...ERP - Enterprise Resource Planning Liberty University Dr. Thomas Spotts Organizational Design and Structure ABSTRACT An Enterprise Resource Planning serves as a cross-functional enterprise backbone that integrates and automates many internal business processes and information systems within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of a company. Large companies throughout the world began installing ERP systems in the 1990s as a conceptual framework for reengineering their business processes1. They have come to realize the importance of having such system in place to help them sustain their competitive advantage and to be ahead of other players in the market. It is true that the benefits that come with successful implementation are great but if not handled carefully, the risks involved are equally great. At present, most of the corporations can no longer disregard the significance of Information Technology in their organization to get competitive benefit. The companies are seriously depending on IT for processing their work because IT has supremacy to alter the whole organization such as size, net-profit, efficiency, human activity competence and customer contentment. A category III IS advancement, ERP (Enterprise resource planning system), has strategic application for the business since the incorporation of this system into all the major strategies or processes of the business can have a direct...
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...Business Solutions Enterprise Resource Planning better known as ERP is a business management information system comprised of business applications that companies use to store, collect, manage and interpret information for business activities. “ERP systems are often used by large business and they are customized and analyzed by different teams in order to fit the different priorities and obligations of the business.” (Webopedia, ERP Term). The enterprise applications integrates and connect all areas of operation in a business environment such as Account receivable, Customer service, Finance, Accounting, Human resources, Supply chain and warehousing as seen in Figure 1. Figure 1 - Areas of ERP Operation Figure 1 - Areas of ERP Operation The enterprise resource system software industry has become a multi-billion industry because it provides different application which can support different areas of the business activities. ERP Systems can be modified and customized to meet certain business needs and technical capabilities. These systems have become important organizational tool because it differs from typical traditional systems. The main purpose of ERP systems is to facilitate internal and external management information across the entire organization. The evolution of ERP systems came along with the development of computers, hardware, applications and software systems. In the past prior to the 90’s, most organizations use Material Requirement Planning (MRP I) which was...
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...Enterprise Resource Planning Explanation Enterprise Resource Planning (ERP) embodies the use of software systems, usually large databases which are designed to integrate business processes (Dredden & Bergdolt, 2007). These systems break down barriers between functional areas and provide seamless integration, workflow, standardization and access to real time data (Dey, Klegg & Bennett, 2010). ERP systems are information systems which replace separate and distinct functionally based systems (Ravesteyn & Köhler, 2009) ERP systems can significantly reduce the time to complete business processes, ERP systems transform a business from being functionally driven to process driven (Dredden & Bergdolt, 2007). Oliver and Romm (2002) argue that “organizing on the basis of process cuts across established functional hierarchies and tends to broaden rather than narrow the functions a worker can perform.” (p. 207) According to Peslak (2006) ERP systems typically include all data and information about vendors, customers, employees and products. Furthermore, information sharing cuts costs by eliminating duplication of effort, business leaders achieve greater visibility across the enterprise, these systems enable better decision making and push products to customers faster and more efficiently (Dredden & Bergdolt, 2007). For all the excellent benefits an ERP system can provide an organization, implementation is not undertaken without a degree of risk. Mehrjerdi (2010)...
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...CHAPTER I INTRODUCTION This Chapter presents the background of the study, statement of the problem, significance of the study and operational definition of terms. Background of the Study An Enterprise Resource Planning (ERP) System has an enormous effect on a business which includes information sharing, business planning and decision making on an enterprise-wide basis, Therefore it allows each department to share information and communicate which greatly benefit for a more productive and effective business flow. ERP is one of the newest Information Technology System which is implemented on all KFC Restaurants around the world which is used to analyze and integrates all of business processes. Enhancing the customer relationship is one of the main features coming under the core objectives of every ERP system, the newest web-based system enables quick generation of inventory, sales and revenue report which is very effective for every QSR Restaurants including KFC. There are various modules in ERP system including Finance, Human Resource Management, Manufacturing, Project Management etc. KFC is a major quick serving restaurant (QSR) with stores located in 109 countries and territories around the world and serves over 12 million customers every day generating nearly $10 billion a year, Founded by Col. Harland Sanders and based in Louisville, Kentucky USA, it is now the world’s most popular chicken restaurant fast food chain specialized in Original Recipe, Hot and Crispy Chicken...
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...Enterprise Resource Planning - Facts, Benefits and Critical Elements for a Successful Implementation in Small Manufacturing Company Azhanorhisam Che Din 1. Introduction Imagine a world without technology, and imagine a company without Enterprise Resources Planning (ERP). Perhaps we can still survive without technology, but without ERP, a company may fail to remain competitive as they fail to respond quickly to new practices and procedures. Indeed, a company who quest for competitive advantage in this era of intense competition where business entities compete for innovation, expanding customer’s expectation and internationalization of markets, a company regardless of their size must have a reliable ERP to support them. ERP has proven to be an effective tool for competitive advantage as ERP help to delivery products of the highest quality on time, as quickly as possible and at the best price. Davenport (1998, p.121) suggests that “ERP appear to be a dream comes true as these software promise the seamless integration of the information flowing through a company. Markus et al. (2000) defines ERP as commercial software package that enable the integration of transaction oriented data and business process throughout an organization. The purpose of this paper is to discuss facts about ERP, its benefits and the critical success factors in ERP implementation especially for small manufacturing companies, which is in this paper, will sometime refer to small and medium-sized enterprises...
