Lesson 2 2007 V0.2 - · PDF fileLife-Cycle Data Management RoHS / WEEE Compliance Indirect...

SoberITSoftware Business and Engineering Institute

HELSINKI UNIVERSITY OF TECHNOLOGY1

Enterprise Architectures

ERP applications

Timo Itälä, Paavo Kotinurmi


HELSINKI UNIVERSITY OF TECHNOLOGY

Timo Itälä2

Course Map 2007

12.9: EA (Enterprise Architecture) Overview

19.9: ERP (Enterprise Resource Planning) systemsTimo Itälä, Process and Data Modeling basics

Paavo Kotinurmi, Implementing an ERP System

Terhi Nyyssönen, Ruukki, ERP in practise

26.9: BI (Business Intelligence) and Data Warehousing

3.10: BPM (Business Process Management) and SOA (Service Oriented Architecture)

10.10: Governance

17.10: ECM (Enterprise Content Management) and PDM (Product Data Management)

24.10: Enterprise Architecture Summary



Timo Itälä

In the early days...

Automation of manual tasksPayroll

Bookkeeping

Order entry

Invoicing

Statistics

3

Input Output

Data Program

Computer



Timo Itälä

The next steps...Application packages

Personnell

Economy administration

Production Control

Material Requirements

Inventory-Orders-Shipping-Invoicing

Purchasing

Product development

...

4

User tasks

Databases

Applications

Platforms



Timo Itälä

Enterprise Architecture

Alignment of IT and business

Organization´s strategy, goals and operations

Business Processes

Organizational charts

Conceptual models, data models

Application suites

Software and hardware platforms

5

Business

Information Applications

Technology

Inte

gra

tion

ERP...



Timo Itälä

Business processes...

Integration needed...Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system.

A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.

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Timo Itälä

Key processes within an enterprise

Key business processesOrder entry - delivery - invoicing

Production planning - material purchasing - production -warehousing

Personnel recruting - payroll -education - retention??

Market analysis - product development - product marketing

What is a business process?

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Timo Itälä

Business ProcessDavenport (1993)”a structured, measured set of activities designed to produce a specific output for a particular customer or market. It implies a strong emphasis on how work is done within an organization, in contrast to a product focus’s emphasis on what. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs: a structure for action. ... Taking a process approach implies adopting the customer’s point of view. Processes are the structure by which an organization does what is necessary to produce value for its customers.”

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Timo Itälä

Business Process

Rummler & Brache (1995)”a business process is a series of steps designed to produce a product or service. Most processes (...) are cross-functional, spanning the ‘white space’ between the boxes on the organization chart. Some processes result in a product or service that is received by an organization's external customer. We call these primary processes. Other processes produce products that are invisible to the external customer but essential to the effective management of the business. We call these supportprocesses.”

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Timo Itälä

Business Process Modeling (How?)Process Maps:High level view of business processes

10

Purchasing Market

Business Processes

Procurement Production SalesSales Market

Functions

Key rolesProcess Customer: A recipient of the process' outcome (External/Internal)

Process Owner: a person being responsible for the performance and continuous improvement of the process



Timo Itälä

High level -> details

11



Timo Itälä

Business Process in details

12

EPC Diagram: Event Process Chain



Timo Itälä

Business Process types

Real Process - Material ProcessThe output is physical

The output is what the enterprise produces and sells

Money ProcessThe moneyprocess has often opposite direction to the material process

The output is what the enterprise earns for living

Information ProcessCreation of information

Usage of information

13



Timo Itälä

The devil lies in the details...

14



Timo Itälä

Concept Models (What?)

15

Customer

BusinessUnit

Product

Supplier

Material

Equipment Employee

Location

Inventory



Timo Itälä

Conceptual Models -> Data ModelsEntity-Relationship Diagram: An ERD is a model that identifies the concepts or entities that exist in a system and the relationships between those entities.

Entity is a thing we need to store information about (A noun)

A relationship captures how two or more entities are related to one another (A verb)

Cardinality: How many?

the ring represents "zero"

the dash represents "one"

the crow's foot represents "more" or "many"

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Timo Itälä

NormalizationNormalization:

Many-to-many relationships are removed by adding an intersection entity: Order and order line

Business Rules:

Customer: Potential or real? Zero orders or at least one order?

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Timo Itälä

Entities and attributesAttributes:

Entities can have attributes

Every entity must have an uniquely identifying attribute or set of attributes (Primary Key)

Attributes can be used to represent relationships (Foreign Key)

Business Rules:

Can sales price be different from list price?

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Timo Itälä

Business processes and data

19

Intersections indicate activities

Bill-Of-Material

Master Data



Timo Itälä

ERP System

Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system.

