Enterprise Resource Planning (Course Outline)

Institute of Business & Management (IB&M)UET, Lahore

Course Introduction Enterprise Resource Planning

MBA 2011

Course Name Enterprise Resource Planning

Instructor Turab Ali Khan, B.Sc. (Mechanical Engg) MEM. (Manufacturing),

Semester Spring, 2011

Credit Hours Three

Class Timings: Alternate Sundays 10 a.m. to 4 p.m., Starting from Feb.20th

Tele Mobile: 0300-8520271

Email: [email protected]

Required Texta. Enterprise Resource Planning by Alexis Leon

Reference Booksa. Solving business Problems with MRPII by Alan D. Luberb. Orchestrating Success by Richard C. Ling and Walter E.

Goddard.

Teaching Assistant

Program Coordinator

Telephone No.:

Enterprise Resource Planning, Turab Ali Khan, EMBA, Spring 2011 1

mailto:[email protected]

1. Introduction:

Globalization is a phenomenon which is associated with reduced barriers to international

trade, increased global movements of raw-materials, products, technology and to some extent

of manpower. This has a tremendous impact on the way we live. One of the most important

enabler in this whole process is availability of the right information at the right time.

Information technology is revolutionizing the way in which we conduct businesses and

ultimately the way we live. Digital technology has enabled us to treat information with

mathematical precision and transmit it with accuracy. In business, today, the most important

aspect is managing information. To provide real-time information about all aspects of the

business and a foundation for sound planning, the need for a system was felt among the

business circles of the world for long. Efforts in this direction resulted in the early systems

like MRP (Material Resource Planning), which evolved in stages to MRPII (Manufacturing

Resource Planning) to ERP (Enterprise Resource Planning). ERP covers the techniques

employed for integrated management of business as a whole and the design of ERP software

is based to model and automate many of the basic processes of a company from finance to

shop the shop floor. The basic goal is integration and integrity of data.

2. Brief Description of the Course:

This three credit hours course is designed for Technical/Business Managers who intend to

work for services and manufacturing sectors. The course is basically meant for introducing

the real meaning of Enterprise Resource Planning, which provides for integrating planning

throughout the business cycle from raw-materials, shop floor control to the related human-

resource and finance processes. This provides the ways to enhance productivity and

efficiency of all the processes in an organization through integrating planning. The course

will discuss the role of ERP and ERP-Soft-ware to reduce inventories, waste, scrap, and

rework and how to utilize resources efficiently in different environment with emphasis on

reduced cycle time. The resulted reduction in the non-value added activities and accelerating


the value-added process reduces the cash-to-cash cycle time. In pursuit of the process

improvement journey, this course will provide the students with basic but comprehensive

solutions and the step by step approach to transform their enterprises into future oriented

organizations.

This course systematically presents several conceptual and pragmatic methodologies, tools

and techniques for various phases of the integrated planning process in an enterprise.

The materials in this course have been tested and evaluated in three-credit courses at graduate

and undergraduate levels, short courses, etc. The seminars and presentation in the course are

from real-life experiences covering both manufacturing and service organizations.

The course attempts to serve the practical needs of consultants, training personnel, industrial

engineers, Supply Chain Planning managers, Finance managers, Shop floor managers (first

line managers), Human Resource Planning Mangers, accountants, corporate planners, and

administrators.

Thus, the main emphasis of this course is on the organizational level. We do, however

analyze the environment of the organization from the point of view of how it could

contribute to or hamper process improvements. The second emphasize in this course is on

shifting the balance a little from the academic to the practical world of integrated planning

and its effects on the bottom line of the financial statements. It is well known that many

failures occur when company’s main objective is only to maximize sales or profit and

minimize costs. However, only an effective implementation of an ERP system, when it is the

main objective of the company, can integrate and balance the areas of marketing, profits

production costs, return on investments, sales and output.

Since its main emphasis is on the organization level, management practitioners, whether in

market economy or in centrally planned economy, will find some useful hints for practical

implementation.


3. Organization of the Course:

Industrial organizations can be of various sizes: small, medium and large scale. Requirements

of resources to implement an effective ERP system will differ accordingly. For a large

organization, ERP system’s implementation will require a lot of resources to alter its

processes according to the need of the ERP-modules, will require a lot of resources and time.

