final erp system

7/27/2019 Final ERP System

1/26

Enterprise Resource Planning(ERP) System

Presented ByNirdosh TirkeyPankaj Kumar

Prabhat Kundulna


2/26

What is ERP?

facilitates company-wide integrated

information systems, covering allfunctional areas

performs core Corporate activities and

increases customer service augmentingCorporate Image

ERP is a solution, which


3/26

What is an ERP?


4/26

ERP is a way to integrate the data and processes of anorganization into one single system. Usually ERP systemswill have many components including hardware andsoftware, in order to achieve integration, most ERPsystems use a unified database to store data for variousfunctions found throughout the organization.

Today's ERP systems can cover a wide range of functions

and integrate them into one unified database.For instance, functions such as Human Resources, Supply

Chain Management, Customer Relations Management,Financials, Manufacturing functions and WarehouseManagement functions were all once stand alone software

applications, usually housed with their own database andnetwork, today, they can all fit under one umbrella .


5/26

Why ERP?

For Management to know what is happeningin the companyOne solution for better Management

To achieve cost control & low working capitalTo satisfy the customers with high expectationsTo be Competitive & for survival


6/26

ERP - Definition

Software solution that addresses the

Enterprise needs, taking a process view of

the overall organization to meet the goals,

by tightly integrating all functions and

under a common software platform

A set of integrated programs capable of managing acompanys vital business operations for an entire multi-

site, global organisationStair, Reynolds and Chesney


7/26

Evolution of ERP

1960s - Systems Just for Inventory Control

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

1980s - MRP II Manufacturing Resources Planning(Extended MRP to shop floor & distribution Mgnt.)

Mid 1990s - ERP Enterprise Resource Planning

(Covering all the activities of an Enterprise)2000 onwards ERP II Collaborative Commerce(Extending ERP to external business entities)


8/26


9/26

The Ideal ERP System

Manufacturing: Some of the functions include;

engineering, capacity, workflow management, qualitycontrol, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixedassets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and

attendance, etcSupply Chain Management: Inventory, supply chainplanning, supplier scheduling, claim processing, orderentry, purchasing, etc.Projects: Costing, billing, activity management, time and

expense, etc.Customer Relationship Management: sales andmarketing, service, commissions, customer contact, callscenter support, etc.Data Warehouse: Usually this is a module that can beaccessed by an organizations customers, suppliers andemployees.


10/26

The ERP as package

The ERP is a package encompassing allmajor functions of the business.

The product is generic in nature and issupposed to incorporate the best businesspractices.

The system design of the ERP isintegrated with the features and functionsproviding an enterprise wide solution tohandle all the process functionalities.


11/26

Contd

The ERP packages build informationbase and provide knowledge base for

planning and control of the businessthrough the business functionmanagement.

The ERP is the main system, interfacedor assisted by the other systems in theorganization.


12/26

ERP package solution Modules

Sales, marketing, distribution

Manufacturing

Stores management

Finance Personnel

Maintenance

Purchase, inventory

Planning and control


13/26

Features of ERP

Security authorization,

Referencing responsibility,

The implementation of the businessrules.


14/26

ERP Systems: SAP

SAP (Systems - Applications -

Products): One of leading software

vendors for ERP systems

SAP R/3: Separate modules

Each module

contains a number of transactions(>5,000 all together)

can be used independently of others

must be configured (customized)

can be supplemented with add-ons


15/26

ERP- Integration @ what levels?

Transaction level

Management control levelDecision analysis level

Strategic planning level


16/26

Implementation of an ERP System

Implementing an ERP system is not an easy task toachieve, in fact it takes lots of planning, consulting andin most cases 3 months to 1 year +.

Implementing an ERP system will ultimately requiresignificant changes on staff and work practices.

Consulting Services

Customization ServicesSupport Services


17/26

Why implement an ERPSystem?

To support business goals

Integrated, on-line, secure, self-service

processes for business

Eliminate costly mainframe/fragmentedtechnologies

Improved Integration of Systems and

ProcessesLower Costs

Empower Employees

Enable Partners, Customers and Suppliers


18/26

How should we implementERP Systems?

People Project Structure

Should be aligned to processes

Process Implementation Process (outlined in detail)

Adapt processes to those of the ERP.

Technology Hardware

Software

Integrated Systems


19/26

Core and Extended ERPComponents


20/26

Technology

Support

Costs

5 Strategic

Requirement

Levels

FunctionalityGoal:

To select the

Most Suitable Software

Package Solution

Vendor

ERP Product selection Criteria


21/26

Advantages of ERP Systems

A totally integrated system

The ability to streamline different processes

and workflows

The ability to easily share data across variousdepartments in an organization

Improved efficiency and productivity levels

Better tracking and forecasting

Lower costs

Improved customer service.


22/26

Disadvantages of ERP Systems

Customization in many situations is limited

The need to reengineer business processes

ERP systems can be cost prohibitive to install

and run

Technical support can be shoddy

ERP's may be too rigid for specific

organizations that are either new or want to

move in a new direction in the near future.


23/26

Contd

Expense and time in implementation

Difficulty implementing change

Difficulty integrating with other systems

Risks in using one vendor

Risk of implementation failure


24/26

Conclusion

ERP systems provide a mechanism for

implementing systems where a high degree

of integration between applications is

required

The Business Case or Value Proposition for

implementation must be outlined

To successfully implement a proper mix of

people, processes and technology should be

maintained


25/26

OpenSession


26/26

Thanks for your

Participation &Co-operation

final erp system

Documents