Qip ERP

Enterprise Resource Planning (ERP)
Veena Bansal Indian Institute of Technology Kanpur India veena@iitk.ac.in
Organization: Functional Units

z Sales and Distribution z Production Planning z Materials Management z Finance and Accounting z Human Resource
Veena Bansal, IIT Kanpur
Sales Order Process

(Order-to-Cash)
Sales Order Entry Check Availability
Pick Materials
Pack Materials Receipt of Customer Payment Invoice Customer
Post Goods Issue
Procurement Process
(Procure-to-Pay)
Purchase Requisition Purchase Order Notify Vendor
Payment to Vendor Invoice Receipt
Vendor Shipment
Goods Receipt
Sales Order Process

(Order-to-Cash)
Sales Order Entry Check Availability
Pick Materials
Receipt of Customer Payment Invoice Customer
Pack Materials
Post Goods Issue
Procurement Process
(Procure-to-Pay)
Purchase Requisition Purchase Order
Notify Vendor
Payment to Vendor Invoice Receipt
Vendor Shipment
Goods Receipt
ERA OF LEGACY SYSTEMS
VERY LOW INTEGRATION / NO INTEGRATION
PRODUCTION
& S E L SA
S I D
FINANCE
R3
HR
MATERIALS
7
ERP
"ERP (Enterprise Resource Planning) comprises of a commercial software package that promises the seamless integration of all the information flowing through the company - financial, accounting, human resources, supply chain and customer information- T.J. Davenport, Harvard Business Review, July-Aug., 1998
Customization in ERP Implementation

ERP System is customized to fit the process Requires changes in the code We will not change, you change your software
Discouraged
ERP
Enables a company to link its business processes
Finance and Accounting Material Management Sales and Distribution Production Planning Human Resource Management
10
ERP
Ties together disparate business functions (integrated business solution) Helps the organization run smoothly Real-time environment Scalable and flexible
11
ERP: Integrates
12
Tangible Benefits
z z z z
Cycle time cut Reduced inventory 99% on-time shipment Reduction in lead time by 60%
13
Intangible Benefits
z z z z z z z
Customer satisfaction Better vendor performance Increased flexibility Reduced quality costs Improved resource utility Improved information accuracy Improved decision-capability
14
Strategic Benefits
z z z z z z z z z
Improved organizational and process flexibility Improved customer/supplier satisfaction Improved growth and success Reduced marketing costs Leader in new technology Improved market share Market leadership Improved customer/supplier relations Enhanced competitive advantage
15
Tactical benefits
z z z z z z z
Improved response to change Improved service quality Improved teamwork Promotes proactive culture Improved integration with other business functions Improved planning Improved administrative procedures
16
Operational benefits
z z z z z z z z z z z z
Improved data management Improved communication Improved decision-making Reduced paperwork Reduced bottlenecks Reduced labor costs Reduced rework Improved quality of output Improved ability to exchange of data Improved response time to queries Improved forecasting and control Improved control of cash flow
17
ERP Vendors

