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Erp

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    Erp Erp Presentation Transcript

    • ENTERPRISE RESOURCE PLANNING ERP 1 6/6/2010 IIPM AHMEDABAD
    • WHAT IS ERP? • Software tools • Manages business systems • Manufacturing, Supply chain, receiving, inventory, customer orders, production planning, shipping, accounting, HR, CRM, SRM,DSS, Financials • Allows automation and integration of business processes • Enables data and information sharing • Enterprise-wide system • Introduces “best practices” 6/6/2010 IIPM AHMEDABAD 2
    • WHAT IS ERP • ERP (Enterprise Resource Planning) • Integrated software solution for client/server and distributed open system • Manufacturing Resource Planning (MRP II) • Business Function Integration 6/6/2010 IIPM AHMEDABAD 3
    • ERP DEFINITIONS • ERP Systems attempts to integrate all data and processes of an organizations into a unified system. • ERP is integrated software that supports the information flows among the processes in the Supply Chain. • SAP Supply Chain Management provides extensive functionality for logistics, manufacturing, planning, and analytics. 6/6/2010 IIPM AHMEDABAD 4
    • ERP SOFTWARES • SAP • People Soft • BANN • Oracle • JD Edwards • Client Serve Three • Karen • ezijobz • Sage • MRP(II) • Microsoft Great Plains (GP) • Lease Soft • Engineer Link • eX.e.ge.Sys 6/6/2010 IIPM AHMEDABAD 5
    • BUSINESS PROCESS MODULE • Sales and Distribution • Production Planning • Financial Accounting • Human Resources • Material Management • Plant Maintenance • Quality Management • Project Management 6/6/2010 IIPM AHMEDABAD 6
    • ERP HISTORY 7 6/6/2010 IIPM AHMEDABAD
    • EVOLUTION OF ERP • 1960s: software packages with inventory control • 1970s: MRP systems • Production schedule with materials management • 1980s: MRPII systems • Adds financial accounting system • 1990s: MRPII • Integrated systems for manufacturing execution • Late 1990s: ERP • Integrated manufacturing with supply chain • Early 2000s: ERP II • ERP II means open ERP architecture of components. The older, monolithic ERP Systems become EAS Include segments of business using ordinary internet browsers. 6/6/2010 IIPM AHMEDABAD 8
    • ERP IMPORTANCE AND BENEFITS 9 6/6/2010 IIPM AHMEDABAD
    • WHY ERP • Benefits to our customers • Cost • Quality • Delivery • Flexibility • Integration • Service • Inventory • Productivity 6/6/2010 IIPM AHMEDABAD 10
    • ERP HELPS IN…. • Decision support system (DSS) • Smooth flow of routine process • Automatic record keeping • Common inter-department resource pool • Better planning at all levels • Data warehousing & various self-service interface for customers, suppliers & employees 6/6/2010 IIPM AHMEDABAD 11
    • OVERALL BUSINESS BENEFITS • Information • Maximizes information throughput • Provides timely information • Integrates information throughout supply chain • Minimizes response time • Pushes decision making down to lowest levels • Reduces costs • Cuts inventory • Improves operating performance 6/6/2010 IIPM AHMEDABAD 12
    • DEPARTMENT BENEFITS • Sales • Increased efficiency • Lower quotes, reduced lead time, improved responsiveness • Manufacturing • Concurrent engineering • Faster design and production • Data Service • Accurate customer service history and warranty information • Accounts Payable • Suppliers paid accurately 6/6/2010 IIPM AHMEDABAD 13
    • DEPARTMENT BENEFITS • Supply Chain Management • Supply Chain Planning, Claim Processing, Commission calculations, Supplier scheduling, Inspection of goods, order entry, Inventory • Project Manufacturing • Costing, billing, time & expense, activity management • Financials • Cash Management, Fixed assets, General ledger, Accounts Payables, Accounts Receivables • Data Warehouse • Self-service interface among Suppliers, Customers, Employees 6/6/2010 IIPM AHMEDABAD 14
