Laboratory for Machine Tools and Production Engineering · L9 06.07.2009 Mr. Rauhut 0241 80 28206...

Production Management B – Spring Semester 2009

Business Engineering & Software Selection L12 P. 0

Lecture 12

Laboratory for Machine Tools and Production Engineering

Chair of Production EngineeringProf. Dr.-Ing. Dipl.-Wirt. Ing. G. Schuh

Chair of Production ManagementProf. Dr.-Ing. A. Kampker

Production Management B

Lecture 12Business Engineering & Software Selection

Organisation:Dipl.-Kfm. Stefan CuberPontdriesch 14/16Room 214 Phone: [email protected]



Lecture 12

Index:

Index Page 1

Schedule

Target of this lecture Page 3

LectureIntroduction into Business Engineering Page 4

Web-based ERP-Selection Process in Comparison to Page 17

tradition methods

Summary and Conclusion Page 34

Questions Page 36

Bibliography Page 37



Lecture 12

Schedule:

No. Date Responsible

L1 27.04.2009 Mr. Rittstieg 0241 80 20396

L2 04.05.2009 Mr. Bartoscheck 0241 80 28203

L3 18.05.2009 Mr. Fuchs 0241 80 26265

L4 25.05.2009 Mr. Reil 0241 80 27964

L5 08.06.2009 Mr. Potente 0241 80 27387

L6 15.06.2009 Mr. Bauhoff (fir) 0241 47705-439

L7 22.06.2009 Mr. Hoeschen 0241 80 27382

L8 29.06.2009 Mr. Jung 0241 80 27392

L9 06.07.2009 Mr. Rauhut 0241 80 28206

L11 13.07.2009 Mr. Koch 0241 80 25321

L12 20.07.2009 Mr. Cuber (fir) 0241 47705-420

Customer Relations Management

Enterprise Ressource Planning I

Enterprise Ressource Planning II

Topic

IT in Production Management

Enterprise Ressource Planning III

Product Lifecycle Management II

Digitale Plant Planning and Simulation

Business Engineering - Method of selecting IT-Systems (Trovarit)

Supply Chain Management I

Supply Chain Management II

Product Lifecycle Management I



Lecture 12

Summary lecture 12:

Today’s economy is undergoing a transformation from the industrial to the information age. This transformation allows one to move the focus of transformation from its original area to the entire network of value selection.

Isolated IT-applications as a result of the tayloristic approach of functional fragmentation of the entire production process can be found prevalently. But, a continuous flow of information both within and far beyond the company is an existential premise for the company‘s future success. Hence, the introduction of IT-systems is being complicated by a huge number of interfaces, which in parts can be very complex. Communication is being alleviated through standards on the levels of business, process and application as well as adequate software-solutions.

“Business Engineering“ characterizes as the design for companies of the information-age. Since transformation applies to complex man-machine-systems, a limitation to the technical aspect of change is not sufficient. Introducing an IT-system is more likely an organizational than a technical problem.

Making the transformation fast and safe as well as minimizing expenses is the approach in Business Engineering. Hereby transformation becomes directable: It strips transformation down to projects, a project down to a professional outline and to the direction of change. In turn the professional outline is stripped down to the levels strategy, process and system. Small, handable project-activities with clearly defined results in form of documents are generated.

During the selection and implementation of standard ERP systems three phases can be distinguished:

• Reorganisation: Project Initiation, Process and Structure Analysis, Process and Structure Optimization

• System Selection: Pre-selection, Final Selection, Final Contract Negotiation

• Realization: Realization Preparations, System Implementation, Setting System into Service.

The selection of an ERP System is expediently supported by the internet platform “IT-Matchmaker”.

Professional Change Management and consequent controlling of implementation are elementary premises for a successful implementation IT-systems.



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Agenda

Introduction into Business Engineering1

Web-based ERP Selection Process in comparison to traditional methods2

Summary and Conclusion3



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new companies

IT-Innovations force companies of the industrial age to change

Bild 1

Business Engineering

IT-innovationsinformation technique

construction technique

applications electronic services

preparation, structuring and

use of information

business-knowledge

methods of Change Management

business architecture of the information age

companies of the industrial

age

understand

transformation

understand support

restructured companies

make possible

represents overall concept

Notes:

Today’s economy is undergoing a transformation from the industrial to the information age. Especially innovations from the sector ‘information- and communication-technology’ („IT-innovations“) allow new business-solutions, new services, products, processes, companies and branches. New forms of leadership and coordination replace conventional forms of organization.

