Week 10

Week 10

Question 1: Using Sumner (2005), answer questions 3-5 on page 148.

3. How is the use of data warehousing and data mining facilitated by ERP?

A data warehouse is a repository of integrated information, available for queries and analysis is makes it much easier and more efficient to run queries over that data and originally came from different resources. A data warehouse is a logical collection of information gathered from many different operational databases that is used to create business intelligence that supports business analysis activities and decision-making tasks which is designed to favour efficient data analysis and reporting.

4. How do ERP systems supporting SCM provide a foundation for eBusiness?

The ERP systems supporting SCM provide a foundation for eBusiness through SCM tha allows the eMarketplace to evolve back. Finance, HR, manufacturing and sales are functioned by ERP while add-ons such as SCM, interfaces with suppliers, and CRM interfaces with customers.  It is also a common fact thatERP is the core infrastructure for these systems.

5. What are the major risks of a netsourcing arrangement for ERP?  What strategies can minimize these risks?

Major risks of a netsourcing venture from the viewpoint of potential customers are:  Service and Business Stability, Security, Reliability, the Netsourcing Arrangement’s Longevity and Existence, and the Netsourcing Arrangement’s dependency on other parties.

 

Major risks of netsourcing venture from the viewpoint of existing customers are:  the Netsourcing Arrangement’s longevity and existence, Reliability, the Netsourcing provider’s service and business stability. Security issues, and integrating the netsourcing solution with existing applications.

 

Internal IT people should maintain responsibility for ERP development.  In the process of migrating to the ERP system, it is important to retain internal technical expertise and troubleshooting capability.  In post-contract operations of the netsourcing contract, internal IT capability must be maintained (Ross, Vitale, Willcocks, 2003).

 

Question 2: Following on from the previous week develop a rough outline of your presentation. Post this rough outline to your blog.

—  Discuss the case

—  What recommendations were made ?

—  How should we implement ERP Systems ?Alternate solutions

—  Process

—  Conclusions

—  References

 

Question 3: Post an entry to your blog that answers the following questions:

1. What was the most difficult assessment item you completed so far in COIS12073 this term?

The most difficult assessment so far is the case study report. It was a bit complicated case with lots of thing happening to gather the necessary information for the case.

2. What was difficult about it and how would you suggest it could be improved?

The most difficult part of the assessment was the word length, which could be improved by requiring a reasonable word length.

3. If you could provide three (3) pieces of advice to a student who will be doing this course next term what would they be?

Research is very important, and please do the blogs as you go it will really help the students as blogs assessment could be found ignored by the students.

4. How will you be able to use this knowledge /these skills in your future career?

If I ever manage a business I have a good idea about the different systems I can use to improve my company.  I may decide to be an ERP consultant one day too.

 

References

Sumner, M 2005, Enterprise resource planning, Pearson Prentice Hall, Upper Saddle River, New Jersey.

 

Week 9

Week 9

Question 1. Using Sumner (2005), read the article on pages 110 – 111. Answer question 1 and 2 on page 110.

a. What are the benefits of automated time and attendance records?

Financial Rewards

Financial rewards are the first motivating factor of automated time and attendance records. It provides a way to monitor the success of projects, task forces or the performances of entire departments.

Reduce Impact of Absences

It helps for key payroll personnel to take vacations, sick leave or other absences. More precisely, it means it will help in automating payroll policies and calculation that will reduce the impact that these short absences have on operations.

Learning Curve

It makes easier to train people for complex tasks and able to manage absences or make smooth transitions when personnel change.

b. What disadvantages might accrue to employee using these systems?

• Reduce the manpower.
• Chances of many people getting jobless.
• Machines may control the humans instead of humans controlling them.
• If an error occurs in the system, all the employees may not know how to rectify it.

 

Question 2. Have a look at assignment 5. Search the web or go to some other source to find some hints and tips on giving presentation. Post to your blog what you think was the most helpful and why.

I think the tips given by Robert Harris on the ‘ Ideas for Enhancing Oral Reports ‘ are a helpful site for the preparation of presentation. The author has given a good idea on planning, preparing and giving structure to the presentation. The article also clearly gives tips on communicate by speaking loudly and clearly and to pause between ideas and not to speak very fast. Moreover, the article stresses on to make an eye contact with the audience and utilizing the time as well with proper gesture.

