Enterprise Resource Planning

ENTERPRISE RESOURCE PLANNING

Intro to Enterprise Resource Planning (ERP) Understanding Budgeting for ERP Understanding The Guidelines Understanding Benefits & Key Features Protecting ERP Database

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Planning of how business resources (materials, employees, customers) are acquired and moved from one state to another

Supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management

Based on a common database & a modular software design Information should be reliable, accessible, and easily shared Housed in one or more Data centers , run Enterprise software,

and could include applications such as Content management systems and typically cross organizational borders


An extension of MRP I, II and CIM Key elements: Performance, Scalability & Robustness

Modules: Manufacturing, Supply Chain, Financials, Customer Relationship Management (CRM), Human Resources, Warehouse Management and Decision Support System

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Manufacturing Engineering, Bills of Material, Scheduling, Capacity,

Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow

Supply Chain Management Order to cash, Inventory, Order Entry, Purchasing,

Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation

Projects Costing, Billing, Time and Expense, Activity Management


Financials General Ledger, Cash Management, Accounts Payable,

Accounts Receivable, Fixed Assets Customer Relationship Management Sales and Marketing, Commissions, Service, Customer

Contact and Call Center support Human Resources Payroll, Training, Time & Attendance, Rostering, Benefits Data Warehouse Various Self-‐Service interfaces for Customers,

Suppliers, and Employees


Integrate financial information Integrate customer order information Standardize and speed up manufacturing processes

Reduce inventory Standardize HR information


TCO A financial estimate designed to help consumers

and enterprise managers assess direct and indirect costs commonly related to software or hardware

ROI Ratio of money gained or lost (realized or

unrealized) on an investment relative to the amount of money invested

Money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss

Money invested referred to as asset, capital, principal, initial investment


Training Integration and testing Customization Data conversion Data analysis Consultants ad infinitum Replacing your best and brightest Implementation teams can never stop Waiting for ROI Post-‐ERP depression


The Big Bang Cast off all legacy systems at once and install a single

ERP system across the entire company Franchising Strategy Independent ERP systems are installed in each unit,

while linking common processes, such as financial bookkeeping, across the enterprise.

Begin with a demo/pilot installation in a BU where core business of corporation will not be disrupted if something goes wrong

Once system is up, run & worked out all bugs, team begins selling other units on ERP, using first implementation as a reference


Slam Dunk For smaller companies expecting to grow into ERP Goal is to get ERP up and running quickly and to ditch fancy reengineering in favor of ERP system’s "canned" processes

The On-‐Demand Nibble Choose ERP vendors that can offer:

faster implementation times easier and more frequent upgrades cheaper up-‐front costs


Have a clearly defined philosophy Hype it up Ensure scalability Identify key implementation objectives Decide on chart of accounts Select a good team Spend time on books and org. structure


Involve auditors since the beginning Plan data requirements early Have clear reference values for comparison Work on global template Document everything important Control & oversee timelines Keep It Simple


Increased staff productivity Seamless cross-‐function process execution “One version of the truth” Reduced operating expenses Enhanced performance management


Manufacturing Supply Chain Management Financial Management Project Management Human Capital Management/Human Resources


Continuous Uptime Preventing Unauthorized Access Disaster Recovery Protect the Entire Enterprise Infrastructure Server or Hardware Failures Hackers and Cyber-‐Criminals Natural Disasters


E-‐Business and ERP: Transforming the Enterprise by Grant Norris, James R. Hurley, Kenneth M. Hartley, John R. Dunleavy, John D. Balls, John Dunleavy; John Wiley & Sons, Canada, 2000, 189p

Concepts in Enterprise Resource Planning by Bret Wagner, Ellen Monk; Course Technology

Cengage Learning, 2009, 276p Business Concepts Implementation Series in

Inventory Management by Holy Icun Yunarto & Martinus Getty Santika , PT. Elex Media Komputindo, 2005


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2008 25 Enterprise Resource Planning Training

2008 26 Enterprise Resource Planning Training

Enterprise Resource Planning

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Transcript of Enterprise Resource Planning