SE 464: Industrial Information systems Systems Engineering Department Welcome to SE 464 LAB Atiq...

Systems Engineering Department

SE 464: Industrial Information systems

Welcome to SE 464 LAB

Atiq SiddiquiOffice: 22 – 422

Tel: 1619Email: [email protected]

Office Hours: 11:00 AM -12:00 AM Sat-Tues or by Appointment



Welcome to SE 464 LAB

‘Grading Policy’

Total 25%of the course grade

Attendance 1.25 (5)%Home work 3.75 (15)%

Mid-Term 10 (40)%Final 10 (40)%



Industrial Information System

LAB 01: Introduction to basic conceptsLAB 02: Introduction to SAP structure

(Homework: Cases or paper summary + Discussion on WebCT) LAB 03: SAP Basics (Navigation & key concepts Hands On Experience)LAB 04 & 05: Procurement + Related Exercise Lab 06: Mid Term LAB 07: Master DATA + Related Exercise

(Homework needed for Forecasting Lab) LAB 08 & LAB 09: Forecasting in SAP + Related Exercise LAB 10: Plant Maintenance + Related ExerciseLab 11: Introduction to SQL (Databases) + Related Exercise Lab 12: Final ExamLab xx–Visit to Aramco SAP center or a visit by a SAP consultant



Industrial Information System

LAB 01: Introduction



Part 1: Concepts & Introduction

• Basic Concepts & Terminologies• (EIS) Enterprise Information System Model• Key System Applications in an Enterprise• Major Types of Information Systems

Part 2: The Software Side• Enterprise Resource Planning (ERP) Introduction

Lab 01 objectives



Part 1Enterprise Information Systems

Concepts & Introduction

Lab 01 objectives



What is an Enterprise or an Organization??

What makes an Enterprise??

What are enterprise functions??

What are processes??



Procurement

Inventory

Finance

Maintenance

EngineeringDesign

Controlling

ProductionPlanning

Sales

Shop Floor execution

Quality

Functions of Enterprise

Enterprise



An Example of Process



Systems from a Functional Perspective

Business processes & Information Systems• Def: Manner in which work is organized,

coordinated, and focused to produce a valuable product or service.

-- Cross-Functional Business Processes transcend boundary between sales, marketing, manufacturing, and research and development (e.g., order fulfillment process…)

• Ways in which management chooses to coordinate work




Business processes have• Unique ways to coordinate work, information, and

knowledge




Examples of Business Processes

Functional Area Business Process

Manufacturing and production

Assembling the productChecking for qualityProducing bills of materials

Sales and marketing Identifying customers Making customers aware of the productSelling the product

Finance and accounting Paying creditorsCreating financial statementsManaging cash accounts

Human resources Hiring employeesEvaluating employees’ job performanceEnrolling employees in benefits plans



• Focus on ‘Functions’ rather than ‘Processes’

• Applications developed over time.

• Inconsistent, redundant Data

• Time lag in information delivery

• Managerial Control Difficult

• Process Productivity Monitoring Difficult

• Reaction to change slow

Typical problem faced by an Enterprise



Enterprise Information System

Enterprise wide information system integrates various functionalities within an enterprise

Integrated Enterprise



EIS Objectives and Challenges

• Integration: Different systems serve variety of functions, connecting organizational levels -- difficult, costly

• Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives

• Maximize customer perception of value added through the use of best business practices and real time control.

• Increasing customer demand inelasticity and simultaneously minimizing costs.



Key System Application in an Enterprise



Major Types of Information Systems




We will look at major functions & application of important function wise systems

Sales and Marketing SystemsManufacturing and Production Systems

Financing and Accounting Systems

Human Resource Systems




Sales and Marketing Systems

Major functions of systems:• Sales management, market research, promotion,

pricing, new products, market gap analysis

Major application systems:• Sales order info system, market research system,

pricing system




Sales and Marketing Systems

SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL

MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE

PRICING ANALYSIS DETERMINE PRICES MANAGEMENT

SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC




Manufacturing and Production Systems

Major functions of systems:• Scheduling, purchasing, shipping, receiving,

engineering, operations

Major application systems:• Materials resource planning systems, purchase

order control systems, engineering systems, quality control systems




Manufacturing and Production Systems


MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL

COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE

PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT

FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC




Financing and Accounting SystemsMajor functions of systems:• Budgeting, general ledger, billing, cost

accounting

Major application systems:• General ledger, accounts receivable, accounts

payable, budgeting, funds management systems




Financing and Accounting Systems


ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL

PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE

BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT

PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC




Human Resource SystemsMajor functions of systems:• Personnel records, benefits, compensation, labor

relations, training

Major application systems:• Payroll, employee records, benefit systems,

career path systems, personnel training systems




Human Resource SystemsSYSTEM DESCRIPTION ORGANIZATIONAL LEVEL

TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL

CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE

COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT

HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC




Benefits of EIS• Firm structure and organization: One organization

• Management: Firm-wide knowledge-based management processes

• Technology: Unified platform

• Business: More efficient operations and customer-driven business processes




Challenges of EIS• Difficult to build: Require fundamental changes in

the way the business operates

• Technology: Require complex pieces of software and large investments of time, money, and expertise

• Centralized organizational coordination and decision making: Not the best way for the firms to operate



Part 2Enterprise Resource Planning

The Software Side

Lab 01 objectives



Definition of an ERP system

ERP or Enterprise Resource Planning systems are software systems for businesses management encompassing modules supporting functional areas such as sales and marketing, finance, production, distribution accounting, human

resource management, maintenance, inventory management, project management,

transportation and e-business etc

Enterprise Resource Planning ERP



Definition of an ERP system

• ERP is a commodity -- product in the form of software

• SAP, Oracle Applications, PeopleSoft, JD Edwards, Greatplains etc. are world’s leading ERP packages

• The market leader is “SAP”




Features of an ERP system

• Architecture of ERP system facilitates transparent integration of modules providing flow of information between all function within enterprise in real time.

• Many different software are replaced by one integrated system.

• Reliable information access through common DBMS

• Eliminates data and operational redundancies (no duplication of work or data entries etc.)




Features of an ERP system

• Cost reduction through time saving, improved control by organizational wise analysis of organizational decisions.

• Delivery and cycle time reduction• Scalable systems• Global outreach through extended modules such as CRM or

SCM• E-Business

• Providing business solutions in support of core processes

• Process-oriented view cutting across functions of an enterprise

• Huge potential for customizing




Business and Technical Benefits

• Automation of business transactions

• Flexibility in changing the system catering to newer business processes.

• Coordination across business functions

• Coordination across geographical distances resulting in better Managerial control

• Consistent information and interface thus easier to understand and work in

• Single system



Prime Reasons for Implementing ERP

• Need for common platform

• Process improvement.

• Data visibility that could be used to improve operating decisions.

• Operation cost reductions.

• Increased customer responsiveness.

• Improved strategic decision making

• Personal Improvement

SE 464: Industrial Information systems Systems Engineering Department Welcome to SE 464 LAB Atiq...

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