The transformation with its technical and socio-economic aspects is by far too eminent and complex to be intuitively and uncoordinatedly created by a single isolated person on basis of minor basic rules.

In order to open up business potentials of IT-innovations, teams, which are based on a division of labor, must look into technologies, strategies, processes and applications minutiously and professionally. Such proceedings and the existence and usage of appropriate procedure models, methods and tools characterize disciplines in the field of engineering.

“Business Engineering” characterizes as the design of companies of the information-age. As the transformation concerns complex man-machine-systems, it is essential not just to focus on the technical and professional aspects of change. Knowledge of business and IT are being brought together and connected to all aspects of the transformation, leading from means of representation to procedure models and cultural as well as political aspects.



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IT-Systems in the field of production management

marketing development workpreparation

productionplanning

productionassembly sales service

maintenancedisassembly

recycling

CAD

CAM

CRM

SCMCAP

CAE

PLM meta-data basis

CAO

CAD: Computer Aided DesignCAE: Computer Aided EngineeringCAM: Computer Aided Manufacturing

CAO: Computer Aided OfficeCAQ: Computer Aided QualityCAP: Computer Aided Planning

CAQ

CRM: Custom Relationship ManagementERP: Enterprise Ressource PlanningPLM: Product Lifecycle Management

SCM: Supply Chain Management

ERP

Bild 2

Notes:

Nowadays one will not find companies operating without computer support. Since the 50s computer-based information processing has become a determined part in producing companies.Today complete process chains of producing companies are being supported by information technologies. There are appropriate IT-systems for nearly each task: Beginning design and development supported by several CAD-systems and simulation tools, to the administration department and services, which e. g. may offer long-range services for products or telemetric services. Masses of data are stored and maintained in complex data- and transaction-systems.



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Integrating IT-Systems into a company‘s process network

Bild 3

Pictures: SAP AG, Hasso Plattner, Technologie integrierter Informationssysteme, 2001

1.Integration into processes within the company

2.Integration into processesexceeding the borders ofthe company

CollaborativeMarketplace

Notes

In the past the organization of data processing ensued the organization of the production. Thereby it accorded to the tayloristic approach of functional separation of the entire producing processes.

One result is an infrastructure of optimized functional subareas, which can still be found today in sub-optimum processes of the entire company. Isolated applications only allow a certain effort in maintaining competitive ability. A continuous flow of information is an existential premise for a company‘s success.

Therefore IT-systems need to be integrated into the company’s processes. In advance these processes are to be optimized, as systematization comes before automization to ensure the company’s success. A large number of new systems, such as SCM-systems, optimize workflows far beyond the borders of departments or processes.

Due to today‘s tight networking among companies, the next step is to integrate IT-systems into processes exceeding the borders of the company. Very often this interconnection cannot just be found among twocompanies. A variety of internet platforms allow an automatic process-flow on a basis of so-called „Collaborative Marketplaces“



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IT-Systems require a maximum in data exchange

Bild 4

RAO = Raw material, auxiliary material, operating material, subassemblies

purchasing

merchandise planning

-

sales planning

production

product concept

-

ex stock

processing of orders

-

cost accounting

-

Human Ressources

auditing

financial accounting

-

billing

bill order

intakeorder intake

stock value

working hours

plan orderproduction order

work plansbill of materials

calculation

accountinggoods issue

costs

delivery date

customer-specificqualities

requ

est f

or d

eliv

ery

plan

bre

ak

capa

citie

s

orde

r

orde

r

avai

labl

e qu

antit

y

with

draw

al R

AO

approved job

cash

sal

es

-

outstanding money

liabi

litie

s

finan

cial

-stat

emen

t

production planning

-

Notes:

A large exchange of data can be found between the separate elements of a process. This needs to be beard in mind while integrating the information technology into processes.

Each source of information needs to be kept in mind, data-structures are to be created accordingly and interfaces need to be defined and implemented. Data, wich is generated within single processes, must be accessible to other areas and systems.

The realization of interfaces during implementation of IT-systems is highly complex and laborious – whether adjustments of standard systems or individual solutions are concerned. In many cases a main part of the software investment is needed here.

