企業(yè)資源管理ERPppt課件

1、Enterprise Resource Planning -ERPKevin CowellNatthawut LertpitayakunIsabelle MerthaXiaoguang You1.What is ERP?The practice of consolidating an enterprises planning, manufacturing, sales and marketing efforts into one management system.1 Combines all databases across departments into a single databas

2、e that can be accessed by all employees.2ERP automates the tasks involved in performing a business process.1Sources:1. cio/summaries/enterprise/erp/index.html, viewed September 19, 20022. CIO Enterprise Magazine, May 15, 1999. 2.Evolution of ERPSource: intelligententerprise/020903/514feat2_1.shtml,

3、viewed September 19, 2002.3.EmployeesManagers andStakeholdersHow Do ERP Systems Work?CentralDatabaseReportingApplicationsHumanResourceManagementApplicationsFinancialApplicationsManufacturingApplicationsInventoryAnd SupplyApplicationsHumanResourceManagementApplicationsServiceApplicationsSales andDeli

4、veryApplicationsSales ForceAnd CustomerService RepsCustomersBack-officeAdministratorsAnd WorkersSuppliersSource: Davenport, Thomas, “Putting the Enterprise into the Enterprise System, Harvard Business Review, July-Aug. 1998.4.ERP ComponentsFinance: modules for bookeeping and making sure the bills ar

5、e paid on time. Examples:General ledgerAccounts receivableAccounts payableHR: software for handling personnel-related tasks for corporate managers and individual employees. Examples:HR administrationPayrollSelf-service HRManufacturing and Logistics: A group of applications for planning production, t

6、aking orders and delivering products to the customer. Examples:Production planningMaterials managementOrder entry and processingWarehouse managementSource: wwwputerworld/printthis/1998/0,4814,43432,00.html, viewed September 19, 2002.5.An ERP Example: Before ERPCustomersCustomerDemographicFilesSales

7、Dept.VendorOrdersPartsAccountingAccountingFilesPurchasingPurchasingFilesOrder is placedwith VendorInvoicesaccountingInventoryFilesWarehouseChecks for PartsCalls back “Not in stock“We ordered the parts“We Need parts #XX“We ordered the partsSends reportSends reportSends reportShips parts6.An ERP Examp

8、le: After ERPDatabaseCustomersSales Dept.PurchasingWarehouseAccountingVendorInventory DataIf no parts,order is placedthrough DBOrdersPartsOrder is submittedto Purchasing.Purchasing recordorder in DBOrder is placedwith VendorAnd invoices accountingFinancial Data exchange;Books invoice against POBooks

9、 inventoryagainst POShips parts7.Who are the main ERP vendors?BaanJD EdwardsOraclePeopleSoftSAP8.ERP Vendors and Industries They Serve9.Revenue and Profits of Major ERP Vendors10.Revenue and Profits of Major ERP Vendors11.ERP MarketSource: AMR Research, 2001.12.ERP InvestmentsSource: AMR Research Su

10、rvey of 686 companies with annual revenues ranging from $1B, October 2001.Roughly 65% of companies surveyed already have ERP in place. Of those, many are still actively spending to upgrade existing systems and to take advantage of new web-oriented features.13.ERP Investmentsn=666n=232Source: AMR Res

11、earch Survey of 686 companies with annual revenues ranging from $1B, October 200114.Why ERP?3 Major Reasons:To integrate financial data.To standardize manufacturing processes.To standardize HR information.Source: cio/summaries/enterprise/erp/index.html, viewed September 19, 2002.15.ERP Project and T

12、imeReal transformational ERP efforts will usually run between 1 to 3 years, on average.Short implementations (3 to 6 months):small companies,implementation limited to a small area of the company, orthe company only used the financial pieces of the ERP system.The important thing is not to focus on ho

13、w long it will take but to understand why you need ERP and how you will use it to improve your business.Source: cio/summaries/enterprise/erp/index.html, viewed September 19, 2002.16.Total Cost of Ownership of ERPTotal cost of ownership (TCO) is a model developed by Gartner Group to analyze the direc

14、t and indirect costs of owning and using hardware and software. TCO essentially helps a company determine whether it wins or loses from specific technology implementations. Metagroup study among 63 companies surveyed showed that:the average TCO was $15 million (the highest was $300 million and lowes

15、t was $400k),the average TCO per user was $53,320.Source: cio/summaries/enterprise/erp/index.html, viewed September 19, 2002.17.Total Cost of Ownership of ERPIt also found that:it took 8 months after the system was in to see any benefits,but that the median annual savings from the system was $1.6 mi

