presentation_1 introduction to erp systems

SUMMER 2005JUNE 6-10 2005

1

IST 600 ERP SYSTEMS:Key Implementation Issues

Introduction to ERP Systems


2


I. Course Intro

II. ERP Systems Intro

3 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

Introduction – Who am I? Education:

BS in Business Administration MS in Information Management MBA (specialized in Supply Chain & Global Entrepreneurship) Ph.D. in Information Science & Technology

Certification: CPIM – Certified Production & Inventory Control Management PMP – Project Management Professional Certification (in

process)

Experience: Strategy Consulting & Small business ownership in Turkey Technology Consulting (Booz Allen Hamilton) Web Consulting (U.S. Department of Transportation) SAP Implementation (Welch Allyn)


Who are you? Your first name Experience Expectations for this class. 2 Truths and a Lie


Expectations Student Expectations My Expectations

Enthusiasm about the course Come prepared for the class (read the material!) Try to visualize real world and apply what you

learned in class to real world situations Course Goals (see syllabus) Feedback Mechanisms For the Course

WebCT (anonymous feedback) Email/call/online chat/face to face conversation with me. Surveys, etc.


My Teaching Philosophy Equip students with tools, methodologies and

principles that they can use in work settings. Provide students with knowledge and ways of

thinking and acting that will enable them to make successful strategic and tactical decisions in work setting.

Motivate students to self-teach skills through research and experimentation via the use of Assignments (structured, semi-structured, unstructured)

Research papers and other readings.


Course Outline Day 1

ERP Intro, ERP Lifecycle, Org Change Mgmt Day 2

Developing a Business Case for ERP Systems ERP Selection

Day 3 ASAP Methodology Steps 1-2 Business Process Reengineering

Day 4 ASAP Methodology Steps 3-4

Day 5 ASAP Methodology Step 5 SAP Best Practices/ Lessons Learned


Course Delivery Method Presentations Case Studies (2) Readings Grades (Syllabus) Assignments (Syllabus)


WebCT Usage Lessons & Readings Calendar Syllabus Bulletin Boards


Course Policy/Norms Grading Policy Read the syllabus and check WebCT frequently! Late assignments Assignments– requested format/content, etc. Feedback Chat Students vs. Professionals How to Listen to Me and Guest Speakers How to Read! Teamwork –rules/grade, etc. Sleeping / eating / drinking in class


Team Break Out Session-I Team Building Exercise

Strengths of each member. When/where to meet for work. Exchange phone numbers/email addresses. Team rules How will teams make sure there is fair contribution? What will they do if somebody doesn't do his/her part? Guidelines for grading team participation Anything else? Decide on the company you will work on for the course.


12


I. Course Intro



13

Introduction to ERP Systems I. Course Intro


What is ERP?

Where Did ERP Come From?

What is SAP?

Some SAP Terminology


So….What is an ERP System? Enterprise Resource Planning System (ERP) Complete (?) Suite of Integrated Applications

Real-time updates

Finance / ControllingAccounting

Customer ServiceSales / MarketingHuman Resources

Engineering

Single Integrated DatabaseModular StructureSimilar Interfaces


Where Did ERP Come From?

MRP Material Requirements Planning MRP-II Manufacturing Resource Planning ERP Enterprise Resource Planning


Manufacturing & Bills of Material

Bicycle Frame 1 Seat 1 Rear Wheel Assy 1 Front Wheel Assy 1 Crank Assy 1

Crank 1 Peddle Assembly 2 Nut

1


Manufacturing IssuesSmall Shop -> Number of items to orderLarger Manufacturing company ->

Mass production of many products. Lots of parts to order and manage. Procurement of some parts and

manufacturing of other sub-assemblies


Material Requirements PlanningMPS - Bicycle P/N 12345 - Gross Requirements

Summary of Forecasts and Actual Customer OrdersQOH = 0 Period/ Work Days

1 2 3 4 5 6 7 8 9 10

Gross Requirements 0 300 0 250 50 0 200 100 0 0

MRP - Front Wheel Assembly P/N 23456 - Qty One Per on the Bill of MaterialQOH = 25 Period/ Work DaysOrder Lot Size 25L/T = 1 Day

1 2 3 4 5 6 7 8 9 10

Gross Requirements 0 300 0 250 50 0 200 100 0 0Open Orders 0 300 0 0 0 0 0 0 0 0Planned Due 0 0 0 225 50 0 200 100 0 0Projected Balance 25 25 25 25 0 0 0 0 0 0 0Planned Orders 0 0 225 50 0 200 100 0 0 0

MRP - Tires P/N 23456 - Qty One Per on the Bill of MaterialQOH = 25 Period/ Work DaysOrder Lot Size 200L/T = 2 Days

1 2 3 4 5 6 7 8 9 10

Gross Requirements 0 0 225 50 0 200 100 0 0 0Open Orders 0 0 0 0 0 0 0 0 0 0Planned Due 0 0 400 0 0 200 0 0 0 0Projected Balance 25 25 25 200 150 150 150 50 50 50 50Planned Orders 400 0 0 200 0 0 0 0 0 0


Big Picture: Planning At the Company Level

Annual Business Plan.Annual Budget

process.

3

Sales Forecasts.Actual Demands - Customer Orders.)

2

Strategic Business Plan.

A 2-5 Year Horizon.

1

Sales, Production & Inventory Planning.

