Riaz Academy
Enterprise Resource Planning (ERP) A Managerial and Technical Prospective written by S. Parthasarathy.
Contents
Preface
………………………………………………………………………………………………... v
………………………………………………………………………………………………... v
Chapter-1 Introduction to ERP ………………………………………………………………………….. 1
1.1 Benefits of an ERP System ………………………………………………………………………………………………………..2
1.2 Limitations of the ERP System ………………………………………………………………………………………………...5
1.3 What do ERP systems cover? …………………………………………………………………………………………………...5
1.4 Challenges for Small and Midsize businesses today ………………………………………………………………..7
Chapter-2 Evolution of ERP
………………………………………………………………………………. 9
………………………………………………………………………………. 9
2.1 Manufacturing Strategies ………………………………………………………………………………………………………. 10
2.2 Material Requirements Planning (MRP) ……………………………………………………………………………….. 10
2.3 Manufacturing Resource Planning (MRP II) …………………………………………………………………………. 12
2.4 Conceptual Framework of ERP ……………………………………………………………………………………………... 14
Chapter-3 ERP Modules …………………………………………………………………………………... 17
3.1 Finance Module …………………………………………………………………………………………………………………….. 18
3.2 Human Resource Management (HR) Module ……………………………………………………………………….. 21
3.3 Materials Management (MM) Module ………………………………………………………………………………….. 23
3.4 Sales and Distribution Module ……………………………………………………………………………………………... 26
Chapter-4 ERP Software Selection …………………………………………………………………... 31
4.1 Issues in ERP Software Selection
…………………………………………………………………………………………... 31
…………………………………………………………………………………………... 31
4.2 ERP Software Selection Criteria ……………………………………………………………………………………………. 31
4.3 Methods in ERP Software Selection ……………………………………………………………………………………... 32
4.4 Cost Benefit Analysis
…………………………………………………………………………………………………………….. 32
…………………………………………………………………………………………………………….. 32
4.5 ERP Software Selection Process …………………………………………………………………………………………….. 32
Chapter-5 ERP Implementation ……………………………………………………………………….. 35
5.1 Approaches to Study ERP Implementation …………………………………………………………………………... 36
5.2 Different Perspectives in ERP Implementation ……………………………………………………………………... 36
5.3 Minimizing Customization …………………………………………………………………………………………………... 38
5.4 Characteristics of ERP Systems ……………………………………………………………………………………………... 39
5.5 Critical Success Factors for ERP Implementation …………………………………………………………………. 40
5.6 Astonishing Facts in ERP Implementation ……………………………………………………………………………. 40
5.7 ERP Implementation Strategy ……………………………………………………………………………………………….. 41
5.8 Phases in ERP Implementation ……………………………………………………………………………………………... 43
5.9 Benefits Realization in ERP Implementation ……………………………………………………………………….. 47
5.10 Change Management Issues ………………………………………………………………………………………………... 47
Chapter-6 Impact of Operating System on ERP ………………………………………………...
50
50
6.1 Functions
of an operating
system ………………………………………………………………………………………….. 50
of an operating
system ………………………………………………………………………………………….. 50
6.2 Unix and Linux – An Overview ……………………………………………………………………………………………... 51
6.3 Linux in an ERP World ………………………………………………………………………………………………………….. 51
6.3.1 ERP Users in Linux Environment ……………………………………………………………………………….. 53
6.4 How ERP vendors view different operating
system? …………………………………………………………….. 54
system? …………………………………………………………….. 54
6.5 Migrating
the ERP from one operating system to another ……………………………………………………. 55
the ERP from one operating system to another ……………………………………………………. 55
6.6 Manag ing new ERP environment ………………………………………………………………………………………….. 56
6.7 Impact of operating system on ERP ………………………………………………………………………………………. 56
Chapter-7 Supply Chain Management
(SCM)
……………………………………………………. 59
(SCM)