16、llion per year.Source: cio/summaries/enterprise/erp/index.html, viewed September 19, 2002.18.Hidden Costs of ERPTrainingIntegration and testingData conversionData analysisConsultantsReplacing best and brightest staff after implementationImplementation teams can never stopWaiting for ROIPost-ERP depr

17、essionSource: cio/summaries/enterprise/erp/index.html, viewed September 19, 2002.19.Benefits of ERP SystemsImproving integration, flexibility Fewer errors Improved speed and efficiency More complete access to informationLower total costs in the complete supply chainShorten throughput timesSustained

18、involvement and commitment of the top management20.Benefits of ERP Systems (contd)Reduce stock to a minimumEnlarge product assortmentImprove product qualityProvide more reliable delivery dates and higher service to the customerEfficiently coordinate global demand, supply and production21.Risks with

19、ERP ImplementationExpensive (can costs 100 thousands to millions of dollars) Time-consuming (can take months to years) Great risk for the organization Transfer of KnowledgeAcceptance with the company22.Case StudyNestl USA 23.Nestl BackgroundFound in 1866, Switzerland. Worlds largest food company, #

20、50 in Fortune magazines Globe 500Nestl USA was incorporated in 1990; Home Office in Glendale, CA. 33 manufacturing facilities, 6 distribution centers and 17sales offices around the country, 17,300 employees nationwide.$ 11.1 billion in Sales (2001) “Americas most admired Food Company for the fourth

21、consecutive year - Fortune Magazine, February 2001Source: nestle/all_about/at_a_glance/index.html , viewed October 14, 2002, andir.nestle/4_publications/pdf/financial_report/final_2001/consolidated_accounts_2001.pdf, viewed October 14, 2002.24.Milk products, dietetic foods, infant foods, chocolate a

22、nd confections, refrigerated and frozen items, ice cream, and pet foodsNestls products and brandsSource: Weller, Joe, “Introduction to Nestle in the USA,ir.nestle/home-frameset.asp?largeur=1024, viewed October 14,2002.25.Competitive MarketUSA Food Market in 2001Source: Weller, Joe, “Introduction to

23、Nestle in the USA, ir.nestle/home-frameset.asp?largeur=1024, viewed October 20,2002.26.Organizational Chart Joe WellerChairman & CEOJeri DunnCIOOther Board membersTom JamesDir. of Process changeJose IglesiasDir. of ISDick RamageVP of supply chainBen Worthen, “ Nestls ERP Odyssey, May 15, 2002 Issue

24、of CIO Magazine27.Business ChallengesAfter the brands were unified and reorganized into Nestle USA in 1991,. Divisions still had geographically dispersed.For example, Nestle USAs brands were paying 29 different prices for vanilla - to the same vendor.Nine different general ledgers and 28 points of c

25、ustomers entry. Years of autonomous operation provided an almost “insurmountable hurdle.“ Nestle was the worlds NO. 1 food and beverage company but one of the least efficient Source:1. Ben Worthen, “ Nestls ERP Odyssey, May 15, 2002 Issue of CIO Magazine;2. “Nestle: An Elephant Dances, businessweek/

26、2000/00_50/b3711064.htm, viewed October 20, 2002. 28.Project Scope “BESTFive SAP Modules purchasing, financials, sales and distribution, accounts payable and accounts receivable and Manugistics supply chain module From October 1997 to 1st Quarter of 2000.$210 million budget50 top business executives

27、 and 10 senior IT professionalsSource: Worthen, Ben, “ Nestls ERP Odyssey, May 15, 2002 Issue of CIO Magazine.29.Project Objectives -“One Nestle, under SAPTransforming the separate brands into one highly integrated company.Internal aligned and united, establishing a common business process architect

28、ureStandardizing master dataSource: Worthen, Ben, “ Nestls ERP Odyssey, May 15, 2002 Issue of CIO Magazine.30. Process of SAP Implementation The new business process confused most of employees, then resistance grew into rebellion in 2000.Reconstructed in June 2000 and completed in 2001.Source: Worth

29、en, Ben, “ Nestls ERP Odyssey, May 15, 2002 Issue of CIO Magazine.31.Conclusion of Nestl Case Changes and successCommon database and business processes lead to more trustworthy demand forecast.A comprehensive account planning tool. Nestle can now forecast down to the redistribution center level.Nest

30、le has improved forecast accuracy by 2% Higher factories utilizationfewer factories = big gains in factories UtilizationReduce inventory levelSource: Brownson, Jim, and Mitchell-Keller, Lori, Nestle USA, Case study: supply chain: Nestle Integrated CRM and SCM Optimize Enterprise Effectiveness, :dci/

31、Brochure/crmny/sessions.asp?trackid=1190, viewed on November 06, 2002.32.Conclusion of Nestl Case586371Source: Weller, Joe, “Introduction to Nestle in the USA, ir.nestle/home-frameset.asp?largeur=1024, viewed October 20,2002.Saved $- With ERP in practice , $ 371 million has been saved until 2001.33.

