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| integrated suite of info technology apps that support operations of an enterprise |
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| serves more than 1 function |
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| organized around processes |
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| ERP is built upon _______ |
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| ERP is sold in ______ so don't have to implement all at once |
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Manage Capital Projects
Manage Plant maintenance
Manage finance and acct
Manage Human resources
Manage logistics
Plan and manufacture products
procure materials and services
Perform order management |
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| End user, internal/external auditor, consultant, employees, developers |
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purchasing/shipping
acct/fina
HR |
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integration
effective business processes
standardization
eliminate info asymmetries
on-line and real time info
intra and inter organzation communication
less reliance on programmers |
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standardized way of business levels playing field
lack of employee acceptance
complex solution
costly |
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employee resistance - workarounds, sabotage
technical issues |
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| Manufacturing Requirements Planning |
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| Manufacturing Resource Planning |
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Tier 1 - Enterprise Space
- SAP for companies over 1000 employees
Tier 2 - Medium size
- few sites 100-999 employees
Tier 3
- small family corporation sales under $40M less than 100 employees
Tier 4
- small companies than can do with quickbooks |
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| 1990s 3 tier client server |
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client- fat/thin
Application
Database |
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| ERP software the ______ can take form of a ________ |
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| Back office software used by |
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| HR, financials, operations |
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| customers, supplies, supply chain |
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| integrate more functionality to Core ERP |
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| primary key of one table associated with only one record in another table |
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| primary key of one table assoc with more than one record in another table |
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| primary key in one table is assoc with more than one record in second table and primary key second table is assoc with more than one record in first table |
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| question asked of the database |
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| structured query language |
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| returns a response without changing the database |
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| changes records in database |
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"setting switches" during implementation
Vanilla is defualts |
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| customization is changing code |
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| very expensive and time consuming, only should do this if you need competitive advantage |
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| Business process engineering concept coined by |
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| Michael Hammer - Reengineering the Corp |
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| business process reengineering is the |
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| fundamental, radical, redesign in business processes to achieve dramatic improvements in cost, quality, speed, and service |
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| Focus of BRP is not ____ is done, but ____ it is done |
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| cost reductions, improved customer satisfaction, improved agility, increase profits |
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| resistance, cost, job losses, tradition, time requirements, lack of management support, risks to managers, restraining |
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| clean slate reeingineering |
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| process starts clean slate, start from scratch, no limits |
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| tech enabled reengineering |
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tech is chosen as a tool to facilitate reengineering
tech drives the reengineer |
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| not constrained by tools, not limited to set of processes, evolution not limited by particular tech, can result in unique processes (competitive advantage), free flow of ideas |
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| disadvantages clean slate |
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| costly, excess time resources |
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| tech enabled reengineer advantages |
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ERP provides tool and structure to make change (leads to less time)
ERP bounds design eliminates difficult decisions
design is feasible (know it works) less risk
implemented in timely manner |
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| tech enabled reengineer disadvantages |
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constrained by tech
not unique |
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| business process reengineer principles |
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have those who use output of process perform process
empower workers
treat geographic dispersed resources as though centralized
link parallel activities
organize around processes not tasks
self service
put decision point where work is performed and build controls into process
capture info once and at the source |
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| targets for reengineering |
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core competency
key performance indicators
high volume, low margin
high defect, high reward
high skill time intensive
high complex, specialized resource activities |
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| Lessons learned through Business Process Reengineer |
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low cost labor
scalability
look at other companies for similar solutions
deliver sooner than later |
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| basic purpose of systems documentation |
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| describe business process, assessing internal control procedures, evaluating designing or changing info systems |
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flowcharts
ER diagrams
Other |
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| cross func flowchart, used to document analyze streamline and redesign business activities |
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| _____ business process and clarifying to the _____ process |
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| On page connector does what |
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| Off page connector does what |
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| when process spans multiple pages |
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| all ppl involved in process interviewed as group |
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| each person interviewed separately - less effective than group interview |
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| physically reviewing a process in scope |
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| horizontal lines that determine roles in the process |
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| event that must occur to get process started |
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| last swim lane reserved for |
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| info systems that support the process |
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| transfer responsibility from one role to another |
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| number of process flows lead to single activity |
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| people spending time fixing errors |
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| people not knowing what they are responsible for |
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| flows that point to and from info system analyzed to see exent which data and activities shared among processes |