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...Module Title: Logistics Coursework title: Enterprise-wide systems and Supply Chain Management Professor: Fotis Missopoulos Student: Marigona Bajrami November 2012 Abstract Nowadays, the implementation of new technologies is considered as a need for companies in order to succeed in a high competitive business market. In this regard, the Enterprise Resource Planning (ERP) systems provide support and benefits within many business processes of companies. The implementation of ERP has been successfully adopted by numerous companies all around the world. This paper focuses on the benefits that ERP systems provide in supply chain management of companies and how it affects their performance. Generally, based on the literature review different benefits and challenges are discussed. Nevertheless, a case study of an engineering company known as MAE will be examined to identify the benefits that the company has gained with the implementation of ERP systems and how the implementations has affected their business performance. Table of context: Introduction...............................................................................................................................4 Literature Review..............................................................................................................5-8 Case Study.................................
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...Operations Management Operations management focuses on carefully managing the processes to produce and distribute products and services. Usually, small businesses don't talk about "operations management", but they carry out the activities that management schools typically associate with the phrase "operations management." Major, overall activities often include product creation, development, production and distribution. (These activities are also associated with Product and Service Management. However product Development is usually in regard to one or more closely related product -- that is, a product line. Operations management is in regard to all operations within the organization.) Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc Sections of This Topic Include: Procurement (Purchasing) Practices This topic reviews guidelines for buying various materials from suppliers and vendors -- materials, including computers, services from lawyers, insurance, etc. Procurement (Purchasing) Practices Management Control and...
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...perform particular tasks, specific specialized software is needed. Material Requirements Planning Among the many operating software systems, one of the most important is the Material Requirements Planning (MRP) system. Material Requirements Planning is the system that manages the process of production planning and inventory. This system uses a technique of inventory, expected receipts, and bill of materials. This system also uses the Master Production Schedule (MPS) to determine the material requirements. There have been four main benefits of having a MRP system in your business. These benefits include, but are not limited to, better responses on customer orders, faster responses on market changes, improve utilization of facilities and labor, and reduced inventory levels (Heizer, J). Capacity Requirement Planning The Capacity Requirement Planning (CRP) is a method that many businesses use to determine the available production capacity. It will start off by assessing the schedule of production that the company has planned. It will then analyze the actual production capacity of the company, and weigh it against the schedule of production to see if the company can meet the schedule with its current production capacity (Capacity Requirements Planning.) Enterprise Resource Planning The Enterprise Resource Planning (ERP) is a software system that effectively plans and controls all resources needed to make, ship, and account for...
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...updated with the Information Technology solutions. The manufacturing sector is one of the main economic activities in most of the nations. The most important aspect to characterize IT adoption is the industry and its specific characteristics rather than the country the firms belong to. Different industries have different operating characteristics and environments, and the factors related to ERP use may differ accordingly. Given the complexity of manufacturing firms, we then decide which aspects of a firm influence the use of technological innovations. Most of the manufacturing companies rely on ERP software to manage the entire range of business activities from CRM, manufacturing inventory and processes, accounting software, manufacturing planning, purchasing, quality, and more. For implementing ERP in any manufacturing industry the research objectives revolve around the following parameters(Mainly cost and quality measurement) * To identify whether there is significant difference in performance measures like cost and quality in industries with well defined IT system and industries with not such well defined IT systems with respect to the manufacturing sector. * To identify various constructs for measurement of performance and factors influencing the performance. * To find importance of project management to achieve cost and Quality Measures. CHALLENGES Since ERP implementation affects entire organizations such as process, people, and culture, there are a number of...
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...The Impact of Enterprise Resource Planning in the Company Environment Introduction Since the Sarbanes-Oxley Act of 2002, companies are required to report effectiveness of their internal controls on purpose to reduce fraud. Enterprise Resource Planning (ERP) systems have taken advantage of this new focus on internal control because it offers an integration of an organization’s main business functions. Even though the value of ERP has been debated in trade periodicals, there is no large evidence of whether the benefits of ERP implementation exceed the costs and risks. This paper is designed to evaluate the impact of enterprise systems on a firm's environment, and how it reflects in the production and management of earnings. “The Impact of Enterprise Resource Planning (ERP) Systems on the Effectiveness of Internal Controls over Financial Reporting” by John J. Morris The study to produce the article was motivated by an empirical research question about the impact of ERP systems on internal control. Specifically, the study examined if firms that implemented ERP systems are more or less likely to report internal control weaknesses in their annual reports than firms that did not. This study used a sample of 108 firms that confirmed the execution of ERP systems between 1994 and 2003, and also an equal number of control firms, accorded by industry and size. The results show that firms that implemented ERP are less likely to report internal control weaknesses than the firms which did...