32、Conclusion of Nestl CaseLessons learned by NestlDont start a project with a deadline in mind.Update your budget projection at regular intervals.ERP isnt only about the software. “No major software implementation is really about the software. Former Nestl CIO Jeri Dunn says, “You are challenging thei

33、r principles, their beliefs and the way have done things for many many years Keep the communication lines open.Remember the integration points.Source: Worthen, Ben, “ Nestls ERP Odyssey, May 15, 2002 Issue of CIO Magazine.34.Nestl in the FutureThe Global Business Excellence ProgramSupported by SAP,

34、contracted in June 2000 and by IBM in July 2002.To be completed by the end of 2005To save cost around CHF 3 billion, with benefits realized from 2003.Source: /news/2002/mem0307.asp, viewed on November 1, 2002.35.Case Study36.What is Agilent Technologies?Agilent Technologies is the worlds leading des

35、igner, developer, and manufacturer of electronic and optical test, measurement and monitoring systems. Separated from Hewlett Packard and became a public company in 1999World HQ in Palo Alto, CASource: we.home.agilent,viewed, viewed November 3, 2002.37.Around the WorldAgilent has facilities in more

36、than 40 countries and develops products at manufacturing sites in the U.S., China, Germany, Japan, Malaysia, Singapore, Australia and the U.K. Approximately 37,000 employees throughout the worldSource: agilent/about/index.html, viewed November 3, 2002.38.Products and ServicesAgilent operates in thre

37、e business groups:Test and MeasurementTest instruments and systems, automated test equipment.Semiconductor ProductsSemiconductor solutions for wired and wireless communications, information processing.Chemical Analysis Life sciences and analytical instrument systems.Source: agilent/about/newsroom/fe

38、atures/2002june04_oneit.pdf, viewed November 3, 2002.39.Agilent revenue for 2001Test and Measurement: $5.4 billionSemiconductor Products: $1.9 billionChemical Analysis: $1.1 billionTotal revenue: $8.4 billionSource: investor.agilent, viewed November 3, 2002.40.Agilents Customers Served customers in

39、more than120 countries around the world1Electronic component manufacturersPharmaceutical companiesChemical companiesCommunication companies2Source: 1. agilent/about/index.html, viewed November 3, 2002;2. agilent/about/newsroom/features/2002june04_oneit.pdf, viewed November 3, 2002.41.Source: agilent

40、/about/newsroom/execs/org/index.html, viewed November 3, 2002.42.Project ScopeOracles li E-Business Suite softwareStarted September 2000 till 2004Budgetroughly 100 Oracle consultants to install the programSource: Songini, Marc L., “ERP effort sinks Agilent revenue Computerworld, Framingham, August 2

41、6, 2002.43.ERP Project Objective“One IT organizationSupply chain capability; for example, - Suppliers - CustomersMigrating 2,200 legacy applications that it inherited from HP to OracleSource: Gaither, Chris, “Watching Oracle For Signs Of Strength Boston Globe, Boston, Mass., September 16, 2002.44.On

42、e IT Project (Before)IT spend was 8-10% of sales80% for business operations20% maint. & upgrading legacy systemsFurther autonomy over the IT portfolio would have led to 50% cost increaseSource: agilent/about/newsroom/features/2002june04_oneit.pdf, viewed November 3, 2002.45.One IT ProjectMarty Chuck

43、, CIO, developed a Vision for One IT organization in August 2000Moved more than 2,500 IT professionals in the different site, regional and divisional IT organizationsSource: agilent/about/newsroom/features/2002june04_oneit.pdf;agilent/about/newsroom/features/2002june08_chuck.html, viewed November 3,

44、 2002.46.One IT Project ObjectiveTo consolidate a large number of independent operating groups into a single worldwide IT functionTo share information quickly and efficientlyTo drive the operational costs down by more than 20%To combine all IT budgets Source: agilent/about/newsroom/features/2002june

45、04_oneit.pdf, viewed November 3, 2002.47.Changes in Supply Chain Process: SupplierMigrating from all existing ERP systems to a single Oracle-based infrastructure systemThe use of bar code for materials received from suppliers The use of Evaluated Receipt Settlement (ERS)Source: agilent/supplier/defa

