Page 124 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes businesses are not limited to a single manufacturing method, such as make-to-stock or make-to-
order. Instead many manufacturing and planning can be combined within the same operation,
with unlimited flexibility to choose the best method or combination of methods for each product
at each stage throughout its life cycle. In addition, this control and visibility comes without having
to sacrifice the functionality needed to efficiently mange different types of production. Because
these systems support the entire range of production strategies, only one system is needed
to manage all manufacturing activities. Engineer-to-order products are planned using these
systems while the forecasting and distribution planned using the extensive production planning
capabilities of these ERP packages. Various production scenarios can be simulated using the
simulation features and the best one can be selected. Also, since the different functions involved
in the timely delivery of the finished goods to the customer purchasing, materials management,
production, production planning, plant maintenance, sales and distribution are integrated and
the procedures automated, the chances of errors are minimal and the production efficiency will
be high. Since all the information is available to the management at the desired level of detail and
since the system has exception handling features, the management can keep track of things and
can take corrective actions at the appropriate time.
Another step to shorter product development cycles is increased efficiency in design and
development activities. ERP systems are designed to help your company trim data transfer
time, reduce errors and increase design productivity by providing an automated link between
engineering and production information. Most of these systems allows smooth integration
with popular CAD packages to simplify the exchange of information about drawings, items,
BOMs and routings. Using the engineering change control (ECC) system, businesses can gain
effective control over engineering change orders. The company can define the authorization
steps for approving and implementing an engineering change order (ECO). When these steps
are completed, the ERP system automatically implements the change in the production database.
Thus, by integrating the various business functions and automating the procedures and tasks the
ERP system ensures on-time delivery of goods to the customers.
Some other benefits of on-time shipment are:
1. Cost reduction,
2. Cycle time reduction,

3. Productivity improvement,
4. Quality improvement.



Case Study systemx inc. Withdraws ` 1 Billion softguide
acquisition offer

The following is an excerpt from a news article in the Daily Update, March 07, 2010
“SystemX Inc., called off its acquisition of SoftGuide Knowledge Consultants, Friday,
saying that 1 Billion was too high a price.” (SoftGuide has a considerable market share in
Training and Development services and would therefore help SystemX to diversify and
expand its range of services to customers.)

“Although SystemX officials would not comment further, several observers said that
problems discovered at SoftGuide probably lay behind the decision…. The article said that
SystemX feared that SoftGuide’s data-processing system was inadequate to handle the
new products planned for the SoftGuide sales staff. SystemX officials were also concerned
Contd...

118 LoveLy professionaL university