Defining standards of communication drastically eases this challenge. Especially among inter-companies-exchange it initializes a cost-effective linking of processes.



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Example: Balancing bills supported by using the Business-Bus

Bild 7

Business Bus

distribution

sales

planning

offsetting

supplier customer

auditing

-online billing

payment and liquidation

eService

Bill Presentment & Payment-Processes

distribution

negotiation

information

payment(2)

(3)

(4)

(5)

(1)

Notes:

The payment of a service is electronically monitored by a neutral instance. The advantage is maximum security both for customer and supplier: paying in advance a customer can be sure to get his money back, if he is not satisfied with the product delivered. The supplier has the guarantee to be paid as long as his delivery is correct.

For example, this service is offered by eBay.



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IT-architectures: today‘s systems have a flexible structure

Bild 8

presentation & - logic logic of usage data

presentation & - logic logic of usage

Core System

Client / Server - SystemClient Server

data

Tripartite system architecture

presentatationWebclient

presentation logicWebserver

presentation presentation logicClient

applicationsserver (ORB)

logic of usage

CORBA JAVA .NET

data

data

Server

Server

Software

IT-technologies:

Notes:

Basically IT-systems consist of four core-components:

- Presentation: Graphic output of the software-surface, e. g. windows, buttons, etc.

- Presentation logic: Data preparation for the presentation, e. g. calculation of diagrams

- Logic of usage: Functionality, e. g. interpretation of total turnover

- Data: Storing information, e. g. figures, texts, etc.

Most of today‘s IT-systems used in producing companies are client server based. Innovative software solutions have a tripartite structure and enable a dynamic exchange of software components.

The tripartite system architecture practically is the technical basis for the Business Collaboration Infrastructure. At the same time, it is the most flexible solution for networks, as old core components can be separated to several servers. Future dominating IT-technologies to realize this architecture are Corba, Java and Microsoft‘s upcoming .NET initiative.

Application Service Provider (ASP) use this architecture as well. These service providers have application logic and data servers in their computer-pools, while the customer is remotely accessing data from the distance and uses and pays functions simply by needs.



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Chances and risks during implementation of IT-systems

Bild 9

+ Chances - Risks

Accelerated processesIncreased flexibilityIncreased qualityImproved productsGeneral access to knowledgeStandardized, where applicable automated data transferCost saving

IT-implementation is more an organizational than a technical challenge!

Remodeling of processesIncreased need of trainingIncreased burden on employees Unpredictable interfacesLoss of customized solutions along with implementation of standard softwareEnsured “capacity to act” of the company during implementationDependency on external partnersOversized startup costs

What is being implemented and when? Standard software or individual development?Are goals and potentials as a matter of fact achieved?

Notes:

The transformation from the industrial to the information age is a gigantic challenge for industry and society. Thousands of projects a year bring up new or improved business solutions. But not every project is succesful. According to an analysis carried out by Cambridge Technology Partners, 95% of more than 600 IT-projects did not work to their satisfaction.

IT-systems promise to open up a wide range of new potential within companies. But very often chances face risks, which are hardly planable in advance. Implementation does not only mean implementation of a software system: Processes and structures need to be optimized and oppositions and fears need to be reduced.

Mostly things cannot be done at once. Graduated schemes have to be developed in analogy to priorities and possibilities. A decision between customizing a standard software or implementing an individual solution is to be made: Guaranteed quality and functionality of standard software are facing the expenses to customize the product and limited possibilities.

Thus introducing an IT-system is more an organizational than a technical problem since processes need to be customized and systems chosen – based on the fact that priorities are set by the company‘s main strategy. A professional Change Management becomes necessary as a result of the reconfiguration of processes along with direct and intensive involvement of employees.

Furthermore controlling has a decisive role in every project to guarantee a prompt achievement of the company‘s objectives.



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Business Engineering Map

Bild 10

information- and communication systems

management

behavior

power

informationtechnology

transformation of the company

business strategy

business processes

Notes:

What leads a project to success? Project Management, Know-how, Technology, Change Management? Restriction of the project‘s complexity, splitting it into manageable parts and a systematic proceeding, which connects the single results, eminently raise a project‘s chances of success.

