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ENTERPRISE RESOURCE PLANNING
  Intro	
  to	
  Enterprise	
  Resource	
  Planning	
  (ERP)	
  
  Understanding	
  Budgeting	
  for	
  ERP	
  
  Understanding	
  The	
  Guidelines	
  
  Understanding	
  Benefits	
  &	
  Key	
  Features	
  
  Protecting	
  ERP	
  Database	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   2	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   3	
  
  Planning	
  of	
  how	
  business	
  resources	
  (materials,	
  employees,	
  
customers)	
  are	
  acquired	
  and	
  moved	
  from	
  one	
  state	
  to	
  another	
  
  Supports	
  most	
  of	
  the	
  business	
  system	
  that	
  maintains	
  in	
  a	
  single	
  
database	
  the	
  data	
  needed	
  for	
  a	
  variety	
  of	
  business	
  functions	
  such	
  
as	
  Manufacturing,	
  Supply	
  Chain	
  Management,	
  Financials,	
  
Projects,	
  Human	
  Resources	
  and	
  Customer	
  Relationship	
  
Management	
  
  Based	
  on	
  a	
  common	
  database	
  &	
  a	
  modular	
  software	
  design	
  
  Information	
  should	
  be	
  reliable,	
  accessible,	
  and	
  easily	
  shared	
  
  Housed	
  in	
  one	
  or	
  more	
  Data	
  centers	
  ,	
  run	
  Enterprise	
  software,	
  
and	
  could	
  include	
  applications	
  such	
  as	
  Content	
  management	
  
systems	
  and	
  typically	
  cross	
  organizational	
  borders	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   4	
  
  An	
  extension	
  of	
  MRP	
  I,	
  II	
  and	
  CIM	
  	
  
  Key	
  elements:	
  Performance,	
  Scalability	
  &	
  
Robustness	
  
  Modules:	
  Manufacturing,	
  Supply	
  Chain,	
  
Financials,	
  Customer	
  Relationship	
  Management	
  
(CRM),	
  Human	
  Resources,	
  Warehouse	
  
Management	
  and	
  Decision	
  Support	
  System	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   5	
  
  Manufacturing	
  
	
   Engineering,	
  Bills	
  of	
  Material,	
  Scheduling,	
  Capacity,	
  
Workflow	
  Management,	
  Quality	
  Control,	
  Cost	
  
Management,	
  Manufacturing	
  Process,	
  Manufacturing	
  
Projects,	
  Manufacturing	
  Flow	
  	
  
  Supply	
  Chain	
  Management	
  	
  	
  
	
   Order	
  to	
  cash,	
  Inventory,	
  Order	
  Entry,	
  Purchasing,	
  
Product	
  Configurator,	
  Supply	
  Chain	
  Planning,	
  Supplier	
  
Scheduling,	
  Inspection	
  of	
  goods,	
  Claim	
  Processing,	
  
Commission	
  Calculation	
  	
  
  Projects	
  	
  	
  
	
   Costing,	
  Billing,	
  Time	
  and	
  Expense,	
  Activity	
  Management	
  
	
   	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   6	
  
  Financials	
  	
  	
  
	
   General	
  Ledger,	
  Cash	
  Management,	
  Accounts	
  Payable,	
  
Accounts	
  Receivable,	
  Fixed	
  Assets	
  	
  
  Customer	
  Relationship	
  Management	
  
	
   Sales	
  and	
  Marketing,	
  Commissions,	
  Service,	
  Customer	
  
Contact	
  and	
  Call	
  Center	
  support	
  	
  
  Human	
  Resources	
  
	
   Payroll,	
  Training,	
  Time	
  &	
  Attendance,	
  Rostering,	
  Benefits	
  	
  
  Data	
  Warehouse	
  
	
   Various	
  Self-­‐Service	
  interfaces	
  for	
  Customers,	
  
Suppliers,	
  and	
  Employees	
  	
  
	
   	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   7	
  
  Integrate	
  financial	
  information	
  
  Integrate	
  customer	
  order	
  information	
  
  Standardize	
  and	
  speed	
  up	
  manufacturing	
  
processes	
  
  Reduce	
  inventory	
  
  Standardize	
  HR	
  information	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   8	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   9	
  
  TCO	
  
	
   A	
  financial	
  estimate	
  designed	
  to	
  help	
  consumers	
  
and	
  enterprise	
  managers	
  assess	
  direct	
  and	
  indirect	
  
costs	
  commonly	
  related	
  to	
  software	
  or	
  hardware	
  
  ROI	
  
	
   Ratio	
  of	
  money	
  gained	
  or	
  lost	
  (realized	
  or	
  
unrealized)	
  on	
  an	
  investment	
  relative	
  to	
  the	
  amount	
  
of	
  money	
  invested	
  
	
   Money	
  gained	
  or	
  lost	
  may	
  be	
  referred	
  to	
  as	
  
interest,	
  profit/loss,	
  gain/loss,	
  or	
  net	
  income/loss	
  
	
   Money	
  invested	
  referred	
  to	
  as	
  asset,	
  capital,	
  
principal,	
  initial	
  investment	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   10	
  
