Group 5 - 1409

Enterprise
Resource
Planning
GROUP 5
• Trần Thị Thùy An
• Nguyễn Lê Quý Trân
Team Member • Nguyễn Thị Thùy Chi
Group 5
• Lê Nguyễn Minh Anh
• Phan Nguyễn Ngọc Mai

Table of
contents
1- What is ERP?
2- How did ERP develop?
3- How should ERP systems be implemented
4- Summary
Trần Thị Thùy An
What is ERP?
Enterprise Resource Planning
software standardizes, streamlines and integrates
business processes across finance, human resources,
procurement, distribution and other departments.
Information
management
is the organized collection, storage and use of
information for the benefit of an enterprise
SPREADSHEET
CUSTOMER
OR MANUAL
R E L AT I O N S H I P
PROCESSES
MANAGEMENT
MANAGING
ACCOUNTING
ORDERS AND
SYSTEM
WA R E H O U S E
How to share data?

''Mordern'' ERP
Nguyễn Lê Quý Trân
How did
ERP
develop?
An enterprise resource planning (ERP) system is
the key to integrating critical business functions
across an organization
The history of ERP systems is longer than you

might think—they’ve been around for about 60
years
The Development of ERP

• ERP history started with material requirements

planning (MRP) systems in the 1960s.
• While they were expensive to create,

Material required a team of experts to maintain and
took up a lot of space, early MRP systems
Requirements enabled businesses to track inventory and
production
Planning Systems • Although adoption of MRP systems
gained traction in the 1970s, the
MRP Systems technology remained limited to large
companies that had the budgets and
resources for in-house development
The ‘80s marked a milestone

in the history of ERP systems
MRP II
SYSTEMS
These more sophisticated solutions supported
manufacturing processes beyond inventory and raw
materials procurement
Enterprise resource planning (ERP) has been

defined as,
Enterprise Resource ‘a complete enterprise wide business solution.

The ERP system consists of software support
modules such as: marketing and sales, field
Planning Systems service, product design and development,
production and inventory control,
procurement, distribution, industrial facilities
management, process design and
development, manufacturing, quality, human
ERP Systems resources, finance and accounting, and
information services. Integration between the
modules is stressed without the duplication of
information’
ERP integrates information from all parts of the

organization
The potential of web-based

communication has provided a further
boost to ERP development
WEB-
INTEGRATED
ERP SYSTEMS
The internet-enabled systems that could pull data from
other sources, including front-office applications and
back-end applications.
Nguyen Thị Thuy Chi
Benefits of ERP are usually held to be

the following
● Because software communicates across all functions, there

is absolute visibility of what is happening in all parts of the business.
Enterprise resource ● The discipline of forcing business-process-based changes is

an effective mechanism for making all parts of the business
planning (ERP) more efficient.
● There is better ‘sense of control’ of operations that will

form the basis for continuous improvement
● It enables far more sophisticated communication with

customers, suppliers and other
The benefits of ERP business partners, often giving more accurate and timely
information.
● It is capable of integrating whole supply chains including

suppliers’ suppliers and customers’
customers.
Features which make ERP a powerful planning and control tool Nguyen Thị Thuy Chi
It is based on a client–server architecture; that is, access to the information systems is

open to anyone whose computer is linked to central computers.
It can include decision support facilities which enable operations decision makers to
include the latest company information.
A GIFT
The benefits of
It is often linked to external extranet systems, such as the electronic data interchange
(EDI) systems, which are linked to the company’s supply chain partners.
ERP
It can be interfaced with standard applications programs which are in common use
by most managers, such as spreadsheets etc.
Often, ERP systems are able to operate on most common platforms such as
Windows or UNIX, or Linux
Nguyen Thị Thuy Chi
ERP CHANGES
THE WAY
COMPANIES
DO BUSINESS
1 2 3
ensure that the right way of
change their processes to fit modify the software within the
doing business will fit into a
the ERP package ERP package to fit their
standard ERP package.
processes
Lê Nguyễn Minh Anh
How should ERP systems be

implemented
The 12 step 6. Make a Communication Plan
process 7. Arrange mid-way Approvals
1. Define Scope of Implementation and End

