IEEM 3041 ERP Enterprise Resource Planning
ERP
The Chain from Original Supply to Final Consumption INFORMATION FLOW Transfer Transfer Transfer Transfer Supplier Manufacturing Distribution Retail Outlet Consumer CASH FLOW Supply Chain Optimization Highest level of customer responsiveness at lowest cost
e-business or Out of Business
Business Model BTS (Build To Stock) BTO (Build To Order) CTO (Configure To Order)
cycle time Internet
e (24-7) [ ] [ ]
E-Business Application Architecture
E-Business Application Architecture
- Bill Gate
ERP
ERP e-business ERP
e-business Architecture PRIME PRIME Integrated Enterprise Integrated Enterprise Information System Information System (ERP) (ERP) Business-to-Consumer Business-to-Business Consumer Consumer Web Browser Web Browser Fulfillment/Shipment Integrated Enterprise Integrated Enterprise Information System Information System (ERP) (ERP) Supplier Supplier PAC, GMU
ERP 1970 1980 1990 2000 CAD/CAM SFC M RP MRP C RP MRP2 CIM MRP2 ERP ERP S CM
ERP
ERP ERP Client-Server Web B2B B2C Internet Web ERP B2B B2C ERP
ERP v.s. E-Business ERP is an adaptive technology. Adaptive technologies move earlier technologies forward incrementally. E-business is a disruptive technology. Disruptive technologies change the way people live their lives or the way business operate. A company is able to fully realize the opportunities of e-business only if it has strong, integrated internal information systems.
Tangible Benefits of Using ERP Inventory reduction Reduction of personnel Increased productivity Improvement on order management More rapid closing of financial cycles Reduced IT costs Reduced procurement costs Improved cash management Increased revenue and profits Reduced transportation and logistics costs Reduced need for systems maintenances Improved on-time delivery performance
Intangible Benefits of Using ERP Increased visibility of corporate data New or improved business processes Improved responsiveness to customers Unanticipated reduction in cost Tighter integration between systems Standardization of computing platforms Increased flexibility Global sharing of information Improved business performance Improved visibility into SCM processes
Primary Business Functions of ERP Finance/accounting Sales & marketing Human resources Engineering Procurement Logistics Manufacturing
Basic Functionality for Finance/Accounting (General Ledger) (Accounts Payable) (Accounts Receivable) (Asset Management) (Costing)
Basic Functionality for Sales & Marketing Sales/Order Entry Customer Demand Mgmt. Price & Promotion Mgmt. Sales Force Mgmt. Specification Mgmt. Client Information Mgmt.
Basic Functionality for Human Resource Organization Planning Payroll Recruitment & New Hiring Compensation & Benefits Training & Retention
Basic Functionality for Engineering Product Definition Process Definition Product Development Revision Mgmt. Test & Quality Mgmt. Release Mgmt.
Basic Functionality for Procurement Quote/Contract Mgmt. Purchase Order Mgmt. Receiving Mgmt. Product Performance Financial Interfaces Vendor Performance
Basic Functionality for Logistics Distribution Planning Inventory Mgmt. Trade Mgmt. Warehouse Mgmt. Transportation Mgmt.
Basic Functionality for Manufacturing Planning & Scheduling Resource Mgmt. Production Mgmt. Maintenance Mgmt. Process Monitoring Quality Mgmt.
Extended ERP Supply chain management: advanced planning and scheduling, available to promise capability, planning based on customer demand. Decision support: online analytical processing (OLAP) applications. Sale force automation (SFA) Customer relationship management (CRM): customer service, remote field service, call center management. Flow manufacturing Web-based strategic procurement
ERP
ERP SAP AG 36% Oracle 13% JD Edwards 7% PeopleSoft 7% Baan 6%
SAP ERP
Oracle ERP
Business Processes and SAP R/3 Functionality