Minggu, 21 Juni 2009
M0254 - ERP (Enterprise Resources Planning)
Session 9 - ERP Implementation
ERP Solution Components
ERP Implementation Involves
- Project Planning
- Business & Operational Analysis, including Gap Analysis
- Business Process Re-engineering (BPR)
- Installation & Configuration
- Project Team Training
- Business Requirements Mapping to Software
- Module Configuration
- System Modification and Interfaces
- Data Conversion
- Custom Documentation
- End User Training
- Conference Room Pilot
- Acceptance Testing
- Production
- Post-Implementation Audit/Support
- Commitment from Management
- Form a task force with personnel from all functional Areas
- Take care of Hardware requirements
- Step-by-step rather than big-bang introduction
- Be patient, ERP implementation takes Time
- Do not start without Management commitment
- Allocate sufficient funds
- Identify Core Project Team
- Select specialists from all functional areas
- Evaluate and select ERP package
- Evaluate Implementation Partner
- Make an Implementation Plan
- Present plan to Management Committee for sanctions
- Present plan to Employee groups for feedback/acceptability
- Plan for User Training
- Plan for Future upgrades
Manage It...
Prime Contractor Project Management
Detailed Project planning and Tracking
Communications Plan
Subcontractor management
Project Scope Control
Financial Control
Project Oversight and Quality Assurance Reviews
Change It...
Change Mgment
Business Vision and Goals
Process Analysis
Package Select .
Business Case
Bus. Process Reengineering
Industry Best Practices
As Is /To Be Process Modeling
Fit-Gap Analysis
Policy Design and Procedure Dev.
Readiness Assessment
Organizational Design
Communications Plan
Implement It...
Package Integration (SAP,PeopleSoft, JDE, Oracle...)
Software Environment Builds
Enterprise-wide Infrastructure Planning/Design & Roll-out
Interfaces and Conversions
Data Warehouse Integration
E-Business
Business Intelligence
Networking
Design
Implementation
Tuning
Operate It..
Data Center Operations
Application Development & Maintenance
Network Station Management
Network Operations & Support
Service It.. .
Platforms & Technology Services
Installation/ Customization & Maintenance
Performance and Tuning
Software Services
Planning/Design/ Install
Migration Management
Problem Mgmt.
Systems Mgmt.
Internet Enablement
Web Site Design
Help Desk
Disaster Recovery
Business Resumption Services
Teach It..
Training Needs Assessment
Custom Curriculum and Material Development
CBT Development
End User Training Classes
Train-the-Trainers
Roll-out of Training
- It is important to recognize all of the different kinds of activities it takes to implement an ERP solution.
This is a bit of an "eye chart" but it makes the point that this is a complex undertaking. The State needs to make sure it understands how its resources will need to participate in these activities and what type of support you will need from your selected vendor for these areas. You should make sure your selected prime contractor can address all of these areas.
Everyone focuses on the technical tasks but the management, business transformation, and training activities are equally important.
Some customers will include "operate it" as an outsourced or network application solution. Others won't want this option.
All of the other categories must be part of an ERP implementation. We're going to talk in more detail about 3 of these areas.
Define Requirements
- Determine the hardware required.
- Analyze the existing Processes.
- Fine tune the processes to be in line with those of ERP defined.
- Analyze effect of system changes.
- Prototype and present.
- Refine the prototype & freeze the specifications.
ERP Consultants
How does a consultant steer a client through an ERP implementation?
Identify what you want improved, set goals, and calculate benefit
Define standard procedures
Plan for rollout far before it happens
Set milestones
Train everyone
Don’t forget your customers
Re-engineering - a part life with ERP
Re-engineer process before going for ERP
Re-engineer during implementation of ERP
Re-engineer after implementing ERP
Continuous re-engineering through ERP
ERP without Re-engineering
Advantages
No visible changes in Functionality
Users find it more acceptable
Can be completed within time frame.
Cost can be with in your control
Impact on Organization will be moderate
Disadvantages
Best Business practices would have been ignored
Stability of the system is known only in long run
May not achieve Corporate wide systems integration
New technologies have to be studied your self
Some functionality may be lost
Re-Engineering
Study the current system & Processes
Design and develop new systems
Define Process, organization structure, procedures
Develop/Customize the software
Train people
Implement new system
Business Process Re-Engineering (BPR)
In-depth study of existing systems/processes is required before ERP is considered.
This study brings out deficiencies of the existing system/process.
