企业资源管理ERP.ppt

EnterpriseResourcePlanning-ERP,KevinCowellNatthawutLertpitayakunIsabelleMerthaXiaoguangYou,WhatisERP?,Thepracticeofconsolidatinganenterprisesplanning,manufacturing,salesandmarketingeffortsintoonemanagementsystem.1Combinesalldatabasesacrossdepartmentsintoasingledatabasethatcanbeaccessedbyallemployees.2ERPautomatesthetasksinvolvedinperformingabusinessprocess.1,Sources:1.,EvolutionofERP,Source:,Employees,ManagersandStakeholders,HowDoERPSystemsWork?,CentralDatabase,ReportingApplications,HumanResourceManagementApplications,FinancialApplications,ManufacturingApplications,InventoryAndSupplyApplications,HumanResourceManagementApplications,ServiceApplications,SalesandDeliveryApplications,SalesForceAndCustomerServiceReps,Customers,Back-officeAdministratorsAndWorkers,Suppliers,Source:Davenport,Thomas,“PuttingtheEnterpriseintotheEnterpriseSystem”,HarvardBusinessReview,July-Aug.1998.,ERPComponents,Finance:modulesforbookeepingandmakingsurethebillsarepaidontime.Examples:GeneralledgerAccountsreceivableAccountspayableHR:softwareforhandlingpersonnel-relatedtasksforcorporatemanagersandindividualemployees.Examples:HRadministrationPayrollSelf-serviceHR,ManufacturingandLogistics:Agroupofapplicationsforplanningproduction,takingordersanddeliveringproductstothecustomer.Examples:ProductionplanningMaterialsmanagementOrderentryandprocessingWarehousemanagement,Source:,AnERPExample:BeforeERP,Customers,Vendor,AnERPExample:AfterERP,Database,Customers,SalesDept.,Purchasing,Warehouse,Accounting,Vendor,WhoarethemainERPvendors?,BaanJDEdwardsOraclePeopleSoftSAP,ERPVendorsandIndustriesTheyServe,RevenueandProfitsofMajorERPVendors,RevenueandProfitsofMajorERPVendors,ERPMarket,Source:AMRResearch,2001.,ERPInvestments,Source:AMRResearchSurveyof686companieswithannualrevenuesrangingfrom$1B,October2001.,Roughly65%ofcompaniessurveyedalreadyhaveERPinplace.Ofthose,manyarestillactivelyspendingtoupgradeexistingsystemsandtotakeadvantageofnewweb-orientedfeatures.,ERPInvestments,n=666,n=232,Source:AMRResearchSurveyof686companieswithannualrevenuesrangingfrom$1B,October2001,WhyERP?,3MajorReasons:Tointegratefinancialdata.Tostandardizemanufacturingprocesses.TostandardizeHRinformation.,Source:,ERPProjectandTime,RealtransformationalERPeffortswillusuallyrunbetween1to3years,onaverage.Shortimplementations(3to6months):smallcompanies,implementationlimitedtoasmallareaofthecompany,orthecompanyonlyusedthefinancialpiecesoftheERPsystem.TheimportantthingisnottofocusonhowlongitwilltakebuttounderstandwhyyouneedERPandhowyouwilluseittoimproveyourbusiness.,Source:,TotalCostofOwnershipofERP,Totalcostofownership(TCO)isamodeldevelopedbyGartnerGrouptoanalyzethedirectandindirectcostsofowningandusinghardwareandsoftware.TCOessentiallyhelpsacompanydeterminewhetheritwinsorlosesfromspecifictechnologyimplementations.Metagroupstudyamong63companiessurveyedshowedthat:theaverageTCOwas$15million(thehighestwas$300millionandlowestwas$400k),theaverageTCOperuserwas$53,320.,Source:,TotalCostofOwnershipofERP,Italsofoundthat:ittook8monthsafterthesystemwasintoseeanybenefits,butthatthemedianannualsavingsfromthesystemwas$1.6millionperyear.,Source:,HiddenCostsofERP,TrainingIntegrationandtestingDataconversionDataanalysisConsultantsReplacingbestandbrighteststaffafterimplementationImplementationteamscanneverstopWaitingforROIPost-ERPdepression,Source:,BenefitsofERPSystems,Improvingintegration,flexibilityFewererrorsImprovedspeedandefficiencyMorecompleteaccesstoinformationLowertotalcostsinthecompletesupplychainShortenthroughputtimesSustainedinvolvementandcommitmentofthetopmanagement,BenefitsofERPSystems(contd),ReducestocktoaminimumEnlargeproductassortmentImproveproductqualityProvidemorereliabledeliverydatesandhigherservicetothecustomerEfficientlycoordinateglobaldemand,supplyandproduction,RiskswithERPImplementation,Expensive(cancosts100thousandstomillionsofdollars)Time-consuming(cantakemonthstoyears)GreatriskfortheorganizationTransferofKnowledgeAcceptancewiththecompany,CaseStudy,NestlUSA,NestlBackground,Foundin1866,Switzerland.Worldslargestfoodcompany,#50inFortunemagazinesGlobe500NestlUSAwasincorporatedin1990;HomeOfficeinGlendale,CA.33manufacturingfacilities,6distributioncentersand17salesofficesaroundthecountry,17,300employeesnationwide.$11.1billioninSales(2001)“AmericasmostadmiredFoodCompanyforthefourthconsecutiveyear”-FortuneMagazine,February2001,Source:,Milkproducts,dieteticfoods,infantfoods,chocolateandconfections,refrigeratedandfrozenitems,icecream,andpetfoods,Nestlsproductsandbrands,Source:Weller,Joe,“IntroductiontoNestleintheUSA”,CompetitiveMarket,USAFoodMarketin2001,Source:Weller,Joe,“IntroductiontoNestleintheUSA”,OrganizationalChart,JoeWellerChairman2.“Nestle:AnElephantDances”,ProjectScope“BEST”,FiveSAPModulespurchasing,financials,salesanddistribution,accountspayableandaccountsreceivableandManugisticssupplychainmoduleFromOctober1997to1stQuarterof2000.$210millionbudget50topbusinessexecutivesand10seniorITprofessionals,Source:Worthen,Ben,“NestlsERPOdyssey”,May15,2002IssueofCIOMagazine.,ProjectObjectives-“OneNestle,underSAP”,Transformingtheseparatebrandsintoonehighlyintegratedcompany.Internalalignedandunited,establishingacommonbusinessprocessarchitectureStandardizingmasterdata,Source:Worthen,Ben,“NestlsERPOdyssey”,May15,2002IssueofCIOMagazine.,ProcessofSAPImplementation,Thenewbusinessprocessconfusedmostofemployees,thenresistancegrewintorebellionin2000.ReconstructedinJune2000andcompletedin2001.,Source:Worthen,Ben,“NestlsERPOdyssey”,May15,2002IssueofCIOMagazine.,ConclusionofNestlCase,ChangesandsuccessCommondatabaseandbusinessprocessesleadtomoretrustworthydemandforecast.Acomprehensiveaccountplanningtool.Nestlecannowforecastdowntotheredistributioncenterlevel.Nestlehasimprovedforecastaccuracyby2%Higherfactoriesutilizationfewerfactories=biggainsinfactoriesUtilizationReduceinventorylevel,Source:Brownson,Jim,andMitchell-Keller,Lori,NestleUSA,Casestudy:supplychain:NestleIntegratedCRMandSCMOptimizeEnterpriseEffectiveness,http:,ConclusionofNestlCase,586,371,Source:Weller,Joe,“IntroductiontoNestleintheUSA”,Saved$-WithERPinpractice,$371millionhasbeensaveduntil2001.,ConclusionofNestlCase,LessonslearnedbyNestlDontstartaprojectwithadeadlineinmind.Updateyourbudgetprojectionatregularintervals.ERPisntonlyaboutthesoftware.