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SAQC Technical Meeting
Enterprise Resource Planning :Enterprise Resource Planning :THE WAY FORWARDByBy
Peter Polet & Philip TapperPeter Polet & Philip Tapper30 September, 2002 at
The Institute of Public Administration
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Habit Consulting
Contents:
Corporate Requirements
Implementation Methodology
Functionality
A bit about MRPNetworksOrdersCapacities
The Way Forward
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Who uses ERP ?
SAP is used by more than half of the worldSAP is used by more than half of the worldss
top 500 companiestop 500 companies
SAP is used by over 10 Million users in moreSAP is used by over 10 Million users in more
than 13,500 companies of all sizes &than 13,500 companies of all sizes &
industries,industries, egeg::
AramcoAramco SABICSABIC
ABB Saudi Arabia (ABB)ABB Saudi Arabia (ABB)
KraftKraft
BP, Shell, Exxon, MobilBP, Shell, Exxon, Mobil
Rolls RoyceRolls Royce UnileverUnilever
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Jargon Buster
Enterprise Resource Planning
Material Requirements Planning
Manufacturing Resource PlanningThe integrated planning of a companys material,equipment and people to meet the Business Plan
The time phased Explosion of the material requirements based on the Bill OfMaterials, Lead Times, Order Quantities and Safety Stocks to determinewhat to make or buy and when
The planning of production (usually End Item Production) tosatisfy current and forecast orders
Manufacturing Resource Planning plus resource planning for the non-manufacturing areas such as plant maintenance, human resource planningetc..
Master Production Schedule
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Why ERP
Change driven by people
BottomlineBottomline GoalsGoals
ImprovedImproved::
ResponsivenessResponsiveness
EfficiencyEfficiency
ControlControl
StandardisationStandardisation
Operational GoalsOperational Goals
IntegrationIntegration
AutomationAutomation
ConsolidationConsolidation
RationalisationRationalisation
System GoalsSystem Goals
IncreasedIncreased ::
Market ShareMarket Share
SalesSales
MarginsMarginsQualityQuality
ServiceService
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Corporate Requirements
1 Management Commitment
.. In order of importance
2 Management Commitment
3 Management Commitment
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Corporate Requirements
1 Recognition of the need for change
2 A clear vision
3 A good implementation partner4 A dedicated team
5 Commitment
6 Very strong Change Management
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The Old Chestnuts
ERP is fine for other companies, but
were unique Weve been doing it this way for 100
years, why change?
Well do it ourselves
We cant afford it
We havent got the time
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The Starting Point
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Implementation Methodology
Business Solution Design
Review businessmodel &
core requirements
Develop business case
outlining key benefit's and
the total solution cost
Assess available
technology & perform
feasibility study
Solution Architecture Design
System landscape
determined.
Initial solution sizing carried
out.
Key integration points with
trading partners identified
Implementation Strategy & Execution
Program Management:
Scope, Change & Project
planning & measurements
Project Auditing: Project
controls and standards
established
Org. Change Mgt: Develop
training strategy to align
roles with processes.
Project
PreparationBlueprint Realisation
Final
Preparation
Go-live &
Support
Support & Continuous Improvement
Competancy Centre
Establishment
Business Performance
Improvement Unit
established
Upgrade & Solution
Development StrategyImprove/Optimise