Enterprise Resourcing Planning: Meeting Demand in Today s Marketplace Client Conference

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1 Enterprise Resourcing Planning: Meeting Demand in Today s Marketplace 2015 Client Conference

2 About the Presenter Wenting Pan, Ph.D. Assistant Professor of Operations and Quantitative Methods, Saint Mary s College of California Wenting Pan is an assistant professor in Operations and Quantitative Methods at Saint Mary s College of California. She has her Ph.D. in Operations and Decision Technologies from UC Irvine. Her research interests include managing supply chain uncertainty, sourcing strategies, inventory management, supply chain management, decision analysis and big data analysis. Her research has been publishing in Operations Research, IIE Transactions, International Journal of Production Economics and Encyclopedia of Business Analytics and Optimization.

3 Learning Objectives Identify the importance of an enterprise resource planning Discover essential considerations for streamlining your business Establish the need of an ERP solution to stay ahead in the competitive landscape

4 Agenda What is ERP? Why ERP? Evolution of ERP Critical factors for successful ERP implementation ERP system selection Implementation steps

5 What is Enterprise Resource Planning (ERP)? 2015 Client Conference

6 What is Enterprise Resource Planning (ERP)? Software tools o Manage all the enterprise data o Provide information when needed Manage organization s supply chain o Inventory management o Customer order management o Production planning and managing o Sales, Marketing o Accounting o Human resource management o Manufacturing o All other activities in a modern business

7 Why Enterprise Resource Planning (ERP)? 2015 Client Conference

8 Business Processes Input Request to purchase smartphone Financial help for purchase Fulfillment of order Technical support Functional Area Responsible for Input Process Output Marketing and Sales Sales Order Order is generated Accounting and Finance Supply Chain Management Marketing and Sales Arranging financing inhouse Shipping and delivery 24-hour help line available Customer finances through the smartphone company Customer receives smartphone Customer s technical query is resolved Source Line: Course Technology/Cengage Learning

9 Functional Areas and Business Processes Marketing and Sales Supply Chain Management Accounting and Finance Human Resource

10 Marketing and Sales Customer o Sales order, Order Status SCM o Product availability data and order status, Sales forecast and sales orders HR o Legal requirements and job information, Hiring needs and personnel information A/F o Cost/profit analysis, Sales order data Source Line: Course Technology/Cengage Learning

11 Supply Chain Management Supplier o Raw materials availability and delivery, orders for materials and packaging A/F o Sales data and manufacturing cost analysis, production plans, materials, and inventory HR o Legal requirements and job information, hiring needs and personnel information M/S o Sales forecasts and sales orders, Product availability data and order status Source Line: Course Technology/Cengage Learning

12 Accounting and Finance Customer o Payments, Invoices and credit memos SCM o Production plans; materials and inventory data, Sales data and manufacturing cost analysis HR o Legal requirements and job information; payroll and benefit expense data M/S o Sales order data o Cost/profit analysis Source Line: Course Technology/Cengage Learning

13 Human Resource A/F o Hiring needs and personnel information, Payroll and benefit expense data; legal requirements and job information M/S o Hiring needs and personnel information, Legal requirements and job information SCM o Hiring needs and personnel information, Legal requirement and job information Source Line: Course Technology/Cengage Learning

14 Integrated Information System Lockheed Martin o Allow suppliers track the order o Allow suppliers see the production trend o Cut cost, connect suppliers, achieve efficiency Tumi o Expand the business o Decrease the inventory o Cut the warehouse space o More responsive to the demand o More accurate forecasting Source Line: Course Technology/Cengage Learning

15 Why Enterprise Resource Planning (ERP)? Companies today face the challenge of o Increasing competition o Expanding markets o Rising customer expectations To be successful (or even survive) o Lower total costs in the supply chain o Shorten lead times o Reduce inventories o Expand product choice o Provide more reliable delivery dates o Provide more/better customer choices o Improve quality o Coordinate global demand, supply, and production

16 Why Enterprise Resource Planning (ERP)? Benefits of ERP o A unified enterprise view of the business o An enterprise database o Eliminate redundant effort and duplicated data o Generate savings in operations expenses Increase interdepartmental cooperation and coordination o Less frustration

17 Evolution of ERP 2015 Client Conference

18 Evolution of Enterprise Resource Planning (ERP) Time 2000s 1990s 1980s 1970s 1960s Software Extended ERP Enterprise Resource Planning (ERP) Manufacturing Resources Planning (MRP II) Material Requirements Planning (MRP) Inventory Control Packages

19 Critical Factors for Successful ERP Implementation 2015 Client Conference

20 Critical Factors for Successful ERP Implementation Clear understanding of strategic goals Commitment by top management Excellent project management Organizational change management Great implementation team Data accuracy Extensive education and training Focused performance measures Multi-site issues

21 ERP System Selection 2015 Client Conference

22 ERP System Selection Create the vision Create a team Create a software candidate list Narrow the list Request and review proposal Select two or three finalists Select the winner Justify the investment Negotiate the contract Run a pre-implementation pilot Validate the justification

23 Implementation Steps 2015 Client Conference

24 Implementation Steps Review the pre-implementation to date Install and test any new hardware Install the software and perform the computer room pilot Provide system training Establish security and necessary permission Ensure data accuracy Document policies and procedures Bring the entire organization online Celebrate Improve continually

25 What Questions Do You Have?

26 Wenting Pan Assistant Professor of Operations and Quantitative Methods, Saint Mary s College of California Client Conference

27 COMING UP NEXT: I Need a New ERP System: How Do I Build the Business Case (Panel) 2015 Client Conference

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