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ERP SIS Lori Martel Ramkin Shetty Hahn Shin Dinesh Sekar.

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Presentation on theme: "ERP SIS Lori Martel Ramkin Shetty Hahn Shin Dinesh Sekar."— Presentation transcript:

1 ERP SIS Lori Martel Ramkin Shetty Hahn Shin Dinesh Sekar

2 ERP SIS Table of Contents Introduction Organizational & Technological Change Business Engineering Vs. Business Process Re-engineering Definition & ERP’s role in the Supply Chain Business Aspects ERP: Vendors, Comparison, Characteristics of ERP, Applications and Advantages SAP R/3 Constraints: Business &Technical Technical Aspects Layer Architecture Application Architecture Customization Industry Example: Quantum Look into the Future

3 ERP SIS Introduction Growing Competition Decreasing Innovation Cycles Market Globalization need for flexible, integrated, and open software Relationship Based Transactions Different Manufacturing Environments

4 ERP SIS Introduction Changes in Structure –Functional Vs. Process Based Structure Value Chain Thinking Personnel Product Development Marketing & Sales Production Order Processing Product Development Customer Service

5 ERP SIS Introduction 70’s Standard Software, Mainframe Systems –Separate Applications for business functions 90’s Technological Trends –Client/Server Computing –Innovative process integrated business solutions –Open Systems –Increasing computing speed, GUI’s –Faster Data processing –Data Integration

6 ERP SIS Introduction BPR BE Use of Prototyping/Modeling - Building Systems around Business Automating Business Processes through IT Use of Blueprinting - Designing & Integrating Business Processes IT used as a Strategic Tool

7 ERP SIS - ERP is a software package integrating organizational business processes & data across the company ERP SIS Definition Modeling all the processes Integrating all the information Strategic use of IT Integrated views Quality, Cost, Delivery Effective use of resources EIS DSS TPS MIS OA

8 ERP SIS ERP Extended Supply Chain Management Internal Supply Chain Management Coordinated Manufacturing Plant Management MRP Role in Supply Chain Supply Planning Scheduling Demand Planning Logistics Internal Suppliers Internal Customers External Suppliers External Customers

9 ERP SIS Business Aspects

10 ERP SIS Business Aspects Functionality Technology * Oracle J.D. Edwards * Low High * R/3 * CA ReinforceReview RemainRebuild * Baan * Peoplesoft

11 ERP SIS Characteristics NOT Multiple Packages Pieced together through Complex Interfaces Modeling Business Processes and Integrating through Software Configuration - 8,000 Tables set up by Programmers Series of Switches Requires Deep Understanding of Existing Business Processes

12 ERP SIS Business Aspects Aerospace & Defense Automotive Chemicals Consumer Products Financial Services Healthcare High-Tech & Electronics Oil & Gas Pharmaceuticals Retail Telecommunications Utilities

13 ERP SIS Business Aspects Largest vendor of standard business application R/3: Real-Time Version 3.0 Client/Server enterprise application software 6,000 companies, 50 countries Companies in diverse businesses 30 seats or installations with 3,000 end users 800 predefined business processes

14 ERP SIS Business Aspects Business Components Business Objects Business Information Warehouse Business Engineer Integration Technologies (ALE) - Finance, HR, Logistics - Customer, Invoice - Aggregate Internal & External Data - Customization Tool

15 ERP SIS Business Aspects Reference Model Data Model Business Object Model Organization Model Process Model Distribution Model Event Driven Process Chain (EPC) Event Function/Task Organization Communication - Repository Holds the Reference Model, Industry Specific Models & Enterprise Models

16 ERP SIS Business Aspects Fast Flexibility Open Industry Specific Expandable

17 ERP SIS Synchronous Transfer of Data Encourages Multi-Disciplined Teamwork Reduces Redundant Labor Provides Standard Based Development Environment Process Engineering Cost Benefits Flattens Organizations to Increase Agility Allows Companies to Adapt to New Business Opportunities Business Aspects

