Learning Center
Plans & pricing Sign in
Sign Out
Get this document free



									                                                   WHAT IS ERP?

   ERP, Enterprise Resource Planning, is a way to                    material, manufacturing process, workflow
   integrate the data and processes of an                            management, etc.
   organization into one single system. Usually ERP                Financials: Accounts payable, accounts
   systems will have many components. To achieve            60       receivable, fixed assets, general ledger and
 5 integration, most ERP systems use a unified                       cash management, etc.
   database to store data for various functions found              Human Resources: Benefits, training, payroll,
   throughout the organization.                                      time and attendance, etc
                                                                   Supply Chain Management: Inventory, supply
   The term ERP originally referred to how a large
                                                            65       chain planning, supplier scheduling, claim
   organization planned to use organizational wide
                                                                     processing, order entry, purchasing, etc.
10 resources. In the past, ERP systems were used in
                                                                   Projects: Costing, billing, activity management,
   larger more industrial types of companies.
                                                                     time and expense, etc.
   However, the use of ERP has changed and is
                                                                   Customer Relationship Management: sales and
   extremely comprehensive, today the term can
                                                            70       marketing, service, commissions, customer
   refer to any type of company, no matter what
                                                                     contact, calls center support, etc.
15 industry it falls in. In fact, ERP systems are used
                                                                   Data Warehouse: Usually this is a module that
   in almost any organization – large or small.
                                                                     can be accessed by an organizations
   In order for a software system to be considered                   customers, suppliers and employees.
   ERP, it must provide an organization with
                                                            75 ERP Improves Productivity
   functionality for two or more systems. While
                                                               Before ERP systems, each department would
20 some ERP packages exist that only cover two
                                                               most likely have had their own computer system,
   functions for an organization (QuickBooks:
                                                               data and database. Unfortunately, many of these
   Payroll & Accounting), most ERP systems cover
                                                               systems would not be able to communicate with
   several functions.
                                                            80 one another but need cross computer system
   Today's ERP systems can cover a wide range of               communication to store or rewrite data. For
25 functions and integrate them into one unified               instance, the financials of a company were on a
   database. For instance, functions such as Human             separate computer system than the HR system,
   Resources, Supply Chain Management, Customer                making it more intensive and complicated to
   Relations        Management,          Financials,        85 process certain pay.
   Manufacturing     functions    and    Warehouse
                                                               Once an ERP system is in place, usually all
30 Management functions were all once stand alone
                                                               aspects of an organization work in harmony
   software applications, usually housed with their
                                                               instead of every single system needing to be made
   own database and network. Today, they can all fit
                                                               compatible with the other. For large companies,
   under one umbrella – the ERP system.
                                                            90 increased productivity, less software are a result.
   Integration is Key to ERP
                                                               Implementation of an ERP System
35 Integration is an extremely important part to ERP.
                                                               Implementing an ERP system is not an easy task
   ERP's main goal is to integrate data and processes
                                                               to achieve, in fact it takes lots of planning,
   from all areas and unify thesse for easy access
                                                               consulting and in most cases 3 months to
   and work flow. ERPs usually do this by creating
                                                            95 1 year +. ERP systems are extraordinarily wide in
   one single database that employs multiple
                                                               scope and for many larger organizations can be
40 software modules providing different areas of an
                                                               extremely complex. Implementing an ERP system
   organization with various business functions.
                                                               will ultimately require significant changes in staff
   Although the ideal configuration would be one               and work practices. While it may seem reasonable
   ERP system for an entire organization, many             100 for an in house IT staff to head the project, it is
   larger organizations usually create an ERP system           widely advised that ERP consultants be used, due
45 and then build upon the system and external                 to the fact that consultants are usually more cost
   interface for other stand alone systems which               effective and are specifically trained in
   might be more powerful and perform better in                implementing these types of systems.
   fulfilling an organization’s needs. Usually this
                                                           105 One of the most important traits that an
   type of configuration can be time consuming and
                                                               organization should have when implementing an
50 does require lots of labor.
                                                               ERP system is ownership of the project. Because
   The Ideal ERP System                                        so many changes take place and the broad effect
   An ideal ERP system is when a single database is            on almost every individual in the organization, it
   utilized and contains all data for various software     110 is important to make sure that everyone is on
   modules. These software modules can include:                board and will help make the project and using
55   Manufacturing: Some of the functions include              the new ERP system a success.
        engineering, capacity, quality control, bills of

    78de7123-4ffe-4554-b5a5-85259e758cc9.doc                                                        page — 1 —
                                                 WHAT IS ERP?