SAP Oracle + J D Edwards + People Soft BAAN MARSHAL MICROSOFT
MFG PRO RHYTHM AVALON BPCS MAMIS RAMCO
18
ERP
ERP
spending is around $ 30 billion at present -2005 And growing. ERP constitutes around 25% of total IT spending in an organization which is a major share.
19
Oracle (India)
z z z z z z z
Motorola Sony India Pvt. Ltd Jindal Vijaynagar Steel Ltd, Maruti Unyog Ltd BPL Ltd Kirloskar Oil Engines Punj Lloyd Ltd
z z z z z
Indian Aluminium Co.Ltd Usha Martin Telecom GE Bharati Cellular Ltd Ballarpur Industries
20
BAAN (India)
z z z z z z
Aditya Cement HDFC Bank JCT Ltd Amtrex Dr. Reddys Labs Jindal Iron and Steel Ltd
z z z z
Indian Aluminium Company Limited, Coats India, Escotel Mobile Communications Ltd. Tata Refarctories
21
Ramco (India)
z z z z z z z z z z z
Shoppers Stop TVS Srichakra Steelage Industries Limited HDFC Bank Indian Airlines AFL Express Amararaja Batteries Limited BSES Reebok India Company CavinKare East India Hotels - Oberoi
z z z z z z z z z z
Madras Cements MMTC Limited, New Delhi Philips Innovation Campus J.K Ansell Limited Madras Cements Limited Moser Baer Limited Fosroc Chemicals Gharda Chemicals Ltd Hyundai Motors Escotel Mobile Communication Cement Customer References
22
SAP (India)
z z z z z z z z z z z
Bharat Forge Essar Steel Siemens Arvind Mills Mahindra and Mahindra Samsung Modi Alcatel ONGC Mohan Breweries and Distilleries Gujrat Narmada Valley Fertilizers Company Dr. Reddy's Laboratories
z z z z z z z z z z z z z
GTN Textiles Grauer \& Well Eicher Tractors Nagarjuna Fertlizers and Chemicals Limited ABB BPCL Numaligarh Refinery Cadbury India Colgate Palmolive India Siemens Volvo India Ranbaxy Times of India
23
Why ERP happened in 1990s

Year 2000 (Y2K) problem Replace main-frame IT applications ERP offered a solution to Y2K Promised to integrate all IT applications
and data
24
Pre-implementation decisions

Does the company require ERP? Is the organization ready for ERP? What software package(s)? All-in-one solution Hybrid solution Customized solution What consulting company? What hardware to be used? What approach to be adopted? Veena Bansal, IIT Kanpur
25
Do we need an ERP system

Requirements Cost-benefit analysis
26
COST
Software License Infrastructure Consultancy Training 1% to 3% of Turnover of the organization
27
Stages Theory
Initiation
Transaction Processing Reduce Transaction Cost

Contagion
Management Information Systems Many people affected
28
Stages Theory
Management
Return on Investment Decision support systems

Integration
Integral part of the organization IT projects: compete for funds
29
Extended Technology Acceptance Model (E-TAM)

Communic ation Belief in benefits Training Perceived ease of use Perceived usefulness Attitude
Behavior
30
McFarlan Matrix
Paradigm shift G a I n Reengineering
Rationalization Automation Risk
31
Business Process Reengineering (BPR)

Fundamental
rethinking and Radical redesign of business processes To achieve dramatic improvements

Hammer and Champy 1993
32
Materials Management (MM)
Procurement Process
3-Way Match
Notify Vendor
Payment to Vendor Vendor Shipment Invoice Receipt Goods Receipt
33
Procurement Process
2-Way Match
Notify Vendor
Payment to Vendor Vendor Shipment Invoice Receipt Goods Receipt
34
Re-engineering
Match
purchase order goods received invoice Make sure you send us what we ordered Match purchase order goods received
Veena Bansal, IIT Kanpur 35
Re-engineering rule
Receive
what arrives, pay when invoice is received Receive what was ordered pay when goods are received Ford Motors reduced 75% staff 500 to 125: Accounts Payable
36
Selection Criteria
37
Selection Criteria

Process fit, data fit, user fit Operating system Independency Process improvement Market position of Vendor Customer and supplier needs Internationality of software
38
Selection Criteria
Increased org flexibility Increased customer satisfaction Guidelines from a controlling company Adaptability and flexibility of software Improved innovation capabilities
39
Selection Criteria
Short implementation time Good support Cost
40
Analytic Hierarchy Process (AHP)

Vendor Position V P C os t Im t Cost Implement time Flexibility
1 5 6 4
1/5 1 1/3 1/5
1/6 3 1 1/4
1/4 5 4 1
41
Fl ex
Priority Vector
Implementation time : 0.4 Cost
: 0.3 Flexibility : 0.2 Market position of the vendor: 0.1
42
Analytic Hierarchy Process (AHP)COST