18 ERP SIS Business Aspects Every $1 Spent in Software Licenses - $8 - $10 Spent on Consulting Support Outside Consulting Fees can cost $1500/day Requires Equipping employees with new skill sets Hard to Keep Resources Changing Business Processes to suit ERP/ can Effect the Organization’s Culture Very Expensive Can NOT Impose ERP Infrastructure on Company

19 ERP SIS Lack of Flexibility Complexity & Rigidity High Implementation Time Difficult in Decentralized Environments Difficult Interfaces Steep Learning Curve Business Aspects

20 ERP SIS Technical Aspects Layer Architecture - Issues: Scalability, Portability, Interoperability & openness, Customizability, GUI, etc. Middleware Development workbench Applications Dictionary Program editor Interface builder Modeling tools Repository System software: GUI, DBMS, OS, N/W Application Layer Basis Layer

21 ERP SIS Technical Aspects Application Architecture - Issues: 1. Independent from all types of computers(UNIX, Window NT, AS/400, etc.), DBMS(Informix Online, Oracle 7, ADABAS, DB2, MS SQL Server 6.0, etc.), GUI flatform(OS/2 Presentation Mgr.., OSF/Motif, Macintosh, Windows, etc) 2. Independent from the country specific rules, languages, etc. IS SDCOAM MM PPHRMPS WFFI QMPMDW System model Business model Scope, Rules & Pattern Business Kernel Full Business Specific Situation DM FMWFM Repository

22 ERP SIS Technical Aspects Customization: Support of initial implementation projects, follow-up projects, and release-change projects - Issues: Integrated customizing functions, quality assurance, etc. Implementation environment Procedure model Reference model: FM, PM, DM, IFM, OM, Comm. Model, Distr. Model Implementation guides Customized model DocumentationRelease management

23 ERP SIS Industry Examples Objectives –Available-to-Promise (ATP), the real-time capability to take an order, schedule it to be delivered anywhere in the world and confirm delivery instantly –Ability to determine what was actually in inventory or in production and how much of it had been promised to other customers

24 ERP SIS Industry Examples Scope –Based on the full suite of Oracle Corp.'s manufacturing and operations applications –750 users in 25 locations worldwide –To adopt Big-bang approach One of the largest distributed business systems to go live worldwide at one time –HP9000 hardware, HP UX operating system (10.1) and Oracle Release 10.4

25 ERP SIS Industry Examples Pre-Implementation Assessment –Legacy system-based MRP system in use –Each division's business transactions in separate databases by business unit, and by function within a unit –Databases couldn't share information

26 ERP SIS Industry Examples Project Planning & Control –Project team members pulled from regular jobs & relocated to “Building 12” –“Building 12” essentially set up a scaled-down business model of Quantum –Team members play-acted their real-life roles –Improved business processes and wrote requirements for the new system

27 ERP SIS Industry Examples Implementation Process –Packaged available applications & selected Oracle applications –Consultants from Price Waterhouse and Oracle, installed the software & began pilot projects –Complexity and magnitude of the project quadrupled (Digital Disk drive division acquisition) –Conference room pilots tests

28 ERP SIS Industry Examples Human (HR) Side –Locally trained about 100 users from all over the world and flew them into Milpitas to run a full-scale system simulation –Sponsored massive user training - users had to pass a test before returning to their jobs –Ran Internal PR campaign- Entailed group meetings, presentations,an intranet site and events emphasizing system's importance

29 ERP SIS Industry Examples Project Statistics –October May 1996 –16 full time managers –100 person multidisciplinary team –1,632 meetings –79 shouting matches –800GB of disk space –18,064 miles of cable –300,000 cups of coffee –58,000 s –7,503 cases of beer –1.62 million miles of air travel

30 ERP SIS Future Aspects Supply Chain Management Internet Enabled Workflow Management Resource Planning Data Warehousing Targeting Small & Medium Enterprises Addition of Simple GUI based development Tools Strategic Alliances - Andersen Consulting & SAP - IBM & J.D. Edwards - GE & Oracle Business Technology

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