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Chapter 15

Resource Planning
Operations
Operations Management
Management -- 66thth Edition
Edition

Roberta Russell & Bernard W. Taylor, III

Beni Asllani
Copyright 2009 John Wiley & Sons, Inc. University of Tennessee at Chattanooga
ERPEnterprise Resource
Planning
Starts with slide 56
We will not be covering the material on
pages 647-667 of Chapter 15 until after
the second exam

Copyright 2006 John Wiley & Sons, Inc. 14-2


Lecture Outline

Material Requirements Planning (MRP)


Capacity Requirements Planning (CRP)
Enterprise Resource Planning (ERP)
Customer Relationship Management (CRM)
Supply Chain Management (SCM)
Product Lifecycle Management (PLM)

Copyright 2009 John Wiley & Sons, Inc. 15-3


Resource
Planning for
Manufacturing

Copyright 2009 John Wiley & Sons, Inc. 15-4


Material Requirements
Planning (MRP)
Computerized inventory control and
production planning system
When to use MRP?
Dependent demand items
Discrete demand items
Complex products
Job shop production
Assemble-to-order environments

Copyright 2009 John Wiley & Sons, Inc. 15-5


Demand Characteristics
Independent demand Dependent demand

100 x 1 =
100 tabletops

100 tables 100 x 4 = 400 table legs

Continuous demand
400 Discrete demand
400
300
No. of tables

300
200 No. of tables
200
100
100

1 2 3 4 5
Week M T W Th F M T W Th F

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Material Master
production
Requirements schedule

Planning
Product Material Item
structure requirements master
file planning file

Planned
order
releases

Work Purchase Rescheduling


orders orders notices

Copyright 2009 John Wiley & Sons, Inc. 15-7


MRP Inputs and Outputs

Inputs Outputs
Master production Planned order
schedule releases
Product structure file Work orders
Purchase orders
Item master file
Rescheduling notices

Copyright 2009 John Wiley & Sons, Inc. 15-8


Master Production Schedule

Drives MRP process with a schedule of


finished products
Quantities represent production not demand
Quantities may consist of a combination of
customer orders and demand forecasts
Quantities represent what needs to be
produced, not what can be produced
Quantities represent end items that may or
may not be finished products

Copyright 2009 John Wiley & Sons, Inc. 15-9


Master Production Schedule
(cont.)
PERIOD
MPS ITEM 1 2 3 4 5
Pencil Case 125 125 125 125 125
Clipboard 85 95 120 100 100
Lapboard 75 120 47 20 17
Lapdesk 0 50 0 50 0

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Product Structure
Clipboard

Top clip (1) Bottom clip (1)

Pivot (1) Spring (1)

Rivets (2)
Finished clipboard Pressboard (1)

Copyright 2009 John Wiley & Sons, Inc. 15-11


Product Structure Tree
Clipboard Level 0

Pressboard Clip Assy Rivets Level 1


(1) (1) (2)

Top Clip Bottom Clip Pivot Spring Level 2


(1) (1) (1)

(1)

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Multilevel Indented BOM

LEVEL ITEM UNIT OF MEASURE QUANTITY


0---- Clipboard ea 1
-1--- Clip Assembly ea 1
--2-- Top Clip ea 1
--2-- Bottom Clip ea 1
--2-- Pivot ea 1
--2-- Spring ea 1
-1--- Rivet ea 2
-1--- Press Board ea 1

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Specialized BOMs

Phantom bills
Transient subassemblies
Never stocked
Immediately consumed in next stage
K-bills
Group small, loose parts under pseudo-item
number
Reduces paperwork, processing time, and file
space

Copyright 2009 John Wiley & Sons, Inc. 15-14


Specialized BOMs (cont.)