Objectives 8. Plan your Testing
2. Select an ERP System 9. Migrate Business Data
3. Create the Project plan 10. Prepare for the change
4. Define phases of Implementation 11. Plan your Go-Live
5. Make urgent but achievable Schedule 12. Support and Maintenance

1. Define Scope of Implementation and End 2. Select an ERP System.

Objectives • Choose the suitable type
• Define the goals of the project • Choose a partner for implementations
• Define objective of the project
• Look for anticipated risks
• Assign team and role
3. Create the Project plan. 4. Define phases of Implementation

• Define the goals/objective • Identify Module of ERP for your
• Create structured timelines business
• Create TO DO list • Map your Business Processes
• Create case studies for development partner
• Create a pointwise checklist for functional points
5. Make urgent but achievable Schedule

• Make flexible Schedules to allow adjustments
• Keep everything detailed
8. Plan your Testing
• Technical Test
• Consult your IT partner for this
• Functional Test
• Include regular status update
• User Acceptance Test
6. Make a Communication Plan

• Schedule Meetings with IT partners
• Schedule mid-way approval
9. Migrate Business Data
• Fix agendas for next meetings
• Convert from previous ERP
• Collect business data
• Remove Out-dated data
7. Arrange mid-way Approvals • Approve for 100% accuracy
• Schedule range of midway approvals
• Prepare test cases
10. Prepare for the change

• Expect the change
• Motivate your staff
• Get full fleged User-Guide
• Arrange functional training for staff
• Establish the sense of urgentcy 11. Plan your Go-Live
• Test access right limitations
• Confirm accurate data migration
• Test with real case studies
• Test business reports
12. Support and Maintenance

• After successful implementation
• Continue with your partner with a
support plan to continue to enjoy
business benefits
Phan Nguyen Ngoc Mai
Summary
What is ERP?
Enterprise Resource Planning Purpose of ERP Problems with ERP

(ERP)
Allow the enterprise to effectively plan • Support planning • Time, costs & effort
the use of resources with one database • Execution of systems • Changes in business's processes
• Decisions they drive • Complex data conversion
• The amount of training required
SUMMARY
How did ERP develop?
Summary
How should ERP systems be implemented?
Complex and cross Critical succes factor (CSF) Enterprise-wide level

organizational boundaries
Increase the chances of a successful Implementing an ERP system is always

implementation going to be an exercise in change
management.
Thank You
for your
attention!
Psycho Sports
Ltd
GROUP 5
• Psycho Sports Ltd - Sports Goods

Manufacturing
Background • Over the last two years had grown

rapidly
Peter Townsend Including: Tennis

Table tennis Bats balls, darts,
proctective
equipments
Would soon to install some

Problem "Manufacturing systematric procedures and
Control" routines to manage the
business
1 2
Peter set six exercise too
Take as examples - "high -
understand fully basics of
resolution bat" (5654)
MRP
Given Weeks Quantity
Data • 13-21 • 100 per week
• 22-29 • 150 per week

Sales Forecasts
• 30-35 • 200 per week
Given Data
Why did Peter have such
Question 1 problems getting to the revelant
information?
Data regarding Inventory is not Some information is not

stored directly recorded properly
centralized and there is no inter-
departmental communication
Perform all the exercises which Peter set forNguyễn Lê Quý Trân
Question 2 himself. Do you think he should now fully
understand MRP
The simulations carried out can help Peter understand how

MRP works and understand the interrelationships between
internal departments
Exercise 1 a. The single-level bill

materials for each levels


Nguyễn Thị Thùy Chi
b. Complete intended bill of

materials for all levels of
assembly
Exercise 1
Exercise 2
a. Material Requirement
Planning (MRP) record.
Phan Nguyễn Ngọc Mai
b. Problems from MRP Records

