SUMMER 2005 JUNE IST 600 ERP SYSTEMS: Key Implementation Issues Introduction to ERP Systems

SUMMER 2005 JUNE Introduction to ERP Systems I. Course Intro II. ERP Systems Intro

3IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Introduction – Who am I? Education: BS in Business Administration MS in Information Management MBA (specialized in Supply Chain & Global Entrepreneurship) Ph.D. in Information Science & Technology Certification: CPIM – Certified Production & Inventory Control Management PMP – Project Management Professional Certification (in process) Experience: Strategy Consulting & Small business ownership in Turkey Technology Consulting (Booz Allen Hamilton) Web Consulting (U.S. Department of Transportation) SAP Implementation (Welch Allyn)

4IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Who are you? Your first name Experience Expectations for this class. 2 Truths and a Lie

5IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Expectations Student Expectations My Expectations Enthusiasm about the course Come prepared for the class (read the material!) Try to visualize real world and apply what you learned in class to real world situations Course Goals (see syllabus) Feedback Mechanisms For the Course WebCT (anonymous feedback) /call/online chat/face to face conversation with me. Surveys, etc.

6IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel My Teaching Philosophy Equip students with tools, methodologies and principles that they can use in work settings. Provide students with knowledge and ways of thinking and acting that will enable them to make successful strategic and tactical decisions in work setting. Motivate students to self-teach skills through research and experimentation via the use of Assignments (structured, semi-structured, unstructured) Research papers and other readings.

7IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Course Outline Day 1 ERP Intro, ERP Lifecycle, Org Change Mgmt Day 2 Developing a Business Case for ERP Systems ERP Selection Day 3 ASAP Methodology Steps 1-2 Business Process Reengineering Day 4 ASAP Methodology Steps 3-4 Day 5 ASAP Methodology Step 5 SAP Best Practices/ Lessons Learned

8IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Course Delivery Method Presentations Case Studies (2) Readings Grades (Syllabus) Assignments (Syllabus)

9IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel WebCT Usage Lessons & Readings Calendar Syllabus Bulletin Boards

10IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Course Policy/Norms Grading Policy Read the syllabus and check WebCT frequently! Late assignments Assignments– requested format/content, etc. Feedback Chat Students vs. Professionals How to Listen to Me and Guest Speakers How to Read! Teamwork –rules/grade, etc. Sleeping / eating / drinking in class

11IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Team Break Out Session-I Team Building Exercise Strengths of each member. When/where to meet for work. Exchange phone numbers/ addresses. Team rules How will teams make sure there is fair contribution? What will they do if somebody doesn't do his/her part? Guidelines for grading team participation Anything else? Decide on the company you will work on for the course.

SUMMER 2005 JUNE Introduction to ERP Systems I. Course Intro II. ERP Systems Intro

SUMMER 2005 JUNE Introduction to ERP Systems I. Course Intro II. ERP Systems Intro What is ERP? Where Did ERP Come From? What is SAP? Some SAP Terminology

14IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel So….What is an ERP System? Enterprise Resource Planning System (ERP) Complete (?) Suite of Integrated Applications Real-time updates Finance / Controlling Accounting Customer Service Sales / Marketing Human Resources Engineering Single Integrated Database Modular Structure Similar Interfaces

15IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Where Did ERP Come From? MRP Material Requirements Planning MRP-II Manufacturing Resource Planning ERP Enterprise Resource Planning

16IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Manufacturing & Bills of Material Bicycle Frame1 Seat1 Rear Wheel Assy 1 Front Wheel Assy 1 Crank Assy1 Crank1 Peddle Assembly 2 Nut1

17IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Manufacturing Issues Small Shop -> Number of items to order Larger Manufacturing company -> Mass production of many products. Lots of parts to order and manage. Procurement of some parts and manufacturing of other sub-assemblies

18IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Material Requirements Planning

19IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Big Picture: Planning At the Company Level

20IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Manufacturing Resource Planning. MRP II – 1980s Method for planning resources of a Mfg company. It addresses operational planning in units, financial planning in dollars, and has simulation capability to answer “what if” questions. Links a variety of functions together integrated with financial reports. Result – one linked resource planning system.

21IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Product Lifecycle 1. Customer Orders – Customer Service Rep. takes the order Do we have the inventory? If not- order parts or manufacture them. 2. Order Manufactured The reduction in inventory needs to be recorded. 3. Orders Packed Track packed orders, packaging material, etc 4. Products Shipped Track shipped products. 5. Customer billed 6. Company financials and customer payments tracked 7. Repair Customer Service Rep takes customer repair order Checks info in the system. 8. Sales Rep- checks the customer history from the system. 9. Engineers- Store the product designs, access and change them.

22IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Enterprise Resource Planning ERP – Enterprise Resource Planning. Late 90’s and 2000’s A new increased connection to suppliers. Supply Chain Management. An increased connection to customers. Demand Management. Customer Portals. e-Business processes. All linked to the ERP engine. Better Integration of data and functionality

23IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Some ERP Systems Major Players BAAN JD Edwards PeopleSoft Oracle SAP Smaller Ones Open Source ones Compiere

24IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel What is SAP? Systems Applications Products German Company with the Same Name (SAP) SAP R/3 Release 3 of the software 3 Tier Client-Server Architecture Upgrades to the System -> Versions Version 4.6C Version 4.7, etc. Modular Structure

25IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel SAP Industry-Specific Solns

26IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel SAP Modules FI Financials CO Controlling MM Materials Management PP Production Planning HR Human Resources SD Sales & Distribution CS Customer Service PLM Production Lifecycle Management PS Project Systems, etc Terminology for integration: Eg: PP-PI Production Planning in Process Industry Eg: SD-MM Elements of Materials Management that are related to Sales and Distribution

27IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel SAP Features Complete Suite of Integrated Applications Core business functions (Finance, Sales&Dist, Materials Management, etc.) Industry specific solutions Special solutions Frequent new applications, upgrades and industry specific bolt-ons Open Systems Architecture Works with many hardware vendors (HP, IBM, DEC, etc) Different Databases (Oracle, etc) Various Operating Systems and GUIs.

28IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel SAP Features-continued Global Business Architecture Screens and Language >30 languages supported Language is user driven Multi-Currency Currency exchange rates Tax issues based on country

29IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel SAP Features-continued Three-Tier Architecture Efficient use of processing power Transparency between SAP apps. and PC apps. ApplicationDataPresentation BASIS Client-Server Network Operating System

30IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel SAP Features-continued Audit Trail Very important for regulated industries Can help you learn more about user behavior Every person is accountable. Data integrity Connectivity

31IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Team Break Out Session-II Planning for “ERP Knowledge Portal” Work Breakdown Structure Tasks Resource Plan Timeline Risk Mitigation Plan Identify Risks Categorize them by frequency and by criticality Write mitigation steps.

SUMMER 2005 JUNE Introduction to ERP Systems I. Course Intro II. ERP Systems Intro ERP Implementations: Some Key Strategic Decisions Implementation Methodology

33IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel ERP Options Implementation Strategy Timeline Big Bang Implementation Phased (Roll Out) Implementation Mini Big Bang (Combination of big bang and roll-out) Staff/Resources Outsourcing In-house Customization Level Pro’s and Con’s?

34IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel ERP Timeline Can be used for any ERP implementation Based on Project Management Methodology Project Initiation Planning Controlling Execution Closeout

35IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel ASAP Timeline Based on Accelerated SAP (ASAP) Implementation Methodology

36IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel What is ASAP Methodology?

37IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Project Success With ASAP Meth.

38IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Phase-1 Project Preparation

39IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Phase- 2 Business Blueprint

40IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Phase-3 Realization

41IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Project Plan Outline for Realization

42IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Phase-4 Final Preparation

43IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Phase-5 Go Live & Support

44IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Sources Chris Keller- MRP Slides Kenny Leung- SAP Summit 2005 Hong Kong Doane, SAP Blue Book SAP.com

45IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Questions?

46IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel Some Terminology Basis Software. The R/3 Basis is similar to an operating system that specifically has the capability of processing any of the SAP R/3 transactions. It’s a middleware between the operating system and the servers that allow for smooth operations across different servers, operating systems, and databases. ABAP: Advanced Business Application Programming (ABAP/4), is a special ‑ purpose, fourth generation language developed by SAP, is used to write programs for the specialized requirements of creating custom reports, screens, user ‑ defined functions, and special industry solutions for use with the SAP R/3 System.

47IST 600 ERP Systems: Key Implementation Issues ─ U. Yeliz Eseryel What is SAP Netweaver? A comprehensive integration and application platform, SAP NetWeaver works with your existing IT infrastructure to enable and manage change. SAP NetWeaver embraces Internet standards such as HTTP, XML, and Web services. Ensuring openness and interoperability with Microsoft.NET and Java 2 Platform Enterprise Edition (J2EE) environments such as IBM WebSphere.