Last updated: March 20, 2019
Topic: AutomotiveCommercial
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Part Two:

Q. 1. What are the advantages of the re-engineering method of implementing ERP? Ans: The success of ERP depends upon the methodological analysis used for its execution to a larger extent. A good execution methodological analysis leverages rational capital and provides successful linkage of work attempts. Information systems engineerings are evolved from mainframe based calculating through the client waiter epoch. to where we are now heading – the cyberspace epoch. Reengineering identifies. analyzes. and redesigns an organization’s nucleus concern processes with the purpose of accomplishing dramatic betterments in critical public presentation steps. such as cost. quality. service. and velocity.

In re-engineering attack. the squad selects a commercial off-the-shelf ERP and re-engineers concern processes to suit the bundle. An in-depth analysis of the trade-offs shows re-engineering the concern to suit the package can interrupt the organisation because this represents alterations in processs. work flows and informations. Following are the advantages of re-engineering method of implementing ERP: ( I ) Re-engineering Business Process – It supports re-engineering procedures to suit the package system’s best patterns. ( two ) Timeline – The package or solution is available in the market and ready to implement. ( three ) Cost – Implementation is cost effectual here.

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Re-engineering attack is supported by an ERP solution. takes advantages of shared or generic procedures within industries. best patterns may stand for improved procedure alterations. paperss best patterns. plants good when there is minimum organisation alteration.

Other than the specific advantages of ERP execution in any organisation. below are some of the generic yet effectual advantages:
( I ) . Business procedure is streamlined.
( two ) . Business procedure is optimized and more efficient.
( three ) . Strict controls can be enforced and monitored.
( four ) . Best patterns can be adhered to.
( V ) . Time and cost economy as a consequence of eliminated excess undertakings.




Q. 2: What are the benefits reported from implementing ERP?
Autonomic nervous system: A true Enterprise Resource Planning ( ERP ) system integrates both internal and external information flows used by the organisation within a individual. comprehensive solution. An ERP solution incorporates the practical systems used by organisations to pull off the basic commercial maps of their concern. such as: planning. inventory/materials direction. buying. fabrication. finance. accounting. human resources. selling and gross revenues. services etc. The aim of the ERP solution is to drive the flow of information between all internal concern maps while pull offing connexions. or “touchpoints. ” to outside stakeholders. Follow are the some of the benefits of ERP:

• Tighter controls for fiscal conformity declaration ( e. g. Sarbanes-Oxley and Basel II ) every bit good as other signifiers of conformity coverage. • The individual informations beginning for merchandise and services information – such as information related to providers. sellers. client orders and the merchandises themselves – drive rapid merchandise development and launch rhythms which increases a company’s overall market portion. • Increased entree to valuable corporate informations delivers a clear. planetary position of the concern that drives uninterrupted betterment schemes and establishes common public presentation prosodies and steps to estimate the wellness of the concern.

• Efficaciously pull offing undertakings holistically Fosters determination devising at critical degrees in the development and/or fabrication procedure. • Support for streamlined sourcing and procurance procedures drive alliance to client demands. and besides present a centralised purchasing theoretical account to cut down unauthorised and unneeded disbursals. • Supplying gross revenues and operations be aftering with entree to critical information Fosters “closed loop” procedures that guarantee the concern does non overpromise and/or under-deliver to clients. • Automating concern procedures such as invoicing and gross revenues and purchase orders within one systems improves calculating truth and reduces inefficiencies. • Using a individual base of information for charge and other client interactions improves service degrees and increases client keeping.

Q. 3: Write a short note on “Credit Management” .
Autonomic nervous systems: Credit direction is the procedure of commanding and roll uping payments from clients. This is the map within a bank or company to command recognition policies that will better grosss and cut down fiscal hazards. Good recognition direction is critical to your hard currency flow. It is possible to be profitable on paper and but lack the hard currency to go on runing your concern. It is best to understate the likeliness of bad debts through good recognition direction patterns. Fix your ain policies and processs for recognition direction e. g. footings and conditions. invoicing quickly and supervising your debts. Footings and conditions

– Clearly province in composing your footings and conditions of trade and your recognition policy in authorship.
– Draft footings and conditions that suit your concern.
– It is advised you seek legal advice before finalizing the papers to guarantee it has internal consistence and covers all the cardinal issues.
– Ensure the papers does non incorporate any illegal footings and can be relied on in the event that tribunal action is necessary to retrieve a debt.
– Include your footings on all quotation marks. estimations. contracts. understandings. purchase orders. and related certification.
– Clearly specify what will be supplied. when the work will be done. and when and how payment is to be made.
– Obtain a written credence of the understanding along with written blessing of any fluctuations to the original understanding.





