Enterprise Resource Planning (ERP)

orangesvetElectronics - Devices

Nov 8, 2013 (3 years and 7 months ago)

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BCIS 485

College of Business

New Mexico State University

Enterprise Resource Planning (ERP)

Enterprise Systems (ES)

ERP


Business functions


Accounting/Finance


Human Resources


Sales/Marketing


Supply Chain Management


Procurement


Production


Distribution


Business processes


Forecasting demand/planning


Procurement


Production


Sales order processing


Integration


An ERP system you have used: Banner

IT & ERP


History of information technology (IT) and its impact on the
development of ERP systems


Some engineers for IBM started SAP in the early 1970s.


They didn’t have a computer. They used their client’s
mainframe

to begin developing software.


1983: The company I worked for rented mainframe
processing time. One PC was used by two departments:
transportation and marketing. Computer
-
generated reports
were distributed weekly and monthly. No one had a
computer on his/her desk, only a terminal linked to a
mainframe computer (which would fill this room).


Computer hardware has gotten cheaper and more powerful
every year since the 1950s but it wasn’t until the early
1990s that IT could provide the processing and storage
capacity an ERP system needs.


Database management systems have also evolved since the
1970s.

MRP & MRP II


Manufacturers invested a lot of money in
developing software to help handle the
complexities of
material requirements
planning

(
MRP
)
and to integrate
different
production activities.


Before a company can produce a product it must
procure the raw materials for manufacturing this
product.


MRP takes into consideration raw materials already
on hand and what is planned for production then
generates a list of materials required (what needs to
be purchased and when).


MRP II
added production planning and
scheduling.

Timeline of software development

ERP took integration further


ERP took the integration concept further.


Data is stored in a central database that enables
each functional area to work with current, up
-
to
-
date data.


Historically, business functional areas tend to be
isolated; sometimes referred to as
functional
silos
. People sometimes take action without
being aware of the impact on other parts of the
business. ERP enables information to flow
between fucntional areas, providing
horizontal
integration
.


Benefits of information integration


Lack of integration creates problems


Inefficiencies


Time spent trying to get information


Time spent storing duplicate data


Inconsistent data


Keeping the same data in more than one location
makes data accuracy more difficult


Inability to access data in a timely manner

Integration across functional areas

Accounting
/Finance

Sales/

Marketing

Supply
Chain

Mgt

Human
Resources


Information is centralized and available to
each functional area.

Information System/Central Database

CUSTOMERS

VENDORS

Business functions within functional
areas


Sales & Marketing


Sales/Marketing


Market products


Take sales orders


Customer relationship management


Sales forecasting


Advertising

Business functions within functional
areas


Supply Chain Management


Supply Chain Management


Purchase goods and raw materials


Receive goods and raw materials


Logistics (moving products and raw materials)


Production scheduling


Manufacture


Plant maintenance

Business functions within functional
areas


Accounting & Finance


Accounting/Finance


Financial accounting


Cost allocation and control


Planning and budgeting


Cash flow management


Financial analysis

Business functions within functional
areas


Human Resources


Human Resources


Recruit and hire


Training


Payroll


Benefits


Government/regulation compliance

ERP


Data input/output

ERP Implementation


Business process re
-
egineering


This can be an opportunity to change processes
and become more efficient.


This can create tension and resistance from
employees.


Good change management is necessary.


SAP’s best practices approach


Though there are hundreds of customization
settings in SAP, this is different from what
“customization” has typically meant to software
companies.


SAP modules built on “best of breed” practices.


Client/server architecture

Videos about ERP and SAP


Introduction to ERP & SAP


http://www.youtube.com/watch?v=EO2Df1p_tcw



Introduction to SAP


http://www.youtube.com/watch?v=I1fAcjEIEEM&p=1A70F57584
733F6C&playnext=1&index=30



SAP Business One (ERP for small to medium
-
size
companies)


http://www.youtube.com/watch?v=zE9tmAcDaH4



Tips for selecting ERP software for a business


http://www.youtube.com/watch?v=BCucG
-
1jUBY