Question

1. What is a dependency relationship? How do you identify them?
2. Why do companies invest in ERP systems?
3. What is an RFP ? How is this different from an RFI

Answer 1

1.

"A dependency is a relationship that signifies that a single or a set of model elements requires other model elements for their specification or implementation. This means that the complete semantics of the depending elements is either semantically or structurally dependent on the definition of the supplier element(s)." UML Specification OMG Version 2.0

A dependency indicates a semantic relationship between two model elements (or two sets of model elements). It relates the model elements themselves and does not require a set of instances for its meaning. It indicates a situation in which a change to the target element may require a change to the source element in the dependency.

Let's put this more simply. A dependency in the object-orientated world means exactly what it does in the real world. It is a term used to describe the relationship between two parties whereby one party is dependent upon the other or both parties are dependent upon each other. In the real world we would say a baby has a dependency relationship with their mother. In the object-orientated world we would say that if an object is a consumer of a service provided by another object then that object has a dependency relationship with the object providing the service.

2.

There are several reasons why a company would invest in an ERP solution. One big reason is business insight. In other words, reporting and metrics. Once you have a functioning ERP system in place and configured, all of your transactions are going to update your Banking and General Ledger modules automatically. Because of this, tasks such as generating financial reports and reconciling your monthly bank statement become very simple.

Another reason is data sharing and workflow streamlining. For example, in a multi-store / warehouse environment, when a store is running low on an item, they can instantly check that item’s stock in another store or warehouse, and even request a transfer of stock from a location which is overstocked.

A good ERP system will also have support for purchasing, billing and banking in multiple currencies, with the ability to configure separate buying and selling exchange rates for each currency, and to update them as regularly as necessary.

Manufacturing work orders are another good reason to use an ERP system. You enter your bill of materials once, and then when you get ready to make a batch of a specific manufactured product, you start a work order, tell it how many you plan to build, and it automatically commits the raw materials. When the job is done, the raw materials are automatically removed from inventory and the finished goods are automatically added to inventory, with the new average cost being updated, calculated from the total cost of the raw materials, plus any additional costs you attribute to that job.

Automated inventory buying looks at sales history or min/max stock levels for each purchased inventory item, as well as the vendor lead time, and makes a projection of how many of the item will need to be in stock by the time the order arrives, taking into account how many will be sold or used in manufacturing during the lead time, then orders enough of the item to satisfy the projected need.

3.

A request for proposal (RFP) is a document that an organization, often a government agency or large enterprise, posts to elicit a response -- a formal bid -- from potential vendors for a desired IT solution. The RFP specifies what the customer is looking for and describes each evaluation criterion on which a vendor's proposal will be assessed.

RFI means Request For Information. This kind of message is sent by potential customers to vendors in order to get more information about the industry and services, but it should not be taken as a Request For Proposal (RFP) or Request For Quotation (RFQ) yet.

RFI can be used by companies that have not gained experience with a specific range of features or a marketplace in general, or those that know they want a certain service but need more information from vendors before they can take any further steps. RFI does not have to include any purchaser’s commitment: it is rather an expression of interest that can be followed by a RFP.

RFP stands for Request For Proposal and is often a follow-up after sending a RFI. RFP can be a more detailed message or document that includes more precise requirements, company’s needs and business goals. This kind of document should give vendors all the specific information necessary for preparing a tailored-made software solution, based on actual business problems. While RFI is rather a “registration of interest” of a marketplace, RFP can address clear-cut needs and help both sides understand each other better.