Modular bills
Product assembled from major subassemblies and
customer options
Modular bill kept for each major subassembly
Simplifies forecasting and planning
X10 automobile example
3 x 8 x 3 x 8 x 4 = 2,304 configurations
3 + 8 + 3 + 8 + 4 = 26 modular bills

Copyright 2009 John Wiley & Sons, Inc. 15-15


Modular BOMs
X10
Automobile

Engines Exterior color Interior Interior color Body


(1 of 3) (1 of 8) (1 of 3) (1 of 8) (1 of 4)

4-Cylinder (.40) Bright red (.10) Leather (.20) Grey (.10) Sports coupe (.20)
6-Cylinder (.50) White linen (.10) Tweed (.40) Light blue (.10) Two-door (.20)
8-Cylinder (.10) Sulphur yellow (.10) Plush (.40) Rose (.10) Four-door (.30)
Neon orange (.10) Off-white (.20) Station wagon (.30)
Metallic blue (.10) Cool green (.10)
Emerald green (.10) Black (.20)
Jet black (.20) Brown (.10)
Champagne (.20) B/W checked (.10)

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Time-phased Bills
an assembly chart shown against a time
scale

Forward scheduling: start at todays date and schedule forward to determine


the earliest date the job can be finished. If each item takes one period to
complete, the clipboards can be finished in three periods
Backward scheduling: start at the due date and schedule backwards to
determine when to begin work. If an order for clipboards is due by period three,
we should start production now
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Item Master File
DESCRIPTION INVENTORY POLICY

Item Pressboard Lead time 1


Item no. 7341 Annual demand 5000
Item type Purch Holding cost 1
Product/sales class Comp Ordering/setup cost 50
Value class B Safety stock 0
Buyer/planner RSR Reorder point 39
Vendor/drawing 07142 EOQ 316
Phantom code N Minimum order qty 100
Unit price/cost 1.25 Maximum order qty 500
Pegging Y Multiple order qty 1
LLC 1 Policy code 3

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Item Master File (cont.)
PHYSICAL INVENTORY USAGE/SALES
On hand 150 YTD usage/sales 1100
Location W142 MTD usage/sales 75
On order 100 YTD receipts 1200
Allocated 75 MTD receipts 0
Cycle 3 Last receipt 8/25
Last count 9/5 Last issue 10/5
Difference -2
CODES
Cost acct. 00754
Routing 00326
Engr 07142

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MRP Processes
Exploding the bill Netting
of material process of subtracting on-
Netting out inventory hand quantities and
scheduled receipts from
Lot sizing gross requirements to
Time-phasing produce net requirements
requirements Lot sizing
determining the quantities
in which items are usually
made or purchased

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MRP Matrix

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MRP: Example
Master Production Schedule
1 2 3 4 5

Clipboard 85 95 120 100 100


Lapdesk 0 60 0 60 0

Item Master File


CLIPBOARD LAPDESK PRESSBOARD
On hand 25 20 150
On order 175 (Period 1) 0 0
(sch receipt)
LLC 0 0 1
Lot size L4L Mult 50 Min 100
Lead time 1 1 1

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MRP: Example (cont.)
Product Structure Record

Clipboard Level 0

Pressboard Clip Assy Rivets Level 1


(1) (1) (2)

Lapdesk Level 0

Pressboard Trim Beanbag Glue Level 1


(2) (3) (1) (4 oz)

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MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100


Scheduled Receipts 175
Projected on Hand 25
Net Requirements
Planned Order Receipts
Planned Order Releases

Copyright 2009 John Wiley & Sons, Inc. 15-24


Basic MRP formulas

Net Requirements = Gross Requirements


scheduled receipts On-hand Inventory(previous
period)
Planned Order Receipt = function (Net
Requirements, order policy)
Planned Order Release = Planned Order
Receipt backed up by the lead time
Planned Order Releasei-LT = Planned Order Receipti

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More formulas

On-hand inventoryi = on-hand inventoryi-1


+ scheduled receiptsi + Planned Order
Receipti Gross Requirementsi
Gross Requirements for next level down
are determined from the Planned Order
Releases at the level above

Copyright 2006 John Wiley & Sons, Inc. 14-26


On-hand inventory

Is always the amount of on-hand


inventory at the end of the period
All other items (gross req., net req.,
scheduled receipts, planned order
receipts) are amounts at the beginning of
the period

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MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100


Scheduled Receipts 175
Projected on Hand 25 115
Net Requirements 0
Planned Order Receipts
Planned Order Releases