“Nomajorsoftwareimplementationisreallyaboutthesoftware.”FormerNestlCIOJeriDunnsays,“Youarechallengingtheirprinciples,theirbeliefsandthewayhavedonethingsformanymanyyears”Keepthecommunicationlinesopen.Remembertheintegrationpoints.,Source:Worthen,Ben,“NestlsERPOdyssey”,May15,2002IssueofCIOMagazine.,NestlintheFuture,TheGlobalBusinessExcellenceProgramSupportedbySAP,contractedinJune2000andbyIBMinJuly2002.Tobecompletedbytheendof2005TosavecostaroundCHF3billion,withbenefitsrealizedfrom2003.,Source:/news/2002/mem0307.asp,viewedonNovember1,2002.,CaseStudy,WhatisAgilentTechnologies?,AgilentTechnologiesistheworldsleadingdesigner,developer,andmanufacturerofelectronicandopticaltest,measurementandmonitoringsystems.SeparatedfromHewlettPackardandbecameapubliccompanyin1999WorldHQinPaloAlto,CA,Source:,viewed,viewedNovember3,2002.,AroundtheWorld,Agilenthasfacilitiesinmorethan40countriesanddevelopsproductsatmanufacturingsitesintheU.S.,China,Germany,Japan,Malaysia,Singapore,AustraliaandtheU.K.Approximately37,000employeesthroughouttheworld,Source:,ProductsandServices,Agilentoperatesinthreebusinessgroups:TestandMeasurementTestinstrumentsandsystems,automatedtestequipment.SemiconductorProductsSemiconductorsolutionsforwiredandwirelesscommunications,informationprocessing.ChemicalAnalysisLifesciencesandanalyticalinstrumentsystems.,Source:,Agilentrevenuefor2001,TestandMeasurement:$5.4billionSemiconductorProducts:$1.9billionChemicalAnalysis:$1.1billionTotalrevenue:$8.4billion,Source:,viewedNovember3,2002.,AgilentsCustomers,Servedcustomersinmorethan120countriesaroundtheworld1ElectroniccomponentmanufacturersPharmaceuticalcompaniesChemicalcompaniesCommunicationcompanies2,Source:1.,Source:,ProjectScope,OraclesliE-BusinessSuitesoftwareStartedSeptember2000till2004Budgetroughly100Oracleconsultantstoinstalltheprogram,Source:Songini,MarcL.,“ERPeffortsinksAgilentrevenue”Computerworld,Framingham,August26,2002.,ERPProjectObjective,“OneIT”organizationSupplychaincapability;forexample,-Suppliers-CustomersMigrating2,200legacyapplicationsthatitinheritedfromHPtoOracle,Source:Gaither,Chris,“WatchingOracleForSignsOfStrength”BostonGlobe,Boston,Mass.,September16,2002.,OneITProject(Before),ITspendwas8-10%ofsales80%forbusinessoperations20%maint.Manhasset,August26,2002.,TroubleswithProjectEverest,CFOAdrianDillonsaidtheproblemwastwofold:Softwarebug“Aswebegantohitsortofa50percentrampofnormalcapacity,webegantogetconflictsinprioritiesofsystemsinstructions.Whenwehadthoseconflictsthatinevitablyshutthesystemdown.”,Source:FD(FairDisclosure)Wire,August19,2002Monday,Transcript081902ag.735,Q32002AgilentTechnologiesEarningsConferenceCall-Final;,TroubleswithProjectEverest,Mistakesconvertingbacklog.“Theotherproblemwehadwasconvertingbacklogfromlegacytonewsystems,especiallyforourhighlyconfiguredproductsinourtestandmeasurementoperation.”Extra$35milliontocovercostsofERPandCRMrollout.,Source:Shah,JenniferB.,“AgilentsERPRolloutExpensiveGlitches”EBN;Manhasset,Aug26,2002,and,LessonsLearnedbyAgilent,ERPimplementationsarealotmorethansoftwarepackages.People,processes,policiesandcultureareallfactorsthatshouldbetakenintoconsiderationwhenimplementingamajorenterprisesystem.ERPdisastersareoftencausedbyausercompanyitself.,Source:Songini,MarcL.,“ERPeffortsinksAgilentrevenue”Computerworld,Framingham,August26,2002.,LessonsLearnedbyAgilent