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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 - PowerPoint PPT Presentation
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SUMMER 2005JUNE 6-10 2005
1
IST 600 ERP SYSTEMS:Key Implementation Issues
Introduction to ERP Systems
SUMMER 2005JUNE 6-10 2005
2
Introduction to ERP Systems
I. Course Intro
II. ERP Systems Intro
3 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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)
4 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Who are you? Your first name Experience Expectations for this class. 2 Truths and a Lie
5 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.
6 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.
7 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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
8 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Course Delivery Method Presentations Case Studies (2) Readings Grades (Syllabus) Assignments (Syllabus)
9 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
WebCT Usage Lessons & Readings Calendar Syllabus Bulletin Boards
10 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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
11 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.
SUMMER 2005JUNE 6-10 2005
12
Introduction to ERP Systems
I. Course Intro
II. ERP Systems Intro
SUMMER 2005JUNE 6-10 2005
13
Introduction to ERP Systems I. Course Intro
II. ERP Systems Intro
What is ERP?
Where Did ERP Come From?
What is SAP?
Some SAP Terminology
14 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
So….What is an ERP System? Enterprise Resource Planning System (ERP) Complete (?) Suite of Integrated Applications
Real-time updates
Finance / ControllingAccounting
Customer ServiceSales / MarketingHuman Resources
Engineering
Single Integrated DatabaseModular StructureSimilar Interfaces
15 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Where Did ERP Come From?
MRP Material Requirements Planning MRP-II Manufacturing Resource Planning ERP Enterprise Resource Planning
16 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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
17 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Manufacturing IssuesSmall Shop -> Number of items to orderLarger Manufacturing company ->
Mass production of many products. Lots of parts to order and manage. Procurement of some parts and
manufacturing of other sub-assemblies
18 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Material Requirements PlanningMPS - Bicycle P/N 12345 - Gross Requirements
Summary of Forecasts and Actual Customer OrdersQOH = 0 Period/ Work Days
1 2 3 4 5 6 7 8 9 10
Gross Requirements 0 300 0 250 50 0 200 100 0 0
MRP - Front Wheel Assembly P/N 23456 - Qty One Per on the Bill of MaterialQOH = 25 Period/ Work DaysOrder Lot Size 25L/T = 1 Day
1 2 3 4 5 6 7 8 9 10
Gross Requirements 0 300 0 250 50 0 200 100 0 0Open Orders 0 300 0 0 0 0 0 0 0 0Planned Due 0 0 0 225 50 0 200 100 0 0Projected Balance 25 25 25 25 0 0 0 0 0 0 0Planned Orders 0 0 225 50 0 200 100 0 0 0
MRP - Tires P/N 23456 - Qty One Per on the Bill of MaterialQOH = 25 Period/ Work DaysOrder Lot Size 200L/T = 2 Days
1 2 3 4 5 6 7 8 9 10
Gross Requirements 0 0 225 50 0 200 100 0 0 0Open Orders 0 0 0 0 0 0 0 0 0 0Planned Due 0 0 400 0 0 200 0 0 0 0Projected Balance 25 25 25 200 150 150 150 50 50 50 50Planned Orders 400 0 0 200 0 0 0 0 0 0
19 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Big Picture: Planning At the Company Level
Annual Business Plan.Annual Budget
process.
3
Sales Forecasts.Actual Demands - Customer Orders.)
2
Strategic Business Plan.
A 2-5 Year Horizon.
1
Sales, Production & Inventory Planning.
4Master Production
Schedule.(Anticipated build
schedule.)
5
Inventory Transactions
5
mrp Explosion.(Demands thru BOMs
& inventory.)
5
Purchase Orders -New PO Releases.PO Reschedules.
5
Supplier Control
5Shop Floor Control.Work Orders or JIT
Releases.Reschedules.
5
Detailed Capacity Planning.
5
20 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.
21 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Product Lifecycle1. 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 billed6. 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.
22 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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
23 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Some ERP Systems Major Players
BAAN JD Edwards PeopleSoft Oracle SAP
Smaller Ones Open Source ones
Compiere
24 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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
25 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
SAP Industry-Specific Solns
26 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
SAP Modules 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
27 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.
28 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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
29 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
SAP Features-continued Three-Tier Architecture
Efficient use of processing power Transparency between SAP apps. and PC apps.
Application Data Presentation
BASIS
Client-Server Network
Operating System
30 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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
31 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.
SUMMER 2005JUNE 6-10 2005
32
Introduction to ERP Systems I. Course Intro
II. ERP Systems Intro
ERP Implementations:
Some Key Strategic Decisions
Implementation Methodology
33 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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?
34 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
ERP Timeline Can be used for any ERP implementation Based on Project Management Methodology
Project Initiation Planning Controlling Execution Closeout
35 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
ASAP Timeline Based on Accelerated SAP (ASAP) Implementation
Methodology
36 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
What is ASAP Methodology?
37 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Project Success With ASAP Meth.
38 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Phase-1 Project Preparation
39 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Phase- 2 Business Blueprint
40 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Phase-3 Realization
41 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Project Plan Outline for Realization
42 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Phase-4 Final Preparation
43 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Phase-5 Go Live & Support
44 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Sources
Chris Keller- MRP Slides Kenny Leung- SAP Summit 2005 Hong Kong Doane, SAP Blue Book SAP.com
45 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
Questions?
46 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.
47 IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel
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.