Main views of change processes are the professional dimension and the politic-cultural dimension. The professional dimension focuses on methods and models of the technological observation, which include developments of strategy, process and system. So-called “human factors“, such as motivation and management, behavior, communication or proportions of power are objectives of the politic-cultural dimension.

Business Engineering splits transformation into projects (within the project portfolio), a project into the professional concept and the management of change. The professional concept then is split into the levels ‘strategy’, ‘process’ and ‘system’. Doing so, Business Engineering creates small, hand able results in form of documents. Finally a procedure model connects these activities to an appropriate order within the project‘s plan.

Business Engineering aims at making the transformation fast and safe and minimizes the effort needed. It makes the transformation guidable.



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Integration as a premise to realize Business Networking strategies

Process level

Information-systems level

Strategic level

customersupplier

customersupplier

Business CollaborationInfrastructure

customersupplier


Strategy-specific elements:• customer segments• customer covered processes• positioning within the value chain

Process-specific elements:• customer process• cooperation processes• internal processes• portal efforts

IS-specific elements:• portal applications• BCI-applications• EAI-applications• standards• internal applications


BCI = Business Collaboration Infrastructure

EAI = Enterprise Application Infrastructure

Bild 11

Notes:

The Business Engineering Model shown is meant to be a framework. Its aim is to help the Business Engineer understand single projects and project activities in the entire context.

Most of the time the process of Business Engineering is initiated by IT-innovations, sometimes as well by changes of the general framework, branches, markets, customer behavior and the change of values. As a consequence the process is based on methods and models of the IT- and technology-managements in their early stages.

At the level of strategy the business architectures, models and strategies are therefore monitored. This part of Business Engineering is based on methods and models of strategic management (see lectures PM I L11 and L12).

Having formulated appropriate strategies and specification of the business model, appropriate business processes and finally appropriate information- and communication-systems for systematically supportable parts of the process are developed in a next step (see lectures PM I L9 and L10 for the modeling of companies and processes).

The complexity of transformation requires an engineering-, method- and model-based procedure. Networked business architectures and the possibility to direct business models either to production processes or to customer processes mark this complexity. Innovations only become effective when being implemented within strategy-, process- or system-levels. Doing so, the information und communication techniques bring along restrictions, which need to be beard in mind at all levels.



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Principles of Business Engineering

Meta-Model of Business Engineering

Strategie

System

StrategischesGeschäftsfeld

Markt Marktleistungbeeinflusst

produziert /konsumiert

bietet an

Aufgabe Prozessbesteht

aus

Leistung

Funktion Applikationführt aus

Datensammlunggreift zu auf

IT-Komponente

läuft auf

strategy

process

system

business unitmarket market serviceaffects

can be

produces / requires

uses

offers

task processconsists of

service

function

supports

applicationcarries out

data poolaccesses

IT-components

uses

resultwhat?

activitywhereby?

roleswho?

techniquehow?

stakeholderfor whom?

Meta-model

prob

lem

-au

tono

mou

spr

oble

m-s

peci

fic

concretion

Notes:

Basic principles of the Method Engineering help making projects more stringent. The figure above shows the meta-model of Business Engineering. It contains essential objects and their connections.

Business Engineering acts on the assumption of the problem-independent meta-model, which then is specifically being adapted to the problem. Methods consist of five elements: meta-model, results, techniques, activities and roles.

The question of Stakeholder Value come to the foreground at the same time, which is a criterion for a business solution. On the strategy-level business logic defines factors for success, which are to be consulted on all levels for measurement of the project- and business-successes. An important part of this is the consideration of cost effectiveness, for example in form of Return on Investment (ROI).



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Stages of a change project

cultural changeat a minority

denial

obligation/ support

creativity

return

taking the challenge

pressure to change

moral

timecrisis / disorientation

1 32 54

prelude: getting into the process

Roll-Out: empowering the system-

process of steadiness: obtaining the monumentum

consolidation: finding back to a steady state

1 32 54

activity niveau

de-stabilization

time

stabilization3-5 years

sentitization: preparing the change

-

effort

time

Notes:

At the changeover from one epoch to the other fundamental alteration occurs. Withal the intensities of the activities and the moral within a company act differently.

Five stages, which cause different activities, can be distinguished in the design of change. The entire cycle describes a perennial process:

Sensitization: An early cultural change among a minority, which considers its own form of management as not contemporary, initiates the process. At first stakeholders are identified and a gross concept is developed.