 

Sumner, M 2005, Enterprise resource planning, Pearson Prentice Hall, Upper Saddle River, New Jersey

Robert Harris 2008,  ‘ Ideas for Enhancing Oral Reports, viewed 14 September 2011.

 

 

Week 8

Week 8

Many people argue that MRP is a precursor to ERP, and that ERP systems were designed to integrate MRP systems with financial and accounting systems.

a. Given the interrelationship between MRP and ERP, does it make sense for a non-manufacturing company to adopt ERP system?

MRPs were developed with a vision to serve only the production and manufacturing companies. These were basically used to plan, control and manage materials and inventory. As ERPs have evolved from MRPs, a general perception is that ERPs are developed to serve the same purpose as MRPs with just a little more features. However, this is not exactly the case with ERPs. ERPs have been developed as integrated software to support all the business processes and exercise best practices in business.

 Moreover, MRPs were designed to ERPs to include all the business processes in an organization including functions related to finance, human resources and administration. So, ERPs are not only focused with production and manufacturing but with almost all the business processes going on within a company, whether it be a manufacturing or non-manufacturing / service oriented company

 (b): Have manufacturing systems been the basics for all ERP systems?

In the early stage of ERP development, manufacturing systems had been the basis for most of the ERP systems as they were just the up-gradation of MRPs (which supported only manufacturing systems), with some extended capabilities to include finance, marketing, human resource management and administration. On the other hand, these days vendors develop ERP systems based on the kind and nature of target-company and their target can be a manufacturing industry or a non-manufacturing firm. The production or manufacturing functionalities can be totally eliminated to suit the requirements of a non-manufacturing company. The main idea behind ERP development is the incorporation of business processes with an inner database for full automation irrespective of manufacturing or non-manufacturing systems.

Therefore, we can conclude by saying that- although manufacturing systems initially had been the basis for most of the ERP systems, this is not necessarily true with the development of today’s ERP systems which means that now all ERP systems are not solely developed on the basis of manufacturing systems.

(With reference to Sumner, M 2005)

 

Week 7

Week 7

2. The financial accounting module is often the first module to be implemented within an ERP system. Why do many companies start with the Financial Accounting module?

Many companies start with the Financial Accounting module within an ERP system because

–        it provides the financial information in the form that is required by the user, such financial solution is provided by ERP package.

–        The financial application component of the ERP provides with the information of financial functionality across the different business area.

–        The finance business of ERP also provides analysis support to the business.

3. Many divisions of organizations seek decentralized financial control. How can an ERP system be implemented to ensure local financial decision making and control?

–        Ensure that the implementation is more likely to succeed if the company positions its as a strategic business issue and integrates it with a process redesign issues.

–        ERP should fit the company’s overall strategy and help it serve its customers.

–        Identifying training deficits so that employees can be given appropriate training.

–        Identifying what additional human resources are needed in the short and long term.

week 6

Week 6

Question 1: Can an informed ERP adoption and selection decision be made without fully understanding the problem? Why or why not – justify your answer.

According to my point of view, it is imperative that ERP adoption and decision should be made only after understanding the problem and circumstances. We cannot make an informed ERP adoption and selection decision unless we understand the problem. If we are aware of the problems, then decisions can be made which ERP is best to implement, as each and every ERP are useful for only specific types of situations.

Question 2: Following on from the previous week provide a rough skeleton of what you are going to put in your conclusions.

• Provided that Queensland Health adopts new ERP system, it will be able to implement and maintain the new system.
• It is recommended that Queensland Health stress on further improvements and future developments in its current Enterprise Resource Planning System.

week 7

Week 7

2. The financial accounting module is often the first module to be implemented within an ERP system. Why do many companies start with the Financial Accounting module?

Many companies start with the Financial Accounting module within an ERP system because

–        it provides the financial information in the form that is required by the user, such financial solution is provided by ERP package.

–        The financial application component of the ERP provides with the information of financial functionality across the different business area.

–        The finance business of ERP also provides analysis support to the business.