(25 + 175) = 200 units available


(200 - 85) = 115 on hand at the end of Period 1

Copyright 2009 John Wiley & Sons, Inc. 15-28


MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100


Scheduled Receipts 175
Projected on Hand 25 115 20
Net Requirements 0 0
Planned Order Receipts
Planned Order Releases

115 units available


(115 - 95) = 20 on hand at the end of Period 2

Copyright 2009 John Wiley & Sons, Inc. 15-29


MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100


Scheduled Receipts 175
Projected on Hand 25 115 20 0
Net Requirements 0 0 100
Planned Order Receipts 100
Planned Order Releases 100

20 units available
(20 - 120) = -100 100 additional Clipboards are required
Order must be placed in Period 2 to be received in Period 3

Copyright 2009 John Wiley & Sons, Inc. 15-30


MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5

Gross Requirements 85 95 120 100 100


Scheduled Receipts 175
Projected on Hand 25 115 20 0 0 0
Net Requirements 0 0 100 100 100
Planned Order Receipts 100 100 100
Planned Order Releases 100 100 100

Following the same logic Gross Requirements in Periods 4


and 5 develop Net Requirements, Planned Order Receipts, and
Planned Order Releases
Copyright 2009 John Wiley & Sons, Inc. 15-31
MRP: Example (cont.)
ITEM: LAPDESK LLC: 0 PERIOD
LOT SIZE: MULT 50 LT: 1 1 2 3 4 5

Gross Requirements 0 60 0 60 0
Scheduled Receipts
Projected on Hand 20
Net Requirements
Planned Order Receipts
Planned Order Releases

Copyright 2009 John Wiley & Sons, Inc. 15-32


MRP: Example (cont.)
ITEM: LAPDESK LLC: 0 PERIOD
LOT SIZE: MULT 50 LT: 1 1 2 3 4 5

Gross Requirements 0 60 0 60 0
Scheduled Receipts
Projected on Hand 20 20 10 10 0 0
Net Requirements 0 40 50
Planned Order Receipts 50 50
Planned Order Releases 50 50

Following the same logic, the Lapdesk MRP matrix is


completed as shown

Copyright 2009 John Wiley & Sons, Inc. 15-33


MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5
Planned Order Releases 100 100 100
ITEM: LAPDESK LLC: 0 PERIOD
LOT SIZE: MULT 50 LT: 1 1 2 3 4 5
Planned Order Releases 50 50
ITEM: PRESSBOARD LLC: 0 PERIOD
LOT SIZE: MIN 100 LT: 1 1 2 3 4 5
Gross Requirements
Scheduled Receipts
Projected on Hand 150
Net Requirements
Planned Order Receipts
Planned Order Releases

Copyright 2009 John Wiley & Sons, Inc. 15-34


MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5
Planned Order Releases 100 100 100
ITEM: LAPDESK LLC: 0 x1 PERIOD x1 x1
LOT SIZE: MULT 50 LT: 1 1 2 3 4 5
Planned Order Releases 50 50
ITEM: PRESSBOARD LLC: 0 x2 x2 PERIOD
LOT SIZE: MIN 100 LT: 1 1 2 3 4 5
Gross Requirements 100 100 200 100 0
Scheduled Receipts
Projected on Hand 150
Net Requirements
Planned Order Receipts
Planned Order Releases

Copyright 2009 John Wiley & Sons, Inc. 15-35


MRP: Example (cont.)
ITEM: CLIPBOARD LLC: 0 PERIOD
LOT SIZE: L4L LT: 1 1 2 3 4 5
Planned Order Releases 100 100 100
ITEM: LAPDESK LLC: 0 PERIOD
LOT SIZE: MULT 50 LT: 1 1 2 3 4 5
Planned Order Releases 50 50
ITEM: PRESSBOARD LLC: 0 PERIOD
LOT SIZE: MIN 100 LT: 1 1 2 3 4 5
Gross Requirements 100 100 200 100 0
Scheduled Receipts
Projected on Hand 150 50 50 0 0 0
Net Requirements 50 150 100
Planned Order Receipts 100 150 100
Planned Order Releases 100 150 100

Copyright 2009 John Wiley & Sons, Inc. 15-36


MRP: Example (cont.)

