ERP. Enterprise Resource Planning. Presented by: Patrick Hanley (Group Leader) Sharin Crivellaro Bernard Medina Erica Smith Tony Zogheib. Group 3 IST110L Mr. Curt Day 4 December 2007. Origin of ERP. Concept d eveloped by the manufacturing industry in 1960
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ERP Enterprise Resource Planning Presented by: Patrick Hanley (Group Leader) Sharin Crivellaro Bernard Medina Erica Smith Tony Zogheib Group 3 IST110L Mr. Curt Day 4 December 2007
Origin of ERP • Concept developed by the manufacturing industry in 1960 • The first software developed was called MRP (Material Resource Planning) • The first version of the software did not actually become available until 1975
Origin of ERP • Eventually MRP would evolve into ERP, • benefiting all industries, not just manufacturing • ERP gradually became multifaceted software encompassing many areas of business management
ERP Model ERP utilizes the concept of Best Practices… Best Practices: The idea that a desired outcome can be reached with the fewest problems and errors with extensive testing, checks and processes.
ERP Model The Before and After of ERP: “Before” -- each function is supported by multiple applications and interfaces “After” -- each function is supported by a single application module within the ERP system itself, and all applications leverage a common, authoritative data source.
ERP Model and the Object-Process Methodology Object-Process modeling methodology is used to generate a detailed ERP system model. Object process methodology helps to synchronize the ERP system to the organization (or enterprise). It is an algorithm that compares like things between the ERP system and the enterprise and calculates and forms a compatible algorithm between the two.
Parts of the ERP Database ERP covers a broad range of activities that are supported by a multi-module software application. The different modules allow the business to manage the many parts of the business. Some examples of modules: Planning Sales Inventory Marketing Parts Purchasing Distribution Maintenance Accounting Manufacturing Finance Human Resources
Parts of the ERP Database To allow for the integration of these varying modules, ERP will typically use a relational database. • ERP deployment will often involve considerable analysis of business processes, as well as employee retraining and the establishment of new procedures.
Parts of the ERP Database 7 Sectors of an ideal ERP system: • Manufacturing: Examples are engineering, quality control • Financial: Accounts, money management, etc. • Human Resources: Attendance, payroll, benefits, etc. • Supply Chain Management: Inventory, purchasing, order entry, etc. • Projects: Costing, billing • Customer Relationship Management: Call center report, Sales, Market • Data Warehouse: Accessible by workers, managers and customers, like an online store
Maintenance & Support Key points of maintenance and support of ERP: CMMS (Computerized maintenance management systems) • CMMS handle vast quantities of data and are creating new opportunities for maintenance.
Maintenance & Support CMMS benefits: • Resource control: tighter control of resources • Cost management: better cost management and audibility • Scheduling: ability to schedule fast moving workloads • Integration: better integration with other business systems • Reduction of breakdowns: improved reliability of physical assets through the application of an effective maintenance program
Advantage of ERP Interface capability A business without an ERP system may have many software applications that do not connect and interface effectively. Tasks that need to interface with one another: • design engineering • order tracking from acceptance through fulfillment • tracking the 3-way match between purchase orders, inventory receipts, and costing
Advantage of ERP ERP allows different business areas and employees within an organization to instantly access and utilize data • Great advantage for global companies Examples: • Expense reporting done online in various foreign currencies • Employees are able to view payroll statements and make medical benefit selections themselves online • Employees can search for information about others in the organization, such as department and contact information, even view their photos online.
Disadvantage of ERP Training issues Insufficient levels of investment in ongoing training for all personnel involved • Personnel must be properly trained in order for system to be utilized effectively
Disadvantage of ERP Some limitations of ERP: • ERP systems can be very expensive to install • Systems can be difficult to use • System may be over-engineered relative to actual customer needs • System can suffer due to a “weaker link” • A problem with one department in the system can effect the others connected • Customization capability is limited • Customization is required to change the software, but changing ERP software is usually not recommended.
Companies & organizations that utilize ERP Any type of organization can use some type of ERP system, if resources allow. • These companies tend be medium to large size. US Army/US Navy Automotive Industry GKN Aerospace Pharmaceutical Companies IBM Hospitals
Companies & organizations that utilize ERP Example: Nuffield Hospitals, located in the UK • 40 hospitals • Recently began rolling out enterprise resource planning and document management software • installing the software at two or three hospitals at a time • protecting profit margins by increasing operational efficiencies • creating a central procurement function for the entire group • establishing a shared services center for certain functions, such as finance and HR £4m invested – expected to be recouped within 3 years of improved efficiency
Choosing an ERP Provider A difficult and time-consuming process, although vital to success of the project A business must assess the user’s needs and identify the expectations for the system before starting the search for a provider. • There are many providers • Providers may specialize in particular areas • Must choose provider that sufficiently meets all needs of the user at best cost, from start to completion of the project
Choosing an ERP Provider Great Plains Ross Systems SCT Cincom Computer Associates GEAC Sage Navison Scala Deltek Fourthshift Lilly Software Flexi Int'l Glovia International Syspro Group SAP Oracle PeopleSoft invensys ABB Automation i2 SSA Global Technologies Intentia International Epicor Lawson Software QAD IFS Mapics Mincom American Software AremisSoft Corp. ProfitKey International Solomon Software Macola Made2Manage Visibility PowerCerv Clarus Corp Friedman Corp ROI Systems Ramco Intuitive Manufacturing Ceecom, Inc. Technology Group International
ERPEnterprise Resource Planning Thank you!
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