SAP S A P B A N R A M O R A BAAN RAMCO Oracle
1 5 6 4
1/5 1 1/3 1/5
1/6 3 1 1/4
1/4 5 4 1
43
FINAL SCORE
SAP: 0.1, 0.2.0.3, 0.2 BAAN: 0.3, 0.3, 0.4, 0.1 Final Score
BAAN = .3 * .4 + .3 * .3 + .4*.2 + .1*.1 = .24 SAP = .1 * .4 + .2 * .3 + .3 *.2 + .1 *.1 = .17

Who makes the decision

Top management + External consultant
17.6% Centralized selection process in place- no participation of other departments, no external consultant- 10.9%
45
Who makes the decision

Stakeholders 35.3% All three combined 36%
46
How many people make the decision

Mean 10 people for large companies Mean 5 for small companies Maximum 60 people
47
Information Gathering
Analysis of prototype Buying relevant studies
48
Information Gathering
Examinations by consultants Presentations by vendors/bidders Mail out requirements as a questionnaire
49
Effort Spent
19 weeks, 30,000 EUR small org 26 weeks, 72,000 EUR large org
50
Process fit
The processes built in ERP meet all needs required
from organizational processes. The processes flow built in ERP correspond to flow of organizational processes. The processes built in ERP accommodate the change required from organizational processes. The processes built in ERP correspond to the business practices of our company.
51
Data fit
The output data items of the ERP correspond
to those of the documents used in our company. The input data items of the ERP correspond to those of the documents used in our company
52
Data fit
The name and meaning of the ERP data
items correspond to those of the documents used in our company (i.e. an sales order sheet, sales report). The form and format data items of the ERP correspond to those of the documents used in our company.
53
User interface fit

User interface structures of the ERP is well
designed to the work structure required for conducting business in our company. User interface of the ERP is well designed to the user capabilities of our company. User interface of the ERP is well designed to the business needs of our company.
54
Package Fit
Functional fit with the organizations business
practices Degree of integration among components of the ERP system Flexibility and scalability User friendliness Quick implementation Ability to support multisite planning and control
Technology-
client/server capabilities Database independence Security
56
Availability of regular upgrades Amount of customization required Local support infrastructure Costs- License, Training, Implementation,
Customization, Hardware Requirements
57
TEAM
High level Management involvement Decide on Implementation team leaders Cross functional staffing of team Full time commitment of the team Team created with complete knowledge and commitment from operational managers
58
Organisational Entities
STEERING COMMITTEE
Client PROJECT DIRECTOR Client PROJECT MANAGER
Partner PROGRAM MANAGER

Partner PROJECT MANAGER
Partner SAP CENTER
Client / Partner DATA CONVERSION & DOCUMENTATION TEAMS
Client / Partner PROCESS TEAMS
Client / Partner CHANGE MANAGEMENT TEAM
Client / Partner TECHNOLOGY TEAM
Client PROCESS TEAM RESOURCES