 

3. Many divisions of organizations seek decentralized financial control. How can an ERP system be implemented to ensure local financial decision making and control?

–        Ensure that the implementation is more likely to succeed if the company positions its as a strategic business issue and integrates it with a process redesign issues.

–        ERP should fit the company’s overall strategy and help it serve its customers.

–        Identifying training deficits so that employees can be given appropriate training.

–        Identifying what additional human resources are needed in the short and long term.

Week 6

Week 6

Question 1: Can an informed ERP adoption and selection decision be made without fully understanding the problem? Why or why not – justify your answer.

According to my point of view, it is imperative that ERP adoption and decision should be made only after understanding the problem and circumstances. We cannot make an informed ERP adoption and selection decision unless we understand the problem. If we are aware of the problems, then decisions can be made which ERP is best to implement, as each and every ERP are useful for only specific types of situations.

Question 2: Following on from the previous week provide a rough skeleton of what you are going to put in your conclusions.

• Provided that Queensland Health adopts new ERP system, it will be able to implement and maintain the new system.
• It is recommended that Queensland Health stress on further improvements and future developments in its current Enterprise Resource Planning System.

Week 5

Week 5

Question 1: Using Sumner (2005), read the case study on pages 126-130. Answer questions 1-4 on page 126.

1. Was FoxMeyer misled?

FoxMeyer was misled by any of the software companies and systems integrators it dealt with such as SAP AG, Walldorf, which supplied enterprise wide financial and logistic software. FoxMeyer was expected to save $40 million annually from a massive overhaul of its computer systems that were designed to serve a rapidly expanding customer base was mislead by companies as such.

 

1. What strategies could have been put into place to avoid the project disaster?

–        Test the software on client client/server hardware supplied by both Digital Equipment and Hewlett Packard.

–        Have a close supervision at the technology vendors so that they don’t over sell their capabilities during the sales process.

 

1. What business misjudgments occurred?

–        The way they were running through there was such that they were gridlocking the system.

–        Prior to the contract, FoxMeyer had planned to have a small amount of capacity left on the Unisys platform.

–        FoxMeyer initially counted on a typical shipment or package to make three or four stops along its automated route within the warehouse in reality this figure could wind up at eight or nine a condition that sometimes caused conveyors to gridlock.

 

1. Was FoxMeyer’s failure due to technology failure or business failure?

– The main reason for FoxMeyer’s failure was due to business failure. They spent a lot of money and tried to put together a progressive management-information system. They over spent more than they could chew. The main reason for the failure was that they committed a fast-track schedule on a technology implementation that has not proven.

Question 2: Have a look at assignment 3. The purpose of this assignment is to provide a case study report. Provide a rough skeleton (dot point form if you wish) of what you are going to put in the main body of your report. You should make clear what the problem is and also outline what the options are.

Problems

–        Rostering system had a serious performance issues during the processing of the first pay run. It was running slow in some regional centres.

–        Rostering to payroll integration issues resulted from slow system performance.

–        Overnight batch jobs were taking longer than expected, and larger than expected numbers of records were being processed.

–        There were some data conversion issues whereby temporary employees did not have their employment end dates updated and these employees did not get paid. This issue has now been addressed.

 

Recommendations

–        The current action to stabilise the Queensland Health payroll and rostering systems be continued to ensure Queensland Health employees are correctly paid.

–        Technological changes should be performed through strict change management processes and testing regimes to ensure that system stability is maintained.

–        Queensland Health should reconsider its current business model to determine the most effective and efficient strategy to deliver payroll services.

–        To mitigate the risk of payroll inaccuracies, simplification of award structures and pay rules need to be considered.

 

 

 

Week 4

1. How does the traditional systems development life cycle differ from the ERP information systems design and implementation process?

Traditional systems development life cycle allows the use of less-experienced staff for system development, as all steps are clearly outlined. Even junior staff members who have never managed a project can follow the steps in the SDLC to produce adequate systems. Use of an SDLC can have the added benefit of providing training for junior staff whereas ERP systems design and implementation process require highly trained staff for the system development. Launch of the ERP implementation may also decrease in the number of staffs leading to unemployment.

