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SAQC Technical Meeting

Enterprise Resource Planning :Enterprise Resource Planning :THE WAY FORWARDByBy

Peter Polet & Philip TapperPeter Polet & Philip Tapper30 September, 2002 at

The Institute of Public Administration

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Habit Consulting

Contents:

Corporate Requirements

Implementation Methodology

Functionality

A bit about MRPNetworksOrdersCapacities

The Way Forward

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Who uses ERP ?

SAP is used by more than half of the worldSAP is used by more than half of the worldss

top 500 companiestop 500 companies

SAP is used by over 10 Million users in moreSAP is used by over 10 Million users in more

than 13,500 companies of all sizes &than 13,500 companies of all sizes &

industries,industries, egeg::

AramcoAramco SABICSABIC

ABB Saudi Arabia (ABB)ABB Saudi Arabia (ABB)

KraftKraft

BP, Shell, Exxon, MobilBP, Shell, Exxon, Mobil

Rolls RoyceRolls Royce UnileverUnilever

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Jargon Buster

Enterprise Resource Planning

Material Requirements Planning

Manufacturing Resource PlanningThe integrated planning of a companys material,equipment and people to meet the Business Plan

The time phased Explosion of the material requirements based on the Bill OfMaterials, Lead Times, Order Quantities and Safety Stocks to determinewhat to make or buy and when

The planning of production (usually End Item Production) tosatisfy current and forecast orders

Manufacturing Resource Planning plus resource planning for the non-manufacturing areas such as plant maintenance, human resource planningetc..

Master Production Schedule

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Why ERP

Change driven by people

BottomlineBottomline GoalsGoals

ImprovedImproved::

ResponsivenessResponsiveness

EfficiencyEfficiency

ControlControl

StandardisationStandardisation

Operational GoalsOperational Goals

IntegrationIntegration

AutomationAutomation

ConsolidationConsolidation

RationalisationRationalisation

System GoalsSystem Goals

IncreasedIncreased ::

Market ShareMarket Share

SalesSales

MarginsMarginsQualityQuality

ServiceService

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Corporate Requirements

1 Management Commitment

.. In order of importance

2 Management Commitment

3 Management Commitment

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Corporate Requirements

1 Recognition of the need for change

2 A clear vision

3 A good implementation partner4 A dedicated team

5 Commitment

6 Very strong Change Management

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The Old Chestnuts

ERP is fine for other companies, but

were unique Weve been doing it this way for 100

years, why change?

Well do it ourselves

We cant afford it

We havent got the time

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The Starting Point

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Implementation Methodology

Business Solution Design

Review businessmodel &

core requirements

Develop business case

outlining key benefit's and

the total solution cost

Assess available

technology & perform

feasibility study

Solution Architecture Design

System landscape

determined.

Initial solution sizing carried

out.

Key integration points with

trading partners identified

Implementation Strategy & Execution

Program Management:

Scope, Change & Project

planning & measurements

Project Auditing: Project

controls and standards

established

Org. Change Mgt: Develop

training strategy to align

roles with processes.

Project

PreparationBlueprint Realisation

Final

Preparation

Go-live &

Support

Support & Continuous Improvement

Competancy Centre

Establishment

Business Performance

Improvement Unit

established

Upgrade & Solution

Development StrategyImprove/Optimise