Client TEAM RESOURCES

59
Project Organization
Level of effort and involvement varies throughout program lifecycle
Project Team
Tech Infra & Adm Level of Effort and Involvement Tech Arch and Dev Extended Team Functional Team Rollout Manager Process Owners Change Management Integration Management PMO Project Manager Executive Steering Team
Initiation
Acquisition
Prep
Blueprint
Design, Build & Integration Test
Phase of Acquisition Lifecycle
Transition / Cutover / Go Live
Post Support
Project Close Out
Teams
Executive steering team Project Manager Tech Infrastructure & Administration Tech Architecture and Development Extended Team Functional Team Integration Management Change Management Process Owner Rollout Manager Project Management Office
Executive Steering Team
The level of involvement by the sponsors of the project needs to be the heaviest at the beginning of the project to assure clear direction is given and support is communicated. The primary sponsor of the project continues to be involved on a weekly basis throughout the lifecycle of the acquisition and implementation, while the steering committee involvement tends to be less. More active involvement for quick escalation, decision making and support is required as the project does its final preparation and goes live. All sponsors return to their normal roles as the project is closed out. 62 Veena Bansal, IIT Kanpur
Project Manager A full time project manager needs to be identified and lead the program from the onset of the project through go live. Several months after go live, the project is closed out and the project manager is typically assigned to another project or key management role within the organization
63
Program Management Office
The program management office team provides additional support as the software and system integrator are selected and the implementation gets underway. Initial direction and guidance is required at the front end, with increased administrative support during the implementation. The individuals providing support from the PMO typically are reassigned to another project or the next phase as the project is closed out.
Integration Management
Integration is typically covered in the initial acquisition phases by combination of individuals on the team with functional and technical focuses. As the implementation phase begins the integration component requires dedicated resources focusing on assuring appropriate and adequate integration across the functional areas, processes and application architecture. This role typically winds down after go live
65
Change Management
Change management requires dedicated focus by a limited number of resources at the onset of acquisition to assess the organizations readiness to change and draft the communication strategy. The involvement and resource requirements increase as progress is made towards the software and system integration selection. Effort and resource commitment for change management and training peaks during integration testing and go live. This is a result of preparing to teach the end users, training the end users and providing support during go-live. Communication, expectation setting and follow up also require significant effort during this same time period. Several resources need to remain engaged post go-live until follow up and sustainment plans are established and implemented.
Process Owners
Limited effort is required by provide owners to provide business requirements during the initial phases of the acquisition. As the implementation kicks off, more time, effort and resources are required to assure that the blueprint (detailed requirements) is defined and appropriately configured in the new system. Owners also need to be involved to drive the business process changes that the new solution enables. Process owners need to be available as advisors and leaders in a timely fashion as key decisions and direction is required during the implementation. Involvement typically drops off 67 Veena Bansal, IIT Kanpur significantly after go-live and first month end
Rollout Manager
Rollout is typically included in the strategic discussions of the software and system integration selection teams. Typically there are not dedicated resources focusing on rollout until after the implementation begins. Effort and resource requirements increase as configuration and testing is being done to plan in parallel the rollout strategy and timeline post go-live of the initial phase. Rollout resources of phase 1 of the project typically become the project team for subsequent phases of an implementation.
Functional Team
Key functional resources need to be identified and take a lead role in the early acquisition process (i.e.. defining requirements, business drivers, software and SI selection) Involvement is increased to support the blueprint definition to assure the scope and approach for the solution is clearly defined and meets the business requirements. Additional functional support also gets involved in testing, rollout and supporting the solution, then scales back 1-2 months after go live. Some functional team members transition into onto sustainment of the system and own configuration and user support on an 69 Veena Bansal, IIT Kanpur on-going basis.
Extended Team
Minimal involvement by subject matter experts and key users at beginning of the project. Increased involvement during the Configuration and Test phase to assure the solution is working and assure user buy in. Additional resources are added to the team (from each of the functional areas in scope) during this time and continue to be involved until after go live in support of developing the end user training materials, providing training to the users and providing support to their home departments during transition and go-live.
Technical Architecture and Development
Limited involvement at the beginning of the project, but is extended significantly for the implementation when RICE objects are being developed, integrated and tested.
71
Technical Infrastructure and Administration
Minimal involvement at the beginning of the project by very knowledgeable technical resources is supplemented as the vendors are selected. Dedicated strong resources are required for the duration of the project. Sufficient knowledge transfer for the new system administration is critical go-live, post go-live and sustainment.
72
Implementation success
The cost of ERP project was significantly higher than the expected budget. The ERP project took significantly longer than expected. The system performance of ERP is significantly below the expected level. The anticipated benefits of ERP have not been materialized.
ERP adaptation
Significant time and effort required to alter
ERP data items to align with our organizational process needs. Significant time and effort required to append new ERP data items to align with our organizational process needs. Significant time and effort required to alter ERP processes to align with our organizational process needs.
Significant time and effort required to append
new ERP processes to align with our organizational process needs. Significant time and effort required to alter ERP input/output screens to align with our organizational process needs. Significant time and effort required to alter ERP reports to align with our organizational process needs.
75
Process adaptation
Significant time and effort required to alter
elementary processes to align with the ERP. Significant time and effort required to alter our process flows to align with the ERP. Significant time and effort required to standardize our organizational processes to align with the ERP.
Significant time and effort required to
integrate our redundant organizational processes to align with the ERP. Significant time and effort required to alter our document and data elements to align with the ERP.
77
Organizational resistance
Many users resisting the ERP implementation. Many cases blaming occurrence of business
problem upon ERP. Many cases in which users persist traditional business practice even though ERP change the way of conducting business. Many cases in which user departments did not reply to the business request of the ERP project team. Many people wishing ERP to fail.
Implementation steps involved