Invoice Promptly
Include accurate inside informations on your bill for the goods or services supplied the sum due along with the day of the month and preferable payment method. Always try to decide invoice questions or differences rapidly.

Proctor Debtors
Keep your debtors’ records to place any due or delinquent debts. Develop a good records direction system and maintain records up to day of the month so you can rapidly place who owes you money and how much is owed. Take a proactive attack to recognition direction by reaching clients a few yearss before the due day of the month to remind them a payment is due and inquire if they foresee any jobs with run intoing their payment. Implement your debt aggregation patterns the minute a debt becomes delinquent and guarantee clients make non transcend their recognition bounds.

Q. 4. Define Material Requirements Planning.
Autonomic nervous system: The APICS dictionary defined material demand planning ( MRP ) as “a set of techniques that use measure of stuff. stock list informations and maestro production agenda to cipher demand for stuff. ” In other words. Material demands planning ( MRP ) is a production planning and stock list control system used to pull off fabrication procedures.

Most MRP systems are software-based. while it is possible to carry on MRP by manus every bit good. MRP systems use four pieces of information to find what stuff should be ordered and when: – The maestro production agenda. which describes when each merchandise is scheduled to be manufactured ; – Bill of stuffs. which lists precisely the parts or stuffs required to do each merchandise ; – Production rhythm times and material demands at each phase of the production rhythm clip ; – Supplier lead times.

The chief subject of MRP is “getting the right stuffs to the right topographic point at the right time” and it is intended to run into three aims: – Ensure stuffs are available for production and merchandises are available for bringing to clients. – Maintain the lowest possible degree of stock list.

– Plan fabrication activities. bringing agendas and buying activities.

Necessities for successful execution of MRP system:
– Several demands have to be met. in order to given an MRP execution undertaking a opportunity of success: – Availability of a computing machine based fabrication system is a must. Although it is possible to obtain material demands program manually. it would be impossible to maintain it up to day of the month because of the extremely dynamic nature of fabrication environments. – A executable maestro production agenda must be drawn up. or else the accrued planned orders of constituents might “bump” into the resource limitations and go impracticable.

– The measures of stuff should be accurate. It is indispensable to update them quickly to reflect any technology alterations brought to the merchandise. If a component portion is omitted from the measure of stuff it will ne’er be ordered by the system. – Inventory records should be a precise representation of world. or else the gauze procedure and the coevals of planned orders become meaningless. – Lead times for all stock list points should be known and given to the MRP system. – Shop floor subject is necessary to guarantee that orders are processed in conformance with the established precedences. Otherwise. the lead times passed to MRP will non happen.

Section B – Caselets
Caselets 1

Q. 1: What factors should it utilize to measure each of these possible hosts? Ans: Following are factors one should see while traveling for ERP: Like most concern applications. there is a turning tendency to travel ERP package like Microsoft Dynamics GP off from on-premise installings and towards cloud based solutions. There can be enormous cost nest eggs in this theoretical account. every bit good as better substructure. Since a Cloud Vendor is responsible for hosting the ERP solution. and since that cost is amortized across 1000s of companies. it is possible for concern of any size to hold 24x7x365 monitoring. and uninterrupted back-up and catastrophe recovery processs. If you are measuring traveling to a Cloud ERP solution. there are 4 chief points you should maintain in head.

Service Level Agreement

When package is hosted on your waiters. you control handiness and up clip ( which can be both good and bad. depending on your IT resources ) . When you move to the Cloud. all that control is transferred to the host. Ask your seller if they have a Service Level Agreement. and how much uptime is guaranteed. And be wary of the figure – 99. 9 % may sound great. but if your concern runs 8-5 day-to-day. that still translates to 1 hr of down clip per month.

