Course Code: SWE - 304

Enterprise System Engineering

Lecture # 7
Dr. Syed Saood Zia
Assistant Professor

6th Semester
Software Engineering Department
Sir Syed University of Engineering & Technology
Table of Content

• Enterprise Systems
• Evolution of Enterprise Systems
• MRP
• MRP II
• ERP
• Extended Enterprise Systems
• Front Office & Back Office
• Extended Enterprise Systems Framework

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Enterprise • Introduction
Systems

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Enterprise Systems - Introduction

• Enterprise systems (ES) are an information system that integrates business

processes with the aim of creating value and reducing costs by making the
right information available to the right people at the right time to help them
make good decisions in managing resources proactively and productively.

• Enterprise resource planning (ERP) is comprised of multi-module application

software packages that serve and support multiple business functions.

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Enterprise Systems - Introduction

• These large, automated cross-functional systems were designed to bring

about improved operational efficiency and effectiveness through integrating,
streamlining, and improving fundamental back-office business processes.

• Traditional ES (like ERP systems) were called back-office systems because they
involved activities and processes in which the customer and general public
were not typically involved, at least not directly.

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Enterprise Systems - Introduction

• Contemporary ES have been designed to streamline and integrate operation

processes and information flows within a company to promote synergy and
greater organizational effectiveness as well as innovation.

• These newer ES have moved beyond the back-office to support front-office

processes and activities like those that are fundamental to customer
relationship management.

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 • Evolution of
Enterprise Enterprise
Systems Systems

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Materials Requirement Planning (MRP)

• The first practical efforts in the ES field occurred at the beginning of the
1970s, when computerized applications based on MRP methods were
developed to support purchasing and production scheduling activities.

• MRP is a heuristic based on three main inputs:

• The Master Production Schedule

• The Bill of Materials and

• The Inventory Record

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Materials Requirement Planning (MRP)

• The Master Production Schedule, which specifies how many products are
going to be produced during a period of time;

• The Bill of Materials, which describes how those products are going to be
built and what materials are going to be required; and

• The Inventory Record File, which reports how many products, components,
and materials are held in-house.

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Manufacturing Requirement Planning II (MRP - II)

• MRP system had evolved from a material requirements planning system into
a planning and control system for resources in manufacturing operations—an
enterprise information system for manufacturing.

• MRP II systems became more widespread and more sophisticated, particularly

when used in manufacturing to support and complement computer-
integrated manufacturing.

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Enterprise Resource Planning (ERP)

• Enterprise resource planning (ERP) systems are business systems that

integrate and streamline data across the company into one complete system
that supports the needs of the entire enterprise.

• ERP systems are designed to enhance all aspects of key operations, such as
purchasing, accounting, manufacturing, and sales, by taking processes and
functions that were previously disjointed and supported by various legacy
systems.

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Enterprise Resource Planning (ERP)

• The foundation of an ERP system is a well- structured database that serves

the operational and decision-making needs of the entire enterprise.

• By supporting the information requirements of more than one functional

area, ERP systems are considered cross-functional in nature.

• ERP systems are also considered process- centered; that is, the application
enables a clear, complete, logical, and precise view of the organization’s
business processes, or how it does its vital work.
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Evolution of Enterprise Systems (ESs)
System Primary Business Scope Enabling Technology
Need(s)
MRP Efficiency Inventory Management & Mainframe computers, batch processing,
Production Planning & traditional file Systems
Control

MRP II Efficiency, Effectiveness Extending to the entire Mainframes and minicomputers, real-time
and integration of manufacturing firm (cross- (time-sharing) processing, database
manufacturing systems functional) management systems (relational)

ERP Efficiency, effectiveness, Entire organization Mainframes, mini- and microcomputers,

and integration of all (increasingly client/server networks with distributed
organizational systems crossfunctional), processing and distributed databases,
Both manufacturing and data warehousing, mining, knowledge
nonmanufacturing management
Operations

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Front Office and Back Office

• These terms are used to define different business processes within the
organization where the primary responsibility of interacting with the
customers is endowed to the front office and all the production and
background processing of the tasks that are required to deliver a quality
product or service lies with the back office hence both are pivotal parts of
an organization

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What is Front Office

• The office which takes on the responsibility of interacting with the clients of
the company be it existing or new is known as a Front office.

• It also handles the tasks of sales and marketing services along with
providing after-sales services.

• The employees who are working in the front office directly interact and
have dealings with the customers of the company.

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What is Back Office

• The back office of a company mainly consists of the administration

department.

• The employees in this section do not have direct interaction with the
customers of the company.

• This section ensures that all the operations are performed seamlessly so
that the daily business is run smoothly.

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What is Back Office

• It helps in daily administration work along with the development and

manufacturing of the products and services.

• The back office employees though have no direct contact with the
customers are an integral part of the company as they are responsible for
handling daily activities.

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Extended Enterprise Systems Framework

• The conceptual framework of EES consists of four distinct layers:

• A foundation layer

• A process layer

• An analytical layer

• An e-business layer

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Extended Enterprise Systems Framework
Layer Type Components

Foundation Core Integrated database (DB) ; Application framework (AF)

Process Central Enterprise resource planning (ERP); Business process

management (BPM)
Analytical Corporate Supply chain management (SCM); Customer relationship
management (CRM); Supplier relationship management (SRM);
Product lifecycle management (PLM); Employee lifecycle
management (ELM); Corporate performance management
(CPM)
Portal Collaborative Business-to-consumer (B2C); Business-to-business (B2B)
Business-to-employee (B2E); Enterprise application integration
(EAI)

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Foundation Layer

• The foundation layer consists of the core components of EES, which shape
the underlying architecture and also provide a platform for the EES
systems.

• One of the core components is the integrated database, which may be a

distributed database.

• Another core component is the application framework, which also can be

distributed.

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Process Layer

• The process layer of the concept is the central component of EES, which is
Web-based, open, and componentized (this is different from being Web-
enabled) and may be implemented as a set of distributed Web services.

• ERP still makes up the backbone of EES along with the additional
integrated modules aimed at new business sectors outside the
manufacturing industries.

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Process Layer

• The backbone of ERP is the traditional ERP modules such as financials,

sales and distribution, logistics, manufacturing, or human resources.

• The EES concept is based on business process management.

• EES includes tools to manage processes, design processes, execute and

evaluate processes (business activity monitoring), and redesign processes
in real-time.

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Analytical Layer

• The analytical layer consists of the corporate components that extend and
enhance the central ERP functions by providing decision support to
manage relations and corporate issues.

• Corporate components are not necessarily synchronized with the

integrated database and the components may easily be “add-ons”
instituted by acquiring third party products/vendors.

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Electronic Business Layer

• The e-business layer is the portal of the EES systems and this layer
consists of a set of collaborative components.

• The collaborative components deal with the communication and the

integration between the corporate ERP II system and actors like the
customer, business partners, employees, and even external systems.

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Summary

• Enterprise Systems
• Evolution of Enterprise Systems
• MRP
• MRP II
• ERP
• Extended Enterprise Systems
• Front Office & Back Office
• Extended Enterprise Systems Framework

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