Sequence of steps: Project kick off Solution design Conference room pilot1 Custom build components Integration testing Conference room pilot2 Core team training by TCS End user training User acceptance Data migration Go live Data base administration Project management & Quality management Duration
ERP implementers: TCS Lucknow
79
ERP LIFE CYCLE

Gap Analysis Study Planning Analysis and Prototyping Detailed Design Development Transition Post Implementation Support
Phase: Gap Analysis Study

To understand Customers Business processes in reasonable details Select specific ERP solution Mapping to ERP Environment can result in a BPR exercise. Customization efforts estimation Arrive at a more realistic time-frame for project completion. Valuable inputs for hardware and networking requirements
MAPPING MATRIX
Mapping Customer business processes in SAP environment.

Customer SAP Business functionality Process
M odification to Customer business processes Customisation required in SAP M an-months Required
Phase: Planning
Tasks

Identifying key business objectives, CSF Project team staffing Steering committee formation Detailed project plan Key business objectives, benefits & CSF Project Blueprint Project organization
Deliverables

83
Project Blueprint

T Training H Hardware A Authorizations D Data R Reports I Interfaces C Conversions E Enhancements D Deliverables

84
Phase: Analysis & Prototyping
Tasks

Core Team Education Selected ERP Centric Analysis Prototyping Initial prototype system ERP customization requirements Business process modifications Benefit Analysis
Deliverables

Phase: Detailed Design
Tasks

Design specifications
Procedures, Interfaces and Reports
Design Review
Deliverables
Design Specifications
86
Phase: Development
Tasks

Development of reports, interfaces Unit and Integration testing
Deliverables

New / Modified Software Unit and Integration testing results

87
Phase: Transition Tasks

Install production environment Set up menu / security Train the trainer Data migration System Test / Parallel / Pilot Run Review and prepare for going live Production system and formal acceptance Support on SAP related issues
Deliverables

Phase: Post Implementation Support
Tasks

Monitoring key functionality Resolving any inconsistencies
Deliverables
Documentation on issues raised
89
TRAINING

Continuous during Project Execution To be planned very meticulously Requires commitment from participants Management - SAP Overview Champions / Key Users for Functionality End Users for requisite functions Champions for Customization Technical Staff - Systems Admin., ABAP
ERP Life Cycle Challenges

Maintaining performance, availability and continuity
Risk
Managing more-complex infrastructures Dealing with vendor or product uncertainty Upgrade forces architecture change Managing major ERP upgrades and their costs
Cost
Controlling total life cycle costs for ERP projects spanning multiple business units and instances Retaining your expert ERP resources Maintaining or gaining a competitive advantage
Value
Reacting quickly to new demands for ERP enhancements, e.g., new processes, information Measuring and improving business benefits: ROI, time to benefit
Customization and Configuration: ERP

ERP requires a matching of business processes and information processes with those embedded in ERP. Change your business processes reengineering. Change ERP- Customization
92
Challenges/ problems
Technical:
Software configuration Integration Software updation
Human, social, political:

