How to Create a Detailed Process Map ?
Step 1: Decide Between a Normal Process Map v/s Swim Lanes Process maps can be built in the usual way wherein sequence is the primary concern or in the swim lane pattern. In the swim lane pattern along with sequence, accountability is also formally recorded. This is because each group of participants is recorded separately […]
Comparison of Six Sigma and Total Quality Management
Both Six Sigma and Total Quality Management are effective tools for quality management but a thin line of difference does exist between them. Although the methodologies and procedures involved in both the two appear quite similar but there are certain major differences. Six-Sigma is a relatively newer concept than Total Quality Management but not exactly […]
Closing a Six Sigma Project
As we have seen, Six Sigma is an elaborate methodology. It requires time to learn and even more time to successfully implement. However, as we have also seen that there is a golden pot at the end of the rainbow. Countless organizations have transformed their operations based on their Six Sigma capabilities. Nowadays, having processes […]
The Interconnectedness between the American Economy and the World Economy
It is often said that when America sneezes, the entire world catches a cold. This is because of the high degree of integration between the American economy and other economies of the world. Ever since World War 2 ended, America became a dominant economic power. This led to increased integration between the American economy and […]
Role of Project Champion in Six Sigma Project
The Project Champion is the person responsible for identifying the Six Sigma Project and making it an organization reality. The role of this kingpin in the conception and execution of the Six Sigma project has been detailed in this article. Stage at Which Required The Project Champion is required at very early stages of the […]
Enterprise Resource Planning or ERP is one the most common term used among corporate world, business school and in the technology structure. There are several definitions of the ERP, but the term can be best understood if each word is looked at individually.
Enterprise refers to any organization with aspiration and business motive. In any organization, there are several resources in form of human capital, plant, machinery, capital, etc. Every organization is looking at ways to use all resources in optimal manner and to get the most out of them. Therefore, for effective utilization of these resources, organization needs to set about controls and check points around them. These control and check points are known as strategic planning, for example, inventory planning, sales planning, human-resource planning, financial planning, etc.
ERP software looks to combine all the resource planning and execution at the corporate level. This facilitates tracking of resources and supplementing executive decision.
ERP is an integrated information system which utilizes a central database and has a common computing platform, which assists in effective resource planning to ensure business transactions.
The last couple of decades or so has seen the emergence of techniques to improve productivity. However, with the advent of information technology, ERP has been in the forefront in organizational success.
Traditionally, all organizations were built of different departments undertaking distinct task such as manufacturing, sales, operations, human resource, finance, etc. A thought prevailed that if individual departments could meet their respective goals, organization will also meet its objective. However, it has been observed that different departments have their own objectives and productivity metrics. These departmental objectives may not align to the overall organizational objective.
For example, sale team makes a commitment of next-day delivery when the distribution team may not be ready for that task. So there were always inter-department conflicts plaguing the organization.
This led in the development of enterprise approach towards management. Under enterprise approach, the whole organization works towards a single set of objective; all the departments need to develop their objective in line with the organizational objective. The whole organization works as a single unit with departments working as a sub-unit.
As organization started moving towards enterprise approach, focus started shifting from function to process. Delivering customer delight became not just a sales function, but is part of the performance delivery process. This change of focus reorganized company structures. Earlier individual department had their own system catering to their own needs and demand. This led to duplication of data, lack of integration between department/systems and continuity in flow of information.
ERP system looks at the process as a whole. For example, a goods receipt will lead to update in stock inventory, update in purchase order history, update accounts payable, and update need of inspective of new stock.
ERP system leads to removal of data duplication as one entry or activity can be captured just once, and this record cannot be accessed without proper authorization.
ERP systems lead to standardization of data as entry fields are not left to user discretion. ERP System helps in data tracking from origin to destination.
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Communication Systems and Groupware – Information System Concepts that Apply in All Functional Areas of Business
February 12, 2025
