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Q.1. Explain the ERP selection process. List out the ERP tools and their respective vendors available in the market. Ans. ERP Selection Methods and Criteria ERP is a very expensive investment and has a long and complicated implementation process. As such, it is important to make a proper selection of the ERP. ERP selection process involves identifying criteria and their relative weights, and evaluating the alternatives. An ERP system is the information backbone of an organization and extends to all areas of the business. Thus, longterm business strategy of the organization forms the basis of the ERP selection criteria. As mentioned earlier, ERP systems are costly to implement. When choosing an ERP system, it is important to take time to select the right ERP system or set of modules for business. In order to do this in an efficient manner, it is important to have a plan of action. The selection of the appropriate solution is a problem because only a part of it can be handled by a definite or accepted procedure such as standard investment calculations. On the other hand, the decision maker needs to judge and evaluate all relevant business impact aspects. There is no agreed-upon and formal procedure for this important task. There are three criteria that are generally used when evaluating an ERP solution: Financial Considerations: When an ERP solution is considered, it must make money to be acceptable. As such, there are several measurements that the finance department may make in order to determine whether or not an ERP solution is feasible. - Net Present Value (NPV) is generally the most accepted method of valuing an ERP. It takes into account the time value of money and cash flows generated. The cash flow and discount rate selection process is the most important part of an NPV calculation. Determining an average cost of capital for your firm and the predicted cash flows help you get an accurate result from the NPV calculation. - Budgetary constraint is the most used method when considering IT projects. The Internal Rate of Return (IRR) and payback period methods are also very popular for many firms dealing with IT implementations. Management Considerations: On the management side, there are more variables to consider than simply money. However, the probability of achieving the benefits instead of simply succeeding in implementation takes on a different look. This sort of probability may be more directly tied with a softer science such as management. Development Considerations: Development is usually the least important decision factor in these processes. One of the most important factors is the probability that a project finishes on time. This simply does not happen very often, so it is important to determine what sort of adverse effects this could have on business operations. ERP Software Selection Criteria When reviewing potential software suppliers, you tend to focus only on the potential products functionality and cost. Although these elements are important, this methodology neglects other areas of importance. A suppliers ability to deliver product services goes well beyond price and feature options. The key selection criteria include making few questions. Such questions help you simplify making an ERP software purchase decision. Some of the questions include: For Product Functionality
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ERP Tools There are several ERP software manufacturers. Prominent manufacturers of ERP software are SAP, Oracle Corporation, PeopleSoft, JD Edwards, Lawson, etc. SAP has the major share in the ERP market and next comes the Oracle Corporation. Oracle has acquired JD Edwards, People Soft, and more recently Siebel and competes with SAP in the ERP market. Table 4.2 lists the popular ERP Tools and their respective vendors. ERP Tools and respective vendors
Q.2. On what basis manufacturing operations are classified. Explain the different categories. Ans. Manufacturing operations: The Manufacturing operations can be classified based on the amount of processing the product requires, after the company receives an order from customer. They are broadly classified as: Make-to-order and Make-to-Stock
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Make-to-Order and Make-to-Stock (MTS) At one end of the processing spectrum is the make-to-order company. This company does not begin processing the material for component or product until it has received an order from the customer. In some cases, the company may not even procure the material and components until after it receives the order. This type of manufacturing operations is followed when the company competes on the basis of product customization and serves its customer base by providing unique and highly specialized items. The MTO Companys production planning is based also on firm customer orders. At the order end of the spectrum is the Make-to-Stock(MTS) company, which manufactures products and places them in inventory before it receives customers orders. Either the customer purchases the products directly from the inventory at a retail outlet, or the company ships the product off-the-shelf from the finished goods inventory at the factory or at a distribution centre. MTS companies depend heavily on market analysis and demand forecasting in planning the production of their products with respect to the product mix and volume. Assemble-to-Order(ATO) Assemble-to-Order(ATO) company is another variation of the manufacturing operations. The ATO company manufactures standardized, option modules according to the forecasts it has made and then assembles a specific combination, or package of modules, after receiving the customers order. The classic example is the automobile manufacturer. After receiving orders from a host of dealers, the manufacturer specifies the exact production schedule for automobiles. Engineer-to-order(ETO) Yet another variant in the manufacturing operations is the engineer-to-Order company. The ETO company is the ultimate in product variety, product customization and flexibility. In this mode of operation, as per customer order the company manufactures any thing, but at a higher price. The expensive clothing of the bold and beautiful is an example of this kind of production. Products are made for each customer and even the minute details. Q.3.List out the various support technology for ERP systems designed by various companies and their application in various sectors
Ans: the various support technology for ERP systems designed by various companies are:
Data Warehousing The basic principle of data warehousing system is that, the data stored for business analysis can be accessed most effectively by separating it from the data in operational systems. The potential performance degradation on the operational system can result during the analysis processes. To overcome this business analysis and the operational data are stored separately High performance and quick response time is very essential feature for
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Q.4.What is Preventive Maintenance? Explain major subsystems of a Plant Maintenance module. Ans. Preventive Maintenance Control (PMC) provides planning, scheduling, and control of facilities and equipment. Equipment lubrication, component replacement and safety inspection can be planned, scheduled, and monitored. Maintenance tasks can be tracked for each piece of equipment or machine, by two user-defined modes, as well as calendar day frequency. These models include tracking by hours of operation, units of production produced, gallons of fuel consumed, or the number of days in operation since the last service interval. Preventive Maintenance Control enables organizations to lower repair costs by avoiding downtime, machine breakage, and process variability. Companies achieve higher machine utilization and improved machine reliability and tolerance control, along with higher production yields.
