2. ERP System - definitions
ERP stand for Enterprise Resource Planning
E- Enterprise Huge business Organization
R-Resource -Money
Manpower
Material
Machinery
Marketing
Methods
P-Planning- Effective utilization and optimization of resources
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3. ERP Definitions
ERP - Enterprise resource planning (ERP) is business management
software that allows an organization to use a system of integrated
applications to manage the business.
Being Specific ERP systems are large computer systems that integrate
application programs in accounting (i.e., accounts receivable), sales (i.e.,
order booking), manufacturing (i.e., product shipping) and the other
functions in the firm. This integration is accomplished. so ERP we have
an integration of all the departments and they all use common
database.
ERP systems helps to have a better controlling over the different
process.
As ERP is a integrated systems, it helps to provide the better reporting.
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4. Evolution Of ERP
1960’s - System just for Inventory Control
1970’s - MRP (Material Requirement Planning)
1980’s – MRPII (Manufacturing Resource Planning)
Adds financial accounting system
1990’s – MRPII
Integrated systems for manufacturing execution
Mid 1990’s - ERP (Enterprise Resource Planning)
Covering all the activities Often Enterprise
Late 1990’s - ERP
Integrated manufacturing with supply chain
21st century – ERPII
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5. Why implement an ERP System?
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ERP systems allows to share the information and communicated more
effectively.
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It is a single application integrated software program.
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ERP automates customer orders, order fulfillment, shipping and tracking and so
on
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It is single database systems, data is added only once and used by all
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To solve problems of legacy systems
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6. What makes ERP different?
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Integrated modules
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Common definitions
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Common database
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Update one module, automatically updates others
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ERP systems reflect a specific way of doing business
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Must look at your value chains, rather than functions
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9. Advantage of Implementation of an ERP system
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Business Integration
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Reduced redundancy in entering data
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One common system - less duplication, more efficient
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It allow to access, update instantly and saves lot of time
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ERP system provides the real time information all needs of the organization
in a single system
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Improved customer service and order fulfillment
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Improved communication with suppliers and customers
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It is a single source of systems that can be use through out the
organization
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Reduce inventory.
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Improved business performance
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10. Disadvantages of Implementation of an ERP system
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Systems difficult to use
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Limited technical staff
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The usage of ERP system can be difficult for users, so appropriate training
is to required to use the ERP software.
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ERP systems centralize the data in one place and this can increase the risk
of loss of sensitive information in the event of a security violation.
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Not Internet ready.
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15. Manufacturing
nufacturing process to take place. It contains number of manufacturing methods, so th
nt, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects,
16. Supply Chain Management Component
Supply Chain Management (SCM), sometimes referred To as logistics, improves
the flow of materials through an organization by managing, planning, scheduling,
procurement and fulfillment to maximize customer satisfaction and profitability.
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18. CRM Component
Involves managing all aspects of a customer’s relationship with an organization
to increase customer loyalty and retention and an organization’s profitability.
Sales and Marketing, Commissions, Service, Customer Contact and Call Center
support.
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19. ERP in Future
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Internet – continue to help organizations integrate data and process across
functional departments
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Availability of web-based and wireless ERP systems
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Adoption of easy-to-install ERP systems
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20. Conclusion
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ERP systems provide a mechanism for implementing systems where a high degree of
integration between applications is required
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ERP is a key backbone application for companies in a fast changing industry.
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The risks in an ERP implementation are usually outweighed by the benefits.
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The Business Case or Value Proposition for implementation must be outlined
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To successfully implement a proper mix of people, processes and technology should
be maintained
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ERP is recommended in an organization not only because the advantages outnumber
the disadvantages but also by keeping in mind the ways to overcome the
disadvantages. An organization has to correctly weigh the advantages and
disadvantages of ERP before going for them.
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