Planned Order Report


PERIOD
ITEM 1 2 3 4 5

Clipboard 100 100 100


Lapdesk 50 50
Pressboard 100 150 100

Copyright 2009 John Wiley & Sons, Inc. 15-37


Lot Sizing in MRP Systems

Lot-for-lot ordering policy


Fixed-size lot ordering policy
Minimum order quantities
Maximum order quantities
Multiple order quantities
Economic order quantity
Periodic order quantity

Copyright 2009 John Wiley & Sons, Inc. 15-38


Using Excel for MRP Calculations

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Advanced Lot Sizing Rules: L4L

Total cost of L4L = (4 X $60) + (0 X $1) = $240


Copyright 2009 John Wiley & Sons, Inc. 15-40
Advanced Lot Sizing Rules: EOQ

2(30)(60
EOQ 60 minimum order quantity
1

Total cost of EOQ = (2 X $60) + [(10 + 50 + 40) X $1)] = $220


Copyright 2009 John Wiley & Sons, Inc. 15-41
Advanced Lot Sizing Rules: POQ

POQ Q / d 60 / 30 2 periods worth of requirements

Total cost of POQ = (2 X $60) + [(20 + 40) X $1] = $180

Copyright 2009 John Wiley & Sons, Inc. 15-42


Planned Order Report
Item #2740 Date 9 - 25 - 05
On hand 100 Lead time 2 weeks
On order 200 Lot size 200
Allocated 50 Safety stock 50
SCHEDULED PROJECTED
DATE ORDER NO. GROSS REQS. RECEIPTS ON HAND ACTION
50
9-26 AL 4416 25 25
9-30 AL 4174 25 0
10-01 GR 6470 50 - 50
10-08 SR 7542 200 150 Expedite SR 10-01
10-10 CO 4471 75 75
10-15 GR 6471 50 25
10-23 GR 6471 25 0
10-27 GR 6473 50 - 50 Release PO 10-13
Key: AL = allocated WO = work order
CO = customer order SR = scheduled receipt
PO = purchase order GR = gross requirement

Copyright 2009 John Wiley & Sons, Inc. 15-43


MRP Action Report

Current date 9-25-08

ITEM DATE ORDER NO. QTY. ACTION


#2740 10-08 7542 200 Expedite SR 10-01
#3616 10-09 Move forward PO 10-07
#2412 10-10 Move forward PO 10-05
#3427 10-15 Move backward PO 10-25
#2516 10-20 7648 100 De-expedite SR 10-30
#2740 10-27 200 Release PO 10-13
#3666 10-31 50 Release WO 10-24

Copyright 2009 John Wiley & Sons, Inc. 15-44


Capacity Requirements
Planning (CRP)
Creates a load profile
Identifies under-loads and over-loads
Inputs
Planned order releases
Routing file
Open orders file

Copyright 2009 John Wiley & Sons, Inc. 15-45


CRP
MRP planned
order
releases

Capacity Open
Routing
requirements orders
file
planning file

Load profile for


each process

Copyright 2009 John Wiley & Sons, Inc. 15-46


Calculating Capacity

Maximum capability to produce


Rated Capacity
Theoretical output that could be attained if a process were
operating at full speed without interruption, exceptions, or
downtime
Effective Capacity
Takes into account the efficiency with which a particular
product or customer can be processed and the utilization of
the scheduled hours or work

Effective Daily Capacity = (no. of machines or workers) x


(hours per shift) x (no. of shifts) x (utilization) x ( efficiency)

Copyright 2009 John Wiley & Sons, Inc. 15-47


Calculating Capacity (cont.)