 

2. What are the advantages of the re- engineering method of implementing ERP? What

are its disadvantages?

Advantages –

• Design engineering to make the best product.
• Improves the cooperation of the users.
• It focuses on integration and tends to not care about the daily needs of people.
• It reduces cost if the company takes account and reporting seriously even before implementation.

Disadvantages –

• The implementation is normally expensive.
• It is also not very flexible.

3. What are the advantages of the customizing method of implementing ERP? What are its disadvantages?

Advantages of customizing

Supports unique business processes;  “strategic” processes are maintained.

 

Disadvantages of customizing:

An ERP may not support these unique business processes; re-inventing the wheel; customization is difficult, since modules are integrated; difficult to upgrade the software to newer versions, since upgrades are based on “vanilla” versions.

5. What are the advantages and disadvantages of using an ASP to implement ERP?

–     Using an Application Service Provider enables the client to have access to technological expertise and is more cost-effective than a full-scale internal ERP implementation.  However, using an ASP creates dependence upon the reliability and stability of the vendor, and the organization can be vulnerable.

 

 

 

 

 

week 3

1. Why would the spectre of BPR potentially cause fear in an organisation that is implementing an ES?  How could these fears be addressed?

Business Process Re-engineering (BPR) identifies dramatic points in work environment. It is a change management approach that is aimed at achieving improvements in business performance. Industry interest levels in BPR are high as a direct result of current difficulties in the global economic climate and tight business conditions. Spectre of BPR may potentially cause fear in an organisation implementing an ES in various areas –

–       Need for strong visible executive management support.

–       More use of consultants to aid lateral thinking.

–       The need to manage consultants and ensure skill transfer

–       Fear to the staff about the new changes, which are not acceptable sometimes.

–       Determining an appropriate role for technology.

The fear from the changes implemented can vary from simplifying to reinventing process. The extent of process change appears to be related to a combination of factors, the desperation of the organization and current state of its processes, the availability of suitable technology to enable and support sustained change, cultural factors related to organisational readiness and political considerations concerning the acceptability of radical change.

2. Using the case study on pages 36 – 37 of Sumner (2005), answer questions 1 – 3 of the case exercise (page 37)

a. Draw a current process model for the payment processing system at RFC.

Current Process Model for the payment process at RFC.

Please click on the link below to find the process model image.

As the above figure shows, payments can be made in three different ways. The customers can pay directly to the branch in person in the form of cash, cheque or money order. Another option is the customers can also pay by posting the payment attending to the nominated branch. The final option to make the payment is by paying directly to the home office

b. What changes in business processes and information do you feel will improve the payment processing system at RFC?

Now looking at the case study and going through the loan payment process of RFC, there are situations when the vouchers to acknowledge the payment are missing.  Then the clerk uses a printout of the central outstanding loan file to look up the loan id corresponding with the correct account. This is a long process and very time consuming. The company can install internet system where the customers can pay the loan online. Each customer has a unique id no. If the clerk needs to search for any customers, he can search by last name or the unique id. I think mailing the payment to the bank should be replaced by online payment system.  Once the customers make the payment, an auto generated email is sent to the customer to retain for future reference purpose. Online system is more accurate and saves time and manpower. Customers can also get notifications by email if there due date is soon to arrive or just over or long time over. There are fewer chances for the records to get lost and helps in reduction of loans being written off.

c. Draw a new process model for a re-engineering payment processing system at RFC

Please click on the link below to find the process model image.

3. If an organisation has business processes that do not match any commercially available ERP, should the organisation adopt an ERP?  Provide factors for and against and suggest other possible considerations that would factor in your reasoning.

–       If an organisation has business processes that do not match any commercially available ERP, it is a wise idea to adopt an ERP. Adopting ERP, it can integrate the cost, profit and revenue information of sale that are made and can be presented in a granular way.  A dating structure can also be set up which can allow the company to keep better track of the products.

However there are also some drawbacks that ERP has. One of the biggest drawbacks is cost. It is a challenge for small companies when trying to implement ERP with the cost that takes. This may cover the cost for training the employees etc. The success of ERP fully depends on how the workers utilize it. If they are not properly trained, the company may go in losses.