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IST 600 ERP SYSTEMS: Key Implementation Issues

IST 600 ERP SYSTEMS: Key Implementation Issues. Introduction to ERP Systems. Introduction to ERP Systems. I. Course Intro II. ERP Systems Intro. Introduction – Who am I?. Education : BS in Business Administration MS in Information Management

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IST 600 ERP SYSTEMS: Key Implementation Issues

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  1. IST 600 ERP SYSTEMS:Key Implementation Issues Introduction to ERP Systems

  2. Introduction to ERP Systems I. Course Intro II. ERP Systems Intro

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

  4. Who are you? • Your first name • Experience • Expectations for this class. • 2 Truths and a Lie IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

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

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

  8. Course Delivery Method • Presentations • Case Studies (2) • Readings • Grades (Syllabus) • Assignments (Syllabus) IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  9. WebCT Usage • Lessons & Readings • Calendar • Syllabus • Bulletin Boards IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

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

  12. Introduction to ERP Systems I. Course Intro II. ERP Systems Intro

  13. I. Course Intro II. ERP Systems Intro What is ERP? Where Did ERP Come From? What is SAP? Some SAP Terminology Introduction to ERP Systems

  14. Single Integrated Database Modular Structure Similar Interfaces Finance / Controlling Accounting Customer Service Sales / Marketing Human Resources Engineering So….What is an ERP System? • Enterprise Resource Planning System (ERP) • Complete (?) Suite of Integrated Applications • Real-time updates IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  15. Where Did ERP Come From? • MRP Material Requirements Planning • MRP-II Manufacturing Resource Planning • ERP Enterprise Resource Planning IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

  17. Manufacturing Issues • Small Shop -> Number of items to order • Larger Manufacturing company -> • Mass production of many products. • Lots of parts to order and manage. • Procurement of some parts and manufacturing of other sub-assemblies IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  18. Material Requirements Planning IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  19. Big Picture: Planning At the Company Level IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

  21. 1. 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 billed 6. 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. Product Lifecycle IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

  23. Some ERP Systems • Major Players • BAAN • JD Edwards • PeopleSoft • Oracle • SAP • Smaller Ones • Open Source ones • Compiere IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

  25. SAP Industry-Specific Solns IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

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

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

  29. SAP Features-continued • Three-Tier Architecture • Efficient use of processing power • Transparency between SAP apps. and PC apps. Application Data Presentation Client-Server Network BASIS Operating System IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

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

  32. I. Course Intro II. ERP Systems Intro ERP Implementations: Some Key Strategic Decisions Implementation Methodology Introduction to ERP Systems

  33. 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? Pro’s and Con’s? Pro’s and Con’s? IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  34. ERP Timeline • Can be used for any ERP implementation • Based on Project Management Methodology • Project Initiation • Planning • Controlling • Execution • Closeout IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  35. Based on Accelerated SAP (ASAP) Implementation Methodology ASAP Timeline IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  36. What is ASAP Methodology? IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  37. Project Success With ASAP Meth. What does this slide tell you? IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  38. Phase-1 Project Preparation IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  39. Phase- 2 Business Blueprint IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  40. Phase-3 Realization IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  41. Project Plan Outline for Realization IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  42. Phase-4 Final Preparation IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  43. Phase-5 Go Live & Support IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  44. Sources • Chris Keller- MRP Slides • Kenny Leung- SAP Summit 2005 Hong Kong • Doane, SAP Blue Book • SAP.com IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

  45. Questions? IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel

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

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

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