Prelude: The change process is being discussed and the adequacy is justified. A climate of priority is created and the organization of change is established.

Roll-Out: First euphoria has faded, rejection comes up and requires an active debate. It is aimed at bundling energies to realize the change. The determination to the intention needs to be demonstrated and the employees concerned need to adapt the change and become an active part of it („issue ownership“).

Process of steadiness: At first, laborious success must not be wasted, but needs to be saved sustain ably and its cultural consolidation needs to be pushed. As moral is on a low it needs to be forced to change by the highest effort. Due to a multitude of parallel projects the change has to be sustained by several key personalities. It is shown, whether the change has been successful or not.

Consolidation: The process needs to be entirely concluded, experiences need to be evaluated and the organization of the project needs to be dissolved. Everyday life arises from the special program.



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Controlling of realization

audit BalancedScorecard

financial controlling

concept realization result

managementwork

feedback

tproject

Bild 19

Notes:

Often the consistence of implementation is crucial for success or failure of an IT-introduction. In many cases only a small part of all possible potentials is achieved with the start of the new IT-solution. It is not until a continuous optimization of the new processes and the new systems that an IT-solution unfolds its complete range of possibilities.

Blind activism harms the project. Therefore the management needs to concentrate on goals with the highest benefit and must fully activate its employees. In order to realize this, goals need to be set consequently and lastingly realized in a sustainable way.

This can be achieved by appropriate methods within the different stages of a project:

Methods of resolution for the given tasks are rated in an audit by the management. A solution is selected and the appropriate realization is initiated.

A Balanced Scorecard helps tracking the course of realization (cp. PM I lecture 1). It even helps tracking down the strategy and goals to single areas and employees. In terms of selected key figures and corresponding methods each employee is pointed up his role in and contributions to the process of realization with individual aims.

By means of the controlling of finance values (cp. PM I, lecture 1) the prosperousness of the IT-project for the company can be judged retroactively.



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Gliederung






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Overview of the different procedures for the software selection

Functionsorientedselection

Process orientedselection

Strategyorientedselection

Provider orientedselection

Benefit orientedselection

Limitedselection

Internalselection

„Irrational“selection

-+ A B

Notes:



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Procedure of 3PhaseConcept

The 3PhaseConcept combines the advantages of the different procedures throughindividual configuration and emphasis.

PhaseConcept

Functionsorientedselection

Processorientedselection

Strategyorientedselection

Provider orientedselection

Benefit orientedselection

Limitedselection

Internalselection

„Irrational“selection

-+ A B

Notes:



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The 3PhaseConcept for ERP-/PPS-Software-selection

©FI

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20

Project InitiationProcess and Structure AnalysisProcess and Structure Optimisation

1.11.21.3

Pre SelectionFinal Selection Final Contract Negotiation

2.12.22.3

Realisation PreparationsSystem Implementation Setting System into Service

3.13.23.3

Re-Organisation

System Selection

Realisation

Notes:



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Example for Business-Process-Modelling

Erstellung derArbeitsplan-

konzepte

AV- Arbeitsplankonzept

mit Auftragsdatenund Fertigungszeiten

22

20

EDV-Erfassung derArbeitsplan-

konzepte

FS- Laufkarte

(Arbeitsplänemit Materialdatenund Terminen)

- Lohnscheine- Rückmeldescheine

- Strukturplan (aus TP)

Zusammenführung der Zeichnungen

und Arbeitspapiere

FS

- Zeichnungen- Laufkarte (immer an der

Zeichnung/Werkstück)(Arbeitsplänemit Materialdatenund Terminen)

- Terminkarte (Kopie der Laufkarte; Verbleibin der Meisterei)

- Lohnscheine- Rückmeldescheine

- Hängeordner fürdie Fertigung(Terminkarte, Lohn-scheine, Rückmelde-scheine, Laufkartemit Zeichnung)

Fehlende zeitliche Abhängigkeitzwischen den Arbeitsplänen

AV

Kalkulationsdateneingehalten?

21

- Kalkulationsdaten

Ggf. Korrektur derStücklisten und

Zeichnung

AV, KS- Geänderte Stückliste

an EDV- Geänderte Zeichnung

- Stücklisten- Zeichnung

ja

nein

Laufkarte in Neuenkirchengleich Entnahmekarte

WT: ReferenzierungBaugruppenliste zu

Kurz-LV fehlt teilweise

2 - 6Wo.