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| time consumed during process flow from start to finish |
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| time between activities can be measured to see contributors to delay |
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| from customer POV focus on roles that add little or no value |
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| reasons to change info systems |
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| old, high cost, lack of vendor support, lack of compliance, change business model, |
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| planning, package selection, implementation, maintenance |
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| 4 types of rationale why need new ERP |
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tech - old IS new upgrage
competitive - competition has it,we do to
strategic - drive growth
business process - attain targets |
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| project team needs to determine scope so the project doesn't become too big |
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| changes to scope of project |
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| process owners, end users, managers, IT, execs |
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| understand tech and busines process, see end results and make tough decisions |
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| total cost ownership - total costs likely incurred through system life influenced by trans volume, number of users, functionality |
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| total number of users who will have access to system |
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| blanket K cover use of ERP at particular location |
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| max # of users who would access sys at same time |
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| those who may be charged higher fee than casual users |
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| 20% - 30 % of software license cost per year |
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| Package selection websites, mags, trade exhibits, |
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| Package selction issue a request for info to vendors |
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| Package selction project team narrows candiates |
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| Package selction invite each vendor to meet with project team |
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| Package selction determine all func they need and desire |
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| Package selction formal document developed by potential buyer, enables to evaluate and compare |
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| Package selction vendor walks the walk and talks the talk |
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| a visit to a "like" customer site |
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| compare company with the ERP systems under consideration |
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| implementation - changing from one to another while keep problems at minimum |
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| config test and develop of customization happens |
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| implementation - business and setting in ERP system that are changed |
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| alteration to support business process that may provide competitive advantage |
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| two types of customization |
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enhancement - add a field, change look of screen
modification - change to the core code because software doesn't have requirements |
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| disadvantage of customization |
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| time consuming, difficult to integrate |
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| conference room pilot- conference room are temp locations to run system |
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unit - small transactions
integration - testing end to end
customer acceptance - test sys using real business scenarios
secuirty test - test all user roles and authorizations
perform load test - test business trans volume and user activities |
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| body on knowledge that has evolved to address change within org |
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| ind designated to lead change in org |
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| 6 keys to ERP implementations |
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1. focus business process
2. relation new business process
3. leverage tolls for ERP training
4. use train the trainer
5. allocate lot time for ERP implementation training
6. org change mgmt activities |
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| ERP rolled out by functionality, division, geograph |
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| ERP installed in each business unit |
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| uses SaaS - no software to install on premise |
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| balanced ERP implementation |
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| coop approach between company and vendor |
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| accelerated solution reducing internal investment |
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| max customer involvement and minimize consultants |
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| customer owns process with consultant as requested |
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| operation and maint begins with |
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| period of stabilizaition, dip in performance while process fine tuned |
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prevent maint
emergency maint
software updates |
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| five ways reduce ERP maint and supp cost |
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lower soft fees
limit customization
explore 3rd party support and maint
negotiate lower prof serv rates
quantify direct and indirect maint and support costs |
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| columns that define the data in a database - customer name - zip |
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| PC in a server environment that provides rich func independent of server |
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| software that connects other software together |
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| key that points to a primary key in a different table |
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| resource system that supports activities that more directly involve customers |
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| relationship that describes the inventory ordering process |
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| relationship that describes the customer ordering process |
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| hardware that includes middle level between user system interface and the database server environment |
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| attribute in a table that uniquely identifies the data in a row of a table |
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| business system targeted for one specific industry |
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| architectural model that allows vendors to serve multiple clients from a single shared instance of application |
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| attribute uniquely identifies data in a row of a table |
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| key that points to a primary key in a different table |
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| provison of service by one part of an org where service had previously been found in more than one part of the org |
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| key performance indicators - compare performance to industry best practices and standards |
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| why competitive rationale |
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| drive growth, like cisco, company outgrows system |
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| business process rationale |
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| improvements too good to pass up |
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| multiply % of team members time X length X team headcount, assoc with cost |
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| fail, training, customization, data conversion |
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