,StudyERPwellbeforeimplementation“Thedisruptionsaftergoingliveweremoreextensivethanweexpected”CEONedBarnholt,Source:Songini,MarcL.,“ERPeffortsinksAgilentrevenue”Computerworld,Framingham,August26,2002.,BestPracticesandwhatERPholdsfortheFuture,ERPImplementation,BiggestITprojectthatmostcompanieseverhandle,Changestheentirecompany,andHasrepercussionsinalldepartmentsanddivisionsoftheorganization.Itisessentialthatallthekeyplayersunderstandthescopeoftheproject.ThisisanIT-RelatedProject.,Source:,BestPracticesofERPImplementation,ABusinessStrategyalignedwithBusinessProcessesTop-DownProjectSupportandcommitmentChangeManagementExtensiveEducationandTrainingDataCleanupandDataIntegrityImplementationisviewedasanongoingprocess,BestPracticesofERPImplementation,ABusinessStrategyalignedwithBusinessProcessesBusinessstrategythatwillgiveyouacompetitiveadvantageAnalyzeandmapyourcurrentbusinessprocessesDevelopyourobjectivesEvaluateyourbusinessstrategyandERPplanbeforeyoucommittosoftwareacquisitionandinstallation.,Source:,BestPracticesofERPImplementation,Top-DownProjectSupportandcommitmentCEO1supportimplementationcostschampiontheproject,anddemandfullintegrationandcooperation.Mostknowledgeableandvaluablestaff2,Sources:1.M.MichaelUmble,“AvoidingERPImplementationFailure”,IndustrialManagement,Jan/Feb2002;2.,BestPracticesofERPImplementation,ChangeManagementChangesinbusinessprocedures,responsibilities,workload.1Asaresult,ERPimplementationsaretimesofhighstress,longhours,anduncertainty.1Mid-levelmanagersmust2facilitatecontinualfeedbackfromemployees,providehonestanswerstotheirquestions,andhelpresolvetheirproblems.,Sources:1.Yakovlev,I.V.,“AnERPImplementationandBusinessProcessReengineeringataSmallUniversity”,EducauseQuarterly,Number2,2002;2.Umble,M.Michael,“AvoidingERPImplementationFailure”,IndustrialManagement,Jan/Feb2002.,BestPracticesofERPImplementation,ExtensiveEducationandTrainingGeneraleducationabouttheERPsystemforeveryone.Massiveamountofenduserstrainingbeforeandduringimplementation.Follow-uptrainingaftertheimplementation.10to15%oftotalERPimplementationbudgetfortrainingwillgiveanorganizationan80%chanceofasuccessfulimplementation.,Source:Umble,M.Michael,“AvoidingERPImplementationFailure”,IndustrialManagement,Jan/Feb2002.,BestPracticesofERPImplementation,DataCleanupandDataIntegrityClean-updatabeforecut-over.1“Nearenoughisnolongergoodenough.”2Tocommandtrust,thedatainthesystemmustbesufficientlyavailableandaccurate.3Eliminatetheoldsystems,includingallinformalsystems.3,Sources:1.http:/www.bpic.co.uk/checklst.htm,viewedNovember5,2002;2.au/info_erp_imp.htm,viewedNovember5,2002;3.M.MichaelUmble,“AvoidingERPImplementationFailure”,IndustrialManagement,Jan/Feb2002.,BestPracticesofERPImplementation,ImplementationisviewedasanongoingprocessOngoingneedfortrainingandsoftwaresupportafterimplementation.Ongoingneedtokeepincontactwithallsystemusersandmonitortheuseofthenewsystem.Ongoingprocessoflearningandadaptationthatcontinuallyevolvesovertime.,Source:Umble,M.Michael,“AvoidingERPImplementationFailure”,IndustrialManagement,Jan/Feb2002.,ERPImplementationPhases,4MajorPhases:Concept/initiationDevelopmentImplementationCloseout/Operationandmaintenance,Source:“ERPImplementationan