Enterprise resource planning


Terms in this set (...)

Enterprise resource planning (ERP)
software with integrated modules for coordinating and controlling business processes of an entire enterprise
Information Systems
a collection of components that work together to provide desired information in the proper format at the appropriate time
Transaction processing systems
maintain a huge volume of transaction records. Sales, purchases, customers, creditors, banking
Information processing systems
provide various reports, provide information for managers-management information systems
Functional information systems
Accounting-AR, AP, payroll, budgeting, financial planning. HR- personal data, job skills, training history, pay rates, insurance, vacation days, sick leave time. Marketing- sales orders, buying trends, customer databases, product information, advertising records
1970s. Ensures materiel requirements are met. Capacity requirements planning (CRP) checks for availability of labor and machine hours. CRP identifies capacity underload and overload. CRP requires human intervention
1980s. Extension of MRP that plans are resources needed for running a business. Combination of MRP, CRP, Finance, and Marketing. No supply chain capabilities, functional integration problems. Often limited to one location
ERP system
1990s. To create the information linkages that integrate the processes and structures within the supply chain. Combines MRP II, Supply chain management, global presence
ERP technological enablers
advancement in electronic communication, bar codes and electronic scanning, advancements in computer to computer sharing, EDI, EFT, data conversion software, internet
Electronic data interchange (EDI)
Computer to computer exchange of business documents in a standard format
Electronic funds transfer (EFT)
Computer to computer exchange of funds
Technical implementation issues
large amounts of data, inaccurate data, loss of data, insufficient training, lack of understanding of what ERP is or does
Behavioral implementation issues
lack of support by managment, lack of commitment by employees, coordination among different functions, ownership claim problem, unrealistic expectations, unrealistic promises, lack of understanding of underlying need, changing habits
one at a time product exactly to customer expectations
project managment
application of knowledge, skills, and techniques to project activities in order to meet stakeholder needs
Things project manager must do
Balance scope, time, cost and quality. Manage multiple stakeholders with differing needs. Satisfy identified requirements (needs) and unidentified needs (expectations)
Project life cycle
1. concept- identify the need for the project
2. feasibility analysis- evaluate costs, benefits, risks
3. planning- decide who does what and how long
4. execution- do the project
5. Termination- end of project
Project scope managment
to ensure the project includes all the work required and only the work required, for successful completion
project scope
work that must be done for delivering a product
product scope
features and function of a product or service
scope planning
product description, formal recognition of business need, constraints and assumptions
scope definition
cost time and resource estimates, how to measure performance and clear responsibility assignments
scope change control
how to deal with scope changes, corrective action, and lessons learned
organizational planning
project roles, responsibilities, and reporting relationships
communication planning
distribution structure, record keeping structure, status and progress reporting, expectations
staff acquisitions
what skills are required from which individuals or groups, when and who long
team development
training, meetings, war room
Gantt chart
visual representation of schedule over time. Load chart: shows the planned workload and idle times. Progress chart: shows planned and actual progress
critical path method (CPM)
identify the critical path using a network diagram with deterministic time estimates. Critical path: a set of activities that would cause an overall project delay if any of them is late
program evaluation and review technique (PERT)
probabilistic time estimates
ERP modules
operations and logistics, finance, sales and marketing, HR