enterprise computer applications peter ping liu, ph d, pe, cqe, ocp and csit professor and...
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Enterprise Computer Applications
Peter Ping Liu, Ph D, PE, CQE, OCP and CSITProfessor and Coordinator of Graduate Programs
School of TechnologyEastern Illinois University
Charleston, IL 61920
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Enterprise application is based upon the actual process.
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A Typical Manufacturing Organization Is Engaged in:
• Designing the System
• Operating and Controlling the System
Source: W. J. Stevenson, Production/Operations Management
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System Design
• Product and service design
• Process and strategy selection
• Capacity planning
• Facility planning
• Work system design
• Location planning
Source: W. J. Stevenson, Production/Operations Management
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System Controlling
• Forecasting• Inventory/materials management• Material requirement planning• Just-in-time system• Quality assurance• Sourcing• Scheduling• Maintenance• Project management
Source: W. J. Stevenson, Production/Operations Management
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Customers Needs Are the Reasons for the Existence of the Organization.
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A Manufacturing Enterprise Needs People and Teamwork in the Organization to Meet the Needs of Customers.
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People and Process Need Support with Shared Knowledge and Systems.
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Any Manufacturing Organization Has Three Major Categories of Activities (Processes):
Product/Process Definition, Manufacturing, and Customer Support.
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Every Organization Has to Manage Its Resources and Responsibilities Effectively.
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A Manufacturing Company Requires Support and Collaboration from Other
Organizations.
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Put Them All Together to Form a World Class Manufacturer
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Enterprise Started with Islands of Applications
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Evolution of Manufacturing
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The Future of Enterprise Application Is Integration.
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Technical Issues
• Enterprise architecture• Application server and middleware• Component-based development• Database servers• Data warehousing• Enterprise resource planning• Enterprise networking• Enterprise messaging and communication• Internet commerce and collaboration• Project and system management
Source: Enterprise System Integration, J. M. Myerson (ed)
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Enterprise Resources Planning (ERP) Is Emerging.
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ERP Potential Functions: Financial
• Account receivable (AR)• Account payable (AP)• Asset accounting• Cash financing• Cost accounting• Executive information system• Financial consolidation• General ledger• Profitability analysis• Standard costing
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ERP Potential Functions: Human Resources
• Time accounting
• Payroll
• Personnel planning
• Travel expenses
• Training
• Human resource development
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ERP Potential Functions: Operations and Logistics
• Inventory management• Materials requirement planning (MRP)• Plant maintenance• Production planning• Project management• Purchasing• Quality management• Shipping• Vendor evaluation
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ERP Potential Functions:Sales and Marketing
• Order management
• Pricing
• Sales management
• Sales planning
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Major Players of ERP
Vendor Origin Salient Features
BAAN Holland An early ERP vendor
Oracle United States A relative newcomer, but quickly gaining share
PeopleSoft United States Originally focused on human resource management
SAP Germany The pioneer and the largest firm
JD Edwards United States Internet emphasis
Source: T. H. Davenport, “Putting the Enterprise into the Enterprise System,” Harvard Business Review, July-August, 1998
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An Example of Enterprise Resource Planning: Made2Manage
For small and medium size companies asmake-to-ordermake-to-stockengineer-to-orderassemble-to-ordermixed-mode manufacturers
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Made2Manage Enterprise Resource Planning Has Four Modules
• Customer order management—Generate quotes, sales orders, custom-configure products, and more.
• Materials management—Automate shop floor and inventory data collection and track material lots to seamlessly manage your material resources and inventory transactions.
• Production management—Create job orders, capture costs and monitor production so you can build your products more profitably.
• Financial management—Manage cash flow, key accounting tasks, budget forecasting, payroll, HR, and more.
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Made2Manage ERP
Customer Order Management
• Processing Sales Orders—Quickly enter sales orders into your system and jumpstart the fulfillment process.
• Quoting and Estimating—Create reliable quotes by linking to bills of material, routings, the M2M Product Configurator, or the price summary worksheet.
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Made2Manage ERP
Materials Management• Inventory Control—Identify and track information on each standard
part so you can make the best possible inventory management decisions.
• Tracking Material Lots—Automatically track raw materials, sub-assemblies and final assemblies to their origins.
• Shop Floor Data Collection—Automate the entry and enhance the accuracy of your daily labor, inventory transactions, and shipping and receiving with wireless bar coding technologies.
• Multi-Dimensional Inventory—Measure inventory in multiple dimensions and capture inventory transactions in alternative units of measure.
• Physical Inventory—Collect, reconcile and post count quantities against on-hand inventory balances and generate general ledger transactions.
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Made2Manage ERP
Production Management (1)• Job Orders—Quickly and easily create and track job orders, drive
material requirements, and examine costs throughout the production process.
• Order Costing—Accumulate and report costs as they flow through your system and post them to the general ledger.
• Monitoring Production—View job order costs in real time and compare accumulated costs to projected job order costs.
• Creating Routings—Track the path a part follows through production, including the work centers and operations needed to produce the part, create standard or non-standard routings, and monitor costs.
• Bills of Material—Keep up-to-date information on the components and sub-contractors used to produce your product, better balance lead times, reduce inventories, and improve cash flow.
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Made2Manage ERP
Production Management (2)• Shipping and Receiving—Manage all aspects of
receiving materials, returning goods, shipping finished goods, and executing subcontract work.
• Notifying Employees—Automatically send messages to customers, suppliers and employees when key events occur.
• Managing Engineering Change—Audit critical documents and create multiple revisions for the item master, standard BOMs, and routings.
• Quality Management—Streamline quality compliance efforts by automating your business's paper-intensive processes.
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Made2Manage ERP
Financial Management (1)
• Budgeting/Cash Flow—Develop budget forecasts based on different sources and plan ahead for your future cash needs.
• Accounts Payable/Receivable—Pay your suppliers at just the right time and automate the billing process for better tracking and analysis of your revenue streams.
• General Ledger—Link all monetary functions, such as receivables, payables, payroll, and order costing, for greater visibility and control over your financial activities.
• Advanced Reports—Create advanced financial reports and drill down into source data for further analysis.
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Made2Manage ERP
Financial Management (2)
• Payroll—Integrate your M2M ERP accounting functions with third-party payroll providers such as ADP and Abra Suite Payroll.
• Human Resources—Manage employee relations, government mandates, and ever-changing benefit options with the integrated Abra Suite HR.
• Progress Billing—Divide your bill into separate increments and still track the whole process to generate needed cash flow.
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Made2Manage ERP
Financial Management (3)• Bank Reconciliation—Monitor all your checking
account transactions and streamline your cash management operations.
• Compusoft Drill Down Tools—Drill down into supporting financial data directly from the trial balance and generate financial reports to meet your specific requirements.
• FRx Forecaster—Reduce the time you spend on collecting and sorting through spreadsheets and other information from different departments.