
=S&&8$@ and change =IS$+ >(A$&+ &&$&@ data.
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
"pen S also goes beyond Standard S to provide statements that+ in
conjunction with other ABA( constructions+ can simplify or speed up
database access. It also allows you to bu7er certain tables on the applicationserver+ saving e0cessive database access. In this case+ the database
interface is responsible for comparing the bu7er with the database. Bu7ers
are partly stored in the working memory of the current work process+ and
partly in the shared memory for all work processes on an application server.
)here an #/1 System is distributed across more than one application server+
the data in the various bu7ers is synchroni*ed at set intervals by the bu7er
management. )hen bu7ering the database+ you must remember that data in
the bu7er is not always up to date. !or this reason+ you should only use the
bu7er for data which does not often change. %ou specify whether a table can
be bu7ered in its de6nition in the ABA( ictionary.
N(ti3e S)L
ative S is only loosely integrated into ABA(+ and allows access to all of
the functions contained in the programming interface of the respective
database system. >nlike "pen S statements+ ative S statements are
not checked and converted+ but instead are sent directly to the database
system. )hen you use ative S+ the function of the database-dependent
layer is minimal. (rograms that use ative S are speci6c to the databasesystem for which they were written. )hen writing #/1 applications+ you
should avoid using ative S wherever possible. It is used+ however+ in
some parts of the #/1 Basis System - for e0ample+ for creating or changing
table de6nitions in the ABA( ictionary.
O.er(ting s8stem inter%('e
$he operating system views the #/1 runtime system as a group of parallel+cooperating processes. "n each application server these processes include
the dispatcher as well as work processesC the number of work processesdepends on the available resources. )ork processes may be installed fordialog processing+ update+ dialog free background processing and spooling.In addition to these work process types =dialog processing =@+ update =D' forthe ,erman :Derbuchung;@+ lock management =&@+ background processing=B@+ spool =S@+ the #/1 runtime system provides two additional services forinternal and e0ternal communication =below are the restrictions on thenumber of work processes@'
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
$he message server =MS or M@ communicates between the distributed
dispatchers within the #/1 System and is therefore the prereuisite for
scalability using several parallel-processing application servers. $he gateway server =,) or ,@ allows communication between #/1+ #/2
and e0ternal application systems. ialog' &very dispatcher reuires at least two dialog work processes
Spool' At least one for each #/1 System =more than one allowed for
each dispatcher@ >pdate' At least one for each #/1 System =more than one allowed for
each dispatcher@ Background processing' At least two for each #/1 System =more than
one allowed for each dispatcher@ &nueue' "nly one enueue work process is needed for each system
Con'lusion: It shall be concluded that the ( architecture is highly capable
of providing close integration with business processes by adopting best
practices which leads to business process optimi*ation+ elimination of
unwanted processes and reducing the overall business/ product cost for a
successful business.
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
)*# Pro3i,e t+e %r(me0or o% su..l8 '+(in m(n(gement (n, e-.l(in
its 'om.onents*
Ans0er:
Supply chain management is viewed as a new name for a combination of
purchasing+ operations and logistics. It is also consider it to be identical with
logistics+ inclusive of consumers and suppliers. Business people acknowledge
supply chain management as a new way to manage business and
relationships with other members of the supply chain such as suppliers+
manufacturers+ and consumers. $he ,lobal Supply 8hain !orum de6nes
supply chain management as the integration of key business processes from
end user through original suppliers that provides products+ services+ and
information that add value for customers and other stakeholders =ambert
233E@.
$he Supply 8hain Management =S8M@ framework is based on a functional
model of the Supply change management system. It is a development tool
that assists in the development of a well-integrated Supply change
management system in an organi*ation. $he framework consists of several
components that de6ne key functions+ processes and best practices."rgani*ational behaviors like Supply change management enablers support
the organi*ationFs overall performance.
All companies+ large and small+ manufacturers and service providers+ depend
on successful supplier performance to help satisfy their customers. $he
performance of an agile+ motivated and responsive supply base can improve
operating eGciencies+ reduce costs and increase customer satisfaction.
Supply chain management integrates the business processes associated
with the procurement of material+ the transformation of procured material
into 6nal product and the delivery of 6nal product to customers within the
conte0t of a supply chain management framework.
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7/25/2019 2.5 Enterprise Resource Planning
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
Su..l8 C+(in M(n(gement Fr(me0or
$he framework emphasi*es the importance of aligning supply chain strategy
with business strategy and in leveraging information technology as both an
enabler for business process eGciency and e7ectiveness and as a means of
sharing knowledge and information among global supply chain partners.
Su..l8 C+(in M(n(gement Com.onents:
Supply chain is basically the whole process starting from the raw material
from the suppliers to manufacturing to packaging to warehouse to
distribution to 6nal reach of the product or service to its intended consumers.
So there is lot of components in a supply chain of a large company.
$he Supply 8hain Management =S8M@ framework is based on a functional
model of the S8M system. It is a development tool that assists in the
development of a well-integrated S8M system in an organi*ation. $he
framework consists of several components that de6ne key functions+
processes and best practices.
Supply chain management components represent business processes and
practices. !ollowing are the supply chain management components.
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
SCM Le(,ers+i. - $his component provides a direction to the Supply
change management system. It is constituted by managers from the
di7erent functional areas. $he overall performance of the Supply change
management system depends on the interaction between these functional
heads and the senior management.
SCM Str(teg8- $he supply change management strategy forms an outline
for supply chain operations that support and are consistent with the
manufacturing and marketing objectives of the organi*ation.
