UNIVERSITY OF BEDFORDSHIRE FOREIGN TRADE UNIVERSITY

SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS

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END-MODULE ASSIGNMENT
Module: OPERATION & PROJECT MANAGEMENT
Code: BSS027-2

ASSIGNMENT

Student: Nguyen Do Minh Anh FOREXAMINERS ONLY

Student ID: 1805025118 Grade (in number):

………………..
Class: K58BF-A
Grade (in words):
Semester: I ………………..
Academic year: 2021 - 2022 Examiner 1
(Signature &Fullname)
Headteacher: PhD TS Nguyễn Xuân Minh
………………..
Submission date: 12 October 2021
Examiner 2
Student’s signature: (Signature &Fullname)
………………..

Ho Chi Minh City, October 2021

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 PREAMBLE

I would like to start the topic with a question: What are the core values of Operation
and Project management?

The importance of the project manager role should not be underestimated, responsible
for the day-to-day management of the project and the successful execution of agreed
spending targets in terms of time, cost, scope, risks, benefits and quality (criteria).

Why?

While project processes and practices have their place, the values a project manager
embodies have the greatest impact on project success.

Effective project management through a project management role is often driven by

clear strategic goals and a fundamental set of values that drive how the person is held
accountable for day-to-day actions and influences. to the expectations of key
stakeholders.

In this essay, I will discuss operational processes and clarify them based on the
experience and knowledge that I have accumulated during my studies.

Thank you!

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 TABLE OF CONTENTS

Content Page
I. Operation management:

1.1. What is operation management? 4

1.2. Why is operation management important in all types of organization? 6

1.3. What are the activities of of operation management? 8

1.4. Lesson evaluate 12

II. Operation performance:

2.1. Why is operations performance important in any organization? 14

2.2. What are the performance objectives of operations and what are the
16
internal and external benefits which derive from excelling in each of them?
2.3. Lesson evaluate 18

III. Planning & Control:

3.1. What is planning and control? 18

3.2. What are the activities of planning and control? 20

3.3. Lesson evaluate 22

IV. Supply Chain in Planning & Control

4.1. What is supply chain management? 23

4.2. What are the activities of supply chain management? 24

4.3. Lesson evaluate 25

V. ERP in Planing & Control

5.1. What is ERP? 27

5.2. How should ERP systems be implemented? 30

5.3. Lesson evaluate 32

3
I. Operation management:

1.1. What is operation management?

1.1.1. Definition:

Operation management is a field of business concerned with the administration of

business practices which managing the resources which produce and deliver products
and services to maximize efficiency within an organization.

Operation management is a management function or the core function of organization

which is responsible for planning, coordinating and controlling the resource needed to
produce product and services for a company in every organization whether services or
manufacturing, for profit or not for profit.

1.1.2. The operations function in organization:

The operations function is central to the organization because it produces the goods
and services which are its reason for existing.

It is one of the three core functions of any organization. These are:

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● The marketing (including sales) function – which is responsible for communicating
the organization’s products and services to its markets in order to generate customer
requests for service

● The product/service development function – which is responsible for creating new

and modified products and services in order to generate future customer requests for
service

● The operations function – which is responsible for fulfilling customer requests for
service through the production and delivery of products and services.

In addition, there are the support functions which enable the core functions to operate

effectively. These include, for example:

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● The accounting and finance function – which provides the information to help
economic decision-making and manages the financial resources of the organization;

● The human resources function – which recruits and develops the organization’s staff
as well as looking after their welfare.

1.2. Why is operation management important in all types of organization?

1.2.1. Operation management role:

All aspects of a business depend on management. It has the ability to plan, direct, and
encourage the production of goods and services. To be able to compete in an ever-
changing market, operations managers must be able to work efficiently and
productively to maximize profits, which are key factors that determine the survival of
the business.

Operations management can affect customer service, product and service quality,
proper functional methodology, market competitiveness, technological advancement,
and profitability. Failure to manage the company's operations will cause significant
losses to the business.

Operations management is increasingly important because today’s business

environment requires new thinking from operations managers.

