A Student Introduction to ERP


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An overview for college students of why, and how, ERP is used. Confusing acronyms are presented, as well as how advantageous an ERP system is to a company.

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A Student Introduction to ERP

  1. 1. DPR105: Tom Matys
  2. 2. Click Mouse Reveal Next Phase What is ERP? Define an ERP systemWhy Use ERP? How ERP makes companies betterWho makes ERP? Discuss software vendors What are the The components of an ERP systemattributes of ERP?
  3. 3. Enterprise:A unit of economic organization or activity.Resource:An ability to meet and handle a situation.Planning:The establishment of goals, policies, andprocedures for a social or economic unit. Source: Merriam-Webster
  4. 4. Information? Production4
  5. 5. ERP System:….because it is a company-wide, cross-functional, tool, that helps a business,or a company, tobe successfulin its operations.
  6. 6. • A set of integrated software modules for supporting all of an enterprise’s processes in real-time.• Sales, Production, Logistics, Purchasing, Accounting, and Human Resources share relevant information with each other as needed.
  7. 7. • Uses programs (modules) are software to manage info in every area of the business.• Uses common databases and shared management reporting tools.• Uses integration to streamline processes that occur in real-time.
  8. 8. • It breaks down the walls and barriers within a company.Too, it removes the obstacles thatcan be related to a differences ingeographical locations of externalresources. Internally and externally.
  9. 9. Expected Sales 1st Quarter 2012 6 4ERP’s information is very visibleand up to the second. 2 0Examples: Inventory Mgmt.,Financial Status, HiringTraining, Customer Credit
  10. 10. Real-Time Processing
  11. 11. Transactions areprocessed efficientlyand quickly
  12. 12. Enter Shipping transactionThe time that it takes forinformation to bedelivered within an Relational Databaseintegrated system from stores raw datathe resource to thetarget is instant! Data is instantly available
  13. 13. Promotes Customer Loyalty
  14. 14. I.e.. Consultant Fees,Licensing, Training.Change Management
  15. 15. Marketing & Sales M/S Account & Finance A/FSupply Chain Mgmt. Human Resources SCM HR
  16. 16. Marketing & Sales M/S (business processes) Account & Finance A/F (business processes) Supply Chain Mgmt. Human ResourcesSCM (business processes) HR (business processes)
  17. 17. • Hardware servers, fax machines, printers, communication networks, etc.• People Who work in M/S, SCM, FI, and HR Software (modules/programs/logic) Business Functions Business Processes Centralized Databases Information/Raw Data
  18. 18. SAP Modules are Packaged, Pre-Written, Programs (logic) thatexecute in the background when transactions are performed.• Production Planning (PP)• Materials Management (MM• Sales & Distribution (SD)• Financial (FI)• Controlling (CO)• Human Resources (HR)
  19. 19. Modules execute the business processes and can overlap business functionalities and promote integration.1) A Customer Service Representativeworks in the M/S functional area.2) The Customer Rep creates a Sales Order 3) The transaction initiates from the SD Module, and runs in the background 4) Other modules, like MM and FI, are called accordingly if the transaction includes credit checking, and/or allocating inventory. Summary: When a user in a functional area runs a transaction it could use one or many modules to process the business transaction.
  20. 20. SAP FI Module- FI stands for Financial AccountingSAP CO Module- CO stands for ControllingSAP PS Module – and PS is Project SystemsSAP HR Module – HR stands for Human ResourcesSAP PM Module – where Plant Maintenance is the PMSAP MM Module – MM is Materials Management -SAP QM Module - QM stands for Quality ManagementSAP PP Module – PP is Production PlanningSAP SD Module – SD is Sales and DistributionSAP BW Module – where BW stands for Business (Data) WarehouseSAP EC Module – where EC stands for Enterprise ControllingSAP TR Module – where TR stands for TreasurySAP IM Module – where IM stands for Investment ManagementSAP QM Module – where QM stands for Quality ManagementSAP – IS where IS stands for Industries specific solutionSAP – BasisSAP – ABAPSAP – Cross Application ComponentsSAP – CRM where CRM stands for Customer Relationship ManagementSAP – SCM where SCM stands for Supply Chain ManagementSAP – PLM where PLM stands for Product Lifecycle ManagementSAP – SRM where SRM stands for Supplier Relationship ManagementSAP – CS where CS stands for Customer ServiceSAP – SEM where SEM stands for STRATEGIC ENTERPRISE MANAGEMENTSAP – RE where RE stands for Real Estate
  21. 21. ….two totally different tingsFunctional Areas SAP Modules M/S SD MM SCM FI A/F CO PP HR HCM
  22. 22. What are the attributes of an ERP System? 1. SAP 20.4% 2. Microsoft Dynamics 14.9% 3. Oracle eBusiness Suite 9.8% 4. Epicor Software Corporation7.9% 5. Infor Global Solutions4.1% 6. Oracle JD Edwards3.1% 7. Oracle PeopleSoft2.6% 8. IFS North America2.2% 9. Sage North America1.9% 10. Activant Solutions, Inc.1.4%
  23. 23. ERP, while expensive to implement, if done correctly has ahigh Return of Investment (ROI) due to its ability toconnect and share information with all parts of a business.