Enterprise Resource Planning (ERP)

Definition:

A cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company (or Transactional Backbone)

ERP Evolution (SAP)

SAP (Systems Applications and Products) Three German people from IBM
The original Name for SAP was German : Systeme, Anwendungen, Produkte

2006s 2000s 1990s 1980s 1970s 1960s

University Alliances Program Extended ERP Enterprise Resource Planning (ERP) Manufacturing Resource Planning (MRP II) Material Resource Planning (MRP) Inventory Control Packages

ERP Application Components

ERP Process & Information Flows

ERP Logistics
Operational Efficiency (Use PDA with GPS) Manage Items of Merchandise To Pack of Merchandise Execute People and Vehicles Maintenance Vehicles (Use GIS) Communicating with other Department Control Logistics Manage the Route of Logistics

ERP Benefits
Quality and Efficiency Decreased Costs Decision Support Enterprise Agility Security (Firewall & VPN)

Costs of ERP

Causes of ERP Failures

Business mangers and IT professionals underestimate the complexity of the planning, development, and training needed Failure to involve affected employees in the planning and development phases Trying to do too much too fast in the conversion process Failure to do enough data conversion and testing

Trends in ERP

ERP Software

SAP R/3 Enterprise, release in 2002 by SAP AG Oracle PeopleSoft J.D.Edwards

ERP Software Business Suits

Oracles e-Business Suites SAPs mySAP
Web ERP Concern :
www.sap.com www.ecenter.co.th

MySAP ERP Version

Small Business
(10 Users per each user 300,000) (40 Users = 640,000) (Maintenance = 108,800) 1,025,000) + (Maintenance/Year= 174,250) 280 Million include Maintenance)

Medium Business (80 Users

Large Business (More than 500 Users

Example of Human Resources

ERP Case Study

Colgate-Palmolive : The Business Value of ERP

Colgate embarked on an implementation of SAP R/3 Enterprise to allow the company to access more timely and accurate data, get the most out of working capital, and reduce manufacturing costs. An important factor for Colgate was whether it could use the software across the entire spectrum of the business. Colgate needed the ability to coordinate globally and act locally.

Case Study of EGAT 1

The I.S.U. (Illinois State University) Joint Venture comprising Siemens Ltd. (Thailand), Siemens Information System Ltd. (India) and International Research Corporation Public Co., Ltd. (IRCP) sign a deal worth 890 million bath with the Electricity Generating Authority of Thailand (EGAT) for the implementation of the Enterprise Resource Planning (ERP) for the entire EGAT organization. The Contract was signed today (October 3, 2006) at the EGAT Headquarters. Under the contract, which was won through the e-auction process, the I.S.U. Joint Venture will design, develop and implement the ERP system based on SAP software covering a total of 11 modules. These modules are Financial Management, Human Resource Management, Purchasing and Inventory Management, Production Planning, Project Management, Plant Maintenance, Sales and Distribution, Executive Information System, Supplier Relationship Management, Strategic Enterprise Management and Enterprise Portal.

Case Study EGAT2

Siemens will be responsible for the design and implementation of ERP software and system integration while IRCP will install the hardware and related infrastructure. The Enterprise Resource Planning (ERP) system creates a single, online and real-time data platform for the whole organization. ERP will thus improve working processes, increase efficiency in utilization of organizations resources, such as reducing data redundancy, increasing personnels ability to analyze data more efficiently and help reducing capital equipment maintenance costs. In addition, ERP will support the strategic decision-making process of executives and can effectively support future extensions of EGATs IT network. The I.S.U. Joint Venture will install the ERP system at all EGAT units such as the headquarters, the development groups as well as the transmission operation group. The project implementation period is 27 months. (http://www.thaipr.net)

ERP Examples :
Chulalongkorn University Mahidol University Sripatum University ( 1 Million) Sirirat Hospital (Flash@SAP) Colgate Palmolive PTT, ESSO TOT ( 280 Million) Honda Car (SME@SAP)

ERP Examples Continue :

Thammasat University (Sirinthorn Centre) University of the Thai Chamber of Commerce Mahanakorn University IBM, Microsoft, Coca-Cola Cisco, Nokia AIS, Cement Thai Electricity Generating Authority of Thailand (EGAT)

The End