Ascents

Another possible beginning of lost productiveness is holding your staff log-in one twenty-four hours to detect they have a new and unfamiliar version of package. due to an update. Therefore. it is important to cognize how the seller handles updates. How shortly in progress will you be notified? What impact will it hold on twenty-four hours to twenty-four hours operations at the clip of ascent? Will you be able to hold input on the existent day of the month of an ascent?

Security

Your hosting supplier should give you a to the full elaborate overview of how they handle security. including their attack and what specific measures they take. Ask them how they authenticate users. What degree of encoding do they utilize to protect informations? Are they compliant with ordinances impacting your concern. such as SAS70 and SSAE-16?

Data Ownership

Even though your informations is hosted elsewhere. it is your informations and you own it. Will the host let you to export a full set of your informations anytime you request it? Will they to the full delete your informations upon petition. should you make up one’s mind to travel to a different host? What happens to your informations if you miss a scheduled payment?

Q. 2: What controls should be in topographic point to supervise the hosting agreement?
Autonomic nervous systems: Following are the controls that organisation needs to execute before implementing the ERP solution. ( I ) Lack of Alignment of the ERP system and concern Procedures In order to minimise the hazard associated with a deficiency of alliance of the ERP system and concern procedures. organisations engage in Business Process Reengineering ( BPR ) . develop elaborate demands specifications. behavior system proving prior to the ERP system execution and closely monitor system public presentation. an organisation should reengineer concern procedures. develop a elaborate demands specification. behavior system proving prior to the system execution and closely supervise the system’s public presentation.

( two ) Loss of Control due to decentalisation of determination devising Through the preparation of a steering commission. assignment of a undertaking patron. and internal audit engagement. an organisation could minimise the loss of control associated with decentalisation of decision-making. A steering commission enables senior direction to straight supervise the undertaking team’s decision-making procedures by holding confirmation and blessing rights on all important determinations. thereby guaranting that there are equal controls over the undertaking team’s decision-making procedures. Through the preparation of the maneuvering commission. assignment of a undertaking patron. and internal audit’s engagement the organisation would minimise the concern hazards associated with possible loss of control ensuing from the ERP system execution.

( three ) Undertaking complexness

The minimisation of the hazards associated with undertaking complexness mostly depends upon the preparation of a steering commission. senior managers’ support. assignment of a undertaking patron. the development of a elaborate execution program. undertaking direction. a undertaking squad with equal accomplishments. and engagement by both advisers and internal audit.

( IV ) Lack of in house accomplishments

Advisers are able to utilize their old ERP systems execution experiences ; accordingly. they can move as cognition suppliers who lower the cognition lack bing within organisations. An organisation. nevertheless. can non wholly trust on advisers to implement an ERP system. as advisers have limited specific cognition of the organization’s operations. Therefore. a close working relationship between advisers and the organization’s undertaking squad can take to a valuable accomplishment transportation in both waies.

( V ) Users’ opposition

User opposition has been associated with most any type of systems alteration. and even more so for ERP undertakings that are combined with BPR ( since the users are disquieted that their occupation may at worst be eliminated. or at best be changed from their “usual” manner of making things ) . Workers who are reengineered out of a place and are later redeployed within the company may come in a grieving procedure ensuing in low productiveness. Consequently. organisations frequently implement some hazard direction schemes to minimise users’ opposition.

Section C: Applied Theory

Q. 1: Explain in brief Gross saless and Marketing Faculties in ERP System. Autonomic nervous system: Gross saless faculty which besides known as Customer Relation Management ( CRM ) in an ERP system is the most of import and indispensable map for the being of an organisation. Gross saless faculty in an ERP system manages the maps of domestic and export gross revenues of a company. This is the faculty that maintains the client and merchandise database. Functions of gross revenues faculty besides includes the interacting questions. order arrangement. order programming and so despatching and invoicing organize the wide stairss of the gross revenues rhythm. Stock transportation between warehouses is besides covered by this faculty. Apart from these full maps Gross saless faculty besides carry out the undertaking of supplying analysis studies to steer determination devising and scheme planning. Organizations ever wanted to hold a good and contending gross revenues and marketing force to vie in the market.

