Slide 1 : ERP
(Enterprise Resource Planning)
The Business Backbone
Slide 2 : Chapter 8 Enterprise Business Systems 2 ERP: The Business Backbone ERP is a cross-functional enterprise backbone that integrates and automates processes within
Manufacturing
Logistics
Distribution
Accounting
Finance
Human resources
Slide 3 : Chapter 8 Enterprise Business Systems 3 Case 2 Business Value of ERP Autosystems produces headlamps for major automobile manufacturers
Until a few years ago, the manufacturing process was managed with paper documents
An ERP system was installed, but did not extend to the shop floor
Significant research was done before deciding to add the shop floor reporting module
Installing PCs and ERP software on the shop floor allows Autosystems to
Enter timely, accurate information
Plan more efficiently
Make production changes in order to avoid labor or scrap problems
Discuss these issues with employees while they are still current and meaningful
Slide 4 : Chapter 8 Enterprise Business Systems 4 Case Study Questions Why did Autosystems decide to install the ActivEntry system?
Why did they feel it necessary to integrate it with their TRANS4M ERP system?
Which three business benefits of the use of ActivEntry provided the most business value?
What changes are already being planned to improve the use of ActivEntry?
What other improvements should the company consider?
Slide 5 : Chapter 8 Enterprise Business Systems 5 What is ERP? Enterprise resource planning is a cross-functional enterprise system
An integrated suite of software modules
Supports basic internal business processes
Facilitates business, supplier, and customer information flows
Slide 6 : Chapter 8 Enterprise Business Systems 6 ERP Application Components
Slide 7 : Chapter 8 Enterprise Business Systems 7 ERP Process and Information Flows
Slide 8 : Chapter 8 Enterprise Business Systems 8 Benefits and Challenges of ERP ERP Business Benefits
Quality and efficiency
Decreased costs
Decision support
Enterprise agility
ERP Costs
Risks and costs are considerable
Hardware and software are a small part of total costs
Failure can cripple or kill a business
Slide 9 : Chapter 8 Enterprise Business Systems 9 Costs of Implementing a New ERP
Slide 10 : Chapter 8 Enterprise Business Systems 10 Causes of ERP Failures Most common causes of ERP failure
Under-estimating the complexity of planning, development, training
Failure to involve affected employees in planning and development
Trying to do too much too fast
Insufficient training
Insufficient data conversion and testing
Over-reliance on ERP vendor or consultants
Slide 11 : Chapter 8 Enterprise Business Systems 11 Trends in ERP