Every manager is an operations manager, since all managers have a responsibility to

contribute to the activities necessary to create and deliver the organization's goods or
services.

Operations managers are responsible for managing the activities that are part of the
production of goods and services.

 Their direct responsibilities include managing the entire operation, including

design, planning, control, performance improvement, and operational strategy.

 Their indirect responsibilities include interacting with managers in other

functional areas of the organization whose role affects operations. Those areas
include marketing, finance, accounting, human resources, and engineering.

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1.2.2. Operation management’s transformation role:

Operations management turns inputs (labour, capital, equipment, land, buildings,

materials and information) into outputs (goods and services) that provide added value
to customers row.

All organizations must strive to maximize the quality of their transformation processes
to meet customer needs.

An operations managers is tasked with ensuring that the organization successfully

converts inputs such as materials, labour, and technology into output in an efficient
manner.

 Output: Production; quantity produced, created, or completed.

 Input: Something fed into a process with the intention of it shaping or affecting
the outputs of that process.

 Process: A series of events to produce a result, especially as contrasted to product.

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1.3. What are the activities of of operation management?

1.3.1. Understanding function and operation

Operations management involves the use of resources from employees, materials,

equipment, and technology. Operations managers acquire, develop, and deliver goods
to customers based on customer needs and company capabilities. Other operational
issues include managing inventory levels, including work-in-process levels and raw
material procurement, quality control, material handling, and maintenance policies.

Operations management requires studying the use of raw materials and ensuring
minimal waste occurs. Operations managers use a variety of formulas, such as the
economic order quantity formula, to determine when and how large an inventory order
needs to be handled and how much inventory to hold.

Responsibilities include understanding relevant performance objectives, setting an

operations strategy, the design of the operation (products, services and processes),
planning and controlling the operation, and the improvement of the operation over
time.

Operations managers also have a set of broad societal responsibilities. These are
generally called ‘corporate social responsibility’ or CSR objectives

Essential element of an operations manager:

 Understand the strategic operational goals of the operation.

 Develop operational strategy for the organization

 Design products, services and operational processes

 Planning and Controlling Operations

 Improve the performance of the operation

 The social responsibility of the activity

1.3.2. Transformation model:

All operations produce products and services by changing inputs into outputs using an
‘input-transformation-output’ process.

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Put simply, operations are processes that take in a set of input resources which are

used to transform something, or are transformed themselves, into outputs of products

and services. And although all operations conform to this general input–
transformation–output model, they differ in the nature of their specific inputs and
outputs.

a. Inputs to the process

One set of inputs to any operation’s processes are transformed resources. These are
the resources that are treated, transformed or converted in the process.

Inputs include different types of both transformed and transformed resources.The

three types of resources that can be converted in the activity are:

 Material - material input to the process

 Information - being processed or used in this process

 Customers - people who are transformed in some way.

 Staff – the people involved directly in the transformation process or supporting it

 Facilities – land, buildings, machines and equipment.

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Many people think that operations are primarily about converting materials or
components into finished products, like when limestone and sand are transformed into
glass or a car is assembled from other parts. its each other. But all organizations that
produce goods or services transform resources: many are primarily concerned with
transforming information (for example, consulting or accounting firms) or converting
customers. (for example, hairdressers or hospitals).

Employees involved in the transition can include both those directly employed by the
organization and those contracted to provide services to it. They are sometimes
described as 'labour'.

b. Transformation process

A transformation is any activity or group of activities that take one or more inputs,
transform and add value to them, and provide outputs to the customer or customer.

In general, all three types of inputs - materials, information, and customers - are
transformed by the same organization.

The transitions include:

 Changes in material or customer physical properties

 Change the location of documents, information or customers

 Change ownership of documents or information

 Store or store documents, information or customers

 Change in purpose or form of information

 Change the client's physiological state.

A useful way to categorize the different types of conversions is:

 Manufacturing - the making of products (for example: cars, computer,…)

 Transportation - movement of materials or customers (for example: taxi service)

 Supply - change ownership of goods (for example: in retail)

 Service - customer treatment or material storage (for example: hospital ward,

warehouse).

