Business Processes - Operation solutions for SAP Implementation
Business Processes - Operation solutions for SAP Implementation
This is a book about Enterprise Resource Planning (ERP)/Enterprise Systems
(ES) implementation. At the same time, it is also a book about business operations and information systems to support business operations. The question is, why did we decide to unite these three seemingly disparate topics?
There are a large number of books treating ERP implementation, operations
management, and information systems, separately. At the same time, books
dedicated to all three topics applied to practical issues of ERP implementation
are scarce. Brady, Monk, and Wagner (2001) say that according to their experience teaching, ERP merely as software did not work. In uniting these three topics in one book, they hope to avoid the problems they encountered, and therefore, better educate the students.
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Course Contents
Chapter I
Business Processes: Definition, Life Cycle, and Identification ………. 1
Business Process Definition ………………………………………………….. 2
Distinguishing Business Processes from Business Functions ……… 4
The Process Lifecycle ………………………………………………………….. 4
Process Identification ………………………………………………………….. 6
Conclusion ……………………………………………………………………….. 19
Chapter II
Business Processes: Modelling, Analysis, and Implementation ……. 20
Introduction …………………………………………………………………………. 20
Process Modelling …………………………………………………………………. 20
Process Analysis …………………………………………………………………… 22
Process Transformation ………………………………………………………… 24
Process Implementation ………………………………………………………… 31
Process Monitoring and Control …………………………………………….. 32
Mal-Processes: Negative Business Process Scenarios ………………… 34
Conclusion …………………………………………………………………………… 44
Chapter III
Modelling Business Processes ………………………………………………….. 45
Need for Modelling ……………………………………………………………. 45
Need for a Modelling Framework/Architecture …………………….. 46
House of Business Engineering ……………………………………………. 47
The Control View and Event-Driven Process Chains …………….. 48
Organisational View ………………………………………………………….. 60
Function View …………………………………………………………………… 62
Data View ………………………………………………………………………… 63
Business Blueprints ……………………………………………………………. 64
SAP R/3 Reference Model and ARIS HOBE …………………………… 66
Capturing the EPC Model ………………………………………………….. 66
Modelling Guidelines …………………………………………………………. 69
Chapter IV
Enterprise Systems Implementation Issues ………………………………… 72
Enterprise Systems Project Management ……………………………… 79
People, Process, and Technology Issues ……………………………….. 80
Critical Success Factors for Enterprise System
Implementation …………………………………………………………………. 81
Implementation Strategies ………………………………………………….. 81
Phased vs. Big-Bang Implementation Approaches …………………. 84
Chapter V
Enterprise Systems Implementation Phases ……………………………….. 89
Introduction ……………………………………………………………………… 89
Chartering ……………………………………………………………………….. 91
Preparing for the Enterprise System Project ………………………. 101
Planning of the Business Processes ……………………………………. 107
Configuring the System ……………………………………………………. 114
Testing and Validation of the Enterprise System …………………. 119
Final Preparation ……………………………………………………………. 120
Going Live ……………………………………………………………………… 121
Enterprise Systems Success ………………………………………………. 123
Enterprise System Implementation Risks …………………………….. 124
Conclusion ……………………………………………………………………… 126
Chapter VI
Enterprise Systems: The SAP Suite …………………………………………. 128
Systems in an Organisation ………………………………………………. 128
Integrated Information Systems ………………………………………… 129
SAP ……………………………………………………………………………….. 130
Modules of SAP ………………………………………………………………. 132
SAP as Process-Ware ………………………………………………………. 132
Evolution of SAP …………………………………………………………….. 134
SAP R/3 ………………………………………………………………………….. 137
SAP Support for Making, Buying, and Selling ……………………… 138
mySAP.com…………………………………………………………………….. 139
Intelligence Density ………………………………………………………….. 140
The Enterprise System Landscape ……………………………………… 142
Backward, Foreward, Inward, and Upward ……………………….. 143
Costs of Enterprise Systems ……………………………………………… 143
Problems with Enterprise Systems …………………………………….. 144
Benefits of Enterprise Systems …………………………………………… 146
Chapter VII
Case of ERP Implementation for Production Planning
at EA Cakes Ltd. ……………………………………………………………………. 148
Organisation Background …………………………………………………. 149
Implementation Problems …………………………………………………. 154
Current Challenges ………………………………………………………….. 157
Case Development …………………………………………………………… 158
Comments ………………………………………………………………………. 164
Chapter VIII
Core Business Processes in Enterprise Planning: Choosing the
Structure of the System …………………………………………………………… 168
The Structural Components of a Planning System ……………….. 169
The Levels of Planning …………………………………………………….. 171
Production Units …………………………………………………………….. 175
Planning Horizons and Planning Periods ……………………………. 179
Planning Periods, Cycle Times, and Inventory ……………………. 184
The Range of Planning Horizons and Planning Periods ……….. 190
Conclusion: The Holistic System ……………………………………….. 192
Chapter IX
Capacity Management Business Processes ……………………………… 194
Requirements Planning …………………………………………………….. 195
Capacity Planning at the Company Level …………………………… 211
Capacity Planning at the Aggregate Level …………………………. 213
Capacity Planning at the Shop Level …………………………………. 214
Chapter X
Case Solutions ……………………………………………………………………….. 220
Description ……………………………………………………………………… 222
Technical Material …………………………………………………………… 225
Chapter XI
Production Planning Redesign: Special Topics ………………………….. 238
Competitive Advantage from Production Planning ……………… 238
Balancing Capacity Vectors ……………………………………………… 244
The Factors of the Production Planning Environment …………. 263
Coordination and Integration ……………………………………………. 274
Precedence Constraints ……………………………………………………. 277
System Clock …………………………………………………………………… 278
Other Constraints and the Criterion ………………………………….. 281
Chapter XII
A Tutorial Case Study: Pasta Company ……………………………………. 284
Case Description ……………………………………………………………… 284
Case Solution ………………………………………………………………….. 293
Conclusion ……………………………………………………………………… 310
Chapter XIII
Conclusion ……………………………………………………………………………… 314
Current Problems ……………………………………………………………. 314
Epilogue and Lessons Learned ………………………………………….. 315
References …………………………………………………………………………….. 317
About the Authors …………………………………………………………………… 324
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