  Training	
  
  Integration	
  and	
  testing	
  
  Customization	
  	
  
  Data	
  conversion	
  	
  
  Data	
  analysis	
  
  Consultants	
  ad	
  infinitum	
  
  Replacing	
  your	
  best	
  and	
  brightest	
  
  Implementation	
  teams	
  can	
  never	
  stop	
  
  Waiting	
  for	
  ROI	
  	
  
  Post-­‐ERP	
  depression	
  
	
  	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   11	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   12	
  
  The	
  Big	
  Bang	
  
	
   Cast	
  off	
  all	
  legacy	
  systems	
  at	
  once	
  and	
  install	
  a	
  single	
  
ERP	
  system	
  across	
  the	
  entire	
  company	
  
  Franchising	
  Strategy	
  
	
   Independent	
  ERP	
  systems	
  are	
  installed	
  in	
  each	
  unit,	
  
while	
  linking	
  common	
  processes,	
  such	
  as	
  financial	
  
bookkeeping,	
  across	
  the	
  enterprise.	
  
	
   Begin	
  with	
  a	
  demo/pilot	
  installation	
  in	
  a	
  	
  BU	
  where	
  core	
  
business	
  of	
  corporation	
  will	
  not	
  be	
  disrupted	
  if	
  something	
  
goes	
  wrong	
  
	
   Once	
  system	
  is	
  up,	
  run	
  &	
  worked	
  out	
  all	
  bugs,	
  team	
  
begins	
  selling	
  other	
  units	
  on	
  ERP,	
  using	
  first	
  
implementation	
  as	
  a	
  reference	
  	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   13	
  
  Slam	
  Dunk	
  
	
   For	
  smaller	
  companies	
  expecting	
  to	
  grow	
  into	
  ERP	
  
	
   Goal	
  is	
  to	
  get	
  ERP	
  up	
  and	
  running	
  quickly	
  and	
  to	
  
ditch	
  fancy	
  reengineering	
  in	
  favor	
  of	
  ERP	
  system’s	
  
"canned"	
  processes	
  
  The	
  On-­‐Demand	
  Nibble	
  
	
   Choose	
  ERP	
  vendors	
  that	
  can	
  offer:	
  	
  
  faster	
  implementation	
  times	
  
  easier	
  and	
  more	
  frequent	
  upgrades	
  
  cheaper	
  up-­‐front	
  costs	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   14	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   15	
  
  Have	
  a	
  clearly	
  defined	
  philosophy	
  	
  
  Hype	
  it	
  up	
  
  Ensure	
  scalability	
  
  Identify	
  key	
  implementation	
  objectives	
  
  Decide	
  on	
  chart	
  of	
  accounts	
  
  Select	
  a	
  good	
  team	
  
  Spend	
  time	
  on	
  books	
  and	
  org.	
  structure	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   16	
  
  Involve	
  auditors	
  since	
  the	
  beginning	
  
  Plan	
  data	
  requirements	
  early	
  
  Have	
  clear	
  reference	
  values	
  for	
  comparison	
  
  Work	
  on	
  global	
  template	
  
  Document	
  everything	
  important	
  
  Control	
  	
  &	
  oversee	
  timelines	
  
  Keep	
  It	
  Simple	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   17	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   18	
  
  Increased	
  staff	
  productivity	
  
  Seamless	
  cross-­‐function	
  process	
  execution	
  
  “One	
  version	
  of	
  the	
  truth”	
  
  Reduced	
  operating	
  expenses	
  
  Enhanced	
  performance	
  management	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   19	
  
  Manufacturing	
  
  Supply	
  Chain	
  Management	
  
  Financial	
  Management	
  
  Project	
  Management	
  
  Human	
  Capital	
  Management/Human	
  Resources	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   20	
  
