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ERP Course: Re-Engineering Readings: Chapter 2 from Mary Sumner

ERP Course: Re-Engineering Readings: Chapter 2 from Mary Sumner. Peter Dolog dolog [at] cs [dot] aau [dot] dk E2-201 Information Systems November 3, 2006. Material Resources. Human Resources. Production Technology. Production Process. Finances. Customer. DATA.

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ERP Course: Re-Engineering Readings: Chapter 2 from Mary Sumner

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  1. ERP Course: Re-EngineeringReadings: Chapter 2 from Mary Sumner Peter Dolog dolog [at] cs [dot] aau [dot] dk E2-201 Information Systems November 3, 2006

  2. Material Resources Human Resources Production Technology Production Process Finances Customer DATA Enquire, Evaluate, Manage, and Improve A Company Human Work Force Technology Know How ERP Enterprise Peter Dolog, ERP Course, Re-Engineering

  3. Business Process • Process • A related and organized group of activities with result as a value of customer • Business process • Ordering of work activities across time and place with beginning, end, input, output and common goal (usually one departmental) • Enterprise business process • End to end business process Peter Dolog, ERP Course, Re-Engineering

  4. Values • Economical • Informational • Emotional • Value innovation Peter Dolog, ERP Course, Re-Engineering

  5. Process Thinking • How business processes contribute to the value of the customer? • How am I going to change the processes, organizational structures, information flows and information to improve value for customer? • I am doing this to keep existing customers and attract new once which will guarantee me continuous income • How do I make the human resources involved to see that it is value added for them too? Peter Dolog, ERP Course, Re-Engineering

  6. Levels as in CMM • Initial • Repeatable • Defined • Managed • Optimising Peter Dolog, ERP Course, Re-Engineering

  7. Document Current Processes • Activity graphs • Document flow graphs • Unit Interaction graphs • Organization graphs • To understand how the company works and how it delivers value to a customer Peter Dolog, ERP Course, Re-Engineering

  8. Information http://edocs.bea.com/wli/docs70/bpmtutor/ch1.htm Different Units Peter Dolog, ERP Course, Re-Engineering

  9. Peter Dolog, ERP Course, Re-Engineering

  10. August-Wilhelm Scheer and Frank Habermann: MAKING ERP A SUCCESS Peter Dolog, ERP Course, Re-Engineering

  11. Creating Metrics • Performance Measurement to perform better • Balanced scoreboard • Economic value added • Measuring cleaner production Peter Dolog, ERP Course, Re-Engineering

  12. Balanced Scoreboard Peter Dolog, ERP Course, Re-Engineering

  13. Metrics • Customers • Performance against requirements • Customer satisfaction • Internal work processes • Cycle times • Product and service quality • Cost performance Peter Dolog, ERP Course, Re-Engineering

  14. Metrics II • Financial • Profitability (company level, product line level, or individual level) • Market share growth • Employee satisfaction • Performance of suppliers against your requirements Peter Dolog, ERP Course, Re-Engineering

  15. Other metrics • Economic Value Added • Efficiency with which the company used their resources • It is a difference between return received on resources and cost of the resources • Measuring Cleaner Production • Producing less waste – using less raw material, using recycled material, ... • Lean manufacturing: doing more with less: less time, inventory, space, people and money Peter Dolog, ERP Course, Re-Engineering

  16. Factors of Reengineering • Focusing just one activity or one unit usually fails to improve globaly • To general focus usually fails too • Important is to understand a problem Peter Dolog, ERP Course, Re-Engineering

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