Inappropriate expectations from software Lack of top management commitment Resistance to change Inadequate resource for training Loss of qualified staff
SAP -Overview
z SAP stands for System Applications and Products in Data Processing z Name of the company {SAP AG {SAP America z Founded in Germany in 1972 z 12 million users. z 100,600 installations. z 1,500 partners. z Worlds third-largest independent software provider over all
SAP Architecture
95
SAP Enterprise System

PCs, Laptops, etc. Browser Client
Network
Presentation
Internet Transaction Server
Web Server
Application
Application Servers
Database
Database
96
SAP Software
z SAP R/2 Main Frame Version. z SAP R/3 Client Server Version. z ASAP z MySAP
97
SAP R/3
z Designed to satisfy the information needs for business sizes (small local to large all international) {Multi-lingual {Multi-currency z Designed to satisfy the information needs for all industries (industry solutions) z Enables a company to link its business processes
Business Modules
z Collections of logically related transactions within identifiable business functions
{ MM (Buy) { PP (Make) { SD (Sell) { FI and CO (Track) { HR
99
Components of Materials Management

Valuation Logistics Invoice Verification Purchasing Material Master Inventory Mgmt. Physical Inventory MRP Service Entry Sheet Service Master Product Catalog Foreign Trade/ Customs
100
Sales and Distribution (SD)
Components of Sales and Distribution

Shipping Transport Sales Support Master Data Sales Credit Mgmt. Billing Foreign Trade Sales Information System
101
Financial Accounting (FI)
Components of Financial Accounting

Accounts Receivable
Financial Accounting (FI)
General Ledger Accounts Payable
Fixed Assets Banks Special Purpose Ledger
102
Controlling (CO)
Components of Managerial Accounting

Internal Orders Cost Element Acct Profitability Analysis Activity Based Costing
Controlling (CO)
Cost Center Acct
Product Cost Controlling
Profit Center Acct
103
Production Planning
SD PP Sales and operations planning Demand management / MPS Material requirements planning Capacity planning Project Networks PS SD
Customers
Sales Shipping Billing
SD
PM SD Maintenance Repairs Plant maintenance SD QM Quality Inspection Quality Planning HR
Vendors
MM SD Purchasing Warehouse Invoice verification
Shop floor control Costing Information system
FI
Financial accounting
CO
Cost accounting
AM
Assets management
Human resources
104
Project System
Processes
- Capital Investment - Marketing - Engineer-to-order - Plant engineering - Shutdown - Services - Plant Maintenance -R&D - EDP-Projects
Views
- Material Management - Cash Management - Resource Management - Production Planning - Controlling - Period end closing - Multinational Projects - Profitability Analysis - Configuration - Document Management
Functions
- Structures - Scheduling - Planning Board - Cost Planning - Finances - Resources - Manpower Planning - Availability Control - Graphical functions - Infosystem - Interfaces h
105
Quality Management
Basic Basic data data
Materials Vendors Routings Documents Inspection plan Characteristics Insp. methods Insp. catalogs Test equipment Results Resultsrecording recording Print Print insp. insp. instruction instruction
MM
Purchasing Purchasing Inventory Inventorymgmt mgmt Goods Goodsreceipt receipt Stock transfer Stock transfer Goods Goodsissue issue Requisition Requisition Invoice Invoice verification verification Warehouse Warehouse management management
PP
Production Production planning planning Reqt Reqt planning planning R-cut R-cut capacity capacity planning planning Planned Planned Orders Orders Opening Opening period period Order: Order: -- Creation Creation -- Release Release -- Confirmation Confirmation Shop Shop floor floor control control Capacity Capacity leveling leveling CAM
QM
Inspection lot
Inspection Inspection lot lot
PM
Test Testequipment equipment management management Usage Usagedecision decision
SD
Shipping Shipping Billing Billing
106
Plant Maintenance
Technical Objects
Assemblies Planners Equipment Functional locations Tools/ Machines Material Work center/ Capacity
Resources
Corrective and Preventive Maintenance Tasks

planned tasks unplanned tasks
Maintenance History + Analysis

- Usage history - Movement history - Event history - Cost history - MTTR / MTBR - Failure and downtime history
Task processing Completion
107
Enterprise Financial Control

