ERP SYSTEMS IN MINING INDUSTRY : STUDYING THE SOFTWARE FUNCTIONALITY AND THE VALUE CHAIN . SECOND WORLD CONFERENCE ON POM AND 15 TH ANNUAL POM CONFERENCE

NUMBER: 002-0451 ERP SYSTEMS IN MINING INDUSTRY: STUDYING THE SOFTWARE FUNCTIONALITY AND THE VALUE CHAIN. SECOND WORLD CONFERENCE ON POM AND 15TH ANNUAL POM CONFERENCE CANCUN, MEXICO, APRIL 30 MAY 3, 2004 Paulo Fernando Tardelli Sachs, B.Sc.(Eng), MBA Mining and Petroleum Engineering Dept. of the Polytechnic School, University of Sao Paulo. Av. Prof. Mello Moraes, 2373 – Sao Paulo, SP – 05508-900 – Brazil Email: psachs@uol.com. br – Phone 55 11 3091 6038 – Fax 55 11 3846 4501 Fernando José Barbin Laurindo, PhD Professor Production Engineering Dept. of the Polytechnic School, University of Sao Paulo. Av. Prof. Almeida Prado, Trav. 2, 128 – Sao Paulo, SP – 05508-900 – Brazil Email: fjblau@usp.br – Phone 55 11 3091 5363 ext 454 – Fax 55 11 3091 5399 Giorgio Francesco Cesare de Tomi, PhD Professor Mining and Petroleum Engineering Dept. of the Polytechnic School, University of Sao Paulo. Av. Prof. Mello Moraes, 2373 – Sao Paulo, SP – 05508-900 – Brazil Email: gdetomi@usp.br – Phone 55 11 3091 6038 – Fax 55 11 3846 4501 Conference track: Enterprise Resource Planning ABSTRACT ERP systems have been widely implemented nowadays in several industries. However, as ERP was originally designed to fit former MRP and MRP II users, mostly in discrete manufacturing, few related research has been focused on Mining industry. On the other hand, process industry – and the mining industry in particular – presents many peculiar characteristics, which are difficult to comply with ERP systems standard functionalities, and very limited research has been developed covering this industry segment. The objective of this paper is to identify how ERP systems manage the functional areas of the mining industry, and how they fit into the mineral value chain IT requirements. A secondary objective is to identify the gaps between ERP’s functional capabilities and the mining industry business requirements, and to point out the perceived benefits they generate to the companies. This paper employs a case study methodology ACRONYM KEY API – Application Program Interface APS – Advanced Planning and Scheduling CIO – Chief Information Officer ERP – Enterprise Resource Planning IT – Information Technology KPI – Key Performance Indicators LIMS – Laboratory Information Management System MES – Manufacturing Execution System MRP – Material Requirement Planning MRP II – Manufacturing Resources PlanningERP systems have been widely implemented nowadays in several industries. However, as ERP was originally designed to fit former MRP and MRP II users, mostly in discrete manufacturing, few related research has been focused on Mining industry. On the other hand, process industry – and the mining industry in particular – presents many peculiar characteristics, which are difficult to comply with ERP systems standard functionalities, and very limited research has been developed covering this industry segment. The objective of this paper is to identify how ERP systems manage the functional areas of the mining industry, and how they fit into the mineral value chain IT requirements. A secondary objective is to identify the gaps between ERP’s functional capabilities and the mining industry business requirements, and to point out the perceived benefits they generate to the companies. This paper employs a case study methodology ACRONYM KEY API – Application Program Interface APS – Advanced Planning and Scheduling CIO – Chief Information Officer ERP – Enterprise Resource Planning IT – Information Technology KPI – Key Performance Indicators LIMS – Laboratory Information Management System MES – Manufacturing Execution System MRP – Material Requirement Planning MRP II – Manufacturing Resources Planning