    • SYSTEMS BENEFITS • Eliminating legacy systems • Reduces incompatible data • Can cause fragmentation • Allows sharing and monitoring of information across organization • Foundation of e-Business • Back-office functions • Standardization • Helps obtain and maintain competitive advantage • Improved interactions with customers and suppliers 6/6/2010 IIPM AHMEDABAD 15
    • DISADVANTAGES • Limited training budget • Lack of Skills and Experience • Cost estimate is $ 30,000 to 500,000,000 • Limited technical staff • Systems difficult to use • Too rigid system • Compatibly problem with legacy systems 6/6/2010 IIPM AHMEDABAD 16
    • ERP MISCONCEPTIONS 17 6/6/2010 IIPM AHMEDABAD
    • ENTERPRISE MISCONCEPTIONS • Back office Systems • Erodes competitive advantage using best practices • ERP is in-house skill • Redesign a business process to fit the standardized ERP • Fire the members of implementation team 6/6/2010 IIPM AHMEDABAD 18
    • SAP FACTS AND FIGURES 19 6/6/2010 IIPM AHMEDABAD
    • ABOUT SAP “THE COMPANY” • SAP AG, the pioneer in ERP systems is on 1972 by five former IBM employees in Mannheim, Germany. • Rank in top 2 companies (with Oracle) with 25.4% Market share in the world. • Revenues more than € 9 billion or 2.57 billion dollars. • Initial breakthrough was R/2 for mainframes in 1979 • R/3 was in 1992 with user of more than one million worldwide • First two customers of SAP are CompUSA Inc. & Home Depot in retail market (source data 2007) 6/6/2010 IIPM AHMEDABAD 20
    • ABOUT SAP • More than 95,000 customers in more than 120 countries run SAP applications • SAP currently employs more than 47,578 people in more than 50 countries • Providing 28 Industry Solutions • More than 21,600 companies run SAP • More than 70,000 installations. 6/6/2010 IIPM AHMEDABAD 21
    • OVERVIEW OF SAP ERP SOFTWARE PACKAGE • SAP R/2 & SAP R/3 • Advantage of SAP R/3 • Highly customized • Scalable • Suited to all types & sizes of organizations • Allow data sharing • Employee use concurrently • System built on a three-tiered • Client/server architecture • Proprietary programming language ABAB/4 • Compatible with all major DBMS vendors 6/6/2010 IIPM AHMEDABAD 22
    • SAP R/3 • SAP R/3 connotation signifies a three –tier system consisting of • Data Base at the backend • Application • GUI (Graphical user interface) • An Open Distributed System is made up of components that may be obtained from a number of different sources, which together work as a single distributed system. 6/6/2010 IIPM AHMEDABAD 23
    • SAP INDUSTRY SOLUTION • Why Industry solution • Aerospace Industry • Defense Industry • Utilities Industry • Automotive • Banking • Health Care • Pharmaceuticals and Others • Improved speed, Accuracy, Efficiency, Productivity, Revenue 6/6/2010 IIPM AHMEDABAD 24
    • SAP PROJECTS IN PAKISTAN • Siemens Pakistan • Auditor General of Pakistan • Pakistan Refinery Ltd (PIFRA) • Packages Ltd • Pakistan Petroleum Limited • Jahangir Siddiqui & • Pakistan State Oil (PSO) Company • Atlas Honda Ltd. • ICI Pakistan (Pvt) Ltd • National Refinery Limited • Indus Motors • Thal Jute Mills • Engro Chemical Pakistan • Lakson Tobacco Limited 6/6/2010 IIPM AHMEDABAD 25
    • IMPLEMENTATION PROBLEM • Costly if not managed properly: variables that affect Cost of implementation are scope, resources, methodology and management. • Business terminology do not match with functionality in ERP • Does not define and refine the scope as project progress • High turnover of employees • Lack of upper management support • ERP Team must be empowered to make decisions without being second-guessed by management. 6/6/2010 IIPM AHMEDABAD 26
    • ERP SOFTWARE LICENSING FEE • Simple Customized ERP to SAP fee varies from Rs. € 35,000 (Basic) to € 180,000 (Comprehensive) • Minimum $695 per seat for initial purchase and $95 for renewal 6/6/2010 IIPM AHMEDABAD 27
    • ERP SOFTWARE HOUSES • www.sap.com • www.ezijobz.com • www.eXegesys.com • www.sage.com 6/6/2010 IIPM AHMEDABAD 28
    • LOGISTICS BUSINESS SCENARIOS • Contents • Logistics Business Process • Organizational and Master Data • Material Procurement • Sales Order Processing • Production Planning and Execution • Delivery, Billing and Payment 6/6/2010 IIPM AHMEDABAD 29