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41 Cards in this Set
- Front
- Back
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What is ERP?
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the worlds largest and most complex enterprise system. They focus primarily on the internal operations of an organization, and they integrate functional and cross-functional business processes. They support processes within a company
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Why should a company want to implement an ERP? (in other words, what benefits would they expect to see if they implement an ERP?)
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1)Processes become visible
2)Jobs Broaden 3)Org boundaries dissolve 4)Authority moves to front lines 5)Processes become standardized |
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Business Processes – What is a business process?
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how the product or service is created via a sequence of tasks or activities that take a set of inputs and convert them into the desired output
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What company failed at implementing ERP? Why?
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Hershey, because unfourtunately they were unable to get the system live until October, the busiest month (Halloween)
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What are three fundamental business processes?
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Procurement, production, and fulfillment
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• Several resources have mentioned “Keys to Success” in ERP implementations. What do you think the keys to success are and WHY?
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1)Position it as a strategic business initiative-it is a business change project which is fundamental and strategic in the sucess of the enterprise it is not a technical implementation project.Not a technology project
2)Passionate, Commited Executive Leadership-active leadership not just support, the execs project and have to take personal responsibility for. 3)Leadership must do whatever it takes-to ensure sucess, to put in resources and to remove roadblocks to sucess 4)Rapid decision making and rapid implementation-no such thing as slow major change, people get tired lose creditbility and nobody believes its happening 5)Process Owners need to be key decision makers-the guys jobs that are going to be improved and supported by ERP must be the ones making decisions. 6)Make the neccessary investments-not done on the cheap, payoffs are dramatic, big investment is in training and implementaion 7)Dont stint on change managment-help people over transistion, help accomodate to a new way of working, even though people dont like to do it |
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What three-five things should a company make sure they do in order to successfully implement an ERP system?
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1)Strong Project Management
2)Intense Exec Commitment 3)Revised compensation system |
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What is change management?
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the transforming of the organization so it is aligned with the execution of a chosen corporate business strategy. It is the management of the human element in a large-scale change project
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Why is process modeling important?
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Because it provides a map and a way to describe business processes so that everyone involved in the process can understand the process
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What are some of the standards for process modeling?
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processes must be clearly defined, individuals are adequately trained in their roles, and individuals understand how their role fits into overall process
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What is the business purpose of the production process?
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to make the finished goods from components
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Who is responsible for production?
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MRP controller, Production Controller, and Capacity Planner
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What data is needed for the production process?
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stock levels
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what elements are used of organizational data in the fullfillment process??
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sales organization, distribution channel, division, sales area, plant, storage location, company code
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what purpose does the org data serve in the fulfillment process?
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Sales Organization – Highest level, product claims
Distribution Channel – The way goods reach the customer Division – Typically “product lines” Sales Area – virtual structure = SOrg + DC + Div Plant (MM) – location where inventory is stored/valuated Storage Location (MM) – type of storage within a plant Company Code (FI) – taxable entity, complete set of books |
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fulfillment process
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Sales- The sales department recieives a customer inquiry and sends a quote to the customer. The customer considers the quote and then submits a purchase order. Then a sales order is created.
Warehouse-they pick and pack and send the shipment off. Accounting-they create and send an invoice, and receieve payment and record. |
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what elements of master data are used in the fulfillment process??
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material, customer, pricing records
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how is fulfillment master data used??
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material-what are we selling?
customer-who we selling to? pricing records-how much we charging? |
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what is the business purpose of the fulfillment process?
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purpose is to sell products to customers either by fulfilling orders directly from inventory or by configuring base models to meet customers needs
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who is responsible in the fulfillment process?
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sales representative, warehouse guy, accounting representative
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Three shades of change management
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Type I – That which is done to us
Type II – That which we do to ourselves Type III – That which we do to others |
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organization-wide change
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Major restructuring, collaboration or “right-sizing”
Organization-wide to evolve to new level of life cycle Must have a change in culture |
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Subsystem Change
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Addition or removal of product or service
Department reorganization Implementation of new process to deliver products or services |
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Transformational change
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Radical change
Example: Change organization’s structure and culture from top-down to self-directing teams BPR – take apart organization’s major parts and processes and put them back together in a more optimal fashion |
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Incremental change
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Continuous improvement such as quality management or implementation of a new computer system to increase efficiencies
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Remedial change
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Remedy current situations like poor performance of a product or the entire organization, reduce burnout, more proactive, & address large budget deficits
More focused and urgent |
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Developmental change
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To make a successful situation more successful
Example: expand amount of customers served, duplicate successful products or services More general and vague |
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Unplanned change
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Usually because of a major, sudden surprise to the organization
Respond highly reactive and disorganized fashion Example: CEO suddenly leaves the organization, PR problems occur, poor product performance quickly results in loss of customers, or disruptive situations arise (NEW COKE Example) |
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Planned change
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Occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change
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• What document represents a formal agreement with a customer regarding the price of a product under specified conditions (quantities, dates, etc.)?
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customer purchase order
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why do we examine business processes?
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So we can know how the whole process works, how one job affects another, how a failure in one step will impact another step, and what the company must do to make sure the process is sucessful
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How are business processes important to implementing SAP?
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Becasue it provides the data to complete the steps and it is based around the business processes
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How should a company address change as part of the plan to implement an ERP?
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By unfreezing, transistion, and refreezing. Unfreeze-focus on loosening employee attitudes to become more open-minded to the possibility that there might be a better way. Transistion-series of changes gradually implemented. Refreeze-the new way is reinforced by changing company policiy and HR system
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What are principles of change?
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Provide Rationale, Be Empathetic, Communicate Clearly, Explain the Benefits, identify a champion, obtain participative input, Be aware of timing, maintain job security, provide training, proceed at manageable pace, indicate top management support, publicize sucess and make mid-course corrections where needed, provide employee service
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what master data is used in the production process?
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Bill of material, Work centers, product routing
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Bill of material
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identifies all the materials or parts needed to make one unit of a finished product
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work centers
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where the actual tasks of creating the product is accomplished
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product routings
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define the steps or operations necessary to create the product.
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What does it mean to successfully implement an ERP system?
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To bring together all parts of an organization with seamless interfaces and share data so they work together, cooperate, and communicate. Knock down the castle walls and build bridges between individual entitys
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What does it mean to successfully implement an ERP system?
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To bring together all parts of an organization with seamless interfaces and share data so they work together, cooperate, and communicate. Knock down the castle walls and build bridges between individual entitys
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what data are captured in the fulfillment process?
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they include master data(customer, material, and pricing, data created in a previous process step, user-entered data, and system generated data
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