Enterprise	
  Resource	
  Planning	
  Training	
   2008	
   21	
  
  Continuous	
  Uptime	
  
  Preventing	
  Unauthorized	
  Access	
  
  Disaster	
  Recovery	
  
  Protect	
  the	
  Entire	
  Enterprise	
  Infrastructure	
  
  Server	
  or	
  Hardware	
  Failures	
  
  Hackers	
  and	
  Cyber-­‐Criminals	
  
  Natural	
  Disasters	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   22	
  
  E-­‐Business	
  and	
  ERP:	
  Transforming	
  the	
  Enterprise	
  by	
  
Grant	
  Norris,	
  James	
  R.	
  Hurley,	
  Kenneth	
  M.	
  Hartley,	
  
John	
  R.	
  Dunleavy,	
  John	
  D.	
  Balls,	
  John	
  Dunleavy;	
  John	
  
Wiley	
  &	
  Sons,	
  Canada,	
  2000,	
  189p	
  
  Concepts	
  in	
  Enterprise	
  Resource	
  Planning	
  
	
   by	
  Bret	
  Wagner,	
  Ellen	
  Monk;	
  Course	
  Technology	
  
Cengage	
  Learning,	
  2009,	
  276p	
  
  Business	
  Concepts	
  Implementation	
  Series	
  in	
  
Inventory	
  Management	
  by	
  Holy	
  Icun	
  Yunarto	
  &	
  
Martinus	
  Getty	
  Santika	
  ,	
  PT.	
  Elex	
  Media	
  Komputindo,	
  
2005	
  	
  	
  	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   23	
  
 LinkedIn:	
  www.linkedin.com/in/goutama	
  
 Email:	
  goutama@gmail.com	
  
 Google+:	
  www.gplus.to/goudotmobi	
  
 Skype:	
  goudotinfo	
  
 Twitter:	
  @goudotmobi	
  
2008	
  Enterprise	
  Resource	
  Planning	
  Training	
   24	
  
2008	
   25	
  Enterprise	
  Resource	
  Planning	
  Training	
  
2008	
   26	
  Enterprise	
  Resource	
  Planning	
  Training	
  

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Enterprise Resource Planning

