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ERP

ERP

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  • 1. ERPERP Enterprise Resource PlanningEnterprise Resource Planning
  • 2.  Enterprise resource planning, techniquesEnterprise resource planning, techniques and concepts for integrated managementand concepts for integrated management of business as a whole from the viewpointof business as a whole from the viewpoint of the effective use of management toof the effective use of management to improve the efficiency of enterpriseimprove the efficiency of enterprise management.management.
  • 3.  ERP software is designed to model andERP software is designed to model and automate many of the basic of the basicautomate many of the basic of the basic processes of a company from finance to theprocesses of a company from finance to the shop floor with the goal of integrating informationshop floor with the goal of integrating information across the company and eliminating complex,across the company and eliminating complex, expensive links between computer system thatexpensive links between computer system that were never meant to talk to each other.were never meant to talk to each other.
  • 4. ERP MythsERP Myths  ERP means more work and procedureERP means more work and procedure  ERP will make many employees redundant andERP will make many employees redundant and joblessjobless  ERP is just for the Manager/decision makersERP is just for the Manager/decision makers  ERP is just for manufacturing organization.ERP is just for manufacturing organization.  ERP slows down the organizationERP slows down the organization  ERP is expensiveERP is expensive  Organization can succeed without ERPOrganization can succeed without ERP  ERP package will take care of everythingERP package will take care of everything
  • 5. History of ERPHistory of ERP  Inventory management and controlInventory management and control  Material Requirement PlanningMaterial Requirement Planning  Manufacturing Requirement PlanningManufacturing Requirement Planning (MRPII)(MRPII)  ERPERP
  • 6. Inventory management and controlInventory management and control  19601960  Combination of information technologyCombination of information technology and business process of maintaining theand business process of maintaining the appropriate level of stock in warehouse.appropriate level of stock in warehouse.
  • 7. Material Requirement PlanningMaterial Requirement Planning  19701970  Utilizes software application for schedulingUtilizes software application for scheduling production process.production process.  Generates schedules for the operationGenerates schedules for the operation and raw material purchases based on theand raw material purchases based on the production requirement of finished goods.production requirement of finished goods.
  • 8. MRP(II)MRP(II)  Utilizes software application forUtilizes software application for coordinating manufacturing process, fromcoordinating manufacturing process, from product planning, parts purchasingproduct planning, parts purchasing inventory control to product distribution.inventory control to product distribution.
  • 9. ERPERP  ERP system often integrate businessERP system often integrate business activities across functional departments,activities across functional departments, from product planning, parts purchasing,from product planning, parts purchasing, inventory control, product distribution,inventory control, product distribution, order fulfillment, to order tracking.order fulfillment, to order tracking.
  • 10. Advantage of ERPAdvantage of ERP  Business IntegrationBusiness Integration  FlexibilityFlexibility  Better analysis and planningBetter analysis and planning  Use of latest technologyUse of latest technology  Corporate imageCorporate image  Improved customer goodwillImproved customer goodwill  Customer satisfactionCustomer satisfaction
  • 11. Difference between traditionalDifference between traditional package and ERP software.package and ERP software.  Has the total range of main businessHas the total range of main business necessary for company operationnecessary for company operation  It can be composed of highly flexibleIt can be composed of highly flexible decentralized database and andecentralized database and an information system cluster linked by ainformation system cluster linked by a networknetwork  Global adaptation, represented by ERPGlobal adaptation, represented by ERP packages, multi-currency capacity.packages, multi-currency capacity.
  • 12. Roadmap for successful ERPRoadmap for successful ERP implementation.implementation.  Most important step of ERPMost important step of ERP implementation is the phase called Gapimplementation is the phase called Gap analysis, which is the step between theanalysis, which is the step between the company requirements and the function acompany requirements and the function a package possesses.package possesses.
  • 13. Future of ERP packagesFuture of ERP packages  Essential to collect and grasp a broadEssential to collect and grasp a broad range of accurate information.range of accurate information.  Controlling the implementationControlling the implementation methodologymethodology  Adapt to version upgrades of packagesAdapt to version upgrades of packages themselves.themselves.