Introduction to ERP | Raik Aissaoui | PDF

Chapter 2: Introduction to ERP Raik Aissaoui  Plan Introduction ERP Overview Principle of ERP Introduction ▪ Evolutions of IS: 1965 MRP1 Materials Requirements Planning (United States) = Planning of comp...

Chapter 2: Introduction to ERP Raik Aissaoui  Plan Introduction ERP Overview Principle of ERP Introduction ▪ Evolutions of IS: 1965 MRP1 Materials Requirements Planning (United States) = Planning of component requirements MRP2 Manufacturing Resource Planning 1980 = Production planning from industrial and commercial plan to production monitoring DRP Distribution Requirement Planning = Demand-driven distribution needs planning ERP Enterprise Resource Planning 1990 = Enterprise Resource Planning (ERP)  4 Introduction ▪ ERP Development Factors Passage to the year 2000 Legacy Information Systems and the euro Generalization Increased relationships of the Internet between actors and e-commerce Transition of an organization by function to a process organization Economic context (globalization, uncertainty, customer demands) Seeking performance and productivity  Overview of ERP ▪ An ERP (Enterprise Resource Planning) is intended to manage all the departments and functions of the company. ▪ Its technology allows, in this logic and in a completely homogeneous way, to capture, share, analyze and consolidate management information between all the departments of the organization. ▪ The main functions of an Enterprise Resource Planning System are: Accounting management Financial management Production management Inventory management Sales management Human resources management Purchasing management E.R.P or Enterprise Resource Planning ERP (Enterprise Resource Planning) has the objective of: To make a network, Using a single database, All information relating to the company's functions. The information system before the ERP BDD Pay Accounting firm BDD BDD Business Accounting Management Accountant Leader Spreadsheet Seller The information system with ERP BDD Pay Accounting firm ERP Server Component BDD server Client ERP Client ERP Client ERP Leader Seller Accountant  Principle of ERP ▪ A set of configurable computer applications, organized into modules that are independent of each other but share a single database. , Why an open source ERP Mature open source solutions. Enable SMEs (small and medium-sized enterprises) to have complete management tools at the best cost, quickly bringing them a real benefit in terms of competitiveness. Also aimed at SMEs with more than 50 employees, whether in the industrial, distribution or service sectors. Enterprise Resource Planning (ERP) Budget Commitments Third-party accounting Fixed assets Cost accounting Finance Industrial Analytics Financial accounting E- Technical data commerce Configurator ERP Manageme Single nt control Sales database Marketing Quality Production Commerce campaign assurance Stocks Marketing Management CRM tools Sales Purchasing action Planning Support client Source : Adonix Scheduling Replenishments Characteristics of an ERP 1. Leverage a single database 2. Features that integrate all areas of management 3. High parameterization capability 4. Decision support tool 5. Open IT architecture Leverage a single database There are three historical stages in the evolution of the management information system: 1. Independent applications 2. Specific interfaces 3. Integration into an ERP 1° - Independent applications ▪ An information system exists for each function. ▪ Each function (sales, production, research and development, accounting and finance, human resources) has its own database. ▪ Example: Customer data (code, name, address) may differ from the accounting application to the business application. 1° - Independent applications P C F A R O I C O M N C D M A C U E N O C R C U T C E N I I S T O A I N L N G 2°- Specific interfaces ▪ Specific interfaces have established communication between the different modules. ▪ The user takes the initiative to update the databases of the other modules by a punctual transfer of data. ▪ Example: Updating the ledger entries from the business module. 2°- Specific interfaces P C F A R O I C O M N C D M A C U E N O C R C U T C E N I I S T O A I N L N G  3° - Integration into an ERP ▪ The process organization of the company is characterized by the refocusing on the company's businesses and missions, the renewal of the production function, the organization of activities around the value chain, ▪ A piece of data is entered only once, at the time of the event that caused it ▪ Generates. ▪ It is available in real time to all (authorized) users of the single database, common to all modules. ▪ Relational database helps avoid redundancies. Cons High licensing cost Functional scope often broader than the needs of the organization or the company (the software package is sometimes underused); Cumbersome and rigid implementation; Difficulties in appropriation by the company's staff; Need for a good knowledge of the company's processes Sometimes it is necessary to adapt certain organizational or company processes to the software package; Need for ongoing maintenance BALANCE SHEET The ERP makes it possible to: ▪ Very strong automation of repetitive tasks ▪ Multi-currency management ▪ a complex, multi-axis and multi-hierarchical structuring of the management analysis ▪ planning of management tasks and monitoring of ongoing operations ▪ Consolidation of accounts in groups of companies ▪ management of operations control procedures (workflow) BALANCE SHEET ▪ The ERP also allows: ▪ to meet the specific needs of each company: software engineering workshop module ▪ adapt to new areas of management: ▪ Customer relationship management (CRM), ▪ Managing human relations skills ▪ Supply chain management. BALANCE SHEET ▪ Setting up the database to adapt it to the company's specific businesses and practices. ▪ Example : The textile company Benetton has to manage a product table for 300 to 400 items, each of which has about twenty positions (size/colour). A special configuration made it possible to avoid the multiplication of references per article by setting up a batch management system, by creating a generic article. BALANCE SHEET High parameterization capacity: ▪ Setting up the personal space of each workstation: ▪ Access permissions ▪ Custom Graphics Environment ▪ Traceability of operations. BALANCE SHEET Decision support tool: ▪ ERP gives management control the means to develop: ▪ Using the SQL query language of the Oracle, SQL Server, DB2 relational databases ▪ Use of the database as a client/server ▪ Creation of reports and dashboards adapted to the needs of the user BALANCE SHEET Open IT architecture: ▪ IT architecture integrates diverse and advanced technologies: ▪ Using a multi-site network ▪ Integration is carried out via an Intranet/Extranet. ▪ Decentralized database consultation and modification using Internet connections. ERP IT architecture Oracle Windows NT/2000 SQLserver Windows 98 / XP DB2 Serveur Serveur de Clients ERP mode d’application données Client / Serveur Windows NT/2000 Unix Internet Explorer Internet Explorer Netscape Netscape Navigator Navigator Serveur Internet Site Clients ERP Web Clients e-commerce Apache ou IS web mode Windows NT / 2000 Source : Adonix  General architecture of an ERP system Clients e-commerce Distributors, Site Partners Suppliers, Internet Subcontractors Connexions Client / Serveur Decentralized Subsidiaries, ERP Warehouses, sites Connexions Connexions Agencies Internet Intranet nomad Personnel Source : Adonix Conclusion ▪ The implementation of an ERP project is first and foremost an organizational project. ▪ Beyond the technical complexity of the hardware and software put into service, the introduction of an ERP leads to: ▪ The questioning of skills and professions ▪ A redefinition of power ▪ A change in the company's culture and value system. Bibliographie ▪ L. TOURNANT - Réussir votre projet ERP – AFNOR – 2003 ▪ L. LEMAIRE – ERP – L’impact des PGI sur l’emploi et le travail – Liaisons – 2003 ▪ J.L. TOMAS – ERP et progiciels de gestion intégrés – Dunod – 2003 ▪ J.L. LEQUEUX – Manager avec les ERP – editions d’organisation - 2002 Fin