ERP covers the technique and concepts employed for the integrated management of business as a whole, ERP packages are integrated software packages that support the above ERP concepts. 3/9/2010 3 gautam singh-ERP
Is ERP for Everyone..
A business must analyze its own business strategy, organization, culture and operations before choosing an ERP approach.
A company may not be ready to implement ERP.
The company’s business processes may not be well defined or managed.
If a company is not prepared to make its processes more efficient, then it will not gain the benefits an ERP system can provide.
Is ERP for Inflexible..
ERP software is designed around best practices, so companies are encouraged to adapt their processes to the way ERP software works.
With SAP, companies can customize the software by creating custom capabilities using its Advanced Business Application Programming (ABAP) language.
SAP is an open-source product, meaning that the customer has access to the software’s source code.
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Selection process of an ERP Package
The Common Criteria for selection for a package: 1.How best the package fits the requirement of the company. 2. Provision for accommodating the changes in the system. 3. Implementation and Post Implementation support from vendor. 4. Reliability of Vendor. 5. Change in Hardware and Skill requirement. 6. Cost of the Package and Budget. 3/9/2010 5 gautam singh-ERP
Cost of ERP Implementation
The following costs are to be considered:- ERP package cost. 2. Consultant cost. 3. Cost of Data conversion. 4. Cost of training. 5. Cost of testing. 6. Cost of Post-Implementation support. 3/9/2010 6 gautam singh-ERP
Modules in an ERP Package
Human Resources Module
Material Management Module
Sales and Distribution Module
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ERP LIFE CYCLE
ERP lifecycle is in which highlights the different stages in implementation of an ERP. 3/9/2010 8 gautam singh-ERP
Pre-selection Process Package Evaluation Project Planning Reengineering Configuration Gap Analysis Implementation Team Training Testing End- user Training Going Live Post – implementation Phase ERP implementation Life Cycle 3/9/2010 9 gautam singh-ERP
Different phases of ERP
Pre evaluation Screening Evaluation Package Project Planning GAP analysis Reengineering Team training Testing Post implementation 3/9/2010 10 gautam singh-ERP
Pre evaluation screening
Decision for perfect package Number of ERP vendors Screening eliminates the packages that are not at all suitable for the company’s business processes. Selection is done on best few package available. 3/9/2010 11 gautam singh-ERP
Package Evaluation Package is selected on the basis of different parameter. Test and certify the package and also check the coordination with different department Selected package will determine the success or failure of the project. Package must be user friendly. Regular up gradation should available. Cost 3/9/2010 12 gautam singh-ERP
Project planning Designs the implementation process. Resources are identified. Implementation team is selected and task allocated. Special arrangement for contegencies. 3/9/2010 13 gautam singh-ERP
Gap analysis Most crucial phase. Process through which company can create a model of where they are standing now and where they want to go. Model help the company to cover the functional gap 3/9/2010 14 gautam singh-ERP
Re-engineering Implementation is going to involve a significant change in number of employees and their job responsibilities. Process become more automated and efficient. 3/9/2010 15 gautam singh-ERP
Team Training Takes place along with the process of implementation. Company trains its employees to implement and later, run the system. Employee become self sufficient to implement the software after the vendors and consultant have left. 3/9/2010 16 gautam singh-ERP
Testing This phase is performed to find the weak link so that it can be rectified before its implementation. 3/9/2010 17 gautam singh-ERP
Going Live The work is complete, data conversion is done, databases are up and running, the configuration is complete & testing is done. The system is officially proclaimed. Once the system is live the old system is removed 3/9/2010 18 gautam singh-ERP
End User Training The employee who is going to use the system are identified and trained. 3/9/2010 19 gautam singh-ERP
Post Implementation This is the maintenance phase. Employees who are trained enough to handle problems those crops up time to time. The post implementation will need a different set of roles and skills than those with less integrated kind of systems. 3/9/2010 20 gautam singh-ERP
The reason for accepting ERP System • Improved business performance through optimum resource utilization. • Reduction in manufacturing cycletime by integrated planning process. • Better support Customers in fast changing in market conditions. • Better Cost Control mechanism by way of accurate costing system. • Enhanced efficiency in control through feedback information and online access to accurate information. • Establishment of Decision Support System etc. 3/9/2010 21 gautam singh-ERP
conclusion An organization can get the maximum value of these inputs if it successfully adopts and effectively uses the system. 3/9/2010 22 gautam singh-ERP