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c. Outputs from the process:

Although products and services are different, the distinction can be subtle. Perhaps the

most obvious difference is in their respective tangibility.

1.3.3. The scope of operations management:

The operations function includes many interrelated activities such as:

 Finance - Managers should always ensure that all of the organization's finances
are used to produce useful goods or services that can satisfy consumer desires.

 Operations - The function of operations management is basically concerned with

planning, organizing, directing and controlling the day-to-day activities of an
organization.

 Strategy - The formulation of plans and tactics that help organizations optimize
their resources and develop a competitive advantage over competitors.

 Product Design - Operations Managers are responsible for designing products

according to market trends and needs

 Maintain Quality - Operations managers must work on quality management and

should oversee all tasks.

1.3.4. The objective of operation management:

Managing each aspect of an organization's operations effectively is a key role for

operations management. It focuses on enhancing the profitability of organizations by
maintaining the right balance between costs and revenues. This process ensures that
all resources such as raw materials and labor are used efficiently by the organization
to produce its goods or services.

 Increase productivity: Operations management plays an important role in

increasing the productivity of the business. It manages all aspects of production
operations to achieve the highest possible efficiency. They ensure that all inputs
used by organizations are efficiently converted into outputs that are products or
services.

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 Achieving Organizational Objectives: Every organization strives to achieve its
desired goals. Proper production management helps enterprises to properly
implement strategic plans in their operations. Operations management ensures that
all the activities of the business are moving in the desired direction.

 Reduced investment needs: Operations management reduces the additional capital

requirements of the business. It ensures that all capital used in the business is used
efficiently. Operations management ensures that all production activities are not
interrupted without running out of capital.

 Innovation Innovation: Operations management helps to implement innovative

changes in the activities of the organization. All decisions regarding production
planning are made by operations managers by performing research and analyzing
common market scenarios.

 Enhancing Goodwill: Maintaining proper goodwill in the market is the goal of

every business. Operations management focuses on enhancing the position of the
organization in the market. It ensures that the business works to provide better
services to its customers.

1.4. Lesson evaluate

1.4.1. About the lesson

Operation management describe and clarifies organization process and how to

effectively manage a company or business. It introduces the idea of the operation
function in different types of organization. Moreover, this lesson also identifies the
common set of objectives to which operation managers aspire in order to serve the
customers and it explain how operations can have an important strategic role.

Besides, it helps students realize that the method of planning and managing work
schedule is necessary not only in the company but also in life.

1.4.2. Practical application:

The organization and management of application activities is very high even during
the learning process. Students can fully apply their knowledge of activity management
to manage their study groups as well as manage their own learning progress.
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For example:

The following learning process will demonstrate that the operational process is closely
related to the student’s learning process:

“The more careful input and transformation do, the more wonderful the output get.”

 Personal learning process:

 University learning process:

In conclusion, organizational management is completely applied to most work in life in many

different ways. Effective management of an organization needs to converge many factors and
skills that managers must practice. The transformation process in organizations is similar to
the laws or cycles of nature. Therefore, investing in the input and being careful in the
conversion process will give a good output.

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II. Operation performance:

2.1. Why is operations performance important in any organization?

2.1.1 Definition:

Effective performance management is essential to businesses. Through both formal

and informal processes, it helps them align their employees, resources, and systems to
meet their strategic objectives. It works as a dashboard too, providing an early
warning of potential problems and allowing managers to know when they must make
adjustments to keep a business on track.

Strong performance management rests on the simple principle that “what gets
measured gets done.” In an ideal system, a business creates a cascade of metrics and
targets, from its top-level strategic objectives down to the daily activities of its front
line employees. Managers continually monitor those metrics and regularly engage
with their teams to discuss progress in meeting the targets.

2.1.2 Relationship between superiors and fire dynamic efficiency:

The most important thing of a company is to make a profit & value:

=> Investors will require managers to generate expected profit or revenue for the
company they invest in.