……………………………………………………. 59
7.1 Objectives
of Supply Chain Management
…………………………………………………………………………….. 59
of Supply Chain Management
…………………………………………………………………………….. 59
7.2 Computer-Integrated Supply Chain Management Systems …………………………………………………..
60
60
7.3 CAD and CAM ………………………………………………………………………………………………………………………. 60
7.4 Elements
in Supply Chain Management ……………………………………………………………………………….. 61
in Supply Chain Management ……………………………………………………………………………….. 61
7.5 Roadmap to Better Supply Chain Management ……………………………………………………………………. 61
7.6 Decision Making in Supply Chain Management
………………………………………………………………….. 62
………………………………………………………………….. 62
7.7 Supply Chain Management
Model ……………………………………………………………………………………….. 63
Model ……………………………………………………………………………………….. 63
7.8 Impact of ERP on SCM ………………………………………………………………………………………………………….. 64
7.9 ERP, SCM and E-Business
…………………………………………………………………………………………………….. 65
…………………………………………………………………………………………………….. 65
7.10 SCM and IT …………………………………………………………………………………………………………………………... 65
7.11 ERP and SCM –
A Comparison ……………………………………………………………………………………………... 66
A Comparison ……………………………………………………………………………………………... 66
Chapter-8 ERP and
CRM …………………………………………………………………………….68
CRM …………………………………………………………………………….68
8.1 Introduction to CRM ……………………………………………………………………………………………………………... 68
8.2 Need for CRM ………………………………………………………………………………………………………………………... 69
8.3 Components
of CRM …………………………………………………………………………………………………………….. 70
of CRM …………………………………………………………………………………………………………….. 70
8.4 Different
Dimensions of CRM ……………………………………………………………………………………………….. 71
Dimensions of CRM ……………………………………………………………………………………………….. 71
8.5 CRM Environment …………………………………………………………………………………………………………………. 72
8.6 Data Mining and Data Warehousing in CRM ……………………………………………………………………….. 73
8.7 Features of Dynamic CRM system ………………………………………………………………………………………... 75
8.8 Features of CRM from SAP ……………………………………………………………………………………………………. 76
8.9 An ERP– CRM Business Solution …………………………………………………………………………………………. 77
Chapter-9 ERP and
.NET ……………………………………………………………………………81
.NET ……………………………………………………………………………81
9.1 .NET Technology –– An overview ………………………………………………………………………………………….. 82
9.2 Why .NET software is better software?
………………………………………………………………………………….. 82
………………………………………………………………………………….. 82
9.3 What makes a good ERP system? ………………………………………………………………………………………….. 83
9.4 The fusion of .NET technology
and ERP ………………………………………………………………………………. 84
and ERP ………………………………………………………………………………. 84
9.5 Impact of .NET technology
on ERP ………………………………………………………………………………………. 85
on ERP ………………………………………………………………………………………. 85
9.6 An ERP product built using .NET – A Discussion
…………………………………………………………………. 86
…………………………………………………………………. 86
Chapter-10 ERP
Vendor …………………………………………………………………………………... 91
Vendor …………………………………………………………………………………... 91
10.1 SAP …………………………………………………………………………………………………………………………………….. 91
10.2 Oracle Corporation …………………………………………………………………………………………………………….. 94
10.3 J.D. Edwards ……………………………………………………………………………………………………………………….. 94
10.4 The Baan Co. ……………………………………………………………………………………………………………………... 94
10.5 System Software Associates (Ssa) ………………………………………………………………………………………. 94
10.6 MK
Group/Acacia Technologies ……………………………………………………………………………………….. 95
Group/Acacia Technologies ……………………………………………………………………………………….. 95
10.7 JBA International ……………………………………………………………………………………………………………….. 95
10.8 Marcam Corp./Mapics Inc. …………………………………………………………………………………………………. 95
10.9 Intentia ……………………………………………………………………………………………………………………………….. 96
10.10 QAD Inc. …………………………………………………………………………………………………………………………….. 96
10.11 Intuitive
Manufacturing Systems ………………………………………………………………………………………. 96
Manufacturing Systems ………………………………………………………………………………………. 96
10.12 Compiere
……………………………………………………………………………………………………………………………. 97
……………………………………………………………………………………………………………………………. 97
10.13 Ramco Systems ………………………………………………………………………………………………………………….. 97
Chapter-11 ERP
Case
Studies …………………………………………………………………………. 101
Case
Studies …………………………………………………………………………. 101
Chapter-12 Business Modeling Using
UML ……………………………………………………... 120
UML ……………………………………………………... 120
12.1 Business Modeling …………………………………………………………………………………………………………... 120
12.2 Business Modeling with the UML …………………………………………………………………………………... 121
12.3 UML Business Use Case …………………………………………………………………………………………………... 122
12.4 UML Business Activity Diagram ……………………………………………………………………………………... 123
12.5 UML Class Diagrams ……………………………………………………………………………………………………….. 123
12.6 UML Sequence Diagram ………………………………………………………………………………………………….. 124
12.7 Application ………………………………………………………………………………………………………………………. 124
Acronyms and
Abbreviations …………………………………………………………………………. 127
Abbreviations …………………………………………………………………………. 127
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