se 464: industrial information systems systems engineering department welcome to se 464 lab atiq...
Post on 21-Dec-2015
216 views
TRANSCRIPT
Systems Engineering Department
SE 464: Industrial Information systems
Welcome to SE 464 LAB
Atiq SiddiquiOffice: 22 – 422
Tel: 1619Email: [email protected]
Office Hours: 11:00 AM -12:00 AM Sat-Tues or by Appointment
Systems Engineering Department
SE 464: Industrial Information systems
Welcome to SE 464 LAB
‘Grading Policy’
Total 25%of the course grade
Attendance 1.25 (5)%Home work 3.75 (15)%
Mid-Term 10 (40)%Final 10 (40)%
Systems Engineering Department
SE 464: Industrial Information systems
Industrial Information System
LAB 01: Introduction to basic conceptsLAB 02: Introduction to SAP structure
(Homework: Cases or paper summary + Discussion on WebCT) LAB 03: SAP Basics (Navigation & key concepts Hands On Experience)LAB 04 & 05: Procurement + Related Exercise Lab 06: Mid Term LAB 07: Master DATA + Related Exercise
(Homework needed for Forecasting Lab) LAB 08 & LAB 09: Forecasting in SAP + Related Exercise LAB 10: Plant Maintenance + Related ExerciseLab 11: Introduction to SQL (Databases) + Related Exercise Lab 12: Final ExamLab xx–Visit to Aramco SAP center or a visit by a SAP consultant
Systems Engineering Department
SE 464: Industrial Information systems
Industrial Information System
LAB 01: Introduction
Systems Engineering Department
SE 464: Industrial Information systems
Part 1: Concepts & Introduction
• Basic Concepts & Terminologies• (EIS) Enterprise Information System Model• Key System Applications in an Enterprise• Major Types of Information Systems
Part 2: The Software Side• Enterprise Resource Planning (ERP) Introduction
Lab 01 objectives
Systems Engineering Department
SE 464: Industrial Information systems
Part 1Enterprise Information Systems
Concepts & Introduction
Lab 01 objectives
Systems Engineering Department
SE 464: Industrial Information systems
What is an Enterprise or an Organization??
What makes an Enterprise??
What are enterprise functions??
What are processes??
Systems Engineering Department
SE 464: Industrial Information systems
Procurement
Inventory
Finance
Maintenance
EngineeringDesign
Controlling
ProductionPlanning
Sales
Shop Floor execution
Quality
Functions of Enterprise
Enterprise
Systems Engineering Department
SE 464: Industrial Information systems
An Example of Process
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Business processes & Information Systems• Def: Manner in which work is organized,
coordinated, and focused to produce a valuable product or service.
-- Cross-Functional Business Processes transcend boundary between sales, marketing, manufacturing, and research and development (e.g., order fulfillment process…)
• Ways in which management chooses to coordinate work
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Business processes have• Unique ways to coordinate work, information, and
knowledge
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Examples of Business Processes
Functional Area Business Process
Manufacturing and production
Assembling the productChecking for qualityProducing bills of materials
Sales and marketing Identifying customers Making customers aware of the productSelling the product
Finance and accounting Paying creditorsCreating financial statementsManaging cash accounts
Human resources Hiring employeesEvaluating employees’ job performanceEnrolling employees in benefits plans
Systems Engineering Department
SE 464: Industrial Information systems
• Focus on ‘Functions’ rather than ‘Processes’
• Applications developed over time.
• Inconsistent, redundant Data
• Time lag in information delivery
• Managerial Control Difficult
• Process Productivity Monitoring Difficult
• Reaction to change slow
Typical problem faced by an Enterprise
Systems Engineering Department
SE 464: Industrial Information systems
Enterprise Information System
Enterprise wide information system integrates various functionalities within an enterprise
Integrated Enterprise
Systems Engineering Department
SE 464: Industrial Information systems
EIS Objectives and Challenges
• Integration: Different systems serve variety of functions, connecting organizational levels -- difficult, costly
• Enlarging scope of management thinking: Huge system investments, long development time must be guided by common objectives
• Maximize customer perception of value added through the use of best business practices and real time control.
• Increasing customer demand inelasticity and simultaneously minimizing costs.