  • 2.   Intro  to  Enterprise  Resource  Planning  (ERP)     Understanding  Budgeting  for  ERP     Understanding  The  Guidelines     Understanding  Benefits  &  Key  Features     Protecting  ERP  Database   Enterprise  Resource  Planning  Training   2008   2  
  • 3. Enterprise  Resource  Planning  Training   2008   3  
  • 4.   Planning  of  how  business  resources  (materials,  employees,   customers)  are  acquired  and  moved  from  one  state  to  another     Supports  most  of  the  business  system  that  maintains  in  a  single   database  the  data  needed  for  a  variety  of  business  functions  such   as  Manufacturing,  Supply  Chain  Management,  Financials,   Projects,  Human  Resources  and  Customer  Relationship   Management     Based  on  a  common  database  &  a  modular  software  design     Information  should  be  reliable,  accessible,  and  easily  shared     Housed  in  one  or  more  Data  centers  ,  run  Enterprise  software,   and  could  include  applications  such  as  Content  management   systems  and  typically  cross  organizational  borders   Enterprise  Resource  Planning  Training   2008   4  
  • 5.   An  extension  of  MRP  I,  II  and  CIM       Key  elements:  Performance,  Scalability  &   Robustness     Modules:  Manufacturing,  Supply  Chain,   Financials,  Customer  Relationship  Management   (CRM),  Human  Resources,  Warehouse   Management  and  Decision  Support  System   2008  Enterprise  Resource  Planning  Training   5  
  • 6.   Manufacturing     Engineering,  Bills  of  Material,  Scheduling,  Capacity,   Workflow  Management,  Quality  Control,  Cost   Management,  Manufacturing  Process,  Manufacturing   Projects,  Manufacturing  Flow       Supply  Chain  Management         Order  to  cash,  Inventory,  Order  Entry,  Purchasing,   Product  Configurator,  Supply  Chain  Planning,  Supplier   Scheduling,  Inspection  of  goods,  Claim  Processing,   Commission  Calculation       Projects         Costing,  Billing,  Time  and  Expense,  Activity  Management       2008  Enterprise  Resource  Planning  Training   6  
  • 7.   Financials         General  Ledger,  Cash  Management,  Accounts  Payable,   Accounts  Receivable,  Fixed  Assets       Customer  Relationship  Management     Sales  and  Marketing,  Commissions,  Service,  Customer   Contact  and  Call  Center  support       Human  Resources     Payroll,  Training,  Time  &  Attendance,  Rostering,  Benefits       Data  Warehouse     Various  Self-­‐Service  interfaces  for  Customers,   Suppliers,  and  Employees         2008  Enterprise  Resource  Planning  Training   7  
  • 8.   Integrate  financial  information     Integrate  customer  order  information     Standardize  and  speed  up  manufacturing   processes     Reduce  inventory     Standardize  HR  information   2008  Enterprise  Resource  Planning  Training   8  
  • 9. Enterprise  Resource  Planning  Training   2008   9  
  • 10.   TCO     A  financial  estimate  designed  to  help  consumers   and  enterprise  managers  assess  direct  and  indirect   costs  commonly  related  to  software  or  hardware     ROI     Ratio  of  money  gained  or  lost  (realized  or   unrealized)  on  an  investment  relative  to  the  amount   of  money  invested     Money  gained  or  lost  may  be  referred  to  as   interest,  profit/loss,  gain/loss,  or  net  income/loss     Money  invested  referred  to  as  asset,  capital,   principal,  initial  investment   2008  Enterprise  Resource  Planning  Training   10  
  • 11.   Training     Integration  and  testing     Customization       Data  conversion       Data  analysis     Consultants  ad  infinitum     Replacing  your  best  and  brightest     Implementation  teams  can  never  stop     Waiting  for  ROI       Post-­‐ERP  depression       2008  Enterprise  Resource  Planning  Training   11  
  • 12. Enterprise  Resource  Planning  Training   2008   12  
  • 13.   The  Big  Bang     Cast  off  all  legacy  systems  at  once  and  install  a  single   ERP  system  across  the  entire  company     Franchising  Strategy     Independent  ERP  systems  are  installed  in  each  unit,   while  linking  common  processes,  such  as  financial   bookkeeping,  across  the  enterprise.     Begin  with  a  demo/pilot  installation  in  a    BU  where  core   business  of  corporation  will  not  be  disrupted  if  something   goes  wrong     Once  system  is  up,  run  &  worked  out  all  bugs,  team   begins  selling  other  units  on  ERP,  using  first   implementation  as  a  reference     2008  Enterprise  Resource  Planning  Training   13  
  • 14.   Slam  Dunk     For  smaller  companies  expecting  to  grow  into  ERP     Goal  is  to  get  ERP  up  and  running  quickly  and  to   ditch  fancy  reengineering  in  favor  of  ERP  system’s   "canned"  processes     The  On-­‐Demand  Nibble     Choose  ERP  vendors  that  can  offer:       faster  implementation  times     easier  and  more  frequent  upgrades     cheaper  up-­‐front  costs   2008  Enterprise  Resource  Planning  Training   14  
  • 15. Enterprise  Resource  Planning  Training   2008   15  
  • 16.   Have  a  clearly  defined  philosophy       Hype  it  up     Ensure  scalability     Identify  key  implementation  objectives     Decide  on  chart  of  accounts     Select  a  good  team     Spend  time  on  books  and  org.  structure   2008  Enterprise  Resource  Planning  Training   16  
  • 17.   Involve  auditors  since  the  beginning     Plan  data  requirements  early     Have  clear  reference  values  for  comparison     Work  on  global  template     Document  everything  important     Control    &  oversee  timelines     Keep  It  Simple   2008  Enterprise  Resource  Planning  Training   17  
  • 18. Enterprise  Resource  Planning  Training   2008   18  
  • 19.   Increased  staff  productivity     Seamless  cross-­‐function  process  execution     “One  version  of  the  truth”     Reduced  operating  expenses     Enhanced  performance  management   Enterprise  Resource  Planning  Training   2008   19  
  • 20.   Manufacturing     Supply  Chain  Management     Financial  Management     Project  Management     Human  Capital  Management/Human  Resources   2008  Enterprise  Resource  Planning  Training   20  
  • 21. Enterprise  Resource  Planning  Training   2008   21  
  • 22.   Continuous  Uptime     Preventing  Unauthorized  Access     Disaster  Recovery     Protect  the  Entire  Enterprise  Infrastructure     Server  or  Hardware  Failures     Hackers  and  Cyber-­‐Criminals     Natural  Disasters   2008  Enterprise  Resource  Planning  Training   22  
  • 23.   E-­‐Business  and  ERP:  Transforming  the  Enterprise  by   Grant  Norris,  James  R.  Hurley,  Kenneth  M.  Hartley,   John  R.  Dunleavy,  John  D.  Balls,  John  Dunleavy;  John   Wiley  &  Sons,  Canada,  2000,  189p     Concepts  in  Enterprise  Resource  Planning     by  Bret  Wagner,  Ellen  Monk;  Course  Technology   Cengage  Learning,  2009,  276p     Business  Concepts  Implementation  Series  in   Inventory  Management  by  Holy  Icun  Yunarto  &   Martinus  Getty  Santika  ,  PT.  Elex  Media  Komputindo,   2005         2008  Enterprise  Resource  Planning  Training   23  
  • 24.  LinkedIn:  www.linkedin.com/in/goutama    Email:  goutama@gmail.com    Google+:  www.gplus.to/goudotmobi    Skype:  goudotinfo    Twitter:  @goudotmobi   2008  Enterprise  Resource  Planning  Training   24  
  • 25. 2008   25  Enterprise  Resource  Planning  Training  
  • 26. 2008   26  Enterprise  Resource  Planning  Training