enterprise resource planning

1. Enterprise Resource Planning

2. MAJOR APPLICATION COMPONENTS OF
ERP
Production
planning
Order
Integrated
management
Customer/ logistics
Employee
Sales Accounting
distribution and finance
Human
resource

3. • ERP offers an integrated set of applications that help managers with
various aspects of business activity of a company ( eg orders , production
schedules , supply chain and inventories , accounting and book keeping
, human resource mgmt ) using an ERP application consists of a number of
specialized modules that offers consistent user interface and integration of
all relevant parts of the organizational database systems
• The key to ERP is the real time monitoring of the business functions, which
permit timely analysis of key issues such as quality, availabilty , customer
satisfaction , performance and profitability. Financial and planning system
receive triggered information from manufacturing and distribution. When
something happens in the manufacturing line which affects the business
situation for eg packing material inventory drops to a certain level , which
affects the ability to deliver an order to a customer a message is triggered
for the appropriate person in purchasing.

4. ERP VENDORS
Software Vendor Name of the software
Oracle Oracle Manufactuirng
SAP SAP R/3
Baan Triton
People soft Peoplesoft
.Jd Edwards Worldsoftware and OneWorld
Ross systems iRenaissance
QAD MFG/PRO

5. Typical Costs Of Implementing a New
ERP system
Hardware
12%
Reengineering
43% Software
15%
Training and
Change
Management
Data 15%
Conversions
15%

6. Advantages of ERP
• Elimination of costly legacy system
• Improved work process
• Increase to data access for operational
decision making
• Upgrade of the technology infrastructure
• Enterprise agility
• Decreased costs

7. Challenges
• Difficulty implementing change
• Difficulty integrating with other systems
• Risk of using a single vendor

8. Example of an ERP system
• SAP R/3
• SAP Business One
• SAP A/G’s R3 software ( eg Hersheys Foods)
• All data is entered only once and all SAP programs use only one database
• It is based on 3 level client server architecture consisting of client ,
database server and application server
• R/3 will run on variety of hardware from small window NT to the complex
parallel system
• Clients in SAP system
– Can support clients upto 100 or 1000 having fast processors and minimum 32 MB RAM
,clients requests services from the application servers
• Business Application Programming interface
– These interfaces were developed to enable SAP customers to develop their own
application to interface with SAP