3765284 Lecture Notes Session 4

8/9/2019 3765284 Lecture Notes Session 4

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Take customer demand as initial input

Number o f product units needed and when theyare needed

U se long-range f orecasts to put long-lead materialon order

Help reduce inventory cost while ensuringavailability

Materials Requirement Planning (MRP)


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Materials Requirement Planning (MRP) Activities


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Combines MRP with other manu f acturing-related activitiesto plan the manu f acturing process such as:

Shop activity control and purchasing

Source o f demandCustomer order entry and f orecasting

Support f unctions such as f inancial management, sales

analysis, and data collection

Manu f acturing Resource Planning (MRP II)


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Track, schedule, and control manu f acturingprocesses

Collect data such as:

Hours machine operates every day o f the month

Hours the machine is idle and why

Manu f acturing Execution Systems (M ES)


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Supply chain management (SCM)Managers know status o f product during

manu f acturing

Recent IS control as well as monitormanu f acturing process

System at Ford Motor Company designedto ensure no assembly steps are missed

Monitoring and Control


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Supply Chain Management (SCM)

Emphasis on u pstream activities of theSupply-chainTwo primary objectives of upstreaminformation flow: Acc elerate prod uc t development Red uc e prod uc t and delivery c osts

asso c iated with s u ppliers


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Marketing and Sales, In f ormation Systems


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Equipping salespeople with informationtechnology to facilitate productivity

IT allows salespeople to present differentoptions for products and services on thespot

Sales Force Automation


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Customer Relationship Management (CRM) so f tware f orcompanies to better serve and know customer needs

Track past purchase and payments

U pdate online answers to f requently asked questions

Analyze customers contact with company

Web-based Customer Service available 24/7

Customer Relationship Management


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Human Resource Management Functions


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Human Resources

Employee Record Management

Reduce space needed to store records, time to retrieve them, and costs o f both

Promotion and Recruitment

Search databases f or quali f ied personnelU se intranet to post job vacanciesU se the Web to recruit

Training

Multimedia so f tware training is replacing classrooms and teachersTraining so f tware simulates an actual task or situation and includes evaluation tools

Evaluation

Evaluation so f tware helps standardize the evaluation process and adds a certainmeasure o f objectivity and consistency

Compensation and Bene f its Management ISs can help manage compensation e ff iciently and e ff ectively

Calculate salaries, hourly pay, commissions, and taxesAutomatically generate paychecks or direct deposits

Special so f tware helps manage bene f its, such as health insurance, li f e insurance,retirement plans, and sick and leave days


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Enterprise Resource Planning ( ERP)


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Groupware and Collaborative Work

GroupWare lets workers in di ff erent locations communicateideas, brainstorm, and work together as i f they were in thesame place

Document ControlU sers can distribute and track electronic documents

without working with outdated in f ormationCollaborative Projects

U sers can coordinate work on a single document f rommany di ff erent terminals


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Ethical and Societal Issues See Text

Seven Commandments o f Personal Data Collection and Maintenance

1. Purpose: Companies should in f orm people who providein f ormation o f speci f ic, exclusive purpose

2. Relevance: Companies should record and use only datanecessary to f ul f ill their own purposes

3. Accuracy: Companies should ensure that their data are accurate

4. Currency: Companies should make sure that all data about anindividual are current

5. Security: Companies should limit data access to only those whoneed to know

6. Time Limitation: Companies should retain data only f or the timeperiod necessary

7. Scrutiny: Companies should establish procedures to let

individuals review their records and correct inaccuracies


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Legacy Systems

Older systems sometimes re f erred to as fun ctio n al systems.

Not i n tegrated -- te n d to be sta n d alo n e

applicatio n s.O f te n times i nf ormatio n is d u plicated

across di ff ere n t database systems.u s u ally developed f or a speci f ic b u si n ess

activity.


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From Legacy to ES: Stages o f Evolution

LegacySystem

ERPSystem

SCMSystem

CRMSystem

Internally Focused

Externally Focused


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AB C Company

Typical Legacy System

InboundLogistics

OperationsOutboundLogistics

PurchaseOrders

R.M.sInventory

R.M.sInventory

FGS Inventory

FGS Inventory

Invoi c es

3 separate information systems6 separate databases


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What is ERP?

Standard software that automates thebasic processes of a companyMany pro c esses u se the same

informationE liminate islands of a u tomation no

more ar c hipelagoHolisti c approa c h is different from

traditional (f u n c tional) IS Lega c y systems


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Goals o f ERP

Enter dataO ne time A t one pla c e

A t the so u r c eData availability

Single so u r c e

In many plac

esReal-time


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Integrated SCM

4 0

AB C Company

Invoices

InboundLogistics

OperationsOutboundLogistics

RMsInventory

FGsInventory

PurchaseOrders


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4 1

The Formula f or ES Success

Secure executive sponsorshipGet help from outside experts

Thoroughly train usersTake a multidisciplinary approachto implementation


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4 2

F u n c tional Level strategic initiatives

F u n c tional level strategic initiatives

Information Systems (IS) strategy pro c ess:

Competitive Advantage Initiatives

Business Strategy Development

IS strategic initiatives Marketing Strategic Initiatives Logistics strategic initiatives


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4 3

L ear ning Object iv es

Ide ntif y vari ous bus in ess f u n c ti o n s an d t her ole o f ISs in t hese f u n c ti o n sExpl ain how ISs in t he b a s i c bus in ess

f u n c ti o n s r el at e t o e a ch o t he r Show how ISs o f d iff e r e nt bus in ess

f u n c ti o n s suppo rt e a ch o t he r

Desc rib e an d co ntra s t le ga cy (o r f u n c ti o na l) sys t ems w it h ERP sys t emsDesc rib e d ata w ar ehous ing


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Assignments Session 5 Fri 5/23

Review Blackboard Announcements,

Handouts, Discussion BoardReview Sessions 1-4 Materials Bring

questionsComplete Review Problems Set 2Quiz on Chapter 3 Learning Objectives


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Documents

3765284 Lecture Notes Session 4