Objectives

· Describe the concept of ERP and the ERP model; define key terms; explain the transition from MRP to ERP; identify the levels of ERP maturity.

· Explain how ERP is used to integrate business processes; define and analyze a process; create a process map and improve and/or simplify the process; apply the result to an ERP implementation.

· Describe the elements of a value chain, and explain how core processes relate; identify how the organizational infrastructure supports core business processes; explain the effect of a new product launch on the three core business processes.

· Explain how the key elements of organizational change management apply to an ERP implementation; define change readiness; describe a learning requirements plan; explain the use of assessment tools to identify the readiness of an organization to change; identify the methods of implementing and sustaining the change.

Pedagogy

· This course will use SAP and implement a hypothetical company : Pen Ltd. The first part of the course will involve Pen Inc being implemented as a Trading Company, and later as a manufacturing company.

· The learning methodology involves learning through implementing a ERP within a company.

· The course will be SAP focused though it will discuss other products and concepts.

Exercise Overview

1. Establish the Organizational Structure for Financial Accounting (FI).

2. Establish the Organizational Structure for Material Management (MM).

3. Create the General Ledger Accounts

4. Master Data for Materials Management

5. Establish some of the rules that will control the financial accounting (FI) transactions

6. Post your initial cash investment and conduct and initial test on the system by posting the purchase of some supplies.

7. Test your systems ability to receive invoices from vendors and post payment to the vendors account.

8. Establish some of the rules that will control the material management (MM) transactions

9. Test the integration of your Material Management and Financial Accounting systems

10. Run Material Requirements Planning to generate a purchase requisition that you will convert to a purchase order

11. Create the organizational structure necessary to carry out the customer order management functions of your company.

12. Create additional master data needed for conducting the customer order management cycle

13. Define prices for materials, specific customer prices, and discounts

14. Complete some final details necessary to prepare you for the comprehensive system test that begins in the next unit

15. Comprehensive testing of the organizational and master data

16. Create a sales order using your customer info record for Pleasure Boats Buying Group and then complete the order to cash business process

17. To create a sales order using a scheduling agreement for The Rushmore Group and deliver against the scheduling agreement.

18. Create two sales orders. One sales order using the item proposal and the second sales order that will result in a credit warning, as well as request more goods than you have for sale

19. Look at the functionality of delivery and billing due lists

20. Create a goods return order, receive the goods, and complete the process by transferring them back into unrestricted stock, issuing a credit and pay the customer for the goods they returned

Reference Books

· GARG VINOD KUMAR & VENKITAKRISHNAN N K, ERPWARE-ERP IMPLEMENTATION FRAMEWORK

· HAMILTON SCOTT , MAXIMIZING YOUR ERP SYSTEM: A PRACTICAL GUIDE FOR MANAGERS

· LEON ALEXIS , ERP DEMYSTIFIED

· RAMAN A THOTHATHRI & DIWAN PARAG , ERP GENIE: HAVE ONE OF YOUR OWN

Reference Websites

· Sap Help Site : help.sap.com

· Sap IDES Model Company : http://help.sap.com/saphelp_46b/helpdata/en/af/fc4f35dfe82578e10000009b38f839/frameset.htm

· CIO.COM