This study is called BPR.
BPR attempts to re-structure and re-organize the human resources, functional areas, Man-Machine interfaces in the organization.
Hence BPR attempts to maximize productivity.
M0254 - ERP (Enterprise Resources Planning)
Session 8 - ERP Modules
Essence of ERP
Record day-to-day transactions of running a business and provide near real-time access to information in a consistent manner throughout the organization
Big picture
Enterprise Resource Planning Systems
ERP System includes
- Single integrated software program.
- Single database.
- Information shared and communicated.
- Automates customer orders, order fulfillment, billing, shipping, etc.
- Tracking
Subsystems of ERP
- Logistics
- Bill Of Materials
- Sales & Marketing
- Master Scheduling
- Materials Requirement Planning
- Capacity Requirements Planning
- Purchasing
- Shop Floor Control
- Accounts Payable/Receivable
- HR
Cross-Functional Nature of the Order Management Process
Cross-Functional Nature of the Order Management Process
Cross-Functional Nature of the Order Management Process
Major Players
SAP - The Company
- Founded in 1972 in Waldorf, Germany
- 4th largest software supplier in the world
- Revenues over $5 billion in 1998
- SAP growing over 40% a year
- 18,330 employees worldwide (9/98)
- 1997 market share was 31% of the worldwide client/server enterprise application software
- Over 9,000 installations at 6,000 companies with more than 2,500,000 users in over 50 countries
- An average of 25% of revenue invested in R&D
PeopleSoft - The Company
- Revenues over $1.3 billion in 1998
- 2nd largest ERP supplier in the world
- Growing over 60% a year
- 7,000 employees worldwide
- 2,900 clients worldwide
- 1997 market share was 8.4% of total ERP software license market
- HRMS
- Payroll, Benefits, Human Resources, Pension Administration, Time & Labor
- Accounting and Control
- General Ledger, Payables, Receivables, Asset Management, Projects, Budgets, Expenses, Cash Management
- Treasury Management
- Materials Management
- Supply Chain Planning
- Service Revenue Management
- Procurement
- Enterprise Performance Management
- Project Management
- Founded in 1977
- 2nd largest software supplier in the world
- Revenues over $8 billion in 1998
- 41,000 employees worldwide, 16,000 U.S.
- Reflects total company - not just applications business
- More than 6,000 customers in 76 countries
- 1997 ERP market share was 8.3% of total ERP license revenue
- 50% of applications revenue comes from services
- Oracle’s applications license revenue is growing at 18% a year; significantly less than its rivals.
Financials
- Planning (G/L, Analyzer)
- Analysis
- Consolidation
- Expenditure Management
- Billing and Cash Collection
- Cash Management
- Asset Management
- Strategic Procurement
- Non-production Procurement
- Strategic Souring
- Catalogue Management
Projects
- Costing
- Billing
- Time and Expense
- Activity Management Gateway
Human Resources
Materials Management
- Inventory
- Purchasing
Manufacturing
- Factory & Item Definition
- Planning & Simulation
- Materials Management
- Production
- Cost Management
- Integrated Technologies
modul FI didesign untuk manajemen otomatisasi dan report external dalam laporan umum ,akun receivable, accont payable, dan sub-ledger lainnya dengan chart acount yang didefinisikan user
Controlling (CO)
aplikasi modul yang mempresentasikan alur biaya perusahaan dan pendapatan
CO adalah instrument untuk keputusan perusahaan
Material management (MM)
aplikasi modul MM mensupport procurement dan inventory function dalam operasi bisnis hari kehari
Sales an ddistribution (SD)
Aplikasi modul membantu mempertajam semua kegiatan dan aktifitas termasuk sales ,pengiriman dan penagihan
Enterprise Systems or Enterprisewide Systems
- Systems or process that involve the entire enterprise.
- This is contrast with functional systems, which are confined to one department (functional area) each.
ERP – Enterprise Resources Planning
ERP comprised of a set of applications that automate routine back-end operations:
such as
- financial management
- inventory management
- Scheduling
- order fulfillment
- cost control
- accounts payable and receivable,
- POS
- Field Sales
- Service
ERP- The Evolotion
MRP
- Material Requirement Planning
- Focus on stock reduction
- Integration of logistic processes
- Focus on stock reduction, decrease in number of stock-out, and more control
Evolution of MRPII thanks to:
- better package coverage: multi-plant, quality, customer service, tracking, etc.
