Enterprise Resources Planning - ERP Concepts

‫‪Lecture(2) : Enterprise Resource Planning -ERP‬‬ ‫‪Enterprise Information System - EIS‬‬ ‫د‪ .‬طه الفضل طه علي ‪Taha Alfadul Taha Ali‬‬ ‫أستاذ مشازك‪ ،‬كلية علىم الحاسىب وثقاهة املعلىمات‪ ،‬جامعة الصعيم الاشهسي‬ ‫مديس مؤسسة جيىفايف للمدن الركية املستدامة‬ ‫ثخصص ثكنىلىجيا وثطبيقات علىم البياهات املكاهية‬ ‫‪Geospatial Data Science & Applications‬‬ ‫‪Tahapilot13@gmail.com‬‬ ‫‪1‬‬ Lecture(2) : Enterprise Resource Planning -ERP 2 ERP : Concepts Definition: ENTERPRISE RESOURCE PLANNING(ERP) is a cross functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. Evolution - 1960s: software packages with inventory control - 1970s: MRP systems - Production schedule with materials management - 1980s: MRPII systems - Adds financial accounting system - 1990s: MRPII - Integrated systems for manufacturing execution - Late 1990s: ERP - Integrated manufacturing with supply chain 3 ERP : Evolution 4 ERP : Evolution Inventory Management & Control-1960’s Inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status. 5 ERP : Evolution Material Requirement Planning (MRP)-1970’s Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation 6 ERP : Evolution Manufacturing Requirements Planning (MRP II)-1980’s Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution. 7 ERP : Evolution Enterprise Resource Planning (ERP)-1990’s Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources. 8 ERP : Cost 9 ERP : Hidden Cost Training Integration and testing Data conversion Data analysis Consultants Replacing best and brightest staff after implementation Implementation teams can never stop Waiting for ROI Post-ERP depression 10 ERP : Benefit Improving integration, flexibility Fewer errors Improved speed and efficiency More complete access to information Lower total costs in the complete supply chain Shorten throughput times Sustained involvement and commitment of the top management Reduce stock to a minimum Enlarge product assortment Improve product quality Provide more reliable delivery dates and higher service to the customer Efficiently coordinate global demand, supply and production 11 ERP System Components 12 ERP System Components Financial Management At the core of ERP are the financial modules, including general ledger, accounts receivable, accounts payable, billing and fixed asset management. If your organization is considering the move to an ERP system to support expansion into global markets, make sure that multiple currencies and languages are supported, as well as regulatory compliance in the U.S. and in foreign countries. Other functionality in the financial management modules will include budgets, cash-flow, expense and tax reporting. The evaluation team should focus on areas that are most important to support the strategic plans for your organization. 13 ERP System Components Business Intelligence Business Intelligence (BI) has become a standard component of most ERP packages. In general, BI tools allow users to share and analyse the data collected across the enterprise and centralized in the ERP database. BI can come in the form of dashboards, automated reporting and analysis tools used to monitor the organizational business performance. BI supports informed decision making by everyone, from executives to line managers and accountants. 14 ERP System Components Supply Chain Management Supply Chain Management (SCM), sometimes referred to as logistics, improves the flow of materials through an organization by managing planning, scheduling, procurement, and fulfillment, to maximize customer satisfaction and profitability. Sub modules in SCM often include production scheduling, demand management, distribution management, inventory management, warehouse management, procurement and order management 15 ERP System Components Human Resource Management Human resource management ERP modules should enhance the employee experience – from initial recruitment to time tracking. Â Sub modules can include payroll, performance management, time tracking, benefits, compensation and workforce planning. Self-service tools that allow managers and employees to enter time and attendance, choose benefits and manage PTO are available in many ERP solutions 16 ERP System Components Manufacturing Operations Manufacturing modules make manufacturing operations more efficient through product configuration, job costing and bill of materials management. ERP manufacturing modules often include Capacity Requirements Planning, Materials Requirements Planning, forecasting, Master Production Scheduling, work-order management and shop floor control 17 ERP System Components Integration Key to the value of an ERP package is the integration between modules, so that all of the core business functions are connected. Information should flow across the organization so that BI reports on organization-wide results. 18 ERP System Framework 19 Example : before ERP System 20 Example : After ERP System 21