An organization-wide training and development program will also require resources and

consume time. This might necessitate the appointment of a full time implementation manager

assisted by a team who is responsible for all the implementation phases. For a smaller

organization, this level of resource commitment might not be needed in relatively smaller

organizations but appointment of an experience consultant is helpful in all the cases.

Successful implementation is always a result of top management commitment. So the course

will cover from the initial introduction of ERP soft ware to the detail integrating planning

from DRP (Demand Resource Planning) to MRP (Raw-material Planning) with detail

discussion on the role of BoM (Bill of Materials) and MPS (Master Production Scheduling)

in the overall integrated planning. The theme advocated in this Course will focus on this

dimension as well as to develop suitable methodology. The discussions on ERP concepts

within the scope of this Course are designed to enhance understanding of the role of

integrated planning in the successful and profitable running of an organization and the

support for this process from appropriate ERP software..

The Course will adopt a practical, problem solving approach and students will actually

experience the effective implementation of change through integrated planning in their

respective professional areas. You will learn issues related to material, employee, production,

logistics and financial planning modules and how all of these are connected through an

integrating planning process producing single figures throughout the organization.. With the

help of applied projects students will design, plan and implement changes to improve the

business process and the financial outcome of the operations through effective use of the

ERP software.


4. Aims and Objectives of the Course:

Today most organizations world-wide are implementing ERP software with the help of

consultants and software vendors. The main objective is to improve the profitability of the

organizations through more consolidated and integrated planning. The results are not

encouraging for all. Some firms have extremely benefited from the implementation of the

ERP systems, for others it has proved to be just an acquisition of costly and sophisticated

software. One of the main differences between the two types of organizations is the

awareness of their staff about the usefulness of the systems. Overall objectives of this Course

is to present a more appropriate review of the ERP concepts applicable to almost all types of

organizations with a special focus on Technical enterprises.

Main aims and objectives of Course:

a. To prepare the business graduates to satisfy dynamic, and market-driven organizations

that want to challenge the status quo and to build competitive edge in the market by

adopting the latest techniques.

b. To provide a clear perception of concept of ERP in its broader perspective.c. To promote understanding and awareness of the organizational level before launching

the implementation of an ERP system.d. To provide some basic knowledge about the main processes covered and different

modules of ERP software.e. To demonstrate the applicability of the techniques designed in the context of the small,

medium and large sized business organizations. f. To make the participants aware of the integrated planning process and its benefits. g. To give a feel, to the students, of the ERP market and leading vendors and consultants.


5. Distribution of Course Contents:

Lecture 1/220th Feb. 2011

Introduction to ERPa. Introductionb. Evolution of ERP c. What is ERP? (Advantages, Market ed. Why many ERP implementations fail?

Enterprise – An Overview.a) Integrated management informationb) Business Modelingc) Integrated data modeld) Project discussion (1/2 hour)

.Lecture 3/4.

6th March 2011.

ERP Implementationa) Catch 22b) Ways to implementc) The proven Pathd) Softwaree) Benefits of proper ERP implementationf) Project discussion (1/2 hours).

Lecture 5/620th March

2011.

ERP Implementation – The proven Path Part 1 & 2 a) Audit Assessment 1b) First cut educationc) Project Launchd) Audit Assessment 2e) Performance Goalsf) Project discussion (1/2 hour)

Lecture 3rd April

Mid term exam – 1 hourBasic Education

a) Why Education?b) Whom to educate?c) CSFs for implementing ERPd) Understanding the supply chaine) Project discussion (1/2 hour)

. Lecture 17th April

Basic Educationa) Strategic Planning Processb) People and Teamsc) Total Quality and continuous improvementd) New product developmente) Planning and controlf) Project discussion (1/2 hours)

Lecture 1st May

Sales and Operation Planninga) Planning and Control Process Overview


b) Sales & Operations Planningc) Master Production Schedulingd) Project Discussion (1/2 hour)

Lecture.15th May

ERP- A manufacturing Perspectivea) Material Requirements Planningb) Capacity Requirements Planningc) Production Reporting and Controld) Project Discussion

. Lecture 829th May

a. project presentations – 3 hoursb. Final Exam – 3 hours

Assignments: No. Assignment Submission date1 Search through Internet and write a three page note on the evolu-

tion of Enterprise Resource Planning.6th March 2011

2 What do you understand by CAD/CAM? Write in detail and give references of the internet sites surfed.

20th March 2011

3 Search through the internet and make a list of different leading ERP software used by businesses around the world. Write a brief note on each.