- technological development: client/server architecture , RDBMS
- Focus on customer services rather than inventories
- Pro-active approach looking for the best allocation of financial, production and distribution resources
- Pro-active resource allocation beyond the company’s boundaries: from enterprise to inter-enterprise
- cross-enterprise process automation
Evolution is Continuing
What Do We Mean by ERP II?
Functionality Evolution — The Cycle of Assimilation
M0254 - ERP (Enterprise Resources Planning)
Session 6 - Production and Operation Information System
Production and Materials Management
Planning
Need accurate forecasts from Marketing and Sales
Compare costs with Accounting
Learning Objectives
Describe steps in the production planning process of a high volume manufacturer like Fitter Snacker
Describe Fitter Snacker’s production and materials management problems
Describe how a structured process for production and materials management planning enhances efficiency and decision making
Describe how production planning data in an ERP system can be shared with suppliers to increase supply-chain efficiency
Production and Materials Management at Fitter Snacker
Must answer the following questions:
How much of each bar should be produced?
What quantities of raw materials should be ordered?
When should raw materials be ordered
General Approaches to Production
Make-to-stock: Items produced in anticipation of orders
Make-to-order: Items produced to meet specific customer orders
Assemble to order: Final product assembled from make-to-stock items
Fitter Snacker Manufacturing Process
Fitter Snacker Production Problems
Communications
Marketing does not share data with production (sales promotions and large, unexpected orders)
Inventory
True inventory status not known
No real-time data on actual sales
Accounting and Purchasing
Difficulty forecasting raw material and labor costs
Adjusting accounts for actual vs. standard costs time consuming and done infrequently
Production Planning Process
Work from sales forecast to create aggregate production plan
Break down aggregate plan into more specific plans
Use production plan to determine raw material requirements
ERP Approach to Production Planning
Sales and Operations Planning in ERP
Sales and Operations Planning
Sales and Operations Planning
Sales and Operations Planning
Demand Management
Demand Management
Calculation for Week 5
MRP
Bill of Material
MRP
MRP Record
MRP List in ERP
Stock Requirements List in ERP
Detailed Production Scheduling
Snack bar production line is bottleneck
Scheduling of production line is key to determining detailed production schedule
Detailed Production Scheduling
Length of production runs
Longer runs reduces cost of setups
Longer runs increase capacity utilization
Shorter runs reduces cost of inventory
Providing Production Data to Accounting
Production data does not get entered into an ERP system directly
Many methods of gathering shop floor data are available
ERP allows shop floor data to be collected once for production and accounting purposes, and data is consistent in both areas
ERP in Supply Chain Management
Supply Chain Management and ERP
ERP not required for Supply Chain Management (SCM)
ERP can facilitate sharing information in real time
Use of internet can reduce communication costs
Supply Chain Metrics
Total Supply Chain
Cash-to-cash cycle time: Time from paying for raw materials to the time when cash is collected from the customer
Total supply chain costs
Supply Chain Metrics
Buyer-Supplier
Initial fill rate
Initial-order lead-time
On-time performance
Chapter Summary
An ERP system can improve the efficiency of the production and purchasing processes. Efficiency begins with Marketing sharing sales forecasts with Production, which shares its production plans with Purchasing
Chapter Summary continued
Production planning can be done without an ERP system, but and ERP system allows production to be linked to Purchasing and Accounting. This data sharing increases a company’s overall efficiency
Chapter Summary continued
Companies are building on their ERP systems to practice supply chain management. In doing this, the company looks at itself as part of a large process that includes customers and suppliers. Using information more efficiently along the supply chain can significantly reduce costs.
M0254 - ERP (Enterprise Resources Planning)
Session 4
Financial and Accounting Information System
Accounting and Finance
Record transactions
Summarize data
Accounting Information Systems for Transaction Processing and Financial Reporting
Important Financial Management Systems
M0254 - ERP (Enterprise Resources Planning)
Session 5
Sales and Marketing Information System
Ir. Ekananta Manalif, MM, MKom (D2664)
Jurusan Sistem Informasi Universitas Bina Nusantara
Marketing and Sales
Determine pricing
Take customer orders
Create sales forecast
Learning Objectives
Describe the unintegrated sales processes of company (Fitter Snacker’s).
Explain why unintegrated Sales and Marketing information systems lead to company-wide inefficiency, higher costs, lost profits, and customer dissatisfaction
Discuss sales and distribution in ERP system, and explain how integrated data sharing increases company-wide efficiency
Describe the benefits of Customer Relationship Management software, a useful extension of ERP software
Marketing Personnel make decision on:
What products should we produce?
