IS560 ERP Session Number: 3

1
IS560 ERP - Session Number 3

• Session Date January 20, 2003
• Session Objectives
• Introductions Administrative Items
• Session Topics
• Article Case Study Review
• Best-of-Breed vs. ERP-SCM
• Indian Motorcycle Case
• Why ERP?
• ERP System Technology Background (continued)

2
Best-of-breed vs. ERP/SCM Which way to go for
Supply Chain Collaboration

• Article Discussion Points
• Key Findings
• Salient Tools and Techniques
• Conclusions

3
Indian Motorcycle ERP Implementation Case Study

• Article Discussion Points
• Key Findings
• Salient Tools and Techniques
• Conclusions

4
Why ERP

• Text Discussion Points
• Key Findings/Observations
• Salient Tools and Techniques
• Conclusions

5
ERP Enabling Technology Techniques (continued)

• Selecting the platform for a complex enterprise
  resource planning (ERP) application can be even
  more important, particularly if the application
  is mission-critical and calls for high
  performance and availability.
• ERP SW typically designed to be platform
  independent.
• The system comprises the following elements
• Server hardware
• Storage hardware
• System software
• Consulting services
• Support services
• note make sure you consider these items as
  part of the overall technology architecture

6
ERP Enabling Technology Techniques (continued)

• Selecting appropriate HW server platform is CSF.
• Selection criteria includes
• High availability
• Service and Support
• Total Cost of Ownership (TCO)
• Re SAP
• Choosing a server for SAP R/3 is not conceptually
  different from any other server selection
  process.
• Adverse financial impact of a poor decision is
  much higher.

7
ERP Enabling Technology Techniques (continued)

• Unix-based systems most preferred by ERP vendors.
• Desired for mission-critical projects that
  require a proven, high-availability platform
  technology.
• SAP had mainframe legacy with R/2.
• Most SAP R/3 users choose Unix as the operating
  system for the hardware platform.
• ERP scalability issues resolved through multiple
  process SW redundancy.
• SW will resolve data consolidation issues.
• Choice of ERP SW should not be solely dictated by
  legacy HW or resident skills.

8
General SAP Technology Configuration
9
SAP High Availability System (HAS) Model
10
Vendor Suitability for SAP HAS
11
Vendor Suitability for SAP HAS Technology
Weighting Factors
12
Vendor Suitability for SAP HAS Services
Weighting Factors
13
Theory of Constraints

• Based on the implicit assumption that for the
  production of any product or service, raw inputs
  must undergo a process of transformation before
  the final product/service is delivered.
• Transformation process entails numerous steps.
• Traditionally, each step would be optimized
  separately.
• Some steps would work faster or with greater
  reliability than others would.
• Will result in one of three conditions
• Bottlenecks, where work from faster preceding
  steps piles up before a slower step
• Shortfalls, where steps beyond a bottleneck are
  idled, waiting for bogged-down work in progress
• Inconsistent quality, such as defects
• When teams are aligned to steps rather than
  processes
• they become very creative in bypassing
  bottlenecks,
• which results in institutionalized process
  inefficiencies, end runs and delays.

14
Theory of Constraints (continued) Graphical
Portrayal
15
Theory of Constraints (continued) - Conclusions

• Output or in the case of services, outcomes
  are only as reliable and as fast as the
  transformation process's weakest link.
• To optimize process outcomes, process engineering
  should focus on incremental resolution of the
  single worst bottleneck, proceeding to the next
  when the worst is resolved, and so on.
• Doing anything else is a waste of time.
• Just as optimizing around steps rather than
  processes exacerbates these undesirable
  conditions, so does organizing around technical
  disciplines or functional silos, rather than
  around processes.

16
Next Session Highlights

• Topics
• ERP Support for Business Processes.
• Reading Assignment covering first 2 sessions
• Complete reading chapters 3-6 of ERP Tools,
  Techniques, and Applications by Ptak and
  Schragenheim targeting completion by week 5.
• Begin reading chapter 12 of ERP Tools,
  Techniques, and Applications by Ptak and
  Schragenheim targeting completion by week 5. Will
  be important preparation for team assignment.
• Begin reading Geneva Pharmaceutical Case
  targeting completion for week 6.