Here are summaries of an ERP success story and problems encountered with an ERP implementation:
Success story: A manufacturing company implemented an ERP system that integrated their previously separate inventory, accounting, sales and production systems. This allowed real-time visibility across the organization and identification of inefficiencies. Cycle times were reduced by 30% and on-time deliveries increased from 80% to over 95%. Inventory was reduced by 20% saving $3 million annually.
Problems encountered: A large retailer implemented a new ERP system but underestimated the complexity. The go-live date was missed by 6 months causing major disruptions. Employees were not properly trained leading to data errors. Suppliers could not interface with the new system delay
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Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
Here are summaries of an ERP success story and problems encountered with an ERP implementation:
Success story: A manufacturing company implemented an ERP system that integrated their previously separate inventory, accounting, sales and production systems. This allowed real-time visibility across the organization and identification of inefficiencies. Cycle times were reduced by 30% and on-time deliveries increased from 80% to over 95%. Inventory was reduced by 20% saving $3 million annually.
Problems encountered: A large retailer implemented a new ERP system but underestimated the complexity. The go-live date was missed by 6 months causing major disruptions. Employees were not properly trained leading to data errors. Suppliers could not interface with the new system delay
Here are summaries of an ERP success story and problems encountered with an ERP implementation:
Success story: A manufacturing company implemented an ERP system that integrated their previously separate inventory, accounting, sales and production systems. This allowed real-time visibility across the organization and identification of inefficiencies. Cycle times were reduced by 30% and on-time deliveries increased from 80% to over 95%. Inventory was reduced by 20% saving $3 million annually.
Problems encountered: A large retailer implemented a new ERP system but underestimated the complexity. The go-live date was missed by 6 months causing major disruptions. Employees were not properly trained leading to data errors. Suppliers could not interface with the new system delay
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Here are summaries of an ERP success story and problems encountered with an ERP implementation:
Success story: A manufacturing company implemented an ERP system that integrated their previously separate inventory, accounting, sales and production systems. This allowed real-time visibility across the organization and identification of inefficiencies. Cycle times were reduced by 30% and on-time deliveries increased from 80% to over 95%. Inventory was reduced by 20% saving $3 million annually.
Problems encountered: A large retailer implemented a new ERP system but underestimated the complexity. The go-live date was missed by 6 months causing major disruptions. Employees were not properly trained leading to data errors. Suppliers could not interface with the new system delay
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
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Chapter 1:
Enterprise Resource Planning
Systems What is ERP? Simplistic Definition
ERP - Enterprise Resource Planning
• Enterprise means organisation wide
• Resource refers to all the resources under your control
• Planning means looking at the long term view rather
than just current What is an ERP System? • Information system – Arrangement of people, data, processes, information presentation and information technology that interact to collect, process, store and provide as output the information needed to support an organization.
• Allows automation and integration of business processes
• Enables data and information sharing • Enterprise-wide system • Introduces “best practices” What is an ERP System? • a package software solution that tries to address the enterprise needs for an organization by tightly integrating the various functions of an organization.
• a business strategy that build customer and shareholder
communities value network system by enabling and optimizing enterprise operational and financial processes.
• The most important feature of ERP is to combine all department and
functions into a single system.
• Although, it is hard but useful to integrate all various departments.
Because the needs and expectations are different. What is an ERP – Key Characteristics Integration • Integration of all the information flowing through a company – financial and accounting, – human resource information, – supply chain information, and – customer information.
Packages • Mapping organizational requirements to the processes. • Organisations that purchase enterprise systems enter into long-term relationships with vendors. What is an ERP – Key Characteristics Best Practices • ERP vendors talk to many different businesses within a given industry as well as academics to determine the best and most efficient way of accounting for various transactions and managing different processes. The result is claimed to be “industry best practices”.
Evolving (improvements) Enterprise Systems are changing rapidly • Architecturally: Mainframe, Client/Server, Web-enabled, Object- oriented, etc. • Functionally: front-office (i.e. sales management), supply chain (advanced planning and scheduling), data warehousing, specialised industry solutions, etc. Why implement an ERP System? • To support business goals – Integrated, on-line, secure, self-service processes for business – Eliminate costly mainframe/fragmented technologies
• Improved Integration of Systems and Processes
• Empower Employees
• Enable Partners, Customers and Suppliers
Why implement an ERP System? Evolution of ERP • 1960s: software packages with inventory control • 1970s: MRP (Materials Requirement Planning) systems – Production schedule with materials management • 1980s: MRPII (Manufacturing Resource Planning) systems – Adds financial accounting system • 1990s: MRPII – Integrated systems for manufacturing execution • Late 1990s: ERP – Integrated manufacturing with supply chain ERP Market • One of the fastest growing markets in software industry • 34.5% of companies with revenues over $1 billion plan to purchase or upgrade • $180 billion in sales in 2002 • Maybe as much as $1 trillion by 2010 ERP Systems • Variety of business justifications – Replace legacy systems – Reduce cycle times – Lower operating costs – Enables better management decisions • Real-time • On-line Integrated Systems Approach • Common set of applications • Usually requires re-engineering business processes – Better alignment • Limited customization – Easier upgrades • Overcomes inefficiencies of independent systems • Integrated data supports multiple business functions Integration of ERP System How should we implement ERP systems? Obtain the right mix of people, processes and technology!! It’s all really about control, it’s about aligning people process and technology so that they master the raging waters.
•People who have experienced
•Process You have to row in a certain way •Technology You have to have a decent boat Advantages of ERP • Integration of business process • Easy information flow • Opporunities to report and analysis. • Systematically work flow • Faster work flow • Increase the quality of information • Increase communication • Database • Competitive edge Disadvantages of ERP • Costly • Major changes in business processes • Complex and so not easy to fit ERP into business • Never compeleted implementation • Expertise problems • Training staff Overall Business Benefits • Information – Maximizes information throughput – Provides timely information – Integrates information throughout supply chain • Minimizes response time • Pushes decision making down to lowest levels • Reduces costs • Cuts inventory • Improves operating performance • Customer Satisfaction Department Benefits • Sales – Increased efficiency • Lower quotes, reduced lead time, improved responsiveness • Manufacturing – Concurrent engineering – Faster design and production • Data Service – Accurate customer service history and warranty information • Accounts Payable – Suppliers paid accurately Systems Benefits • Eliminating legacy systems – Reduces incompatible data – Can cause fragmentation • Allows sharing and monitoring of information across organization • Foundation of eBusiness – Back-office functions • Standardization • Helps obtain and maintain competitive advantage • Improved interactions with customers and suppliers ERP Involves • Project planning • Business and operational analysis, including GAP analysis • Business process reengineering (BPR) • Installation and configuration • Project team training • Business requirements mapping to software • Module configuration • System modification and interfaces • Data conversion • Custom documentation • End user training • Acceptance testing • Post-implementation support Homework
a. Find a success story of ERP implementation.
b. Find a story of problems encountered with an
ERP implementation.
Note: Please summerise the stories, direct copy-paste from the
