Enterprise Computer
Applications
Peter Ping Liu, Ph D, PE, CQE, OCP and CSIT
Professor and Coordinator of Graduate Programs
School of Technology
Eastern Illinois University
Charleston, IL 61920
Enterprise application is based
upon the actual process.
A Typical Manufacturing
Organization Is Engaged in:
• Designing the System
• Operating and Controlling the System
Source: W. J. Stevenson, Production/Operations Management
System Design
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Product and service design
Process and strategy selection
Capacity planning
Facility planning
Work system design
Location planning
Source: W. J. Stevenson, Production/Operations Management
System Controlling
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Forecasting
Inventory/materials management
Material requirement planning
Just-in-time system
Quality assurance
Sourcing
Scheduling
Maintenance
Project management
Source: W. J. Stevenson, Production/Operations Management
Customers Needs Are the Reasons for the
Existence of the Organization.
A Manufacturing Enterprise Needs People and Teamwork
in the Organization to Meet the Needs of Customers.
People and Process Need Support with Shared Knowledge
and Systems.
Any Manufacturing Organization Has Three Major
Categories of Activities (Processes):
Product/Process Definition, Manufacturing, and
Customer Support.
Every Organization Has to Manage Its
Resources and Responsibilities Effectively.
A Manufacturing Company Requires
Support and Collaboration from Other
Organizations.
Put Them All Together to Form a World
Class Manufacturer
Enterprise Started with Islands of
Applications
Evolution of Manufacturing
The Future of Enterprise
Application Is Integration.
Technical Issues
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Enterprise architecture
Application server and middleware
Component-based development
Database servers
Data warehousing
Enterprise resource planning
Enterprise networking
Enterprise messaging and communication
Internet commerce and collaboration
Project and system management
Source: Enterprise System Integration, J. M. Myerson (ed)
Enterprise Resources
Planning (ERP) Is Emerging.
ERP Potential Functions: Financial
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Account receivable (AR)
Account payable (AP)
Asset accounting
Cash financing
Cost accounting
Executive information system
Financial consolidation
General ledger
Profitability analysis
Standard costing
ERP Potential Functions:
Human Resources
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Time accounting
Payroll
Personnel planning
Travel expenses
Training
Human resource development
ERP Potential Functions:
Operations and Logistics
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Inventory management
Materials requirement planning (MRP)
Plant maintenance
Production planning
Project management
Purchasing
Quality management
Shipping
Vendor evaluation
ERP Potential Functions:
Sales and Marketing
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Order management
Pricing
Sales management
Sales planning
Major Players of ERP
Vendor
Origin
Salient Features
BAAN
Holland
An early ERP vendor
Oracle
United States
A relative newcomer,
but quickly gaining
share
PeopleSoft
United States
Originally focused on
human resource
management
SAP
Germany
The pioneer and the
largest firm
JD Edwards
United States
Internet emphasis
Source: T. H. Davenport, “Putting the Enterprise into the Enterprise System,” Harvard Business
Review, July-August, 1998
An Example of Enterprise
Resource Planning: Made2Manage
For small and medium size companies as
make-to-order
make-to-stock
engineer-to-order
assemble-to-order
mixed-mode manufacturers
Made2Manage Enterprise Resource
Planning Has Four Modules
• Customer order management—Generate quotes, sales orders,
custom-configure products, and more.
• Materials management—Automate shop floor and inventory data
collection and track material lots to seamlessly manage your
material resources and inventory transactions.
• Production management—Create job orders, capture costs and
monitor production so you can build your products more profitably.
• Financial management—Manage cash flow, key accounting tasks,
budget forecasting, payroll, HR, and more.
Made2Manage ERP
Customer Order Management
• Processing Sales Orders—Quickly enter
sales orders into your system and
jumpstart the fulfillment process.
• Quoting and Estimating—Create reliable
quotes by linking to bills of material,
routings, the M2M Product Configurator, or
the price summary worksheet.
Made2Manage ERP
Materials Management
• Inventory Control—Identify and track information on each standard
part so you can make the best possible inventory management
decisions.
• Tracking Material Lots—Automatically track raw materials, subassemblies and final assemblies to their origins.
• Shop Floor Data Collection—Automate the entry and enhance the
accuracy of your daily labor, inventory transactions, and shipping
and receiving with wireless bar coding technologies.
• Multi-Dimensional Inventory—Measure inventory in multiple
dimensions and capture inventory transactions in alternative units of
measure.
• Physical Inventory—Collect, reconcile and post count quantities
against on-hand inventory balances and generate general ledger
transactions.
Made2Manage ERP
Production Management (1)
• Job Orders—Quickly and easily create and track job orders, drive
material requirements, and examine costs throughout the production
process.
• Order Costing—Accumulate and report costs as they flow through
your system and post them to the general ledger.
• Monitoring Production—View job order costs in real time and
compare accumulated costs to projected job order costs.
• Creating Routings—Track the path a part follows through
production, including the work centers and operations needed to
produce the part, create standard or non-standard routings, and
monitor costs.
• Bills of Material—Keep up-to-date information on the components
and sub-contractors used to produce your product, better balance
lead times, reduce inventories, and improve cash flow.
Made2Manage ERP
Production Management (2)
• Shipping and Receiving—Manage all aspects of
receiving materials, returning goods, shipping finished
goods, and executing subcontract work.
• Notifying Employees—Automatically send messages to
customers, suppliers and employees when key events
occur.
• Managing Engineering Change—Audit critical
documents and create multiple revisions for the item
master, standard BOMs, and routings.
• Quality Management—Streamline quality compliance
efforts by automating your business's paper-intensive
processes.
Made2Manage ERP
Financial Management (1)
• Budgeting/Cash Flow—Develop budget forecasts
based on different sources and plan ahead for your
future cash needs.
• Accounts Payable/Receivable—Pay your suppliers at
just the right time and automate the billing process for
better tracking and analysis of your revenue streams.
• General Ledger—Link all monetary functions, such as
receivables, payables, payroll, and order costing, for
greater visibility and control over your financial activities.
• Advanced Reports—Create advanced financial reports
and drill down into source data for further analysis.
Made2Manage ERP
Financial Management (2)
• Payroll—Integrate your M2M ERP accounting
functions with third-party payroll providers such
as ADP and Abra Suite Payroll.
• Human Resources—Manage employee
relations, government mandates, and everchanging benefit options with the integrated
Abra Suite HR.
• Progress Billing—Divide your bill into separate
increments and still track the whole process to
generate needed cash flow.
Made2Manage ERP
Financial Management (3)
• Bank Reconciliation—Monitor all your checking
account transactions and streamline your cash
management operations.
• Compusoft Drill Down Tools—Drill down into
supporting financial data directly from the trial balance
and generate financial reports to meet your specific
requirements.
• FRx Forecaster—Reduce the time you spend on
collecting and sorting through spreadsheets and other
information from different departments.