Utilization
Percent of available time spent working
Efficiency
How well a machine or worker performs compared to a
standard output level
Load
Standard hours of work assigned to a facility
Load Percent
Ratio of load to capacity
load
Load Percent = x 100%
capacity

Copyright 2009 John Wiley & Sons, Inc. 15-48


Load Profiles

graphical comparison of load versus


capacity
Leveling underloaded conditions:
Acquire more work
Pull work ahead that is scheduled for later
time periods
Reduce normal capacity

Copyright 2009 John Wiley & Sons, Inc. 15-49


Reducing Over-load Conditions

1. Eliminating unnecessary requirements


2. Rerouting jobs to alternative machines,
workers, or work centers
3. Splitting lots between two or more machines
4. Increasing normal capacity
5. Subcontracting
6. Increasing efficiency of the operation
7. Pushing work back to later time periods
8. Revising master schedule

Copyright 2009 John Wiley & Sons, Inc. 15-50


Initial Load Profile
120
110
100
Hours of capacity

90
80
70
60
50
40 Normal
30 capacity
20
10
0
1 2 3 4 5 6
Time (weeks)

Copyright 2009 John Wiley & Sons, Inc. 15-51


Adjusted Load Profile
120
110
100
Hours of capacity

90
80
70 Work
60 an
extra Push back
50 Pull ahead
shift
40 Overtime Push back Normal
30 capacity
20
10
0
1 2 3 4 5 6
Time (weeks)
Load leveling
process of balancing underloads and overloads
Copyright 2009 John Wiley & Sons, Inc. 15-52
Determining Loads
and Capacities
2 copiers, 2 operators
5 days/wk, 8 hr/day
1/2 hr meals, 1/2 hr maintenance per day

Efficiency = 100%
Utilization = 7/8 = 87.5%
Daily capacity = 2 machines x 2 shifts
x 8 hours/shift x 100% efficiency
x 87.5% utilization
= 28 hours or 1,680 minutes
Example 12.2
Copyright 2006 John Wiley & Sons, Inc. 14-53
Determining Loads
and Capacities
JOB NO. OF SETUP RUN TIME
NO. COPIES TIME (MIN) (MIN/UNIT) TOTAL TIME
10 500 5.2 0.08 5.2 + (500 x 0.08) = 45.2
20 1,000 10.6 0.10 10.6 + (1,000 x 0.10) = 110.6
30 5,000 3.4 0.12 3.4 + (5,000 x 0.12) = 603.4
40 10,000 11.2 0.14 11.2 + (10,000 x 0.14) = 1,411.2
50 2,000 15.3 0.10 15.3 + (2,000 x 0.10) = 215.3
2385.7 min
Load percent = 2,385.7 / 1,680 = 1.42 x 100% = 142%
Add another shift:
Daily capacity = 2 machines x 3 shifts x 8 hours/shift
x 100% efficiency x 87.5% utilization
= 42 hours or 2,520 minutes
Revised load percent = 2,385.7 / 2,520 = 0.9467 x 100% = 94.67%
Example 12.2
Copyright 2006 John Wiley & Sons, Inc. 14-54
Relaxing MRP Assumptions
Material is not always the most constraining
resource
Lead times can vary
Not every transaction needs to be recorded
Shop floor may require a more sophisticated
scheduling system
Scheduling in advance may not be appropriate
for on-demand production.

Copyright 2009 John Wiley & Sons, Inc. 15-55


Enterprise Resource Planning
(ERP)
Software that organizes and manages
a companys business processes by
sharing information across functional
areas
integrating business processes
facilitating customer interaction
providing benefit to global companies

Copyright 2009 John Wiley & Sons, Inc. 15-56


ERP and MRP

First came MRP around 1970


Thanks to George Plossl, Oliver Wight, Joseph
Orlicki
MRP is Material Requirements Planning
Then came MRP II around 1980
MRP II is Manufacturing Resource Planning
Then came ERP around 1990
Today, its ERP II

Copyright 2006 John Wiley & Sons, Inc. 14-57


Evolution of ERP II

Copyright 2006 John Wiley & Sons, Inc. 14-58


A lesson in Information
Architecture
First, we need a problem-solving
methodology

Copyright 2006 John Wiley & Sons, Inc. 14-59


Goldratt Methodology
(Thinking Process)
What to change??
What to change to??
How to cause the change??

