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Erp presentation

  1. 1. Presentation by;Presentation by; Mr. Abhijeet ShettyMr. Abhijeet Shetty Ms. Ragini MohiteMs. Ragini Mohite Mr. Aashay KhawteMr. Aashay Khawte Mr. Sagar ShirwaikarMr. Sagar Shirwaikar Mr. Vinayak DhumatkarMr. Vinayak Dhumatkar Date: 05Date: 05THTH AUGUST 2009AUGUST 2009
  2. 2. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 22 ContentsContents • Introduction to ERPIntroduction to ERP • Business Process Re-engineering (BPR)Business Process Re-engineering (BPR) • ERP ImplementationERP Implementation • Vendors of ERPVendors of ERP • Business Modules in ERPBusiness Modules in ERP • ERP & Role of Chartered AccountantsERP & Role of Chartered Accountants • ConclusionConclusion
  3. 3. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 33
  4. 4. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 44 Why ERP ?Why ERP ? To Survive ,Thrive And Beat The CompetitionTo Survive ,Thrive And Beat The Competition Manage futureManage future Manage InformationManage Information Automation of the process of Data CollectionAutomation of the process of Data Collection Information Technology (ERP Solution)Information Technology (ERP Solution)
  5. 5. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 55 History Of ERPHistory Of ERP • ERP (Enterprise ResourceERP (Enterprise Resource Planning) is the evolution ofPlanning) is the evolution of Manufacturing RequirementsManufacturing Requirements Planning (MRP) II.Planning (MRP) II. • From business perspective, ERPFrom business perspective, ERP has expanded from coordination ofhas expanded from coordination of manufacturing processes to themanufacturing processes to the integration of enterprise-wideintegration of enterprise-wide backend processes.backend processes. • From technological aspect, ERPFrom technological aspect, ERP has evolved from legacyhas evolved from legacy implementation to more flexibleimplementation to more flexible tiered client-server architecture.tiered client-server architecture.
  6. 6. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 66 Timeline System Description 1960s Inventory Management & Control It includes identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status. 1970s Material Requirement Planning (MRP) MRP utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases. 1980s Manufacturing Requirements Planning (MRP II) Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution. 1990s Enterprise Resource Planning (ERP) ERP was introduced by Research & Analysis by Gartner in 1990. ERP systems integrate business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources.
  7. 7. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 77 What is ERP ?What is ERP ? • ENTERPRISEENTERPRISE:: An enterprise is a group of people with a common goal, which hasAn enterprise is a group of people with a common goal, which has certain resources at its disposal to achieve that goal.certain resources at its disposal to achieve that goal. • RESOURCERESOURCE:: Resources included are money, man-power, materials, and all otherResources included are money, man-power, materials, and all other things that are required to run the enterprise.things that are required to run the enterprise. • PLANNINGPLANNING:: Planning is done to ensure that nothing goes wrong. Planning isPlanning is done to ensure that nothing goes wrong. Planning is putting necessary functions in place and more importantly, puttingputting necessary functions in place and more importantly, putting them together.them together. • ERP covers the techniques and concepts employed for theERP covers the techniques and concepts employed for the integrated management of business as a whole, from the viewpointintegrated management of business as a whole, from the viewpoint of the effective use of management resources, to improve theof the effective use of management resources, to improve the efficiency of an enterprise.efficiency of an enterprise.
  8. 8. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 88 Features of ERPFeatures of ERP • Integrates Business Operations.Integrates Business Operations. • Library of Business Process.Library of Business Process. • Real Time updating of transactions.Real Time updating of transactions. • Multi-Tasking & Multi-Currency Features.Multi-Tasking & Multi-Currency Features. • Easy Web Enablement Features.Easy Web Enablement Features. • Supports - Alert facilities, data warehouse & OLAP.Supports - Alert facilities, data warehouse & OLAP.
  9. 9. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 99 Industry wise Uses of ERP…..Industry wise Uses of ERP….. • ManufacturingManufacturing • SoftwareSoftware • InsuranceInsurance • HealthcareHealthcare • HospitalityHospitality
  10. 10. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1010 ERP: AdvantagesERP: Advantages • Reduction of lead-time.Reduction of lead-time. • Reduction in cycle time.Reduction in cycle time. • Better customer satisfaction.Better customer satisfaction. • Improved supplier performance.Improved supplier performance. • Increased flexibility.Increased flexibility. • Reduction in quality costs.Reduction in quality costs. • Improved resource utility.Improved resource utility. • Improved information accuracyImproved information accuracy
  11. 11. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1111 ERP: DisadvantagesERP: Disadvantages • Lack of clarity of expectations from ERP.Lack of clarity of expectations from ERP. • Unreasonable scope & Inadequate Resources.Unreasonable scope & Inadequate Resources. • Choice of wrong ERP product – not all products are suitable for allChoice of wrong ERP product – not all products are suitable for all industries.industries. • Not choosing the right people for implementation.Not choosing the right people for implementation. • Lack of participation of end-users.Lack of participation of end-users. • Lack of proper communication within the organization.Lack of proper communication within the organization.
