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Erp1 Presentation Transcript

  • 1. ERP- Enterprise Resource Planning( An Introduction)
    GAURAV SHARMA
  • 2. Definition Of ERP
    Software solution that addresses all the needs of an enterprise with the process view of an organization to meet the organizational goals and integrate all the functions of the enterprise
  • 3. What is ERP ?
    Facilitates Company-wide integrated Information Systems Covering all functional Areas.
    Performs core Corporate activities and increases customer service augmenting Corporate Image.
    Organizes & Optimizes the data input methodologies systematically.
  • 4. Evolution of Planning Systems
    Materials Requirement Planning (MRP)
    Manufacturing Resource Planning ( MRP II)
    Enterprise Resource Planning ( ERP)
    Other terminologies are :
    Money Resource Planning (MRP III)
    Supply Chain Management
    Value Chain Management
  • 5. Is It Only a Jargon ?
    No. MRP and MRP II were there for a long time.
    ERP is an enhancement over these.
    It is true that Year 2000 problem accelerated the sales and acceptance of ERP.
    Introduction of ERP provides you a chance to have a new look at your working.
  • 6. Is It Going to be there long?
    Yes and No.
    ERP will be there for a long time, if you are willing to upgrade to new versions with new features as and when the are released in the market
    Your ERP may still work after a long time without enhancements, if your company is not growing!
    Moral : Upgrading the systems are a must!
  • 7. Can We wait ?
    Wait if you have :
    Good systems running.
    No immediate threat of Y2K, Euro and other known/unknown problems.
    No management commitment.
    Financial problems.
    Do not wait if you have :
    Tough competition in the market.
    Multiple location operations.
    Plans to grow Globally.
    Management Commitment for change.
  • 8. Why ERP ?
  • 9. Profitability
    You have Two Choices :
    Increase in sales - Say 30%
    OR
    Reduce Procurement Cost - say by 5-10 %
  • 10. What IT Dept. shall look into?
    • Automatic Identification System
    • 11. Hardware & Networking
    • 12. Software DBMS/RDBMS
    • 13. Communication
    • 14. ERP
    • 15. Supply Chain Management
    • 16. EDI
    • 17. Intranet
    • 18. Internet
  • For Healthy Operations
    • Integration of Systems across the Functional Departments in a Company as well as across the Enterprise as a Whole.
    • 19. Better Customer Service.
    • 20. Introduction of Latest Technologies as and when the are ready for the Industry acceptance
    • 21. Expertise database
    • 22. Avoids data redundancy
  • Competition In the Market!
    Manufacturing Challenges.
    Manufacturing Globally.
    Distribution network spread.
    New Product introduction.
    Lower manufacturing lead time.
    Focus on industry markets.
    Satisfying the needs of customers.
    Develop specific business methods and processes.
    Integration with third party products.
  • 23. Demands on the Industry
    • Better products at lower costs
    • 24. Tough competition
    • 25. Need to analyze costs / revenues on a product or customer basis
    • 26. Flexibility to respond to changing business requirements
    • 27. More informed management decision making
  • What are your Problems ?
    • Unable to get accurate, timely information
    • 28. Applications not complete for existing business practices
    • 29. Modifications are time consuming or notfeasible
  • ERP - The Enabler
  • 30. What is that ERP enables ?
    Systematic Look into your Systems & procedures
    Optimizing the processes
    Enables you to adapt yourself to new technologies
    Discipline across the functions
  • 31. What does ERP integrate ?
    Database
    Applications
    Interfaces
    Tools
  • 32. What drives ERP ?
    Business
    Customer Satisfaction
    Business Development - new areas, products, services
    Ability to face competition
    Efficient processes required to push the company to top gear
    IT
    Present Software does not meet business needs
    Legacy systems difficult to maintain, Y2K Problem , Euro currency
    Obsolete hardware/software difficult to maintain
  • 33. Problems Taken Care of
    • Availability check at the time of Accepting Sales order
    • 34. On-line Material Status & Shortages
    • 35. Productivity Enhancements
    • 36. Material Planning
    • 37. Customer Service
    • 38. Cash Management
    • 39. Inventory
    • 40. Quality
  • Subsystems of ERP
    Logistics
    Bill Of Materials
    Sales & Marketing
    Master Scheduling
    Materials Requirement Planning
    Capacity Requirements Planning
    Purchasing
    Shop Floor Control
    Accounts Payable/Receivable
    HR
  • 41. Understanding ERP
  • 42. Integration of Information Systems
    IS messages
    IS messages
    Manufacturing
    Head Quarters
    Marketing/Sales
    • Local purchasing, invoice verification
    • 43. Inventory management
    • 44. Internal sales, shipping and billing
    • 45. Profit/loss
    • 46. Capacity utilization
    • 47. Information Systems:
    • 48. Project Mgmt
    • 49. Inventory
    • 50. Purchasing
    • 51. Sales
    • 52. Budget
    • 53. Cash Management
    • 54. Sales, shipping and billing
    • 55. Purchasing of trading goods
    • 56. Inventory Management
    • 57. Customer service
  • The Integrated Supply Chain
    Control
    Profit/Loss
    Finance
    Balance sheet
    Capital
    Costs
    Procurement
    market
    Purchasing
    Production
    Sales.