DLZ Output EDVBemerkung InputThroughput-

time

Nescad

Dakoda

InformationFlow

IT-Support

Weeknesses

Department

Task

additionalinformation

Manuelle Erstellungder Arbeitsplankonzepte

- Erstellung der komplettenFertigungsunterlagen fürden Vorrichtungsbau(Rheine)

Fehlende Kopplung mit dem Strukturplan

Fehlende Prüfung aufvollständige Vorgaben

Guter Zugriffauf archivierteArbeitspläne

Arbeitstechnische Opti-mierung der Stücklisteund Zeichnung zu spät

Notes:

The analyses of processes and information flows is the starting point in the reorganisation phase. Theuse of modelling software is recommended (e.g. Visio, Bonapart, ARIS or Powerpoint).

Cross-departmental processes should also be taken into account. In the example, first the involvedorganisational units as well as the process steps are documented.

In parallel, weak points and lead times are analysed. Subsequently,improvement measures can bedetermined.



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22


1.11.21.3


2.12.22.3


3.13.23.3

Re-Organisation

System Selection

Realisation

Notes:



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Analysis and Evaluation of the ERP-Market

Control

Periodical testing of the collected dataon site by FIR-engineersPeriodical testing of the collected dataon site by FIR-engineers

Quarterly conducted marketresearch to collect generaldata from 230 ERP-System suppliers

Quarterly conducted marketresearch to collect generaldata from 230 ERP-System suppliers Evaluation of the grade of

functionality of ERP-SystemsEvaluation of the grade offunctionality of ERP-Systems

Validation Completeness

Data Collection Data Usage

Actuality Indepen-dency

TROVARIT AG:

Technology-Provider

TROVARIT AG:TROVARIT AG:

Technology-Provider

ITIT--MatchmakerMatchmaker

Notes:

The market for ERP systems is observed and analyzed for over 20 years by FIR. Since May 2000, market survey is published by the IT Matchmaker (www.it matchmaker.com) the Trovarit AG, a spin off of the FIR.

The IT Matchmaker is an internet platform which supports an online, web-based selection of enterprise software solutions (e.g. ERP systems).

Up to 1.500 respectively 2,200 characteristics are seized in a standard catalog for each system. The processes of data acquisition, control/data examination as well as data use are arranged in such a manner that the topicality, the validity and the completeness of the collected data are ensured.



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Scope of ERP Systems – Overview of Functionalities

Organisational Structure Bill of Materiall Resource Mgt. Order ProcessingProduction Planning Purchasing Inventory Mgt. Controlling

Fulfi

llmen

t

0

200

400

600

800

1000

1200

1400

1600

100% 1 4 13 25 28 37 34 49 31 43 61 67 73 79Systems (anonymous)

Source: www.it-matchmaker.com, 11/2002

23

Notes:

Depicted is a standard evaluation done with the IT-Matchmaker (ranking).



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Efficient Software Selection Through a Ranking Procedure

Produkt- und Produktstrukturverwaltung+Allgemeine Fragen0Materialstammverwaltung0Stücklistenverwaltung+Identifizierung/ Klassifizierung++

Arbeitsplanung+Arbeitsplanverwaltung++Ressourcenverwaltung+

Auftragskoordination++Angebotsbearbeitung+Auftragsklärung+Auftragsgrobterminierung++Auftragsführung++Preisfindung0Versand+Retouren-Servicemanagement++

Kapitel

Unter-kapitel

Kapitel

Unter-kapitel

KapitelUnter-kapitel

VeryImportant Important Not so

important

270 442 0

Kritische Merkmale

Critical

34

Weighting of chapters of the criteria catalogue

++ + 0 - - -

3,0 1,5 -1 0,5

82,2

83,1

84,0

84,3

84,6

85,8

86,1

90,6

92,6

95,0

0 10 20 30 40 50 60 70 80 90 100

m

S

S

5

S

A

S

1

2

3

Narrowing down the selection to 3 preferred systems!

24

Notes:

The characteristics that are collected in the standard catalog can be assigned individual chapters and subchpaters depending on the topic.

