Indian Institute of Management Bangalore, India

Enterprise Resource Planning (Elective)

Credits: 3

Instructors:

D.Krishna Sundar & Team of Guest Faculty

E-mail: diatha@iimb.ernet.in, Extn.3276 (O)
Office: E-Block: #106
Secretary: Shanthakumari, Extn. 3278

1.0 Course objective:

The objective of this course is to expose students to the concepts of Business Process
Management (BPM) & Enterprise Resource Planning (ERP) that address the inter-functional
comprehensive view of an enterprise. ERP systems integrate the information across the
functions of the organization such as accounting, finance, marketing, production, and human
resource development. ERP systems also embed the organizational processes leading to process
discipline. Backed with integrated information systems and tightly integrated processes, ERP
systems effectively support managerial decision-making. The ERP backbone creates a
supporting backbone for enterprise application(s) integration (EAI).
Broadly understanding
- Business process, process re-engineering & business process management (BPM)
- Architecture of ERP Systems, inputs and outputs of ERP systems,
- Important considerations in choosing an ERP system
- Issues in ERP s/w implementation project cycle
- Learning features of one of the world class ERP s/w (in this elective SAP)
are the main themes of this course.
This course aims to highlight the integration of business processes and computer applications
across business functions and also demonstrates how organizations are represented in an ERP
system and features of such s/w packages (from managerial and technical perspective) very
broadly. Towards achieving this objective, we use SAP R/3 Ver.4.6c software based assignments
and the group project to deliver the requisite concepts.
2.0 Course content:
This elective course consists of four modules. The first module will be BPM & ERP
overview; the second module deals with the specific functional module. The third module deals
with ERP project consulting issues. The last module deals with the students project. Modules I,
III and IV are common to all, and Module II of the course is specific to each functional
module. This Course has four streams of functional specializations viz., Sales & Distribution
(SD), Production Planning (PP), Materials Management (MM), Finance and Control (FICO).
Group Project is a major component of the course work and also its evaluation. The students are
expected to form implementation groups to map a given industry situation on to SAP R/3 and
have to submit the implementation project report, besides demonstrating their implementation on
SAP-R/3.
3.0 Course outline - Topics to be covered
Module I: 8 Sessions; Module II: 8 Sessions; Module III: 2 Sessions; Module IV: 2 Sessions

Module I - ERP & BPM Over View: 8 Sessions

ERP Introduction
Business Process Reengineering
Business Process Management

ERP Products and Features, New dimension Products

ERP Project Implementation Methodologies
The people side of ERP
Overview of Functional Modules in SAP-R/3

Module II Functional Module (MM, PP, SD & FI/CO): 8 sessions

Organizational structures
Master data
Some standard processes
Module III - ERP: Implementation & Consulting Services Issues: 2 Sessions
Implementation Processes
Implementation & Customization Issues
Consulting services/Issues in ERP Project life cycle
Module IV - ERP: Project Presentations: 2 Sessions

3.1 Readings
Module I - ERP Over View: 8 Sessions
Week 1
Sessions 1&2:
Introduction
Elements of an IT Solution
Issues in business process reengineering
Readings:
1. Trends in Management: Revolutionary Enterprise Structures
2. From Ledgers to ERP - Ricardo Salim & Carlos Ferran
3. BPR & ERP: Weapons for the Global Organization - Marianne Bradford et al.,
4. Reengineering a Business Process, Thomas H.Davenport , HBS Publishing
5. Business Process Reengineering: Its Past, Present and Possible Future, Thomas
H.Davenport , HBS Publishing
6. IT Doesnt Matter , Nocholas G.Carr , HBS Publishing
7. Does IT Matter- An HBR Debate, HBS Publishing
Week 2:
Sessions 3&4
MRP to ERP
Features of ERP Framework(s)
ERP & b2b integration
Supply chain Management & APO
Readings:
1. Material Requirements Planning
2. Master Production Scheduling
3. Caselet: Tristar
4. MICSS Simulator: The smart industries Inc.Case study
5. Supply Chain Management Projects with APO
6. SCM Processes & APO Modules
7. APO Architecture
8. Case studies: Scheduling of Synthetic Granulate, Semiconductor Manufacturing,
Computer Assembly, Food & Beverages