Profit Center Accounting
z z z Flexible definition of profit center structure Automated calculation of profit center results Handling of transfer prices
Consolidation & Business Planning

z z z z Consolidated financial statements generated automatically Group-wide investment and financial planning Budgeting top-down/bottom-up Asset management
Treasury and Risk management

Liquidity planning Cash management Risk management Portfolio Management
Costing
z Cost elements / objects / centres z Cost calculations / methods z Activity based Costing zProfitability analysis
108
SAP R/3 Architecture
109
Warehouse Management Relationships Company Code Inventory

Company C001
Management (MM)
Storage Loc. 10
Plant P001
Plant P002
Plant Storage Loc.
Storage Loc. 20
Storage Loc. 30
Storage Loc. 40
Warehouse 1
Warehouse 1
Warehouse Aisle
Aisle 1 Rack 1
Aisle 2 Rack 1
Aisle 3
Aisle 1 Rack 1
Aisle 2
Storage Rack Quantity

110
Warehouse Management (WM)
ABC123 Veena Bansal, IIT Kanpur
Internal Sales Organization

US Sales S000
Eastern Sales
Western Sales
Northeast Sales Group

Salesperson 1 Salesperson 2
Southeast Sales Group

Northwest Sales Group

Southwest Sales Group

111
Stool Architecture
FI
Org Data
MM
SD
D Master
Rules
ata
FI MM SD
FI
FI MM SD
MM SD
112
g{t~

Qip ERP

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Qip ERP

Transféré par

Droits d'auteur :

Formats disponibles

Enterprise Resource Planning (ERP)

Veena Bansal Indian Institute of Technology Kanpur India veena@iitk.ac.in

Organization: Functional Units

Veena Bansal, IIT Kanpur

Sales Order Process

Pack Materials Receipt of Customer Payment Invoice Customer

Post Goods Issue

Payment to Vendor Invoice Receipt

Sales Order Process

Receipt of Customer Payment Invoice Customer

Post Goods Issue

Payment to Vendor Invoice Receipt

ERA OF LEGACY SYSTEMS

VERY LOW INTEGRATION / NO INTEGRATION

Veena Bansal, IIT Kanpur

Customization in ERP Implementation

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

SAP Oracle + J D Edwards + People Soft BAAN MARSHAL MICROSOFT

MFG PRO RHYTHM AVALON BPCS MAMIS RAMCO

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Why ERP happened in 1990s

Veena Bansal, IIT Kanpur

Do we need an ERP system

Requirements Cost-benefit analysis

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Transaction Processing Reduce Transaction Cost

Management Information Systems Many people affected

Veena Bansal, IIT Kanpur

Return on Investment Decision support systems

Integral part of the organization IT projects: compete for funds

Veena Bansal, IIT Kanpur

Extended Technology Acceptance Model (E-TAM)

Veena Bansal, IIT Kanpur

Rationalization Automation Risk

Veena Bansal, IIT Kanpur

Business Process Reengineering (BPR)

rethinking and Radical redesign of business processes To achieve dramatic improvements

Veena Bansal, IIT Kanpur

Materials Management (MM)

Payment to Vendor Vendor Shipment Invoice Receipt Goods Receipt

Veena Bansal, IIT Kanpur

Materials Management (MM)

Payment to Vendor Vendor Shipment Invoice Receipt Goods Receipt

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Veena Bansal, IIT Kanpur

Analytic Hierarchy Process (AHP)

1/5 1 1/3 1/5

Veena Bansal, IIT Kanpur

: 0.3 Flexibility : 0.2 Market position of the vendor: 0.1

BAAN = .3 * .4 + .3 * .3 + .4.2 + .1.1 = .24 SAP = .1 * .4 + .2 * .3 + .3 .2 + .1 .1 = .17