O.er(tion(l Pl(nning - $his component de6nes the operational
reuirements for maintaining a supply chain which are speci6ed in terms of
tasks+ resource reuirements+ and measurements.Business rel(tions+i. m(n(gement - "rgani*ations and supply chain
partners are dependent on each other. It is imperative to have a favorable
environment that facilitates communication and negotiation between the
organi*ation and its supply chain partners. $he relationship can be improved
by having long-term contracts+ and by using inputs from di7erent levels of
management and supply chain partners in the communication and decision
making processes.
Or,er1to1,eli3er8 .ro'ess - $he order-to-delivery process de6nes how
e7ectively an organi*ation can direct the How of products from the suppliers
to the company. It includes processes like order releases+ receiving+
inspection of incoming material+ accounts payable+ and materials handling.
)u(lit8 (n, .er%orm(n'e m(n(gement - $his component is concerned
with the initiatives that organi*ations and suppliers take to improve and
maintain uality standards. $he uality and performance component helps
identify the uality defects in suppliersF products+ and facilitates cooperation
between suppliers and the manufacturer to improve the uality.
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
)ork structure
"rgani*ation structure
(roduct How facility structure
Information How facility structure
Management methods
(ower and leadership structure
#isk and reward structure
8ulture and attitude
Su..l8 C+(in M(n(gement En(blers:
$he S8M enablers are a group of carefully conceived and de6ned behaviorsand approaches that allow+ encourage+ and reinforce a 6rmFs commitment to
high performance S8M practices. $he following are the S8M enablers'
* Alignment' Alignment refers to matching the corporate and business unit
goals. It is a key organi*ational behavior within the S8M system and includes
consistency in processes+ actions and decisions across the business units to
support the S8M processes. !or better alignment+ the company leadership
should set goals+ objectives and strategies that support successful supplier
relationships.
#* Customer 1 Su..lier %o'us' $he customer-supplier focus aims to plan
the organi*ationFs processes in such a way that they are able to understand
and react to customer reuirements uickly. $o improve suppliersF
satisfaction+ organi*ations should have clear and mutually understood and
agreed rules of relationship and should show commitment for their suppliersF
long-term pro6tability and success.
!* &esign' esign is the feature of products+ processes+ systems+ and
services that ensures their successful functioning. It is a comprehensive
process+ which+ after considering feedback from customers and suppliers+de6nes the overall e0ternal and internal reuirements to the organi*ation.
6* Me(surement' Measurement is a tool that organi*ations use to uantify
information about inputs+ outputs and the performance dimensions of
products+ processes and services and to evaluate the performance of
di7erent business processes and supplier activities.
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
7* P(rti'i.(tion2in3ol3ement' Stakeholders must be involved in the
decision-making process to ensure the success of products+ processes+
systems and services. "rgani*ational eGciency and performance can be
improved by utili*ing the available resources in terms of talents and energies
of employees and e0ternal stakeholders.
4* Perio,i' re3ie0: 8ontinuous improvement is based on the periodic
review of all the business processes+ programs+ and systems. $hese reviews
indicate the di7erence between the e0pected performance and the actual
performance and the reasons for the deviations.
Prim(r8 A,3(nt(ges o% Su..l8 C+(in M(n(gement:
Businesses e0ist to make pro6ts. $o remain competitive 6rms have to o7er
superior uality goods at the lowest prices possible. $he need to minimi*e
product costs makes e7ective supply chain management vital. "ne of the
most eGcient ways of increasing a company
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
Increased &Gciency
#esource wastage is a common source of increase production costs. "ften
this is due to improper planning. A company that employs supply chain
management is able to achieve eGciency of its operations since only those
values adding activities are encouraged. $his ensures that the organi*ation
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
production may have to stop which will slow down your organi*ation. A S8M
system improves cycle times and ensures that raw materials are provided
when your business needs them so that you never have to stop production.
Res.onse to Con=i't - >nfortunately+ a business cannot always run
smoothly and there are a number of factors that can lead to problems in the
production of a product. If an issue occurs with the suppliers of your
company+ you may have to change how you produce your product. If the
distributor goes out of business+ you will have to 6nd another way to sell the
product. A S8M system lets your company better cope with problems at
either side of the production spectrum. %ou can uickly and easily 6gure out
a response to the problem instead of being surprised by it at a later time.
A,,ition(l (,3(nt(ges:
)ith the increased visibility into the supply chain and adaptive supply
chain network+ it can be more responsive. )e can sense and respond
uickly to changes and uickly capitali*e on new opportunities.
By o7ering a common information framework that supports
communication and collaboration+ S8M enables to better adapt to and
meet customer demands.
)e can track and monitor compliance in areas as environment+ health
and safety.
Information transparency and real-time business intelligence can lead
to shorter cash-to-cash cycle times. #educed inventory levels and
increased inventory turns across the network can lower overall costs.
)ith S8M+ we can lower operational e0penses with timelier planning
for procurement+ manufacturing and transportation. Better order+
product and e0ecution tracking can lead to improvements in
performance and uality - and lower costs. )e can also improvemargins through better coordination with business partners.
$ight connection with trading partners keep the supply chain aligned
with current business strategies and priorities+ improving the
organi*ationFs overall performance and achievement of goals.
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MBA
I!"#MA$I" S%S$&MS
ENTERPRISE RESOURCEPLANNING
&nrolment number'MBISMCT!"#"$
Con'lusion: Supply chain management is an e0citing and important area of
business improvement. Specialist companies are able to save the world ?ust1
in1time met+o,s (n, .remium su..l8 '+(in m(n(gement.
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