MRP II (Manufacturing Resource Planning)

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MRP II (Manufacturing Resource Planning)

• It covers only the processes required for that
  function inside a manufacturing environment, such
  as Finite Capacity Planning / Loading, Production
  Scheduling, JIT, OPT, etc. An MRPII system can
  be utilized in a multi plan environment and can
  also have EDI and even be running in automatic
  mode every time that an MRP Flag changes in any
  MRP item (while this require lots of processing
  power).

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Enterprise Resource Planning (ERP)

• ERP includes MRP as part of its
  functionality. ERP is a newer generation product
  which integrates more business functional areas
  into a single interactive application,
  functionality such as Sales Forecasting,
  purchasing, Distribution Requirement Planning,
  Inventory Management, Sales Automation, Financial
  Control, HRMS, etc.,

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What is included in an ERP system?

• Manufacturing planning and scheduling
• Demand planning
• Knowledge management
• E-Commerce
• Transportation planning
• Warehouse management
• Data warehousing
• Manufacturing execution

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Current Major ERP Software players in the market

• SAP
• Oracle
• Baan
• PeopleSoft
• J D Edwards

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Largest ERP implementation service providers

• q       Anderson Consulting 5,500 ERP
  consultants
• q       Deloitte and Touche 3,300 ERP
  consultants
• q       IBM 3,800
  ERP consultants
• q       PriceWaterhouseCoopers 6,300ERP
  consultants
• q       CSC 1,900
  ERP consultants

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Responsibilities of an ERP provider

• q       Documenting business policies
• q       Software gap analysis
• q       Module configuration
• q       Data conversion
• q       Interface development
• q       Setting up the technical environment
• q    Development of extensions,modifications
  and
• custom reports
• q       Training
• q       Documentation

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What responsibility should NOT be given to a
provider?

• Project Management ability
• deciding business policies and being the
  projects spokesperson to the Project Sponsor or
  Steering Committee. (whos project is this?)

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Specific areas that must be addressed by the
contract

• Cost and payment terms
• Resources (who will do the work)
• Workplan (what tasks will they perform)
• Resources you will supply (project staffing,
  facilities, etc.)
• Change orders (are they allowed and what are the
  associated procedures)  

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Specific areas that must be addressed by the
contract

• Contract disputes (how and where are they
  handled)
• Contract termination
• Incentives and penalties (for cost and time
  savings and overruns)
• Property rights (who owns enhancements, contract
  assignability, etc.)

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Barriers to implement changes

• People have no clear understanding of the
  business case driving the change
• People are not integrated and engaged in the
  change process
• Leaders do not walk the talk
• People fear the new processes and technology and
  changes on their current jobs
• Technology changes outpace the preparedness of
  people

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Workplace Automation

• Automatic data collection
• Automatic accounting information
• Automatic order processing
• Automatic problem identification and solution

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The Implementation

• The process is long and draining
• The learning process is BIG!!!
• The system needs to fit your business
• The fit is never perfect!!

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ERP and SCM

• Who should implement ERP?
• Is ERP the way to SCM?
• How are they related?

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ASP vs ERP providers

• Should I spend the money?
• Should I run my ERP on other peoples Web?

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Common problems in Implementing ERP

• Corporate identity lost (function vs strategy)
• No one is in charge
• Too complicated to manage
• SC members not synchronized
• Information sharing not real-time enough
• Cost of ownership is high
• Why do I have to do the integration?

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The Next Wave-CRM

• Combining traditional CRM activities such as
  sales, marketing, service and call center, with
  electronic commerce activities such as buying and
  selling over the web. These customer-facing
  applications manage customer interactions through
  channels including the web, direct sales forces
  and call centers.

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CRM

• By far the biggest change will involve a shift
  from client/server technologies and legacy
  systems to Web-based customer service and sales
  applications, particularly as CRM and sell-side
  electronic-commerce solutions converge .
• As it shifts its focus, the CRM market will
  continue to grow. The worldwide market is
  expected to reach 7.5 billion by 2003, compared
  with 3.6 billion next year and 2.55 billion in
  1999,