Hour 2: ERP Modules - PowerPoint PPT Presentation

Loading...

PPT – Hour 2: ERP Modules PowerPoint presentation | free to view - id: 1f9dc-MDQ5Y



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Hour 2: ERP Modules

Description:

Dell Computers. Chose to not adopt. Siemens Power Corporation. Implementation of selected modules. Dell Computers. Evaluation of SAP R/3. Need to continue project ... – PowerPoint PPT presentation

Number of Views:331
Avg rating:3.0/5.0
Slides: 34
Provided by: busi235
Category:
Tags: erp | computers | dell | hour | modules

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Hour 2: ERP Modules


1
Hour 2 ERP Modules
  • Historical development

2
Historical
  • Initial Computer support to business
  • Easiest to automate payroll accounting
  • Precise rules for every case
  • Early 1970s
  • centralized mainframe computer systems
  • MIS systematic reports of financial performance
  • Variance analysis between budget and actual

3
MRP
  • Material requirements planning
  • Inventory reordering tool
  • Evolved to support planning
  • MRPII extended to shop floor control

4
SAP Modules
5
Comparative Modules
6
Industry-Specific Focus
  • Each vendor has turned to customized ERP products
    to serve industry-specific needs
  • Examples given from BAAN, PeopleSoft
  • Microsoft also has entered the fray

7
BAAN Industry-Specific Variants
8
PeopleSoft Industry Solutions
9
Microsoft Great Plains Business Solutions
10
Relative ERP Module Use(Mabert et al. 2000
Olhager Selldin, 2003)
11
Relative Module Use
  • Mabert et al. (2000) surveyed Midwestern US
    manufacturers
  • Some modules had low reported use (below 50 in
    red)
  • Financial Accounting most popular
  • Universal need
  • Most structured, thus easiest to implement
  • Sales Marketing more problematic

12
Why Module Use?
  • Cost
  • Cheaper to implement part of system
  • Conflicts with concept of integration
  • Best-of-Breed concept
  • Mabert et al. found only 40 installed system as
    vendor designed
  • 50 used single ERP package 4 used
    best-of-breed
  • Different vendors do some things better
  • Conflicts with concept of integration

13
Middleware
  • Third-party software
  • Integrate software applications from several
    vendors
  • Could be used for best-of-breed
  • Usually used to implement add-ons (specialty
    software such as customer relationship
    management, supply chain integration, etc.)

14
Customization
  • Davenport (2000) choices
  • Rewrite code internally
  • Use existing system with interfaces
  • Both add time cost to implementation
  • The more customization, the less ability to
    seamlessly communication across systems

15
Federalization
  • Davenport (2000)
  • Roll out different ERP versions by region
  • Each tailored to local needs
  • Core modules shared
  • some specialty modules unique
  • Used by
  • Hewlett-Packard
  • Monsanto
  • Nestle

16
EXAMPLES
  • Dell Computers
  • Chose to not adopt
  • Siemens Power Corporation
  • Implementation of selected modules

17
Dell Computers
  • Evaluation of SAP R/3

18
Need to continue project evaluation
  • Initial project adoption
  • 1994 Dell began implementation of SAP R/3
    enterprise software suite
  • Spent over 1 year selecting from 3,000
    configuration tables
  • After 2 year effort (200 million), revised plan
  • Dell business model shifted from global focus to
    segmented, regional focus

19
Rethinking
  • In 1996 revised plan
  • Found SAP R/3 too inflexible for Dells new
    make-to-order operation
  • Dell chose to develop a more flexible system
    rather than rely on one integrated, centralized
    system

20
Best-of-Breed
  • I2 Technologies software
  • Manage raw materials flow
  • Oracle software
  • Order management
  • Glovia software
  • Manufacturing control
  • Inventory control
  • Warehouse management
  • Materials management
  • SAP module
  • Human resources

21
Core Competencies
  • Glovia system interfaced with
  • Dells own shop floor system
  • I2 supply chain planning software
  • This retained a Dell core competency
  • Would have lost if adopted publicly available
    system

22
Points
  • Demonstrates the need for speed
  • Prolonged installation projects become outdated
  • Need to continue to evaluate project need after
    adoption
  • Tendency to stick with old decision
  • But sunk cost view needed
  • Demonstrates need to maintain core competitive
    advantage
  • Adopting vendor ERP doesnt

23
Siemens ERP ImplementationHirt Swanson (2001)
  • Nuclear fuel assembly manufacturer
  • Engineering-oriented

24
Siemens Power Corporation
  • 1994 Began major reengineering effort
  • Reduced employees by 30
  • 1996 Adopted SAP R/3 system
  • Replacement of IS budgeted at 4 million
  • Some legacy systems retained

25
Siemens Modules
  • FI Finance
  • CO Controlling
  • AR Accounts receivable
  • AP Accounts payable
  • MM Materials management
  • PP Production planning
  • QC Quality control

26
Implementation
  • To be led by users
  • Project manager from User community
  • Consultant hired for IT support
  • IS group only marginally involved

27
Project Progress
  • Oct 1996 Installed FI module
  • Sep 1997 Installed other modules
  • On time, within budget

28
Permanent Team
  • Made project team a permanent group
  • Project manager had been replaced
  • 2nd PM retained
  • SAP steering committee
  • SAP project team formed

29
SAP steering committee
  • 7 major user stakeholders
  • Guided operating policy
  • major expenditures
  • major design changes

30
SAP project team formed
  • 15 members from key user groups
  • part-time
  • Trainer
  • User help
  • Advisors to middle management

31
Training
  • End users became more proficient with time
  • Average of 3 months to learn what needed
  • Management training took longer
  • Management didnt understand system well
  • Often made unrealistic requests

32
Operations
  • During first year
  • Major errors in ERP configuration
  • Evident that users needed additional training
  • New opportunities to change system scope
    suggested
  • Two years after installation
  • R/3 system upgrade

33
Summary
  • Core idea of ERP complete integration
  • In practice, modules used
  • More flexible, less risk
  • Can apply best-of-breed concept
  • Ideal, but costly
  • Related concepts
  • Middleware integrate external software
  • Customization tailor ERP to organization
  • Federalization different versions of ERP in
    different organizational subelements
About PowerShow.com