Copyright 2006 John Wiley & Sons, Inc. 14-60


WHAT TO CHANGE CIRCA
1993: Problems with the
Mainframe Architecture
Poor data visibility
Long lead times on maintenance,
modifications to legacy software (36
months)
No GUI interfaces

Copyright 2006 John Wiley & Sons, Inc. 14-61


More problems

New software apps were expensive and


time consuming to develop
Mainframes were computational
bottlenecks
Desktop PCs sat idle 99% of the time

Copyright 2006 John Wiley & Sons, Inc. 14-62


Components of any Software
Application

Copyright 2006 John Wiley & Sons, Inc. 14-63


Components in brief

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Mainframe Architecture

Copyright 2006 John Wiley & Sons, Inc. 14-65


Goldratt: We will build a tree

Called a current reality tree


Begin by identifying the UNDESIRABLE
EFFECTS the stakeholders are
experiencing
The basic tree relationship:
IF {box a}, then {box b}.

Copyright 2006 John Wiley & Sons, Inc. 14-66


Mainframes were
computational Centralized MIS shop backlogs
bottlenecks were extending out to 36 months

Only the centralized


MIS shop could do
maintenance and new
development work Budgets for MIS
shops were
stretched to their
limits
Many new Change requests for
applications were existing apps were
being built frequent and
increasing
Each application
had to reside
entirely on the
mainframe
Competitive and customer
environments are changing
rapidly

Copyright 2006 John Wiley & Sons, Inc. 14-67


Sales cannot track customer
Sales cannot see what is orders through the
happening in accounts manufacturing/distribution
receivable process

Information visibility across


the enterprise is impossible

Independent data
pools are created that
cannot be integrated

Islands of automation are


created

End users develop their own


independent applications that
run on departmental PCs

Centralized mainframes are Centralized MIS shops


computing bottlenecks have lead times of 36
Copyright 2006 John Wiley & Sons, Inc. months or longer 14-68
WHAT TO CHANGE TO:

An architecture in which the data are


totally integrated
An architecture in which most of the
processing is not done on mainframes
Decentralization of MIS
What architecture was this???

Copyright 2006 John Wiley & Sons, Inc. 14-69


HOW TO CAUSE THE
CHANGE:
ERP implementation
Solves the problems identified above

Copyright 2006 John Wiley & Sons, Inc. 14-70


Organizational Data Flows

Source: Adapted from Joseph Brady, Ellen Monk, and Bret Wagner, Concepts in
Enterprise Resource Planning (Boston: Course Technology, 2001), pp. 712

Copyright 2009 John Wiley & Sons, Inc. 15-71


ERPs Central Database

Copyright 2009 John Wiley & Sons, Inc. 15-72


Selected Enterprise Software
Vendors

Copyright 2009 John Wiley & Sons, Inc. 15-73


ERP Implementation

Analyze business processes


Choose modules to implement
Which processes have the biggest impact on
customer relations?
Which process would benefit the most from
integration?
Which processes should be standardized?
Align level of sophistication
Finalize delivery and access
Link with external partners

Copyright 2009 John Wiley & Sons, Inc. 15-74


Customer Relationship
Management (CRM)
Software that
Plans and executes business processes
Involves customer interaction
Changes focus from managing products to
managing customers
Analyzes point-of-sale data for patterns
used to predict future behavior

Copyright 2009 John Wiley & Sons, Inc. 15-75


Supply Chain Management

Software that plans and executes business


processes related to supply chains
Includes
Supply chain planning
Supply chain execution
Supplier relationship management
Distinctions between ERP and SCM are
becoming increasingly blurred

Copyright 2009 John Wiley & Sons, Inc. 15-76


Product Lifecycle Management
(PLM)
Software that
Incorporates new product design and
development and product life cycle
management
Integrates customers and suppliers in the
design process though the entire product life
cycle

Copyright 2009 John Wiley & Sons, Inc. 15-77


ERP and Software Systems

Copyright 2009 John Wiley & Sons, Inc. 15-78


Connectivity
Application programming interfaces (APIs)
give other programs well-defined ways of speaking to
them
Enterprise Application Integration (EAI) solutions
EDI is being replaced by XML, business language
of Internet
Service-oriented architecture (SOA)
collection of services that communicate with each
other within software or between software

Copyright 2009 John Wiley & Sons, Inc. 15-79


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