There is a problem with the inventory, namely the Rubber
Face (6511), Wooden Inner (2547) and Foam Panel (8561)
items. The company cannot fulfill demand on time
because the 3 items are not available when needed (delay).
c. Alternative Solutions
• Pressure suppliers to produce faster. With the risk: pay
more and the quality decrease.
• Looking for other suppliers who are willing to produce
materials that same faster. With the risk: not knowing
the quality of the new supplier
Exercise 3
Based on the first two exercises, create
another set of MRP records, this time
allowing one week‘s safety lead time for each
time: that is, ensuring the items are in stock
the week prior to when they are required
Material Requirement Planning (MRP) record. +1 safety week
Exercise 4
Over the time period of the exercise,
what effect would the imposition of a
safety lead time have on average
inventory value?
Inventory Value Source
3441.78 Exercise 2
6433.20 Exercise 3
Increase: 86.92%
• Raw Materials
• Reducing inventory levels with the
Just-In-Time (JIT) principle
Exercise 5 • Exercises 2 and 3 show that with one-

week safety lead time, the cost of
If we decided that our first task was to inventory increases by 86.92%
reduce inventory cost by 15 per cent, • Implications:
what action would be recommend? What • Order cost increases due to fewer
are the implications of our action? orders
• Stock-out risk
Exercise 6
How might production in our business be
smoothed?
• In reality, there are several obstacles:
• Flexibility
• Some MRP variables (lead time, batch size) are
fixed less reliable
• Unexpected events (machine failure)
• Companies need to have control over the whole
system and careful planning
Thank You
for your
attention!

Group 5 - 1409

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Enterprise

• Nguyễn Lê Quý Trân

Team Member • Nguyễn Thị Thùy Chi

• Phan Nguyễn Ngọc Mai

How to share data?

The history of ERP systems is longer than you

The Development of ERP

• ERP history started with material requirements

• While they were expensive to create,

The ‘80s marked a milestone

Enterprise resource planning (ERP) has been

Enterprise Resource ‘a complete enterprise wide business solution.

ERP integrates information from all parts of the

The potential of web-based

Benefits of ERP are usually held to be

● Because software communicates across all functions, there

Enterprise resource ● The discipline of forcing business-process-based changes is

planning (ERP) more efficient.

● There is better ‘sense of control’ of operations that will

● It enables far more sophisticated communication with

● It is capable of integrating whole supply chains including

It is based on a client–server architecture; that is, access to the information systems is

How should ERP systems be

The 12 step 6. Make a Communication Plan

process 7. Arrange mid-way Approvals

1. Define Scope of Implementation and End

2. Select an ERP System 9. Migrate Business Data

3. Create the Project plan 10. Prepare for the change

4. Define phases of Implementation 11. Plan your Go-Live

5. Make urgent but achievable Schedule 12. Support and Maintenance

1. Define Scope of Implementation and End 2. Select an ERP System.

3. Create the Project plan. 4. Define phases of Implementation

5. Make urgent but achievable Schedule

6. Make a Communication Plan

10. Prepare for the change

12. Support and Maintenance

Enterprise Resource Planning Purpose of ERP Problems with ERP

Complex and cross Critical succes factor (CSF) Enterprise-wide level

Increase the chances of a successful Implementing an ERP system is always

• Psycho Sports Ltd - Sports Goods

Background • Over the last two years had grown

Peter Townsend Including: Tennis

Would soon to install some

Given Weeks Quantity

Data • 13-21 • 100 per week

• 22-29 • 150 per week

Data regarding Inventory is not Some information is not

The simulations carried out can help Peter understand how

Exercise 1 a. The single-level bill

Exercise 1 a. The single-level bill

Exercise 1 a. The single-level bill

b. Complete intended bill of

b. Problems from MRP Records

Exercise 5 • Exercises 2 and 3 show that with one-

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