erp system - copy

8/8/2019 ERP System - Copy

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ERP Systems

Enterprise

Resource

Planning

Dedicated to

Mr. Ammar Khan

Presented By:

Umair Aziz (BME-1131)

Sajjad Raza Muhammad Nasir

Azeem Mansoori



What is ERP

ERP is a solution, which

f acilitates company-wide integrated

inf ormation systems, covering allf unctional areas

per f orms core Corporate activities and

increases customer service augmentingCorporate Image



Integration is Key to ERP

ERP is a way to integrate the data andprocesses of an organization into onesingle system

ERP systems is the use of a unif ieddatabase to store data f or the various

system modules.



The Current Scenario

Islands of Inf ormation

Diff icult to get timely & accurate inf ormation

Heterogeneous Hardware & Sof tware

platf orms & practices

Sticking with obsolete technology

Resist to change

Lack of proven man-power to developintegrated sof tware



Inf ormation Islands



ERP Architecture



ERP Structure



Why ERP?

For Management ± to know what ishappening in the company

One solution f or better Management

For cycle time reduction

To achieve cost control & low working capital

To marry latest technologies

To satisf y the customers with highexpectations



Evolution of ERP

1960¶s - Systems Just f or Inventory Control

1970¶s - MRP ± Material Requirement Planning(Inventory with material planning & procurement)

1980¶s - MRP II ± Manuf acturing Resources Planning(Extended MRP to shop f loor & distribution Mgnt.)

Mid 1990¶s - ERP ± Enterprise Resource Planning(Covering all the activities of an Enterprise)

2000 onwards ± ERP II ± Collaborative Commerce(Extending ERP to external business entities)



ERP ² Expectations

Integrating all the f unctions

Integrating the systems running in all thelocations

Transparency of inf ormation using a singledata source across the organization

Sof tware must be responsive Modular Flexible Easy to add f unctionalities Provide growth path



ERP ² Options

OPTION 1 ± MAKE [Using Internal resources]

Developing a custom-built ERP package, specif ic to therequirements of the organization, with the help of the

in-house IT department

OPTION 2 ± BUY Readymade)

Going f or Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSof t etc.

OPTION 3 ± MAKE [using External resources]

Developing a custom-built ERP package, specif ic to therequirements of the organization, with the help of a

sof tware solution provider



ERP Product selection Criteria

.

Technology

Support

Costs

5 Strategic5 Strategic

RequirementRequirement

LevelsLevels

FunctionalityGoal:Goal:

To select theTo select the

Most Suitable SoftwareMost Suitable Software

Package SolutionPackage Solution

Vendor



ERP System Cost Component

Sof tware

Consulting

Hardware

ImplementationTeam

Training

Other

30.2%

24.1%

17.8%

13.5%

10.9%

3.3%



Commercial ERP Package

Impleme

nte

d

SAP

ORACLE

BAAN

J.D.Edwards

People Sof t

Other Packages

25%

14.2%

8.8%

7.4%

2.5%

27.3%



The Ideal ERP System

Manuf acturing :Engineering,

Management, Quality Control, CostManagement, Manuf acturing Process,Manuf acturing Projects

Supply Chain Management :Inventory,Order Entry, Purchasing, Supply ChainPlanning etc.

Financials :General Ledger, Cash

Management, Accounts Payable, AccountsReceivable, Fixed Assets etc.



. Human Resources :Human Resources,

Payroll, Training, Time & Attendance,Benef its etc.

Customer Relationship Management :

Sales and Marketing, Commissions,Service, Customer Contact and CallCenter support etc.



ERP Vendors

SAP (SD,MM,HRM,FI/CO,CRM,SCM,PP,QM,WMS)

Inf or Global Solution :

BAAN (manuf acturing, f inancial, projectestimating and management )

Oracle : 89 % SMB Customer . People sof t

(HRM,CRM,Manuf acturing,Financial)

JD Edward(HRM)



Comparison :

SAP :1)Only 66% SMB Customer Recommendation

2)Average Vendor Support 3.4 f or SMB.

3)Deployment time 69% of the SAP were on time.

Oracle :

1)Only 89% SMB Customer Recommendation2)Average Vendor Support 4.0 f or SMB.

3)Deployment time 78% of the Oracle were ontime.



ERP Selection

Check whether all f unction aspect of thebusiness are dully covered.

Check whether all the business f unctionand processes are f ully integrated .

Check whether all latest IT trends arecovered.



ERP Markets

India

Malaysia

Singapore South Korea

Australia

Europe Japan

Pakistan



ERP Cost

Based on the ERP survey conducted byMeta Group in 2002, the average cost of ERP ownership was $15 millions

ranging f rom half millions to $300 millions. The average cost per user per year could be as high as $20,000.



Advantages of ERP Systems

A totally integrated system

Only Customization Required

The ability to easily share data acrossvarious departments in an organization

Improved eff iciency and productivity levels

Better tracking and f orecasting

Improved customer service



Disadvantages of ERP Systems

Customization in many situations is

limited The need to reengineer business

processes

ERP systems can be cost prohibitive toinstall and run

Technical support can be shoddy



.

Thank You

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