A comprehensive gross revenues and selling ERP faculty will assist a company stay competitory and streamline their gross revenues and selling activities. Gross saless and selling faculty in an ERP system allows activities such as reaching clients and tracking of each client orders right from puting an order to despatch of stuff for that peculiar order and client. This faculty besides helps allows gross revenues executives to reach clients and follow-up each and every gross revenues bill and receive payments for such bills. Another of import facet of gross revenues faculty is it allows direction to supervise gross revenues aim achieved by single selling forces as per the mark contriver for each selling forces. This characteristic in of the gross revenues faculty in the ERP system enhances the working of the selling section and ensures forces are non on the right way.

A good gross revenues and selling faculty besides has characteristics to track lost orders and place the grounds for fring those orders. Business spouses and franchises are a common phenomenon in today’s universe. Latest ERP package will tie in selling forces to their concern spouses and franchises and let them to track and supervise their public presentation. ERP gross revenues faculty can besides track gross revenues trends over different periods and fix the study. Gross saless prognosis can be made utilizing this faculty every bit good as provide all over gross revenues and selling activities of the company. The ERP faculty offers an effectual client ailment direction tool which besides includes fixs processing and papers direction.

Q. 2: What are the different development procedure in ERP systems and compose a elaborate note on it? Ans: The development procedure in ERP systems consists of four phases or stages viz. choice. definition. execution and operation. They have been defined in elaborate below: ( I ) The Selection Phase: The aim of this stage is to place the ERP bundle most appropriate for the organisation and the technological substructure needed for it. When the determination is to implement constituents from several ERP bundles. the aim is to place the optimum constituents. If extra external human resources are needed. the choice of the confer withing house is besides portion of this stage. The stage is comprised of nine activities ; definition of undertaking aims. aggregation of information about system and sellers. aggregation of information about consulting houses. Needs Analysis. Probe of seller options. probe of adviser options. aggregation of information on the technological substructure. Feasibility survey. contract dialogue and sign language.

( two ) The Definition Phase: This stage is the shortest of the four ERP life rhythm phases. It includes all the preparatory activities for the execution stage that follows. The stage is comprised of three stairss: – Definition of undertaking range: Project range is determined on the footing of the system selected in the old phase. This activity is performed by forces from the IS section and user representative in cooperation with the seller and the advisers. – Establishing execution squads and timetables: the squads include forces from the ERP seller. from the confer withing house and from the organisation. The division of duties among the three depends on each one’s experience in ERP execution ; in implementing IS application in general and in pull offing an organisational alteration. – Training of the execution squads – the aim is to develop cardinal users and direction representatives. who are member of execution squad. in the usage of the selected system. ( three ) The execution Phase: This is the chief stage of the ERP life rhythm.

Its aim is to associate the ERP system to the organisational procedures so that when the system moves to the operation stage. its part to the organisation would be at the upper limit. The execution stage is performed iteratively. harmonizing to one of the undermentioned upper limit: – Adding procedures: in each consecutive unit of ammunition. one or more extra procedures are implemented in all organisation sites. – Adding Organizational Layers: in each unit of ammunition. a new organisational entity is added to the computerized procedures. This method facilitates acquiring a clear image of system usage in all activities at an early phase. ( IV ) The operations Phase: This stage is the longest stage of the ERP life rhythm and can last several old ages. Five stairss are included in this stage. Constitution of support Centres: These represent a acquisition web in the organisation. whose nonsubjective is to develop user preparation tools and to back up ongoing operations.

The demand for a support centres increases straight with the complexness of the system. Performance of alterations and sweetenings: These are needed over clip due to organisational kineticss. alterations in concern scheme. technological and environmental alteration and the similar. They can be handled by adding new procedures to the system or by spread outing bing one. Upgrading the system: The aim in this measure is to watch the package updates of the seller. the technological alterations and to upgrade the ERP faculties by adding activities and maps facilitated by the updates.

System Audit: Similar to other life rhythm theoretical accounts. the aim is to verify whether the system meets users’ demands. This audit is performed sporadically. System expiration: This measure is correspondent to the expiration activity of the traditional SDLC. Due to the strategic importance of an ERP system and its close linkage to organisational procedures. it seems that replacing the system is much more complex and hard than replacing conventional applications.