46、ult.html, viewed November 3, 2002.48.Source: agilent/supplier/generalinformation.shtml, viewed October 31, 2002.The process of migrating ERPsystems to Oracle49.Evaluated Receipt Settlement (ERS)An automated invoice and payment systemHow does ERS work?Source: agilent/supplier/downloads/ERS_supplier_g

47、uide.pdf, viewed November 3, 2002.50.Changes in Supply Chain Process: CustomersReal-time information about inventory and order status Easier to understand invoicing and pricing Improved visibility on product delivery lead timeSource: tmintl.agilent/model/index.shtml, viewed November 3, 2002.51.Troub

48、les with Project EverestBecause of the consolidation of its 2,200 software systems to under 20, confusion meant lost order and revenue.An $88 million reduction in third-quarter orders Of that, $38 million was lost and $50 million will be pulled through the fourth quarter.$105 million in lost revenue

49、 and $70 million in operating profitSource: Shah, Jennifer B., “Agilents ERP Rollout Expensive Glitches EBN; Manhasset, August 26, 2002.52.Troubles with Project EverestCFO Adrian Dillon said the problem was twofold:Software bug “As we began to hit sort of a 50 percent ramp of normal capacity, we beg

50、an to get conflicts in priorities of systems instructions. When we had those conflicts that inevitably shut the system down. Source: FD (Fair Disclosure) Wire, August 19, 2002 Monday, Transcript 081902ag.735, Q3 2002 Agilent Technologies Earnings Conference Call - Final; pressi/int/release/51627.htm

51、l, viewed November 3, 2002, and Shah, Jennifer B., “Agilents ERP Rollout Expensive Glitches EBN, Manhasset, August 26, 2002.53.Troubles with Project EverestMistakes converting backlog.“The other problem we had was converting backlog from legacy to new systems, especially for our highly configured pr

52、oducts in our test and measurement operation.Extra $35 million to cover costs of ERP and CRM rollout.Source: Shah, Jennifer B., “Agilents ERP Rollout Expensive Glitches EBN; Manhasset, Aug 26, 2002, and pressi/int/release/51627.html, viewed November 3, 2002.54.Lessons Learned by AgilentERP implement

53、ations are a lot more than software packages.People, processes, policies and culture are all factors that should be taken into consideration when implementing a major enterprise system.ERP disasters are often caused by a user company itself.Source: Songini, Marc L., “ERP effort sinks Agilent revenue

54、 Computerworld, Framingham, August 26, 2002.55.Lessons Learned by AgilentStudy ERP well before implementation “The disruptions after going live were more extensive than we expected CEO Ned BarnholtSource: Songini, Marc L., “ERP effort sinks Agilent revenue Computerworld, Framingham, August 26, 2002.

55、 56.Best Practices and what ERP holds for the Future 57.ERP ImplementationBiggest IT project that most companies ever handle,Changes the entire company, andHas repercussions in all departments and divisions of the organization.It is essential that all the key players understand the scope of the proj

56、ect.This is an IT-Related Project.Source: integratedsolutionsmag/articles/2000_03/000309.htm, viewed November 5, 2002.58.Best Practices of ERP ImplementationA Business Strategy aligned with Business ProcessesTop-Down Project Support and commitmentChange ManagementExtensive Education and TrainingData

57、 Clean up and Data IntegrityImplementation is viewed as an ongoing process59.Best Practices of ERP ImplementationA Business Strategy aligned with Business ProcessesBusiness strategy that will give you a competitive advantageAnalyze and map your current business processesDevelop your objectivesEvalua

58、te your business strategy and ERP plan before you commit to software acquisition and installation.Source: rmdonovan/pdf/perfor8.pdf, viewed November 5, 2002. 60.Best Practices of ERP ImplementationTop-Down Project Support and commitmentCEO1support implementation costschampion the project, and demand

59、 full integration and cooperation.Most knowledgeable and valuable staff2Sources: 1. M. Michael Umble, “Avoiding ERP Implementation Failure, Industrial Management, Jan/Feb 2002; 2. integratedsolutinsmag/articles/2000_03/000309.htm, viewed November 5, 2002. 61.Best Practices of ERP ImplementationChang

60、e ManagementChanges in business procedures, responsibilities, work load.1 As a result, ERP implementations are times of high stress, long hours, and uncertainty.1Mid-level managers must2 facilitate continual feedback from employees, provide honest answers to their questions, and help resolve their p