20



Timo Itälä

Modules of an ERP system

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Timo Itälä

Implementation of an ERP system

Discover your Business Processes (As-Is)

Define your Business Processes (To-Be)

Map the Business Processes of your To-Be model into the ERP system´s model

Define your Data Model (To-Be)

Discover your Data Model (As-Is)

Prepare for the migration (Data and processes)

Train

Start

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Timo Itälä

ERP implementation tasksConsulting for a large ERP project involves three levels: systems architecture, business process consulting (primarily re-engineering) and technical consulting (primarily programming and tool configuration activity).

A systems architect designs the overall dataflow for the enterprise including the future dataflow plan.

A business consultant studies an organization's current business processes and matches them to the corresponding processes in the ERP system, thus 'configuring' the ERP system to the organization's needs.

Technical consulting often involves programming. Most ERP vendors allow modification of their software to suit the business needs of their customer.

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Timo Itälä

Plan Source Make Deliver Return

New Product Development & Intro. (NPDI)

Quotation Management

Service Management

Procurement of Goods and Services

Supplier Collaboration Inventory Management

Configure to Order Sales Order Processing

Solution Map - mySAP ERP for High Tech

Demand & Supply PlanningMake to Stock Manufacturing

Engineering Change Management (ECM)

Make to Order Manufacturing

Service Parts ManagementEnterprise Management & Support

Analytics

Financials Human Capital Management

Corporate Services

Strategic Enterprise Management Financial Analytics Operations Analytics Workforce AnalyticsOperations Support

Life-Cycle Data Management RoHS / WEEE Compliance Indirect Procurement Global Trade Services (GTS)

Customers& Channels

Suppliers& Partners

Time-to-Market

Procure-to-Pay

Plan-to-Make

Quote-to-Cash

After Sales Support

Distributed Manufacturing



Timo Itälä

H75: PLM - Product Development and Collaboration +H85: PLM - Prototype DevelopmentH91: PLM - Product Data Collaboration w. Subcon.

H11: ECM - for Make-to-Stock (MTS) ProductionH69: ECM - for Configure-to-Order (CTO) Production

H55: CRM - Design Registration

J49: Procurement of Stock Material J50: Procurement - Contract J51: Internal Procurement (with & w/o Delivery) (J52)

H88: Quality Management in Procurement

H83: MTS - Production with External Processing and Serial Numbers +H84: MTS - Production with Batch -, Warehouse - and Handling Unit ManagementH97: MTS - Production with Production Versions and Kanban ProcessingH80: MTO - Production with Repetitive Manufact.,3rd Party Order & SubcontractingH74: MTO - Production with Serial Numbers / RosettaNet (RN) – SAP XI S37: SCM - MTO Production w. Component Availability Check; w. Cap. Check (S38)

H70: CTO - Production with Variant Configuration and Assembly ProcessingH71: CTO - Production w. Credit Limit Check, Legal Control (H72), Mat.Variant (H73)

H50: Sales Order Proc. - B2B/B2C (H51) for HT in CRM e-Comm.; for ERP (H56/H57)

H76: Service Management - On-Site Service +H77: Service Management - Repairs at Plant / Repair Order ProcessingH99: Service Management - Material Exchange ProcessingH86: Service Management - Returns Processing and RefurbishmentH87: Service Parts Management - Spare Parts Sales Order Processing

* new+ enhanced

Time-to-Market

Procure-to-Pay

Plan-to-Make

Quote-to-Cash

After Sales Support

Global Solution Scope - SAP Best Practices for High Tech V1.600

J53: Internal Procurement (Cross Company Transfer)

H65: SAP NP - Sales Assistant H66: SAP NP - Purchasing Agent H67 SAP NP - Plant ManagerH68: SAP NP - Production Supervisor *H94: SAP GTS- Compliance Management H96: SAP GTS - Risk Management +H95: SAP GTS- Customs Management

H44: SAP Business Intelligence - Analytics for High Tech

Enterprise Management & Support

S61 : SRM - Plan Driven Proc. w. Supplier Integration *

S52: SCM - ICH Contract Man. Procurement & Supply Network Inventory *

J62: Sales Order Proc. - Cross-Company Sales Order Processing

J73 : Physical Inventory and Balance Sheet Valuation

H10: SOP, Long Term Planning and Capacity Evaluation



Timo Itälä

New business needs

Make to orderVolvo cars, Dell computers

TraceabilityWhere are the components of an end product coming from?

What is the performance of our suppliers?

What is the maintenance history of a product like an airrcraft?

TransparencySupply Chain Management

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Timo Itälä

Extended Enterprise

27



Timo Itälä

Questions?

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Lesson 2 2007 V0.2 - · PDF fileLife-Cycle Data Management RoHS / WEEE Compliance Indirect...

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