Page 119 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 6: ERP Benefits

IT costs reduction in: notes
1. Legacy system integration and maintenance

2. Mainframe or hardware replacing
3. IT expense and staff for developing and maintaining the system
4. Year 2000 compliance upgrade
5. System architecture design and development
6. System modification and maintenance

7. Disparate information reconciliation and consolidation
8. Technology R&D
9. Streamlined and standardized platform
10. Global platform with global knowledge pipeline

11. Database performance and integrity
12. IS management transformation and increased IS resource capability
13. Continuous improvement in system process and technology
14. Global maintenance support

flexibility

1. Modern technology adaptability
2. Extendable to external parties
3. Expandable to a range of applications

4. Comparable with different systems
5. Customizable and configurability

Task Discuss the concept of just-in-time in the context of inventory management.

6.5 improved resource utilization

As manufacturing processes become more sophisticated and as the philosophies of elimination
of waste and constraint management achieve broader acceptance, manufacturers place increased
emphasis upon planning and controlling capacity. The creation of an accurate achievable
production schedule requires the availability of both material and capacity. It is useless and
indeed wasteful to have financial resources tied up in material if the capacity is insufficient
or improperly planned. Waste not only raise costs, it also affects customer service levels and
customer goodwill.
The capacity planning features of most ERP systems offer both rough-cut and detailed capacity
planning. The system loads each resource with production requirements from master production
scheduling, material requirements planning, and shop floor control. All planned, firm planned and
released production is evaluated and loaded against capacity definitions for each resource, and
all capacity requirements are pegged back to the orders comprising the load. Capacity definitions

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