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

Course Introduction Enterprise Resource Planning MBA 2011

Course Name
Instructor Semester Credit Hours Class Timings:

Enterprise Resource Planning

Turab Ali Khan, B.Sc. (Mechanical Engg) MEM. (Manufacturing), Spring, 2011 Three Alternate Sundays 10 a.m. to 4 p.m., Starting from Feb.20th Mobile: 0300-8520271 [email protected] a. Enterprise Resource Planning by Alexis Leon

Tele Email: Required Text

Reference Books a. Solving business Problems with MRPII by Alan D. Luber b. Orchestrating Success by Richard C. Ling and Walter E. Goddard. Teaching Assistant Program Coordinator Telephone No.:

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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 humanresource 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

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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 companys 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.

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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 systems 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.

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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. c. d. e. f. g. To provide a clear perception of concept of ERP in its broader perspective. To promote understanding and awareness of the organizational level before launching the implementation of an ERP system. To provide some basic knowledge about the main processes covered and different modules of ERP software. To demonstrate the applicability of the techniques designed in the context of the small, medium and large sized business organizations. To make the participants aware of the integrated planning process and its benefits. To give a feel, to the students, of the ERP market and leading vendors and consultants.

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5. Distribution of Course Contents: Lecture 1/2 20th Feb. 2011 Introduction to ERP a. Introduction b. Evolution of ERP c. What is ERP? (Advantages, Market e d. Why many ERP implementations fail? Enterprise An Overview. a) Integrated management information b) Business Modeling c) Integrated data model d) Project discussion (1/2 hour) . ERP Implementation a) Catch 22 b) Ways to implement c) The proven Path d) Software e) Benefits of proper ERP implementation f) Project discussion (1/2 hours). ERP Implementation The proven Path Part 1 & 2 a) Audit Assessment 1 b) First cut education c) Project Launch d) Audit Assessment 2 e) Performance Goals f) Project discussion (1/2 hour) Mid term exam 1 hour Basic Education Why Education? Whom to educate? CSFs for implementing ERP Understanding the supply chain Project discussion (1/2 hour) Basic Education a) Strategic Planning Process b) People and Teams c) Total Quality and continuous improvement d) New product development e) Planning and control f) Project discussion (1/2 hours) Sales and Operation Planning a) Planning and Control Process Overview
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Lecture 3/4. 6th March 2011.

Lecture 5/6 20th March 2011.

Lecture 3rd April

. Lecture 17th April

Lecture 1st May

Lecture .15th May

. Lecture 8 29th May

b) Sales & Operations Planning c) Master Production Scheduling d) Project Discussion (1/2 hour) ERP- A manufacturing Perspective a) Material Requirements Planning b) Capacity Requirements Planning c) Production Reporting and Control d) Project Discussion a. project presentations 3 hours b. Final Exam 3 hours

Assignments: No. Assignment 1 Search through Internet and write a three page note on the evolution of Enterprise Resource Planning. 2 What do you understand by CAD/CAM? Write in detail and give references of the internet sites surfed. 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. 4 What is BoM? How does it help in material planning? Give examples from real life.

Submission date 6th March 2011 20th March 2011 17th April 2001 1st May 2011

6. Grade Distribution: Mid Term Exam Final Exam Class Participation/ Presentations Assignments Quizzes Group Project/Folder Total Marks 20 Percent 30 Percent 10 Percent 10 Percent 10 Percent 20 Percent 100

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7. Misc. Instructions:
All classes are Smoke and Mobile Free. 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 courses participants. No hard copies or submission through email address. Please keep on reading your emails daily to find any new instructions. No one is allowed to copy Homework. Copying can cause a student to dropped from the course. This is minimum punishment.

Latecomers may be considered/ marked as absent in the class. Break timing will be strictly observed. Class sanctity is top most in our agenda while class is in session. 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.
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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 Consumers 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 suppliers development projects to improve the effectiveness of supply chain. He is also a visiting faculty member at IBM UET Lahore. E-mail: [email protected]

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