=> Senior leaders will care about operational performance and important factors in
operational management to achieve the expected value.

At the management level, the manager must meet the requirements of investors as well
as the company's goals. Performance indicators will have to be continuously updated
and optimized for performance factors.

2.1.3. “Make or Break”:

Operations management can either ‘make or break’ any business. It is large and, in
most businesses, represents the bulk of its assets, but also because the operations
function gives the ability to compete by providing the ability to respond to customers
and by developing the capabilities that will keep it ahead of its competitors in the
future.

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2.1.4. Influence of Operations Management:

 Operations Management affect profitability & impact on successful strategy:

The way operations management perform their activities can have a significant effect
on business performance:

 It improve productivity and efficiency

 It reduce the cost of produce and service

 It reduce risk and demand for investment

 It increase revenue and enhance innovation

 Operations Management is affected by stakeholders’ activities :

All activities have stakeholders ( a stakeholder is a person or organization that has an

interest, influence, and can be affected by what that organization does) . In any form
of organization, it is the responsibility of operations managers to meet and deliver
requirements for cooperation and development between the company and its
stakeholders.

Take the stakeholder map of a marketing company as an example:

Each stage of work the company will have to face with one or several different stakeholders,
so the consideration and management of the work should be flexible and always ensure the
progress of the work as planned and intended.

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2.2. What are the performance objectives of operations and what are the internal
and external benefits which derive from excelling in each of them?

2.2.1. Operational performance objectives:

Performance goals are areas of performance that a company strives to improve, in

order to meet its strategy.

There are five key performance goals:

 Speed - “doing things fast”

 Quality - “doing things right”

 Cost - “ doing things cheaply”

 Flexibility - “changing what they do”

 Dependability - “doing things on time”

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Take McDonald’s operation strategy as an example:

McDonald's operating strategies based on competitive priorities include:

 Reasonable cost and friendly

 High quality food and service

 Fast & flexible service speed

2.2.2. The internal and external benefits:

Based on the 5 key performance goals for the evaluation:

QUALITY SPEED DEPENDABILITY FEXIBILITY COST

Customer Customer Customer service Produce new Reduce

price
External satisfaction service product &
Higher
service
Benefit volume

Reduce Save time & money Speed up

Reduce costs response
Internal inventories Give stability to times Higher
Increase profit
Benefit dependability Reduce operation Maintain margins.
risk dependability

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2.3. Lesson evaluate:

2.3.1. About the lesson:

In addition to the main tasks in operation management (forecast, control, strategy, ...)
then managers or leaders need to pay attention to operational performance in the
company. Operations are judged by the way they perform. The stakeholder doing the
judging and there are many different aspects of performance on which the assessment
is being made.

The measurement of business performance is to understand whether the application

and allocation of resources within a corporation achieves the optimal level and
schedule for the completion of objectives, and all of these things. All of these provide
management with necessary information as a valuable reference. adjustment plans or
policy decisions to improve the competitiveness of enterprises.

Besides, performance also affects the investment decisions as well as long-term

cooperation of stakeholders and is a decisive factor for the sustainability of the
company.

2.3.2. Practical application:

In an enterprise, often leaders or administrators will use KPI (Key Performance

Indicators) to evaluate employee performance as well as the company's organizational
performance.

Nowadays, it is common to use the SMART (Specific, Measurable, Attainable

Relevant, Time Based) tool to evaluate job performance.

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III. Planning & Control:

3.1. What is planning and control?

3.1.1. Definition:

Planning and Control is management functions that determine:

 What market demand are standing?

 How a company can fill those demand through planning and monitoring?

Planning is required for day-to-day processes, like scheduling, dispatch inspection,

quality assessment, inventory control, supply and equipment management. Control
ensures that the execution of those items is done optimally, both in terms of cost
savings and efficiency.

3.1.2. Planning and control goals:

 Ensure a cost-effective production process

 Promote timely delivery

 Reduce production time

 Improve customer satisfaction

 Coordination with production departments

 Make sure the right person is assigned the right job

3.1.3. Relationship between Planning & Control:

 Planning and controlling are two separate

functions of management, yet they are closely
related.

