Erp

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Erp

  1. 1. ERP Introduction : * The concept is used to address the resource planning requirement of the enterprise. * ERP offers seamless integration of business Transactions based on information across various function in the organization.
  2. 2. 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”   OR ERP is a set of application Software that integrates information from manufacturing finance, distribution, & other business functions & facilitates Decision making.
  3. 3. Why ERP ?   <ul><li>For Management – to know what is happening </li></ul><ul><li>in the company </li></ul><ul><li>  One solution for better Management </li></ul><ul><li>  For cycle time reduction </li></ul><ul><li>  To achieve cost control & low working capital </li></ul><ul><li>  Automatic Introduction to latest technologies </li></ul><ul><li>  To shun the geographical gaps </li></ul><ul><li>  To satisfy the customers with high expectations </li></ul><ul><li>  To be Competitive & for survival </li></ul><ul><li>Effective Solution for the Better Project Management </li></ul><ul><li>For Complete Integration of the System </li></ul>
  4. 4. Evolution of ERP   1960’s - Systems Just for Inventory Control   1970’s  - MRP – Material Requirement Planning     (Inventory with material planning & procurement)   1980’s - MRP II – Manufacturing Resources Planning     (Extended MRP to shop floor & 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)      
  5. 5. ERP   <ul><li>  A typical ERP Package solution has the following Modules : </li></ul><ul><li>Sales, Marketing, Distribution </li></ul><ul><li>Manufacturing </li></ul><ul><li>Stores Management </li></ul><ul><li>Finance </li></ul><ul><li>Personnel </li></ul><ul><li>Maintenance </li></ul><ul><li>Purchase, Inventory </li></ul><ul><li>Planning & Control </li></ul><ul><li>These Modules are designed for data capture, data transaction validation, its analysis, accounting, updation & reporting. </li></ul>
  6. 6. ERP – Functional Architecture         ERP Database Sales Project Accounting Service Quality Human Resource Maintenance Manufacturing Materials Logistics Distribution Fig : Functional Modules of ERP
  7. 7. ERP – Expectations   <ul><li>Integrating all the functions </li></ul><ul><li>  </li></ul><ul><li>  Integrating the systems running in all the locations </li></ul><ul><li>  </li></ul><ul><li>  Transparency of information using a single </li></ul><ul><li>    data source across the organization   </li></ul><ul><li>Software must be responsive </li></ul><ul><ul><ul><li>Modular </li></ul></ul></ul><ul><ul><ul><li>  Flexible </li></ul></ul></ul><ul><ul><ul><li>  Easy to add functionalities </li></ul></ul></ul><ul><ul><ul><li>  Provide growth path   </li></ul></ul></ul>
  8. 8. ERP – Features <ul><li>Major Features : </li></ul><ul><li>- Company Wide Integrated Information System : </li></ul><ul><li>It covers all functional areas like Manufacturing, Selling & distribution, Payables, receivables, Inventory, accounts, Human Resources, Purchases etc. </li></ul><ul><li>Increase Customer services </li></ul><ul><li>Eliminates most of the business problems like material, shortage, productivity enhancement, customer services, cash management, inventory problems, quality problems etc. </li></ul><ul><li>ERP allows automatic introduction of latest technology like EFT, EDI, Internet, Intranet, Video Conferencing, E-commerce etc </li></ul><ul><li>It provides the opportunity of improving & refining business process. </li></ul><ul><li>ERP bridge the information gap across the organization </li></ul><ul><li>provides complete integration of systems. </li></ul><ul><li>It is Effective solution for better Project Management. </li></ul>
  9. 9. ERP – BASIC Features <ul><li>Business System : </li></ul><ul><li>Business forecasting for products, Groups, & Markets </li></ul><ul><li>Target Fixing & Allocation </li></ul><ul><li>Business Planning in terms of the resources to execute </li></ul><ul><li>Sales: </li></ul><ul><li>Basic Data Management </li></ul><ul><li>Order Processing </li></ul><ul><li>Dispatching & invoicing </li></ul><ul><li>Order analysis ,forecasting </li></ul><ul><li>Sales analysis, budgeting & controls </li></ul><ul><li>Finished goods stores management </li></ul><ul><li>Market/Customer/Product analysis </li></ul><ul><li>Market research information database </li></ul>
  10. 10. ERP – BASIC Features <ul><li>Production : </li></ul><ul><li>Bill of Materials, classification </li></ul><ul><li>Process sheet, routing </li></ul><ul><li>Production planning </li></ul><ul><li>Materials: </li></ul><ul><li>Purchasing & procurement </li></ul><ul><li>Goods receipt </li></ul><ul><li>Stock management & valuation </li></ul><ul><li>Inventory analysis </li></ul><ul><li>Finance: </li></ul><ul><li>-Ledger, payables & receivables </li></ul><ul><li>-Loan Management, funds management </li></ul><ul><li>Budgeting planning & control </li></ul>