4Master Production

Schedule.(Anticipated build

schedule.)

5

Inventory Transactions

5

mrp Explosion.(Demands thru BOMs

& inventory.)

5

Purchase Orders -New PO Releases.PO Reschedules.

5

Supplier Control

5Shop Floor Control.Work Orders or JIT

Releases.Reschedules.

5

Detailed Capacity Planning.

5


Manufacturing Resource Planning.

MRP II – 1980s Method for planning resources of a Mfg

company. It addresses operational planning in units, financial planning in dollars, and has simulation capability to answer “what if” questions.

Links a variety of functions together integrated with financial reports.

Result – one linked resource planning system.


Product Lifecycle1. Customer Orders – Customer

Service Rep. takes the order Do we have the inventory?

If not- order parts or manufacture them.

2. Order Manufactured The reduction in inventory

needs to be recorded.

3. Orders Packed Track packed orders,

packaging material, etc

4. Products Shipped Track shipped products.

5. Customer billed6. Company financials and

customer payments tracked

7. Repair Customer Service Rep

takes customer repair order Checks info in the system.

8. Sales Rep- checks the customer history from the system.

9. Engineers- Store the product designs, access and change them.


Enterprise Resource Planning ERP – Enterprise Resource Planning. Late 90’s and 2000’s

A new increased connection to suppliers. Supply Chain Management.

An increased connection to customers. Demand Management. Customer Portals. e-Business processes. All linked to the ERP engine.

Better Integration of data and functionality


Some ERP Systems Major Players

BAAN JD Edwards PeopleSoft Oracle SAP

Smaller Ones Open Source ones

Compiere


What is SAP? Systems Applications Products German Company with the Same Name (SAP) SAP R/3

Release 3 of the software 3 Tier Client-Server Architecture

Upgrades to the System -> Versions Version 4.6C Version 4.7, etc.

Modular Structure


SAP Industry-Specific Solns


SAP Modules FI Financials CO Controlling MM Materials

Management PP Production Planning HR Human Resources SD Sales & Distribution CS Customer Service PLM Production Lifecycle

Management PS Project Systems, etc

Terminology for integration: Eg: PP-PI

Production Planning in Process Industry Eg: SD-MM

Elements of Materials Management that are related to Sales and Distribution


SAP Features Complete Suite of Integrated Applications

Core business functions (Finance, Sales&Dist, Materials Management, etc.) Industry specific solutions Special solutions Frequent new applications, upgrades and industry

specific bolt-ons Open Systems Architecture

Works with many hardware vendors (HP, IBM, DEC, etc) Different Databases (Oracle, etc) Various Operating Systems and GUIs.


SAP Features-continued Global Business Architecture

Screens and Language >30 languages supported Language is user driven

Multi-Currency Currency exchange rates Tax issues based on country


SAP Features-continued Three-Tier Architecture

Efficient use of processing power Transparency between SAP apps. and PC apps.

Application Data Presentation

BASIS

Client-Server Network

Operating System


SAP Features-continued Audit Trail

Very important for regulated industries Can help you learn more about user behavior Every person is accountable. Data integrity

Connectivity


Team Break Out Session-II Planning for “ERP Knowledge Portal”

Work Breakdown Structure Tasks Resource Plan Timeline Risk Mitigation Plan

Identify Risks Categorize them by frequency and by criticality Write mitigation steps.


32

Introduction to ERP Systems I. Course Intro


ERP Implementations:

Some Key Strategic Decisions

Implementation Methodology


ERP Options Implementation Strategy

Timeline Big Bang Implementation Phased (Roll Out) Implementation Mini Big Bang (Combination of big bang and roll-out)

Staff/Resources Outsourcing In-house

Customization Level

Pro’s and Con’s?




ERP Timeline Can be used for any ERP implementation Based on Project Management Methodology

Project Initiation Planning Controlling Execution Closeout


ASAP Timeline Based on Accelerated SAP (ASAP) Implementation

Methodology


What is ASAP Methodology?


Project Success With ASAP Meth.


Phase-1 Project Preparation


Phase- 2 Business Blueprint


Phase-3 Realization


Project Plan Outline for Realization


Phase-4 Final Preparation


Phase-5 Go Live & Support


Sources

Chris Keller- MRP Slides Kenny Leung- SAP Summit 2005 Hong Kong Doane, SAP Blue Book SAP.com


Questions?


Some Terminology Basis Software. The R/3 Basis is similar to an operating

system that specifically has the capability of processing any of the SAP R/3 transactions. It’s a middleware between the operating system and the servers that allow for smooth operations across different servers, operating systems, and databases.

ABAP: Advanced Business Application Programming (ABAP/4), is a special‑purpose, fourth generation language developed by SAP, is used to write programs for the specialized requirements of creating custom reports, screens, user‑defined functions, and special industry solutions for use with the SAP R/3 System.


What is SAP Netweaver? A comprehensive integration and application platform,

SAP NetWeaver works with your existing IT infrastructure to enable and manage change.

SAP NetWeaver embraces Internet standards such as HTTP, XML, and Web services. Ensuring openness and interoperability with Microsoft .NET

and Java 2 Platform Enterprise Edition (J2EE) environments such as IBM WebSphere.

presentation_1 introduction to erp systems

Documents

erp intro

erp systems introduction

erp lifecycle

erp systems intro introduction

erp systemserp selectionday

course introii

course outlineday

asap methodology steps