 The scope of activities both are overlapping to

each other.

 Without the basis of planning, controlling activities

becomes baseless and without controlling,
planning becomes a meaningless exercise.

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 3.1.4. Compare Planning & Control:

Basis of Planning Controlling

Difference

Meaning Planning is deciding in advance what Controlling measure the deviation of

to do, how to do, when to do it and actual performance from the standard
who is to do it. performance and takes corrective
actions.

Objective The main objectives is to get goals The main objective is to ensure that
and choosing the targets must be achieved as per
the plans

Act of Includes setting objective Identifying Include fixation of standards,

function alternate course of action select the measurement of actual performance
best plan

Factor Internal as well as external factors are Take care of internal and external fac
considered while setting targets tors for corrective action

Order It is the starting point of management It follows all other function of Mana
Other functions depends on Planning gement process.

Nature Planning will never come to an end It is a process which starts once the a
till the organization exist ctual target is achieved

3.2. What are the activities of planning and control?

3.2.1. Basic Types of Planning Processes:

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 Loading: Which dictates the workload allocated overtime and to each part of the
operation.

 Sequencing: Which decides the order in which work is tackled within the
operation

 Scheduling: Which determines the detailed timetable of activities and when

activities are started and finished

 Monitoring : Which involve detecting what is happening in the operation, re-

planning if necessary, and intervening in order to impose new plans.

3.2.2. Basic Types of Control System:

In general, depending on the level of supply chain operation, the manager will choose
the Push control system and the Pull control system.

 In a push-based supply chain, products are pushed through the channel from the
point of production to the retailers or warehouse. This means that production
happens based on demand forecasts.

=> Suitable for wholesale supply chain (Make to stock)

 In a pull-based supply chain, procurement, production, and distribution are

demand-driven . Goods are produced in the required quantity and time.

=> Suitable for direct-to-customer supply chain ( Make to order)

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3.3. Lesson evaluate:

Planning and control are two essential tasks in all organizations. They are related and
complementary to each other towards the end goal.

 To plan effectively, managers need to have optimal vision and strategy.

Outstanding Results = Strategy Maps + Balanced Scorecard + Strategy Focused

Organization

Managers need to apply strategy maps or predictive formulas (eg. Astrology, DMAIC
strategy, PESTEL strategy, SMART model or Gantt chart ...)

 After making a specific plan, the manager needs to have a reasonable and
effective job execution strategy for the employees as well as strictly control the
progress of activities to ensure the goal is completed as planned.

Managers can apply PERT network to build large projects, CPM ( Critical Path
Method) or Cellular Manufacturing to manage multiple information at the same time.

 Commonly Used Tools for Problem Solving and Continuous Improvement:

Depending on the operational purposes and strengths of the manager, they can use
different maps in different functions.

But in general, managers will need support tools to optimize their goals and operating
style.

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IV. Supply Chain in operation management:

4.1. What is supply chain management?

4.1.1. Definition:

 Supply chain management (SCM) is the integration of the activities that procure
materials, transform them into intermediate goods and final product, and deliver
them to customers.

 By managing the supply chain, companies can cut excess costs and deliver
products to the consumer faster.

 One of the world-class operations management methods.

4.1.2. The activities of Supply Chain managers:

Supply chain management (SCM) speaks to an exertion by providers to create and

execute supply chains that are as proficient and prudent as conceivable.

Supply chains cover everything from production to product development to the

information systems needed to direct these undertakings.

A supply chain manager coordinates the logistics of all aspects of the supply chain,
which consists of five parts:

 Plan or strategy

 The source (raw material or service)

 Manufacturing (focus on productivity and

efficiency)

 Delivery and logistics

 The return system (for defective or unwanted

products)

 Employee training and evaluation

 Work with finance, sales and production teams

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4.2. What are the activities of supply chain management?
4.2.1. Generic Supply Chain:
The traditional supply chain model has existed for a long time and is considered as the
standard model for developing different supply chain models.