    Machines
    Human resources
    Operating resources
    Managing Resources
  • 58. Go Ahead with ERP
  • 59. Business Process Re-Engineering ( BPR)
    In-depth study of existing systems/processes is required before ERP is considered.
    This study brings out deficiencies of the existing system/process.
    This study is called BPR
    BPR attempts to re-structure and re-organize the human resources, functional areas, Man-Machine interfaces in the organization.
    Hence BPR attempts to maximize productivity
  • 60. If It is a Big Change, don’t do it!
    If the Modifications are small and important to the business, you may customize and implement.
    If the proposed changes are more, discuss with all concerned . Else you may be going towards a
    dead-end!
  • 61. ERP Selection
    Check whether all functional aspects of your Business are covered
    Check whether all the business functions and processes are integrated
    Check whether all latest IT trends are covered
    Check whether the vendor has customizing & implementing capabilities
    Check the Service options available
    Check your purse & calculate ROI
  • 62. Prepare Base for ERP
    Do not start without Management commitment
    Allocate sufficient funds
    Identify Core Project Team
    Select specialists from all functional areas
    Evaluate and select ERP package
    Evaluate Implementation Partner
    Make an Implementation Plan
    Present plan to Management Committee for sanctions
    Present plan to Employee groups for feedback/acceptability
    Plan for User Training
    Plan for Future upgrades
  • 63. Define Requirements
    Determine the hardware required
    Analyze the existing Processes
    Fine tune the processes to be in line with those of ERP defined
    Analyze effect of system changes.
    Prototype and present
    Refine the prototype & freeze the specifications
  • 64. ERP Implementation
    Commitment from Management
    Form a task force with personnel from all functional Areas
    Take care of Hardware requirements
    Step-by-step rather than big-bang introduction
    Be patient. ERP implementation takes Time.
  • 65. ERP Involves
    • Project Planning
    • 66. Business & Operational Analysis, including Gap Analysis
    • 67. Business Process Re-engineering (BPR)
    • 68. Installation & Configuration
    • 69. Project Team Training
    • 70. Business Requirements Mapping to Software
    • 71. Module Configuration
    • 72. System Modification and Interfaces
    • 73. Data Conversion
    • 74. Custom Documentation
    • 75. End User Training
    • 76. Conference Room Pilot
    • 77. Acceptance Testing
    • 78. Production
    • 79. Post-Implementation Audit/Support
  • Implementation Approach
    Tasks
    Phase
    Deliverables
    Detailed
    Discussions
    Design &Customization
    Implementation/
    Prepare to Go Live
    Production/
    Go Live
    • Project Initialization
    • 80. Evaluation of current processes,
    business practices, requirements
    • Set-Up Project Organization
    • 81. Map Organization
    • 82. Map Business Processes
    • 83. Define Functions and Processes
    • 84. ERP S/w Configuration
    • 85. Build ERP System Modifications
    • 86. Create Go-Live Plan & Documentation
    • 87. Integrate Applications
    • 88. Test the ERP Customization
    • 89. Train Users
    • 90. Run Trial Production
    • 91. Maintain systems
    • 92. Accepted norms & Conditions
    • 93. Project Organization Chart
    • 94. Identify Work Teams
    • 95. Organization Structure
    • 96. Design Specification
    • 97. Process Flow Diagrams
    • 98. Function Model
    • 99. Configuration Recording
    • 100. Systems Modification
    • 101. Testing Environment report
    • 102. Customization Test Report
    • 103. Implementation Report
    • 104. Reconciliation Reports
    • 105. Conversion Plan Execution
  • Advantages Of ERP
  • 106. Advantages Of ERP Package
    • Highly Graphics based User Interface.
    • 107. Zero Down time/ planned down time.
    • 108. Readymade solutions for most of the Problems.
    • 109. Only Customization required.
    • 110. Integration of all functions ensured.
    • 111. ROI earlier than the software developed in-house.
    • 112. Easy enterprise wide information sharing.
    • 113. Suppliers and Customers can be on-line communication.
    • 114. Knowledge transfer between industries guarantees innovation.
    • 115. Automatic adaptation to new technology.
  • DecideMake Or Buy !
  • 116. Inhouse Development ERP package
    Project Development takes time . Ready made Projects.
    Reinventing the wheel. Needs only customization
    Process specific to your industry Best Business practices followed
    are implemented
    Documentation may not be present Documentation is part of system
    EDI implementation modifications EDI Compatible. Universally accepted
    to be taken care of
    Enterprise implementation is The package itself is designed as
    difficult as each unit follows Enterprise Package.
    different S/W option
    Latest Developments to be studied Constant Updates on Technology
    as and when they are introduced. and Processes assured
  • 117. Embrace
    New Technologies
  • 118. Summary
    • Optimum utilization of resources
    • 119. Customer satisfaction
    • 120. Seamless integration between Functions
    • 121. Reduced overheads & inventory
    • 122. Timely responsiveness
    • 123. Market share & image enhancement
    • 124. Faster design to manufacturability
    • 125. Keep up with technology changes
    • 126. Only way for integrated systems for a client with multiple locations