  11. 11. ERP – BASIC Features <ul><li>Personnel : </li></ul><ul><li>personnel data management </li></ul><ul><li>Personal attendance system, time management </li></ul><ul><li>Planning, recruitment, training etc. </li></ul><ul><li>Other </li></ul><ul><li>-fixed assets accounting : Inventory, register </li></ul><ul><li>Maintenance </li></ul><ul><li>Quality </li></ul>
  12. 12. ERP – Benefits   <ul><li>Tangible Benefits </li></ul><ul><li>These can be measured in one form or other </li></ul><ul><li>* Reduction in Inventory Level </li></ul><ul><li>* Improvement in Customer Service Level </li></ul><ul><li>*Improvement in Purchasing Cost </li></ul><ul><li>* Productivity Improvement </li></ul><ul><li>Intangible Benefits These can not be qualified or Measured   </li></ul><ul><li>*Information Availability  *System Maintainability </li></ul><ul><li>Reduction in Response Time </li></ul><ul><li>Improvement in Planning & Sales </li></ul>
  13. 13. ERP – Vendors <ul><li>There are various ERP vendors, who are very active in the market. Some of the companies offering ERP products include: </li></ul><ul><li>SAP -Marcarn </li></ul><ul><li>-Baan - Platinum </li></ul><ul><li>Oracle -Software 2000 </li></ul><ul><li>PeopleSoft </li></ul><ul><li>JD Edwards </li></ul><ul><li>IBM </li></ul><ul><li>CODA </li></ul>
  14. 14.   Just automating the existing business practices will not help ERP to achieve the anticipated results because, OO + NT = EOO   Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup   BPR and ERP will give way to implement new systems and the long pending improvements in the existing systems   BPR may be time consuming but the scope can be restricted & controlled by the Management   BPR & ERP  
  15. 15. BPR - Steps   Automate   Simplify/Improve   Understand   Implement with the help of ERP   Draft & frame the possibilities & ways to simplify or Improve or eliminate the processes   Understand the existing systems associated with all the functionalities  
  16. 16. OPTION 1 – MAKE [Using Internal resources]   Developing a custom-built ERP package, specific to the requirements of the organization, with the help of the in-house IT department   OPTION 2 - BUY   Going for Tailor-made ERP packages available in the market like SAP, Oracle applications, Baan, PeopleSoft etc.   OPTION 3 – MAKE [using External resources]   Developing a custom-built ERP package, specific to the requirements of the organization, with the help of a software solution provider     ERP – Options  
  17. 17. ERP product selection   Preparations   Production   Implementation   Post-Implementation Execution phases   
  18. 18. ERP Team formation for selection   Appointment of Consultants [if needed]   Scoping study   Product selection   Implementation partners selection   Hardware/Communication cost estimation ERP Product selection Phase  
  19. 19. Reputation of the ERP product   No.of installations in the geographical vicinity   % of the overall functional availability   Customization possibilities   After sales support   Your investment plan & budget   Implementation partner’s track record   Product Selection - Parameters    
  20. 20.   Preparation Phase     Framing ERP Implementation Strategies   Formation of Apex & Steering committees   Functional & IT team formation   Training on ERP functions & features   Scope finalization   GAP analysis   Action plan to resolve the gaps  
  21. 21.   Production Phase     Installing the software & hardware   Tuning the software to meet the      customization needs   Master & Control data arrival as per      the Product data structures   Location & people specific roles & rights      allocation for module access & security  
  22. 22.   Implementation Phase     Conference Room Pilot [Parallel run]   Resolving the Parallel run issues   Training the end users   Live run
  23. 23.   Implementation Phase     Conference Room Pilot [Parallel run] Resolving the Parallel run issues Training the end users Live run Post-Implementation Phase   *Regular monitoring *Tuning [hardware/software] for patching      the performance issues   * Maintenance
  24. 24.   Implementation Phase     Conference Room Pilot [Parallel run] Resolving the Parallel run issues Training the end users Live run Post-Implementation Phase   *Regular monitoring *Tuning [hardware/software] for patching      the performance issues   * Maintenance

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