 Sourcing and mining raw materials

 Logistics provider to a supplier

 The materials are taken to a manufacturer &

processed into a finished product.

 Shipping to a wholesale distributor of finished

products

 Go to a retailer

 Retailers sell products to consumers

4.2.2. Supply Chain for an e-Commerce Company:

Currently, the e-commerce model is increasingly popular (eg: Shopee, Lazada,

Amazon, ...). These e-commerce companies run a website and that website sells many
other products together. But in general, the way and the life cycle is similar to the
traditional supply chain.

 Customer orders a product

 Product orders are being processed by

technology like a checkout cart

 Ordering systems or third-party products

(where the products ordered by the customer
are sold)

 Goods are transported to the warehouse.

 Transfer to the shipper

 The delivery person will deliver the order

directly to the customer

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4.3. Lesson Evaluate:

The supply chain continues to evolve rapidly, keeping pace with the breakneck
technological advancements of the modern era.

Therefore, to maintain supply chain integrity and maximize revenue and profit,
managers must directly anticipate trends that are shaping the future as well as apply
cutting-edge measures.

4.3.1. Trends in Supply Chain Management:

 Supplier Partnering

Choosing to do business with a limited number of suppliers, with the aim of building
relationships that improve quality and reliability rather than just improve costs.

 Channel assembly

Organizing the product assembly process so that the company doesn’t send finished
products to its distribution channel partners, but instead sends the partners components
and modules. Partners become an extension of the firm’s product assembly process.

 Channel Assembly

Organizing the product assembly process so that a company sends its distribution
channel partners components and modules rather than finished products. The partners
then become an extension of the firm’s product assembly process.

 Internet Purchasing (e-Procurement)

Vendors interact with other firms via the Internet to accept, place and acknowledge
orders via the Web.

4.3.2. Trends Shaping the Future of Supply Chain Management:

 Artificial Intelligence and Automation:

The use of artificial intelligence (AI) and automation is increasing in

many supply chains. Automation allows you to streamline repetitive
tasks.

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 Focus on sustainability:

As more and more consumers prioritize the environment, many

businesses have stepped up their sustainability efforts, now entering the
supply chain.

In the years to come, businesses choose to commit to sustainable

production processes or strive to become zero-waste.

 Internet of Things (IoT):

A network of physical objects, powered by sensors and software,

connected to the internet. It has played an important role in the supply
chain and improve warehouse management, vehicle fleet tracking,
inventory control and even technology and mechanical maintenance.

 Digitizing:

Digitization refers to the practice of putting information into a digital

format. Effective digitization can make your entire supply chain more
streamlined, mobile and

dynamic - all highly beneficial to your organization's bottom line.

 Round supply chain:

The circular supply chain model certainly helps with sustainability

efforts, but it also brings economic benefits to the organization.
Fortified professional relationships and increased reliance on
technology (including AI and IoT) can also help an organization's
efforts work along a circular supply chain.

 Cloud-based solution:

The Software-as-a-Service (SaaS) model is particularly useful, fast,

and accurate for supply chain management. It is not only reliable and
secure, but also very efficient and convenient. All of your
organization's data is stored in the cloud, and you and your team can
get the information you need anytime, from anywhere.

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V. Enterprise Resource Planning (ERP):

5.1. What is Enterprise resource planning:

5.1.1. Definition:

 E: Enterprise: An enterprise is an organization with a complete and unified system.

All departments and departments have a close relationship. The data will be
legacy, cross-checked and censored.

 R: Resource: According to Economics, “resource” is the enterprise's resources

(financial, human resources, technology); According to Information Technology,
“resource” is a resource (software, hardware, data).

 P: Planning: Planning is a familiar concept in business administration. It involves

forecasting, making various types of plans in a business such as: sales forecast,
merchandise forecast, sales plan, production plan, purchasing plan, financial plan,
etc.

So ERP is planning to turn all resources into resources. Resources that businesses can
access and use. Thereby helping businesses control their own resources more
effectively.