    Usually organizations use ERP vendors or                   QUESTIONS TO ANSWER IN CLASS:
    consulting companies to implement their
                                                         170 1) Can ERP be used at your school, why?
115 customized ERP system. There are three types of
    professional services that are provided when               2) How would ERP use affect the students,
    implementing an ERP system, they are                          secretaries etc.?
    Consulting, Customization and Support.
                                                               3) Would ERP help in your field, why?
    Consulting Services - usually responsible for the
                                                               4) Why are mid-sized companies important for
120 initial stages of ERP implementation, they help an
                                                         175      ERP?
    organization go live with their new system, with
    product training, workflow, improve ERP's use in           5) Does it make sense to implement ERP in an
    the specific organization, etc.                               economic downturn, why?
    Customization Services - work by extending the             6) Write three questions of your own for
125 use of the new ERP system or changing its use by              others to answer in class:
    creating customized interfaces and/or underlying
                                                         180       A. ________________________________
    application code. While ERP systems are made
    for many core routines, there are still some needs
    that need to be built or customized.
130 Support Services - include both support and
    maintenance of ERP systems. For instance,
    trouble shooting and assistance with ERP issues.                   ________________________________
    Advantages of ERP Systems                            185
    There are many advantages of implementing an
135 EPR system; here are a few of them:                            B. ________________________________
      A totally integrated system
      The ability to streamline different processes
        and workflows                                                  ________________________________
      The ability to easily share data across various
140     departments in an organization
      Improved efficiency and productivity levels        190           ________________________________
      Better tracking and forecasting
      Lower costs
      Improved customer service                                    C. ________________________________

145 Disadvantages of ERP Systems
    While advantages usually outweigh disadvantages                    ________________________________
    for most organizations implementing an ERP
    system, here are some of the most common             195
    obstacles experienced:                                             ________________________________
150   Usually many obstacles can be prevented if
         adequate investment is made and adequate
         training is involved, however, success does
         depend on skills and the experience of the
         workforce to quickly adapt to the new                 7) List words you didn’t know and their
155      system.                                         200      meaning:
      Customization in many situations is limited
      The need to reengineer business processes                  A. ___________________ ____________
      ERP systems can be cost prohibitive to install
         and run                                                     ________________________________
160   Technical support can be shoddy
      ERP's may be too rigid for specific                205
         organizations that are either new or want to                ________________________________
         move in a new direction in the near future.


      78de7123-4ffe-4554-b5a5-85259e758cc9.doc                                                 page — 2 —
                                                WHAT IS ERP?

                                                              10) Write two (2) more Multiple Choice
                                                                  statements based on the article:
        B. ___________________ ____________
                                                              A disadvantage of ERP is:
              ________________________________                A. support services.
215                                                     255 B. supply chain management.
              ________________________________                C. rigidity.
                                                              D. all of the above.
      8) List phrases where you don’t know the                        ________________________________
220      meaning although you know the words:
              ________________________________

                                                        265 A. ___________________
                                                              B. ___________________
                                                              C. ___________________
              ________________________________
                                                              D. ___________________

230            ________________________________
      9) Write two (2) more True            /   False
         statements based on the article:
235 T / F      You need ERP for CRM, HR etc.
                                                        275           ________________________________

      T/F      ________________________________
                                                              A. ___________________
                                                              B. ___________________
                                                              C. ___________________
                                                        280 D. ___________________

      T/F      ________________________________

245            ________________________________



      78de7123-4ffe-4554-b5a5-85259e758cc9.doc                                             page — 3 —

To top