  12. 12. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1212
  13. 13. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1313 Introduction to BPRIntroduction to BPR • Business process reengineering (BPR)Business process reengineering (BPR) is, in computer science and management, anis, in computer science and management, an approach aiming at improvements by meansapproach aiming at improvements by means of elevating efficiency and effectiveness of theof elevating efficiency and effectiveness of the business process that exist within and acrossbusiness process that exist within and across organizations. The key to BPR is fororganizations. The key to BPR is for organizations to look at their businessorganizations to look at their business processes from a "clean slate" perspectiveprocesses from a "clean slate" perspective and determine how they can best constructand determine how they can best construct these processes to improve how they conductthese processes to improve how they conduct business.business.
  14. 14. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1414 Definitions of BPRDefinitions of BPR Thomas H. Davenport (1993)Thomas H. Davenport (1993) • "encompasses the envisioning of new"encompasses the envisioning of new work strategies, the actual process designwork strategies, the actual process design activity, and the implementation of theactivity, and the implementation of the change in all its complex technological,change in all its complex technological, human, and organizational dimensions."human, and organizational dimensions." Hammer and Champy (1993)Hammer and Champy (1993) • "... the fundamental rethinking and radical"... the fundamental rethinking and radical redesign of business processes to achieveredesign of business processes to achieve dramatic improvements in criticaldramatic improvements in critical contemporary measures of performance,contemporary measures of performance, such as cost, quality, service, and speed."such as cost, quality, service, and speed."
  15. 15. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1515 Benefits of BPRBenefits of BPR • Business process is streamlinedBusiness process is streamlined • Business process is optimized and more efficientBusiness process is optimized and more efficient • Strict controls can be enforced and monitored.Strict controls can be enforced and monitored. • Best practices can be adhered to.Best practices can be adhered to. • Time and cost saving as a result of eliminated redundant tasks.Time and cost saving as a result of eliminated redundant tasks.
  16. 16. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1616 Principles of BPRPrinciples of BPR • Focus on the Right ProcessesFocus on the Right Processes • Voice of the CustomerVoice of the Customer • Managing ChangeManaging Change • Active ParticipationActive Participation • Targets and Performance MeasureTargets and Performance Measure • IntegrationIntegration • FlexibilityFlexibility
  17. 17. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1717 Conclusion of BPRConclusion of BPR ““The onus of the successful implementation lies withThe onus of the successful implementation lies with the Organization”the Organization” To be successful, business process reengineering projects need toTo be successful, business process reengineering projects need to be top down, taking in the complete organization, and the full end tobe top down, taking in the complete organization, and the full end to end processes. It needs to be supported by tools that makeend processes. It needs to be supported by tools that make processes easy to track and analyze.processes easy to track and analyze.
  18. 18. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1818
  19. 19. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 1919 ERP Implementation AndERP Implementation And MethodologyMethodology • ERP implementation is a special eventERP implementation is a special event • Consultants and Users Should Work TogetherConsultants and Users Should Work Together • Improve The Flow of InformationImprove The Flow of Information • CustomizationCustomization
  20. 20. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2020 Steps in ERP ImplementationSteps in ERP Implementation • Identifying the needs for implementing an ERP packageIdentifying the needs for implementing an ERP package • Evaluating the ‘As is’ situation of the businessEvaluating the ‘As is’ situation of the business • Deciding the ‘would be’ situation of the businessDeciding the ‘would be’ situation of the business • Reengineering the business process to achieve the desiredReengineering the business process to achieve the desired results in the existing processesresults in the existing processes • Evaluating the various available ERP packagesEvaluating the various available ERP packages • Finalizing the most suitable ERP packagesFinalizing the most suitable ERP packages • Installing the required hardware & networks for selected ERPInstalling the required hardware & networks for selected ERP • Finalizing the implementation consultants who will assist inFinalizing the implementation consultants who will assist in implementationimplementation • Implementing the ERP packagesImplementing the ERP packages
  21. 21. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2121
  22. 22. Vendors of ERP Package • Oracle corporation – Oracle is one of the top players in the ERP market – Oracle Manufacturing Applications offers internet enabled, network centric computing – As a one stop shop, it offers the database, tools, implementation, applications and UNIX operating systems running on a wide choice of hardware • SAP AG – SAP is the world's second largest business software company. – SAP focuses on six industry sectors: process industries, discrete industries, consumer industries, service industries, financial services, and public services – SAP matches business processes to modules. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2222
  23. 23. Vendors of ERP Package (Contd.) •Baan – It addresses manufacturers from largest global players to smallest ERP user. – It offers tools for Business Process Analysis – It uses 4GL language •SSA – BPCS was developed by System Software Associates (SSA) – It is used in manufacturing companies – It offers functionality of Process and Kanban Manufacturing 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2323
  24. 24. Vendors of ERP Package (Contd.) •Sage Group plc – It is engaged in the development, distribution and support of business Management software – Accpac is a vendor of accounting, Customer relationship management and business management software – It has two main product lines • Sage Accpac ERP • Sage Pro ERP 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2424