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...|Chapter | | |12 | | | | | | |Information Technology and Value Chains | TRUE/FALSE 1. Technological change is a major factor in gaining competitive advantage. Answer: True Reference: Introduction Difficulty: Easy Keywords: technological, change, competitive, advantage 2. Advances in technology spawn new products and services. Answer: True Reference: Introduction Difficulty: Easy Keywords: technology, products, services 3. Technology is the know-how, physical equipment, and procedures used to produce products and services. Answer: True Reference: The Meaning and Role of Technology Difficulty: Moderate Keywords: technology, equipment, procedures 4. The most widespread view of technology is process technology. Answer: False Reference: The Meaning and Role of Technology Difficulty: Moderate Keywords: technology, process 5. A support network comprises physical, informational, and organizational...
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...Research Paper Enterprise Resource Planning Enterprise Resource Planning began with early attempts in the 1940’s but was not mastered until the early 1960’s by J.I. Case, the manufacturer of tractors and other construction machinery, and partner IBM. It also has its relationship with Material Requirement planning (MRP), which serves as the method for planning and scheduling materials for complex manufactured products in the 1980. But it was too big clumsy and expensive and eventually lead to the focus of MRP II by JD Edwards. Enterprise Resource Planning help provides corporate platform for information technology and include financial and manufacturing applications. Its attempt to integrate all areas of the company function into a single system that can serve different department needs throughout the company. By integrating all business function it helps the company to function more efficiently in the business processes. With the integration of business processes ERP helps to reduce operation cost, such as production and inventory costs, it helps with budgeting, generating more accurate demand forecasts, bill of material, speed production cycles and enhance customer service. ERP system has been growing tremendously since it first introduction, according to a Gartner research in 2005, the total ERP application grew 5.2 percent annually as the market deal with mergers, on demand and technology advances with Europe having the largest segment of the market at 42 percent...
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...What is ERP? Enterprise resource planning (ERP) is defined as the ability to deliver an integrated suite of business applications. ERP tools share a common process and data model, covering broad and deep operational end-to-end processes, such as those found in finance, HR, distribution, manufacturing, service and the supply chain. A process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance, human resources. ERP applications automate and support a range of administrative and operational business processes across multiple industries, including line of business, customer-facing, administrative and the asset management aspects of an enterprise. However, ERP deployments tend to come at a significant price, and the business benefits are difficult to justify and understand. Look for business benefits in four areas: IT cost savings, business process efficiency, as a business process platform for process standardization and as a catalyst for business innovation. Most enterprises focus on the first two areas, because they are the easiest to quantify; however, the latter two areas often have the most significant impact on the enterprise. INVESTOPEDIA EXPLAINS 'Enterprise Resource Planning - ERP' ERP is most frequently used in the context of software. As the methodology has become more popular, large software applications...
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...What is ERP? ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications to improve the performance of organizations' resource planning, management control and operational control. ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, and product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business. Enterprise resource planning (ERP) refers to a computer information system that integrates all the business activities and process throughout an entire organization. The objective of ERP is to provide seamless, real-time information to all employees throughout the enterprise. Companies commonly use ERP systems to communicate the progress of orders and projects throughout the supply chain, and to track the costs and availability of value-added services. ERP Definition - A Systems Perspective A sound definition should several purposes: 1. It answers the question of "what is ...?” 2. It provides a base for defining more detailed concepts in the field - ERP Software, ERP systems, ERP implementation etc. 3. It provides a common ground for comparison with related concepts - CRM, SCM etc. 4. It helps answer the basic questions in the field -benefits of ERP, the causes of ERP failure etc. The Goal of an ERP System - The goal of ERP is to...
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...Personnel management and Human resource management. 3 1.2 The functions of human resource management (HRM) in the Enterprise Rent A car 4 1.3 The roles and responsibilities of line managers in the HR department of Enterprise Rent-A-Car 5 1.4 Analyse the impact of UK legal and regulatory framework on human resource Management 6 Task 2 2.1 Analyse the reasons for Human Resource planning for Enterprise Rent A Car: 7 2.2 Outline the sages involved in planning its human resource requirements 8 2.3 Compare the recruitment and selection process of for Enterprise Rent-A-Car 10 2.4 Evaluate the effectiveness of the recruitment and selection techniques of the two 11 companies discussed above. Task 3 3.1 Assess the link between motivational theory and reward at Enterprise Rent-A-Car 12 3.2 Evaluate the process of job evaluation and other factors determining pay 13 3.3 Assess the effectiveness of reward systems in two different work contexts 14 3.4 Examine methods that are being used by businesses to monitor employee performance 15 Task 4 4.1 Identify the reasons for cessation of employment with Enterprise Rent-A-Car 16 4.2 The Exit procedures in two different organisations. 17 4.3 The impacts of the UK regulatory framework on employment cessation arrangements 17 Reference 19 Task 1 1.1 Personnel management and Human resource management. Since the introduction...
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