Systems Engineering Department
SE 464: Industrial Information systems
Key System Application in an Enterprise
Systems Engineering Department
SE 464: Industrial Information systems
Major Types of Information Systems
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
We will look at major functions & application of important function wise systems
Sales and Marketing SystemsManufacturing and Production Systems
Financing and Accounting Systems
Human Resource Systems
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Sales and Marketing Systems
Major functions of systems:• Sales management, market research, promotion,
pricing, new products, market gap analysis
Major application systems:• Sales order info system, market research system,
pricing system
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Sales and Marketing Systems
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
ORDER PROCESSING ENTER, PROCESS, TRACK ORDERS OPERATIONAL
MARKET ANALYSIS IDENTIFY CUSTOMERS & MARKETS KNOWLEDGE
PRICING ANALYSIS DETERMINE PRICES MANAGEMENT
SALES TRENDS PREPARE 5-YEAR FORECASTS STRATEGIC
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Manufacturing and Production Systems
Major functions of systems:• Scheduling, purchasing, shipping, receiving,
engineering, operations
Major application systems:• Materials resource planning systems, purchase
order control systems, engineering systems, quality control systems
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Manufacturing and Production Systems
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
MACHINE CONTROL CONTROL ACTIONS OF EQUIPMENT OPERATIONAL
COMPUTER-AIDED-DESIGN DESIGN NEW PRODUCTS KNOWLEDGE
PRODUCTION PLANNING DECIDE NUMBER, SCHEDULE OF PRODUCTS MANAGEMENT
FACILITIES LOCATION DECIDE WHERE TO LOCATE FACILITIES STRATEGIC
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Financing and Accounting SystemsMajor functions of systems:• Budgeting, general ledger, billing, cost
accounting
Major application systems:• General ledger, accounts receivable, accounts
payable, budgeting, funds management systems
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Financing and Accounting Systems
SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
ACCOUNTS RECEIVABLE TRACK MONEY OWED TO FIRM OPERATIONAL
PORTFOLIO ANALYSIS DESIGN FIRM'S INVESTMENTS KNOWLEDGE
BUDGETING PREPARE SHORT TERM BUDGETS MANAGEMENT
PROFIT PLANNING PLAN LONG-TERM PROFITS STRATEGIC
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Human Resource SystemsMajor functions of systems:• Personnel records, benefits, compensation, labor
relations, training
Major application systems:• Payroll, employee records, benefit systems,
career path systems, personnel training systems
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Human Resource SystemsSYSTEM DESCRIPTION ORGANIZATIONAL LEVEL
TRAINING & DEVELOPMENT TRACK TRAINING, SKILLS, APPRAISALS OPERATIONAL
CAREER PATHING DESIGN EMPLOYEE CAREER PATHS KNOWLEDGE
COMPENSATION ANALYSIS MONITOR WAGES, SALARIES, BENEFITS MANAGEMENT
HUMAN RESOURCES PLANNING PLAN LONG-TERM LABOR FORCE NEEDS STRATEGIC
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Benefits of EIS• Firm structure and organization: One organization
• Management: Firm-wide knowledge-based management processes
• Technology: Unified platform
• Business: More efficient operations and customer-driven business processes
Systems Engineering Department
SE 464: Industrial Information systems
Systems from a Functional Perspective
Challenges of EIS• Difficult to build: Require fundamental changes in
the way the business operates
• Technology: Require complex pieces of software and large investments of time, money, and expertise
• Centralized organizational coordination and decision making: Not the best way for the firms to operate
Systems Engineering Department
SE 464: Industrial Information systems
Part 2Enterprise Resource Planning
The Software Side
Lab 01 objectives
Systems Engineering Department
SE 464: Industrial Information systems
Definition of an ERP system
ERP or Enterprise Resource Planning systems are software systems for businesses management encompassing modules supporting functional areas such as sales and marketing, finance, production, distribution accounting, human
resource management, maintenance, inventory management, project management,
transportation and e-business etc
Enterprise Resource Planning ERP
Systems Engineering Department
SE 464: Industrial Information systems
Definition of an ERP system
• ERP is a commodity -- product in the form of software
• SAP, Oracle Applications, PeopleSoft, JD Edwards, Greatplains etc. are world’s leading ERP packages
• The market leader is “SAP”
Enterprise Resource Planning ERP
Systems Engineering Department
SE 464: Industrial Information systems
Features of an ERP system
• Architecture of ERP system facilitates transparent integration of modules providing flow of information between all function within enterprise in real time.
• Many different software are replaced by one integrated system.
• Reliable information access through common DBMS
• Eliminates data and operational redundancies (no duplication of work or data entries etc.)
Enterprise Resource Planning ERP
Systems Engineering Department
SE 464: Industrial Information systems
Features of an ERP system
• Cost reduction through time saving, improved control by organizational wise analysis of organizational decisions.
• Delivery and cycle time reduction• Scalable systems• Global outreach through extended modules such as CRM or
SCM• E-Business
• Providing business solutions in support of core processes
• Process-oriented view cutting across functions of an enterprise
• Huge potential for customizing
Enterprise Resource Planning ERP
Systems Engineering Department
SE 464: Industrial Information systems
Business and Technical Benefits
• Automation of business transactions
• Flexibility in changing the system catering to newer business processes.
• Coordination across business functions
• Coordination across geographical distances resulting in better Managerial control
• Consistent information and interface thus easier to understand and work in
• Single system
Systems Engineering Department
SE 464: Industrial Information systems
Prime Reasons for Implementing ERP
• Need for common platform
• Process improvement.
• Data visibility that could be used to improve operating decisions.
• Operation cost reductions.
• Increased customer responsiveness.
• Improved strategic decision making
• Personal Improvement