  25. 25. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2525
  26. 26. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2626 Major Modules in ERPMajor Modules in ERP PackagesPackages • Finance ModuleFinance Module • HR ModuleHR Module • ManufacturingManufacturing ModuleModule • Material ManagementMaterial Management (MM) Module(MM) Module • Sales & DistributionSales & Distribution ModuleModule SALES & DISTRIBUTION MANAGEMENT LOGISTICS & CUSTOMER SERVICE MANAGEMENT
  27. 27. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2727 Finance ModuleFinance Module • Finance functionality for organizations whose business isFinance functionality for organizations whose business is spread over the world.spread over the world. • Company wide control & Integration of FinancialCompany wide control & Integration of Financial Information.Information. • Sub Systems are :Sub Systems are : – Financial AccountingFinancial Accounting – TreasuryTreasury – ControlControl – Enterprise ManagementEnterprise Management
  28. 28. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2828 Human Resource ModuleHuman Resource Module • HR is an essential factor of any successful business. This ModuleHR is an essential factor of any successful business. This Module offer company wide solutions for HR departments and make itoffer company wide solutions for HR departments and make it possible for authorized users of the other departments to accesspossible for authorized users of the other departments to access specific employee data.specific employee data. – Personnel AdministrationPersonnel Administration – Employee Master DataEmployee Master Data – Recruitment ManagementRecruitment Management – Open PositionsOpen Positions – Selection & HiringSelection & Hiring – Travel ManagementTravel Management – Personnel cost planningPersonnel cost planning
  29. 29. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 2929 Manufacturing ModuleManufacturing Module • Components of Manufacturing Module :Components of Manufacturing Module : – Material & Capacity PlanningMaterial & Capacity Planning – Quality ManagementQuality Management – Cost ManagementCost Management – Shop Floor ControlShop Floor Control
  30. 30. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3030 Material Management ModuleMaterial Management Module • It supports all phases of Material - Management, planning, control,It supports all phases of Material - Management, planning, control, purchasing, receiving, inventory management & bill payment. Itspurchasing, receiving, inventory management & bill payment. Its sub-modules are :sub-modules are : – Pre Purchasing ActivitiesPre Purchasing Activities – PurchasingPurchasing – Vendor EvaluationVendor Evaluation – Inventory ManagementInventory Management – Invoice VerificationInvoice Verification
  31. 31. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3131 Sales & Distribution ModuleSales & Distribution Module Offers access to real-time, online information from sales to billing.Offers access to real-time, online information from sales to billing. Sub-systems in this modules are –Sub-systems in this modules are – • Masters Data ManagementMasters Data Management • Order ManagementOrder Management • Warehouse ManagementWarehouse Management • DispatchDispatch • InvoicingInvoicing • PricingPricing • Sales SupportSales Support
  32. 32. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3232
  33. 33. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3333 Role of Chartered AccountantsRole of Chartered Accountants in ERPin ERP • How does ERP matter Chartered Accountants?How does ERP matter Chartered Accountants? • Rapidly changing & challenging business world and automation ofRapidly changing & challenging business world and automation of processesprocesses • ERP helps the organization to realize its vision and objectives in anERP helps the organization to realize its vision and objectives in an optimized way.optimized way. • Role as consultants, auditors, advisors or managers in controlling,Role as consultants, auditors, advisors or managers in controlling, managing and supporting the business.managing and supporting the business.
  34. 34. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3434 Major Challenges in ERP AuditsMajor Challenges in ERP Audits • Complexity of ERPComplexity of ERP • ManpowerManpower • Inadequate Attention towardsInadequate Attention towards security of Systemssecurity of Systems
  35. 35. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3535 ConclusionConclusion ““A Chartered Accountant withoutA Chartered Accountant without the knowledge of ERP may feel asthe knowledge of ERP may feel as if he is a fish out of the bowl”if he is a fish out of the bowl”
  36. 36. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3636 BibliographyBibliography • www.erpwire.comwww.erpwire.com • www.en.wikipedia.orgwww.en.wikipedia.org • www.icai.orgwww.icai.org • www.teamtechnology.co.ukwww.teamtechnology.co.uk • ICAI – Reference Books & Study Material.ICAI – Reference Books & Study Material.
  37. 37. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3737
  38. 38. 5 August 20095 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09)ICAI - GMCS (LLIM - Jul/Aug 09) 3838
  39. 39. 3939 About us Federation of Chamber of Commerce is a Non-Profit-Non-Governmental organization (NGO), Registered with Department of Charity Commissioner. Our mission is to promote commercial interests and promote the development of trade, commerce and industry. Federation is a not for profit bilateral business Chamber which fosters and promotes mutually beneficial relations between various states and overseas through channels of trade and industry. The Federation constantly strives to identify new areas of mutual co-operation and ensure the smooth flow of trade, investment joint ventures and technology. We endeavor to provide a platform for facilitating business and networking opportunities between companies, to promote our members’ interests to key decision makers and to help develop economic and commercial relations between themselves. It provides a dynamic institutional link for the promotion of commercial and economic relations. visit us @: www.foccin.org Contact us @: federationofchamberofcommerce@gmail.com Be with us in twitter: https://twitter.com/foccin Join us face to face us in facebook: http://www.facebook.com/federationofchamberofcommerce

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