The weighting of the importance of individual characteristics, sub chapter or chapters leads to a rankingof systems subscibed to the IT Matchmaker.



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Future Trends -System Functionalities in ERP-Systems

FutureTrendsE-Business-

Functionalities

Web-Shop, Content managementSpare part ordering and associated services via Inter-Front-end...

Mapping of ComplexOrganisation Structures

Item Data Management in Multi-Site Production CompaniesMaterials Management in Multi-Site Production CompaniesSales Planning in Decentralised Sales Organisations...

Advanced Planning & Scheduling (APS)-Functionality

Constraint-based Delivery Date Calculation (Available to Promise)Simultaneous Production Planning in Real-Time...

Workflow undEvent Control

Workflow Support for indirect Departments (e.g. Engineering)Integration of E-Mail in the Workflow...

Notes:

The increasing requirements on the part of the enterprises regarding the optimization of the enterprise-internal and external business processes led to new trends with ERP systems.

The illustration of complex organisational structures supports the job execution over several production sites, up to complex distribution structures. APS (Advanced Planning) functionalities improve current, MRP–based ERP systems.

A Workflow possible and an event support makes the inclusion and co-ordination of all coworkers concerned by a business transaction within shortest time.

E-Business-functionalities make an efficient completion possible of business processes including the Internets as communication medium.



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Decision Support: Current Types of Standard-ERP-Systems

Incr

ease

of

inst

alla

tions

Product life cycle

techno-logicalinnovation

functional features

B

C

A

Features : systems with a balanced ratio of technical innovation andextensive functionality

Type of choice : balanced ratio ofsecurity, risk and potential

Features : extensive functionality on cost of technological innovation

Type of choice : high security at lowpotential

B

C

Features : high grade of innovative systemswith limited functionality

Type of choice : high risk and highpotential

A

= System n time

B CA

relevant area of selection

Notes:



Lecture 12

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IT consultancies and Sales partners – Additional Dimension to ERP Selection and Implementation

ERP Systems(approx. 100 Standard-ERP-Systems on the

German market)

IT consultancy(approx 5000 different IT consultanciesand Sales partners for ERP systems)

Industry

Examples: ERP Software Providers and number of IT consultancies

SAP: approx. 100 (only Germany)ABAS: 27 (Europe)

NAVISION: 97 (only Germany)

27

Notes

In the context of a selective procedure not only the software providers have to be considered, but additionally a multiplicity of associated system implementation partners or IT consultancies. The IT consultancies differ e.g. by a different industry experience, by different pre-setting of the ERP system (pre-customized).



Lecture 12

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Summary – Selection Criteria in ERP-Projects

Focus

„System“

Focus

„System Vendor“

Performance-based Selection Criteria

Strategic Selection Criteria

Implementation Concept

Quality and Availability of Professional Consultants

Quality und Responsiveness of Support

...

Market Position and Stability of System Vendor

Management Board of the System Vendor

R&D PotentialStrategy of the System Vendor (e.g. Industry focus)...

Match of “System Philosophy” and Corporate PhilosophyModernity of System TechnologySystem Flexibility Previous System Implementations with other Clients...

Aachen Model of PPC

Notes:



Lecture 12

Page 30© WZL/FIR


©FI

R20

05w

ww

.fir.d

e

30


1.11.21.3


2.12.22.3


3.13.23.3

Re-Organisation

System Selection

Realisation

Notes:



Lecture 12

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2-Day Workshops with Software Providers (System Demonstration)

Create Checklist- Requirements, Questions- Sample Data

„Script“ for the Test

Grade Significance Characteristic

The system offers a better solution to the requirement as expected.

The requirement posed is fully fulfilled. Functionality is suitable

The fulfilment of the requirements is acceptable. However weaknesses exist

The requirement posed is fulfilled insufficient. Crucial points of the requirement can be not sufficiently covered by the system.

The requirement posed is not fulfilled. The system does not offer any support

1

2

3

4

5

The system fulfills demanded functionality in the standard

The system will offer functionality at the time of the introduction in the standard.

Functionality can be covered after slight adjustment

Functionality can be provided, however major programmingrequired

A system adjustment to the requirements is not possible

A

B

C

D

E

Graded by User Company Graded by Software Vendor

30

Grade

Notes:At the beginning of the test, an agenda is established containing some introductory information.