5.1.2. Enterprise resource planning (ERP) system:

 Enterprise resource planning (ERP) system is an application that automates

business processes and provides insights and internal controls, based on a central
database that collects input from departments including accounting. ,
manufacturing, supply chain, sales, marketing and human resources (HR).

 Provides single information system for organization-wide coordination and

integration of key business processes

 One of the world-class operations management methods.

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5.1.3. The purpose of ERP:

This ERP suite provides the

following facilities according to the type
of user.

 Services for Customer: Purchase

History, Profile (view/edit)

 Services for Distributor: Customer’s

details, Purchase history of a specific
customer, Selling batteries to the
customer and make bill receipts,
Auto-invoice generator, Stock
management, Stock dashboard, Add
stock.

 Services for Admin: See details of

distributor, Add distributor

5.1.4. The function of ERP for Business:

Enterprise resource planning systems is a type of multi-functional, multi-department

management software solution that can be used by an enterprise or an organization to
collect, store, manage and analyze data data from its business, including product
planning, costs, production or service provision, marketing and sales, delivery and
payment.

Some special things that ERP systems can help businesses:

 Quality control, project management & Provide business leaders with real-time
information about their operations.

 Give business leaders and teams instant access to their global supply chain.

 Help automate and streamline boring tasks and redundant processes.

 Make leadership accessible from anywhere (off-site and from mobile devices).

 Standardization of HR activities & helps increase team productivity

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 Make it easier for teams to collaborate with each other and with third-party
vendors.

 Provides powerful reporting and forecasting tools to make informed decisions

about the future of your business.

 Secure data and help ensure that business operates in accordance with global laws
and regulations.

 Financial & Accounting information control

5.1.5. Enterprise Resource Planning Terminology and Toolkit:

 Enterprise Resource Planning (ERP): Business process management tools can be

used to manage information within an organization.

 On-premises ERP: ERP software is installed locally on hardware and servers and
managed by your IT staff.

 Cloud-based ERP: ERP software already in place and managed off-site by your
vendor.

 Supply chain management: the flow of goods and services from point of origin to
point of consumption.

 Third Party Vendors: Businesses or partners can be integrated into your ERP
system.

 Capacity requirements planning: A method used to determine the available

production capacity of a company.

 Mobile solution: The ability to access data through your ERP from anywhere and
using a mobile device.

 ERP implementation options: Types of ERP systems you can implement in your
organization.

 Enterprise Architecture: How an organization is structured; all moving parts.

 Customer Relationship Management: A tool that businesses use to manage

interactions with customers.

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5.2. How should ERP systems be implemented?
5.2.1. ERP implementation definition :

 ERP implementation describes the process of planning, configuring, and

implementing an ERP system - which supports and automates many different
functions.

 This process usually continues for several months - and it is complicated

 The evaluation, selection and implementation process are long-term strategic

decisions for the organization

 Successfully navigating all of those steps on schedule requires careful planning

and a structured, phased implementation approach.

5.2.2. ERP implementation process:

The ERP implementation process begins with selecting the right software for the
organization, selecting the right software based on their specific requirements. A
project management team is assigned to successfully install the software.

 Planning:

A successful ERP implementation begins with a

proper project plan. Project planning involves
appointing a project team that will take care of
execution. Each team member will be responsible
for specific tasks that lead to the success of the
project plan. The team decides the scope and goals
of the project plan based on specific requirements.

 Budgeting:

The team needs to determine the actual costs

associated with implementing the software to
include hardware, training, development, and
software. The project management team should also consider indirect costs such as
data migration and team member salaries.

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 Development:

The project team should review and provide training on all aspects of the ERP
software and develop and document standard operating procedures.

 Analyze & Migrate:

Team members should analyze all business data and decide which data needs to be
migrated. They should segment the data into logical tables, the data will then be
transferred to the ERP system and checked for accuracy.

 Training:

Project team members should develop an effective user training plan to achieve it.
Team members should be assigned to run internal training.

 Testing:

Team members should check the accuracy of all migrated data and check that
everything is working correctly.

