Professional Documents
Culture Documents
TPS: Perform routine operations (viz customer orders, purchase orders etc.) and
serve as a foundation for other systems
MIS: An MIS provides managers with information and support for effective
decision making, and provides feedback on daily operations
DSS: Offers potential to assist in solving both semi-structured and unstructured
problems
ESS: A specialized DSS mainly used to assist senior level managers in the org.
ES: Display intelligent behavior, Draw conclusions from complex relationships,
Provide portable knowledge
Krishna : IM 12
ERP frequently asked questions
Krishna : IM 12
ERP frequently asked questions
It has its beginning in Materials Requirements Planning (MRP), and this later
evolved into Manufacturing Resource Planning (MRP II)
ERP II is an application and deployment strategy that expands out from ERP
functions to achieve integration of an enterprise’s key domain-specific, internal
and external collaborative, operational and financial processes.
Krishna : IM 12
ERP frequently asked questions
Physical Adv:
Faster and more access to information
Decision Making requires less time and resources
Tasks are done correctly the first time and not redundant
Organizational Adv:
Strategies become proactive and are the main focus
An overall organization’s willingness to constantly improve and be innovative
Company Benefits:
Improved Cost Control
Better monitoring and quicker resolution of queries
Helps to achieve competitive advantage by improving its business process.
Krishna : IM 12
ERP frequently asked questions
Business Engineering:
Method for changing the way a company works based on best business practices
and IT. A complete re-thinking and reshaping of business processes based on
structures native to IT
Ideally, BPR should define the solutions that can be implemented, the ‘how’ of it is
governed by the ERP package.
ERP acts as technological enabler for the new business model.
ERP package is a technological implication of a BPR exercise.
Matured ERP packages become the most suitable option for the IT
solution required to implement the ‘to-be’ model resulting from a BPR
exercise.
Krishna : IM 12
ERP frequently asked questions
Integration and testing - Testing the links between ERP packages and other
corporate software links that have to be built on a case-by-case basis is another of
the underestimated cost.
Customization - Add-ons are only the beginning of the integration costs of ERP.
Much more costly, and something to be avoided if at all possible, is actual
customization of the core ERP software itself.
Data analysis - Often, the data from the ERP system must be combined with data
from external systems for analysis purposes. Users with heavy analysis needs
should include the cost of a data warehouse in the ERP budget
Consultants charges - When users fail to plan for disengagement, consulting fees
run wild.
Krishna : IM 12
ERP frequently asked questions
ERP Risks
Evaluate Success
• Timing
– When benefits could be realized and measured
– During the 1st or 2nd year AFTER going live
• Determining if the system meets the criteria set out for it in the
beginning (choice rationale)
• Independent measures or a weighted portfolio of measures?
Krishna : IM 12
ERP frequently asked questions
Levels:
I: Process and product models, Reference Models, Evaluation Bench Marking,
Simulation, Quality control, Warehousing
II: Monitoring, Scheduling and Capacity control, EIS
III: Work Flow Control
IV: Std Software modules, Component, business objects, object libraries, java applets,
database.
Level II (process planning and control) is where business process owners’ current
business processes are planned and controlled, with methods for scheduling and capacity,
and (activity based) cost analysis also available. Process monitoring lets process
managers keep an eye on the states of the various processes.
At level III (workflow control), objects to be processed, such as customer orders with
appropriate documents or insurance claims, are delivered from one workplace to the next.
Electronically stored documents are delivered by workflow systems.
At level IV (application system), Functions of the business process are executed using
computer-aided application systems -- ranging from simple word processing systems to
complex standard software solution modules--, business objects and java applets.
Krishna : IM 12
ERP frequently asked questions
Krishna : IM 12
ERP frequently asked questions
Krishna : IM 12
ERP frequently asked questions
Implementation Methods
Big Bang:
In a full big bang, an entire suite of ERP applications is implemented in all locations
in a matter of days. Big Bang employs a three step process.
• Virtually all processes and artifacts are chosen and implemented in the
software (e.g., 8 months)
• System is tested by process and then by interfaces between processes
(e.g., 8 months)
• Old system is turned off. New system is then implemented and minor
changes made.
Phased:
At the extreme, modules are implemented one at a time, possibly one location at a
time
– For example, one implementation did the following:
• Phase 1 - Finance, controlling, accounts receivable, accounts
payable, and purchasing (12 months)
• Phase 2 - Materials management, production planning and quality
planning (7 months)
• Phase 3 - Remainder (5 months)
– Using a phased approach, the new system is implemented in a structure of
legacy systems.
Krishna : IM 12
ERP frequently asked questions
Krishna : IM 12