The agenda for the system test is organized around two parts:

1) Total „screenplay“/“script“

This includes the core processes e.g. from purchasing, production to sales. For each core process the company or team evaluates:

• Which information must be available in the system?

• How many graphical user interfaces have to be called in order to obtain the necessary information?

• which information must be entered into the system, e.g. selection lists, plausibility checks, assistance during the input etc.,

2) Individual „screenplay“/“script“

This part includes specific and detailed requirements and questions that have to be answered in the system test.

A final section contains question about previous experiences of the software provider in implementation projects or necessary adjustments of the software.



Lecture 12

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Evaluation of the Final Selection

insufficient

System test

ABCD

StandardAt Implementation Standard1/2 MD Programmingx MD Programming

Functional Spectrum (What?)Su

pplie

r1234

outstandinggoodsatisfactorysufficient

Performance (How?)

Proj

ectte

am

1

2

3

2

3

Consultancy

Programming

1

2

3

XX

X

XA B C D Approvement of fulfilment

of Requirements 500,- 1000,- 1500,-

500,- 1000,- 1500,-Critical Requirements

Preparation EvaluationProcess optimisationBAPSY-Preselection

++ - Criteria

TestdataCompany data

Test guideOverall test guideSpecific test guide

Functional Spectrumbefore after Programming

1 2 3

One-time/on-going costs

1 2 3 1 2 3

Daily Rate 1

System System

costs costs

System

Fulfilment

IndividualRequirements

TOP-Systems1

2 3

5

Notes:

The system test offers the project members the possibility of grading the ERP system according to theirrequirements. These requirements are demonstrated during the system test by the software provider.

The evaluation follows a uniform evaluation guideline (see also previous slide).

The total ranks of the systems are determined by taking into consideration different criteria, i.e. functionality, cost, ease of use etc.

The results of the system test are consolidated in a requirement specification document, which forms thebasis for contract negotiations with the software provider.



Lecture 12

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Adjustment of / Fine-Tuning ERP Systems

Standard SoftwareStandard Software Means of AdjustmentMeans of Adjustment AreaArea

Parametrization • System Parameters

Modularisation • Functional Building Blocks, e.g. Sales, Purchasing, Production

List and Report Generator • Lists, Reports

Maskengenerator • Adjustment of Graphical User Interfaces (GUI)

Rule Based Heuristics • Product Configuration• Material Requirements Planning

Code Generator • Program Development

35

Notes:



Lecture 12

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Summary and ConclusionThe market situation for ERP systems is characterized by a large heterogeneity. More than 150 standard ERP systems exist in Germany

Differences in software functionality are significant

Not only the right system, but the also the adequate implementation partner is a criteria in the selection process

– In Germany, around 5.000 of these implementation partners exist!

Internet platforms can support the software selection process

Particularly private platforms offer the possibility also to streamline the selection process by providing a standard workflow and standardized communication between potential customers and software providers



Lecture 12

Questions:• What are the central elements to be taken into account in a it-system

selection process?

• Who should be involved in a software system selection process?

• Which points should be clarified before a ERP-system selection?



Lecture 12

Bibliography:

Martin, R; Lempp, P.; Mauterer, H.: Wie Software wirklich Nutzen bringt. Harvard Business Manager, Juni 2003, S. 71ff

Müller-Stewens, G.; Lechner, C.: Strategisches Management. Stuttgart: Schäffer-Poeschel Verlag , 2. Auflage, 2003

Österle, H.; Winter, R.: Business Engineering. Berlin: Springer Verlag , 2000

Österle, H.: Business Engineering – Prozeß- und Systementwicklung. Berlin: Springer Verlag, 1995

VDI-Gem.ausschuß CIM: CIM-Management. Rechnerintegrierte Konstruktion und Produktion Band 1. Düsseldorf: VDI-Verlag, 1990

VDI-Gem.ausschuß CIM: Kommunikation und Datenbanktechnik. Rechnerintegrierte Konstruktion und Produktion Band 6. Düsseldorf: VDI-Verlag, 1991

Laboratory for Machine Tools and Production Engineering · L9 06.07.2009 Mr. Rauhut 0241 80 28206...

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Transcript of Laboratory for Machine Tools and Production Engineering · L9 06.07.2009 Mr. Rauhut 0241 80 28206...