How much of each product should we produce?
How are our products best promoted and advertised?
How should our products be distributed?
What price should we charge?
Problems with Fitter Snacker’s Sales process:
Sources:
Three unintegrated systems
Sales Order System
Warehouse System
Accounting System
Manual handling of transactions
Information not available in “real time”
Fitter Snacker’s Sales Process
Sales Quotations and Orders
Sales call
Hand-written quote on 3 sheet form faxed to sales office
Customer calls 800 number to place order
Sales Quotations and Orders Problems
Salesperson error in preparing quote manually
Customer call reaches sales office before faxed quote
Faxed copy is illegible
Delivery data requires call to warehouse
Warehouse provides delivery date estimate
Sales Quotations and Orders Problems
Initial credit check uses paper process
Credit check for established customers using accounting printout that may be a week old.
Warehouse/Order Filling
Packing lists/shipping labels manually sorted
Small order process and large order process
Inventory managed by Access database
Warehouse/Order Filling Problems
Picker may not report breaking case down for small order
Perishable product requires low inventories
Out of stock decision:
Partial shipment
Change production schedule
Wait until full order can be shipped
Accounting and Invoicing
Sales order data transferred by disk to PeachTree program 3 times per week
Clerks must make manual adjustments for partial shipments and other errors.
Invoices may not always match actual product shipped
Payment and Returns Problems
Customers don’t always include copy of invoice with payment
Invoice may not match payment-reconciliation required
Returned Material –Paper process, sometimes no RMA #
Improper “dunning” letters
Sales and Distribution with ERP
Sales and Distribution Process
Pre-Sales Activities
Inquiry or Quote (binding)
Marketing Activities
Tracking Contacts
Sales Calls
Visits
Mailings
Sales Order Processing
Activities required to record a sales order
Incorporate data from inquiry or quote
Automated Pricing and Discounting
Automate Credit Check
Inventory Sourcing
Check of inventory, orders and production to see if order can be delivered when customer desires
Includes shipping and considers weekends/holidays
Delivery
Releasing documents to warehouse to initiate pick, pack and ship
Sequenced and grouped for warehouse operation efficiency
Materials Management module carries out picking, packing and shipping
Billing
Sales order data copied to invoice
Can be printed and mailed, faxed or transmitted electronically
Accounting records updated
Payment
Payment may be physical check or electronic
Cash debited and customer account credited
Quick processing avoids credit check problems
Sales Order Entry in ERP
Master Data
Master data is stored in a central database that is accessed by all modules
Customer Master Data and Material Master Data are primary data sources for Sales Order Processing
Organizational Structures
Organizational structures allow the ERP system to control the sales order process – pricing, minimum orders, etc.
Distribution Channel defines the way that materials move between the company and customers
Wholesale Distribution Channel
Direct Sales Channel
Document Flow in ERP
Document Flow
Sales order process creates numerous documents
Sales Order - Invoice
Delivery - Payment
Goods Issue - RMA
Document Flow links all documents related to a sales order
Discounts in ERP System
Discount Pricing in ERP
ERP system can be accommodate various discounting schemes
Calculates correct discount based on customer and material
Integration of Sales and Accounting
Sales order processing transactions make appropriate accounting entries at time of transaction-automatically
Customer Relationship Management (CRM)
ERP provides means to manage all data relating to a customer to improve the quality of the interaction
CRM Activities include:
One-to-One Marketing
Sales Force Automation
Sales Campaign Management
Marketing Encyclopedias
Call Center Automation
CRM Benefits
Lower Costs due to better use of sales and marketing resources
Higher Revenue by improving the effectiveness of marketing efforts
Improved strategy and performance measurement by changing management and staff focus
Chapter Summary
Fitter Snacker’s unintegrated information systems lead to inefficiencies and reduced customer satisfaction
An ERP system like SAP’s R/3 views sales as a process, providing timely, accurate data and automating error-prone tasks
Chapter Summary
Configuration decisions must be made during installation to match the company’s practices and policies
The ERP system’s central database maintains master data used by all areas of the company
CRM software builds on ERP data to improve marketing effectiveness
M0254 - ERP (Enterprise Resources Planning)
Session 3 – Information System Structure (OFC)
IS Framework for Business
Data versus Information: Data
Data versus Information Information
Information versus Knowledge
IS for Management Decisions