Equipment Tracking Equipments are an asset that needs to be protected and monitored. In many situations, costs of equipment maintenance constitute the single largest controllable expenditure of an organization. All facets of plant location history and utilization history are described and tracked. This history includes acquisition of disposition information and associations between different pieces of equipment to pinpoint operational dependencies. Running totals for operation units to date (miles, hours, days, units of production, and so on.) are also provided. Each piece of equipment is defined by, a serial number and model. User-defined data sheets are developed, which allow for the grouping of user data into formats that can be linked to equipment records. All of this information can be used to create equipment stipulation, which provide detailed information for technical specialists working in equipment operations, maintenance, and transportation control. Component Tracking Components are subsets of larger equipment and deserve the same amount of cost controlling scrutiny. Component Tracking helps equipment managers to; identify components with chronic repair problems. They can determine if either repair or replacement must be covered by warranty. Planning component replacements, rather than waiting for component failures to occur, reduces unscheduled equipment downtime. Component tracking includes repair/exchange history and component service life. Plant Maintenance Calibration Tracking Plant Maintenance Calibration Tracking (PMCT) allows organisations to leverage their investment in the Plant Maintenance module by, providing for the tracking of equipment calibration in support of ISO 9000 requirements. Plant Maintenance Warranty Claims Tracking Plant Maintenance Warranty Claims Tracking (PMWCT) is an administrative system designed to, provide control of all items covered by manufacturer and vendor warranties. It helps plant management to recover all of the
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Q.5. Write short notes on seven major ERP vendorsSAPAG, Baan, PeopleSoft, JD Edwards, Oracle, QAD and SSA. SAPAG: SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Wrttemberg, with regional offices around the world, SAP is the market leader in enterprise application software. The company's best known products are its enterprise resource planning application (SAP ERP), SAP Business Objects software, and most recently, Sybase mobile products and in-memory computing appliance SAP HANA. SAP is the world's largest business software company and the third-highest revenue independent software provider (as of 2007). It operates in four geographic regions: EMEA (Europe, Middle East, Africa), AMERICA (United States and Canada), LAC (Latin America and Caribbean), and APJ (Asia Pacific and Japan), which represents Japan, Korea, Australia and New Zealand, India, Greater China, and Southeast Asian countries. In addition, SAP operates a network of 115 subsidiaries, and has R&D (Research & Development) facilities around the globe in Germany, India, the US, Canada, France, Brazil, Turkey, China, Hungary, Israel, Ireland and Bulgaria. SAP focuses on six industry sectors: process industries, discrete industries, consumer industries, service industries, [19] financial services, and public services. It offers more than 25 industry solution portfolios for large enterprises and more than 550 micro-vertical solutions for midsize companies and small businesses SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP. The current version is SAP ERP 6.0 and is part of the SAP Business Suite. Its previous name was R/3. The "R" of SAP R/3 stood for real time even though it is not a real time solution. The number 3 related to the 3-tier architecture: database, application server and client (SAPgui). R/2, which ran on a Mainframearchitecture, was the predecessor of R/3. Before R/2 came System RF, later dubbed R/1. SAP ERP is one of five enterprise applications in SAP's Business Suite. The other four applications are: Customer Relationship Management (CRM) helps companies acquire and retain customers, gain marketing and customer insight Product Lifecycle Management (PLM) helps manufacturers with product-related information Supply Chain Management (SCM) helps companies with the process of resourcing its manufacturing and service processes Supplier Relationship Management (SRM) enables companies to procure from suppliers
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QAD: QAD (NASDAQ: QADB) provides Enterprise Resource Planning software to manufacturing companies around the world. QAD sells its products and services to companies in six main industries: automotive, consumer products, high technology, food and beverage, industrial equipment and life sciences. As of November 2010, QAD software [1] was in use at 5,555 manufacturing sites in more than 90 countries. QAD's main product suite is called QAD Enterprise Applications (prior to 2007 the main suite name was MFG/PRO) and uses year designations to denote versions. For example, QAD EA 2011.0 for the first version of the 2011, and QAD EA 2011.1 for the second. For the full year ended January 31, 2011, total revenue was $220.0 million
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