Week 3
Sessions 5&6:
Business Process Management
Introduction to Control (BPM tool) & using BPM in an organization
Readings:
1. Process Workflow Models: The Essentials
2. Process Workflow Models Managing Progressive Detail
3. Process Mapping with Control (Handout)
Reference Material:
1. Online documentation of Control
Week 4:
Enterprise software selection
ERP Implementation
Introduction to SAP R/3
Readings
1. Case: Harley-Davidson Motor Company
Reference Material:
Second-wave ERP systems implementing for effectiveness (book)
Module II Functional Module (MM, PP, SD & FI/CO): 8 sessions
Reference Material: SAP Tutorial Developed for ERP Elective (Given as Annexure to the
Reading Material)
Week 5
Organization structure
Master data Features & Creation of Master data
Week 6
Master data Issues
Core Processes
Week 7
Core Processes
Week 8
Core Processes
Process Integration Issues
Reading Reference Material:
SAP R/3 4.6 c online help documentation of IDES

Module III - ERP: Implementation & Consulting Services Issues: 2 Sessions

Week 9
ERP Project Management & Implementation Issues
Readings
1. Case: Cisco Systems, Inc., Implementing ERP
2. Case: Tektronix, Inc.: Global ERP Implementation

Module IV - ERP: Project Presentations: 2 Sessions

Week 10
Project Presentations

4.0 Course evaluation:

MICSS (Factory Simulator)
10%
(Individual Submisson. Submission due date: On or before start of the Week 3 Session)
Case analysis
10%
(Group Submisson: Harley Davidson Case: Submission due date: On or before start of
the Week 4 Session)

BPM-Control Exercise
30%
(Individual Submission: Submission due date: On or before start of the Week 6Session)
Project

50% (Presentation 25% & report 25%)

Projects Presentation - 25%

Presentation (Team Work)
Process Mapping Approach (Team/Individual)
Exploring Effective Implementation Features
(Team/Individual)
Integration of Functional Modules
(Team/Individual)

5 points
7.5 points
7.5 points
5 points

Project Report (Group Submission) 25%

Project Report Submission due date: On or before

References
SAP R/3 4.6 c online help documentation of IDES
SAP R/3 Process Oriented Implementation Keiler & Tufley, Addison Wesley
Enterprise Resource Planning & Beyond Langenwalter, St.Lucie Press
Manufacturing Planning & Control Systems Vollman et.al, TMH Publications
SAP R/3 online help documentation
http://www.easymarketplace.de/online-pdfs.php
SAP R/3 4.6 c online help
http://help.sap.com/saphelp_46c/helpdata/en/e1/8e51341a06084de10000009b38f83b/fra
meset.htm
http://help.sap.com/r3#section3

Cases & Simulation Game

MICSS Simulation
Learning Objective(s): Develop a winning sales & production strategy
Lead Questions:
1. What blocks the organization from achieving more?
2. Can we sell significantly more?
3. What is the most profitable product mix, given the current capacity profile?
4. What is the sales & production strategy?
5. What is the purchasing policy?
Simulate for one year

Harley Davidson Case

Lead Questions:
1. Consider Exhibit 10 on page 22 of the case; does it include the factors that you consider
most important in the selection process? Which factors would you be inclined to weight
most heavily?
2. Based on the information in the case, which provider would you select and why? How
would you summarize the reasons for your choice to your senior management (in 2
minutes)?
3. What is your overall assessment of Harleys approach to enterprise software selection?
What (if anything) would you have done differently?
Case: Cisco Systems Inc., Implementing ERPCase
Case: Tektronix,Inc.: Global ERP Implementation
Lead Questions:
1. What factors had made the difference between success and failure of the Cisco ERP
project? Where had the ERP team been smart? Where had the ERP team been just
plain lucky? Do you think that the Cisco team could do such a project again if they had
to? Why? Why not?
2. Why did Tektronix implement ERP in stages? How should a company decide between
implementing in stages or going big-bang? How did Tektronix manage the risks of ERP
implementation? What is your overall assessment of the Tektronix ERP project?
3. How similar or dissimilar Cisco & Tektronix approaches to their ERP implementations?