 Going Live:

The final step is to go live and provide ongoing support. The project team needs to
closely monitor the performance and accuracy of the software during the early days.
They need to make sure they're watching closely and troubleshooting if problems arise.

5.2.3. ERP implementation strategy:

There are 3 foundation Strategies for ERP system implementation:

 Big Bang - Overall implementation strategy for all parts of the business at the
same time. Requires a huge mix of resources and will inevitably lead to business
disruption.

 Phased - Divides the enterprise's project into many stages for implementation, and
will gradually expand the ERP solution to less essential departments.

 Parallel - deployment method in which you will use the existing software solution
simultaneously and parallelized the implementation of the new solution. This
solution is now almost mandatory to meet the integrity of existing operations.

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 COMPARE 3 IMPLEMENTATION METHODS

Pros Cons

Short implementation time High risk

Big Exciting build up to ERP launch Hard to control

Bang More focused training No reliable long-term backup

Low cost Temporary lack of productivity

Easier system testing and tuning High cost

Phrase Low risk Often requires additional interfaces

Rollout Have a thoughtful training time Long execution time

Parallel Safe and effective Highest cost

Balance time for employees to adapt. Longest execution time.

For each business, there will be appropriate plans depending on the actual situation
and capacity of personnel. Administrators can choose specific methods, or can mix for
each stage of implementation to ensure the success of the project. The ultimate goal is
to ensure that the ERP solution is put into operation on time and at an acceptable cost.

5.3. Lesson evaluate:

5.3.1. About the lesson:

All business enterprises need to implement ERP for the organization to function better.
The best ERP solution will help keep a company at the forefront of the market.

Choosing ERP software and applying it to the whole business can be a big challenge
for managers, requiring them to have a foresight and flexibility and acumen in
operating.

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 Choose an ERP solution based on the size of business: There are ERP suites
created to track the activities of small - medium - large businesses.

 Stay on top of the fast-paced business: Cloud-based ERP software is the new
standard these days due to the advantage of being accessible from anywhere and
at any time.

 Accurate real-time forecasts and predictions: Regulating and updating all their
data related to material, labor, and finances in real-time is essential.

5.3.2. Practical application:

There are many ways to classify ERP software in Vietnam today. In fact, choosing a
suitable ERP system is still a concern of many businesses.

a. Classification of ERP systems by vendor:

 ERP software of foreign suppliers: The biggest advantage of foreign ERP

software is often experienced and successfully applied in many businesses around
the world.

 ERP software of domestic suppliers: One of the obvious strengths of domestic

ERP software is that the accounting and financial processing processes on the
software are easily compliant with Vietnamese accounting standards.

b. Classification of ERP systems by investment costs:

 Low-cost ERP software: Although these projects have low costs, they are risky
due to lack of professionalism, hidden costs, and especially lack of high security.

 Mid-range cost ERP software: The stability and ability to meet business needs of
this type of software will be quite high, but the implementation places they often
do not implement all the functions of the ERP system.

 High-cost ERP software: Standard process and high reputation, deploying most of
the modules, suitable for large enterprises, many branches and multinational
companies.

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 REFERENCE

1. https://fdocuments.net/category/career.html (Slides of the teacher's lecture)

2. https://mlm.pearson.com/global/myomlab/ (TEXT BOOK)

3. https://www.top-sage-resellers.com/blog/big-bang-erp-implementation-vs-
phased-approach-pros-and-cons

4. https://phanmemketoanerp.com/tin-erp/mot-so-chien-luoc-trien-khai-erp/

5. https://www.netsuite.com/portal/resource/articles/erp/erp-implementation-
project-plan.shtml

6. https://www.fictiv.com/articles/10-trends-shaping-the-future-of-supply-chain-
management

7. https://www.slideshare.net/crinafeier/planing-and-control-in-general-1

8. https://tulip.co/blog/what-is-a-push-system-vs-a-pull-system

9. https://link.springer.com/

10. https://www.dummies.com/business/operations-management/how-to-use-
operations-management-to-implement-a-successful-enterprise-resource-planning-
erp-system/

THE END
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