17th April 2001

4 What is BoM? How does it help in material planning? Give exam-ples from real life.

1st May 2011

6. Grade Distribution:

Mid Term Exam 20 PercentFinal Exam 30 PercentClass Participation/ Presentations 10 PercentAssignments 10 PercentQuizzes 10 PercentGroup Project/Folder 20 Percent

Total Marks 100


7. Misc. Instructions:

o All classes are Smoke and Mobile Free. o Timely submission of Home Assignments is mandatory. For an assignment submitted one week

after the due date, 50% marks will be deducted. Any assignment submitted later than a week of the due date will be considered not submitted. All Assignments will be uploaded in the specified folder of group created for this course’s participants. No hard copies or submission through email address.

o Please keep on reading your emails daily to find any new instructions. o No one is allowed to copy Homework. Copying can cause a student to dropped from the course.

This is minimum punishment. o Latecomers may be considered/ marked as absent in the class.o Break timing will be strictly observed. o Class sanctity is top most in our agenda while class is in session.o All volunteers who present new ideas in the class will be highly encouraged.o Students are not allowed to approach the Instructor on his mobile phone except in

emergency.o Date and Time for Presentation is final. Those who not attend will be graded F.

8. Project & Research Paper Instruction:

The main thrust of this course is to learn the practical aspect of ERP. Students need to focus on various important issues and must deliberate a lot and should have in depth discussion before they finalize the project and team members. Project must be related to ERP issues. It could be a study of an organization which has implemented ERP and the problems they faced and overcame during the process.. You may choose organization in public or private sector (service or mfg). Project must be from real life or may be from your own background/work environment / parent dept but it must be related with ERP implementation. More groups are encouraged to do applied project.

9. What is due within next Two weeks?

1. A preliminary draft proposal of one page (along with the name of the participants) for the approval of the instructor. Upon approval a comprehensive proposal will be required. Instructor will be available after class or during the rest of week to assist students about various ideas and how to attack the problem.

Project Group will be consisting of four to five students of heterogeneous & diversified background.

In order to create a reasonable balance in a group, No group will be consisting of students with similar background/profession. Only in extreme exceptions, permission of Instructor may be granted after careful evaluation of circumstances.

10. Requirement of Presentation:


Professional presentation by the Group on approved topic.One hard copy of Final Project Report and one electronic copy must reach course instructor positively on the same day of presentation. Project Report /Research Paper must be typed in MS Word in a professional way and should not be more than 30 pages double space, font size will be 12 with proper references etc.

All reports should be error free and spell checked with proper format. 25 percent academic penalty will be imposed on all late submissions.

There will be Four Project Presentations in one session. Each group will be given 30 minutes with 10 minutes Q & A Session. It is believed that after undergoing this academic exercise, you will be able to contribute more effectively in your parent department /future assignments.

About the Instructor

Turab Ali Khan is a graduate mechanical engineer from UET, Peshawer. He has done his

Masters in Engineering Management from CASE, Islamabad and Diploma and training

management from COSMO Japan. He has completed ISO-9000 Certified Lead Auditor and

supply chain SCOR model course. He has about 25 years of industrial experience in the

fields of power generation, Steel making, petrochemical industry and fast Moving

Consumer’s Goods manufacturing industry. Has worked in establishment of the NFC

Technical Training Center Multan and has been a visiting faculty in NUST for the certified

professional courses on Quality and Environment, Health and Safety. Has also been an active

member of the team arranging a certified course on “Production Management” at PAC

Kamra. Has conducted various EHS audits at local and international levels and had been

involved in major productivity improvement as well as supplier’s development projects to

improve the effectiveness of supply chain. He is also a visiting faculty member at IBM UET

Lahore.

E-mail: [email protected]


mailto:[email protected]

Documents

Enterprise Resource Planning (Course Outline)