Introduction to Enterprise Resource Planning
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Transcript of Introduction to Enterprise Resource Planning
IntroductiontoEnterpriseResourceSystems
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LearningObjectives
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Identifythefollowingaspectsofcustomerrelationshipmanagement(CRM),enterpriseresourcemanagement(ERP),andsupplychain(SCM)mgtsystems: Businessprocessessupported Customerandbusinessvalueprovided Potentialchallengesandtrends
CustomerRelationshipManagement(CRM)–TheBusinessFocus
WhatDoesCRMDoForAnOrganization?
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WhatDoesCRMDoForAnOrganization?
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Providescustomer‐facingemployeeswithasingle,completeviewofeverycustomerateverytouchpointandacrossallchannels
Providesthecustomerwithasingle,completeviewofthecompanyanditsextendedchannels
Integratesandautomatesmanyofthecustomerservingprocesses
CreatesanITframeworkofWeb‐enabledsoftware&databasesthatintegratestheseprocesseswiththerestofthecompany’sbusinessoperations
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CRMBenefitsAndChallenges
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Allowsabusinesstoidentifyitsbestcustomers Makespossiblereal‐timecustomization&personalizationofproducts&servicesbasedoncustomerwants,needs,buyinghabits,&lifecycles
Enablesacompanytoprovideconsistentcustomerserviceexperienceacrosstheorganization
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CRMFailures
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Duetolackofunderstanding&preparation. CRMisnotasilverbullet
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TrendsinCRM
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OperationalCRM AnalyticalCRM CollaborativeCRM Portal‐basedCRM
EnterpriseResourcePlanning(ERP):TheBusinessBackbone
HowDoesAnERPHelpAnOrganization?
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EnterpriseResourcePlanning
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Servesasacross‐functionalenterprisebackbonethatintegrates&automatesmanyinternalbusinessprocessesandinformationsystems
Helpscompaniesgaintheefficiency,agility,&responsivenessneededtosucceedtoday
Givesacompanyanintegratedreal‐timeviewofitscorebusinessprocesses
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EnterpriseResourcePlanning(continued)
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ERPsoftwaresuitestypicallyconsistofintegratedmodulesof… Manufacturing Distribution Sales Accounting HumanResourceManagement
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BenefitsofERPSystems
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Qualityandefficiency Helpsimprovethequalityandefficiencyofcustomerservice,
production,&distributionbycreatingaframeworkforintegratingandimprovinginternalbusinessprocesses
DecreasedCosts Reductionsintransactionprocessingcostsandhardware,software,
andITsupportstaff
Decisionsupport Providescross‐functionalinformationonbusinessperformanceto
assistmanagersinmakingbetterdecisions
Enterpriseagility Resultsinmoreflexibleorganizationalstructures,managerial
responsibilities,andworkroles
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BiggestChallengeofERP
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CostsofERP ThecostsandrisksoffailureinimplementinganewERPsystemaresubstantial.
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CausesofERPFailures
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Underestimatingthecomplexityoftheplanning,development,andtrainingrequired
Failuretoinvolveaffectedemployeesintheplanning&developmentphasesandchangemanagementprograms
Tryingtodotoomuch,toofast
Insufficienttraining Believingeverythingthesoftwarevendorsand/orconsultantssay
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TrendsInEnterpriseResourcePlanning
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FlexibleERP Web‐enabledERP Inter‐EnterpriseERP E‐BusinessSuites
SupplyChainManagement:TheBusinessNetwork
WhatIsSupplyChainManagement?
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SupplyChainManagement
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Across‐functionalinter‐enterprisesystemthatusesITtohelpsupport&managethelinksbetweensomeofacompany’skeybusinessprocessesandthoseofitssuppliers,customers,&businesspartners.
Goalistocreateafast,efficient,&low‐costnetworkofbusinessrelationships.
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WhatDoSupplyChainManagementToolsDo?
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Supply Chain Management Definition
Supply chain management tools enable managers to make informed business decisions about the operation of their supply chain
Supply Chain Management
Overview
Supply chain management tools facilitate planning and production scheduling based on known business constraints
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SCMCapacityConstraints
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-- OR --
Can only drill one piece of metal
at a time
Computer processing and storage capacity
not infinite
“How do I decide what to do on which piece of equipment,
and when?”
Managing a supply chain would be easy if we had
unlimited resources
Supply Chain Manager
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SCMToolslevels
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Event Management
Order Management
Inventory Management
Warehouse Management
Production Planning
Supply Planning
Demand Planning
Network Design
SCM Service Offering
Operational Planning
Tactical Planning
Strategic Planning
Real time / Minutes
Hours / Days
Weeks / Months
Quarters Years
Supply Chain Planning Tools Supply Chain Execution Tools
Transportation Management
Source: BAH
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SupplyChainPlanningProcess
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Supply Planning
Balances unconstrained demand against high level supply chain constraints
Reflect order priority and due dates
Network Design
Design where to place production facilities and optimize the end to end chain
Construct alternate flow scenarios that incorporate associated constraints
Production Planning
Decompose the supply plan into sub assembly / production needs by site
Balance production capacity across sites
Production Scheduling
Optimize processing flows, sequence, and timing
Produce a finite capacity production schedule
Demand Planning
Anticipate demand based on historical trends and current conditions
Perform what if analysis - highlight the impact of changing demand drivers
Hours / Days
Weeks / Months Quarters Years Planning
Horizon
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SupplyChainExecutionProcess
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Order Management Record customer
orders and track status from receipt to final delivery
Direct efficient response to orders with dynamic cost / benefit analysis of options
Inventory Management
Streamline information movement and provide tight inventory control
Inventories replenished using kanban, min-max, or reorder point
Event Management
Monitor and manage critical planning and event information Broadcast alert notification and present response alternatives based on pre determined
business rules
Transportation Management
Optimize and track outbound and inbound shipping
Warehouse Management
Optimization and management of warehouse processes
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SCMVendors
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Althougheachofthevendorsclaimtoprovideanendtoendsolution,theyactuallyfallintotwodistinctcamps
FirstaretheERPvendorswhoprovideastrongsolutionforintegratingthedataenvironmentandprovidingvisibility
SecondaretheSCMvendorswhoproviderobustoptimizationsolutions
Incombination,withanERPvendorprovidingthedataenvironmentandaSCMvendorprovidingtheoptimizationsolution,youcanachieveaveryelegantsolution
Leading SCM Vendors
ERP Focused
Oracle SAP JD Edwards Peoplesoft Invensys / Baan
SCM Focused
i2 Manugistics Aspentech Logility
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BenefitsofSupplyChainManagement
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Canprovidefaster,moreaccurate orderprocessing reductionsininventorylevels quickertimetomarket lowertransactionandmaterialscosts strategicrelationshipswithsuppliers
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ChallengesofSupplyChainManagement
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Lackofproperdemandplanningknowledge,tools,andguidelines
Inaccurateoroveroptimisticdemandforecasts Inaccurateproduction,inventory,andotherbusinessdata
Lackofadequatecollaboration
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