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Unformatted text preview: Chapter 15 Resource Planning TEACHING TIP This chapter describes enterprise resource planning (ERP) systems, which has become a valuable tool for resource planning. ERP systems were also seen as a solution to the Y2K problem in legacy systems. Prior to these systems, it was not unlikely for each functional area to have their own system, and the communication between them was “hand-offs” of information that added to the time delays. A. Resource Planning Across the Organization TEACHING TIP Mention Starwood’s ERP system and how it cuts across the organization’s functional areas. Emphasize that resource planning lies at the heart of any organization. 1. Resource planning takes sales and operations plans; processes information in the way of time standards, routings, and other information on how services or products are produced; and then plans the input requirements. 2. Briefly point out how resource planning is both a process and an important part of managing supply chains. B. Enterprise Resource Planning 1. What an ERP system does a. By integrating the firm’s functional areas, ERP systems allow an organization to view its operations as a whole rather than having to try to put together the different information pieces produced by its various functions and divisions. TEACHING TIP Describe the example of a U.S. manufacturer of telecommunications products having an ERP system and how an Athens-based sales representative can prepare a customer quote. 2. How ERP systems are designed a. ERP revolves around a single comprehensive database that can be made available across the entire organization (or enterprise). b. Having a single database for all of the firm’s information makes it easier for managers to monitor all of the company’s products, at all locations, and at all times. c. As new information is entered as a transaction in one application, related information is automatically updated in the other applications, including the firm’s financial and accounting databases, its human resource and payroll databases, sales and customer databases, and so forth. 15-1 15-2 Chapter 15: Resource Planning TEACHING TIP The students of today are most likely to be familiar with Amazon.com (and other similar on-line shopping sites). But what they may not know is how they use an ERP system to link their customers orders to the warehouse that ship the orders, and ultimately link to suppliers who replenish orders to the warehouse. You may want to also ask the students how they think the transfer of payments is processed with this system. d. Designing an ERP system requires that a company carefully analyze it major processes so that appropriate decisions about coordination of legacy systems and new software can be made....
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- Spring '09
- Management, MPS, Manufacturing resource planning, Planned Order releases