ERP Enterprise Resource Planning
What is ERP? <ul><li>Software tools  </li></ul><ul><li>Manages business systems </li></ul><ul><ul><li>Manufacturing, Suppl...
What is ERP <ul><li>ERP (Enterprise Resource Planning) </li></ul><ul><ul><li>Integrated software solution for client/serve...
ERP Definitions <ul><li>ERP Systems attempts to integrate all data and processes of an organizations into a unified system...
ERP SOFTWARES <ul><li>SAP </li></ul><ul><li>BANN </li></ul><ul><li>JD Edwards </li></ul><ul><li>Karen </li></ul><ul><li>Sa...
BUSINESS PROCESS MODULE <ul><li>Sales and Distribution </li></ul><ul><li>Production Planning </li></ul><ul><li>Financial A...
ERP History
Evolution of ERP <ul><li>1960s: software packages with inventory control </li></ul><ul><li>1970s: MRP systems </li></ul><u...
ERP Importance and Benefits
Why ERP <ul><li>Benefits to our customers </li></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul...
ERP Helps in…. <ul><li>Decision support system (DSS) </li></ul><ul><li>Smooth flow of routine process </li></ul><ul><li>Au...
Overall Business Benefits <ul><li>Information </li></ul><ul><ul><li>Maximizes information throughput </li></ul></ul><ul><u...
Department Benefits <ul><li>Sales </li></ul><ul><ul><li>Increased efficiency </li></ul></ul><ul><ul><ul><li>Lower quotes, ...
Department Benefits <ul><li>Supply Chain Management </li></ul><ul><ul><li>Supply Chain Planning, Claim Processing, Commiss...
Systems Benefits <ul><li>Eliminating legacy systems </li></ul><ul><ul><li>Reduces incompatible data </li></ul></ul><ul><ul...
Disadvantages <ul><li>Limited training budget </li></ul><ul><li>Lack of Skills and Experience </li></ul><ul><li>Cost estim...
ERP Misconceptions
Enterprise Misconceptions <ul><li>Back office Systems </li></ul><ul><li>Erodes competitive advantage using best practices ...
SAP Facts and Figures
About SAP “The Company” <ul><li>SAP AG, the pioneer in ERP systems is on 1972 by five former IBM employees in Mannheim, Ge...
About SAP <ul><li>More than 95,000 customers in more than 120 countries run SAP applications </li></ul><ul><li>SAP current...
Overview of SAP ERP Software Package <ul><li>SAP R/2 & SAP R/3 </li></ul><ul><li>Advantage of SAP R/3 </li></ul><ul><li>Hi...
SAP R/3 <ul><li>SAP R/3 connotation signifies a three –tier system consisting of  </li></ul><ul><ul><li>Data Base at the b...
SAP Industry Solution <ul><li>Why Industry solution </li></ul><ul><ul><li>Aerospace Industry </li></ul></ul><ul><ul><li>De...
SAP Projects in Pakistan <ul><li>Siemens Pakistan </li></ul><ul><li>Pakistan Refinery Ltd </li></ul><ul><li>Packages Ltd <...
IMPLEMENTATION PROBLEM <ul><li>Costly if not managed properly: variables that affect Cost of  implementation  are scope, r...
ERP SOFTWARE LICENSING FEE <ul><li>Simple Customized ERP to SAP fee varies from Rs.  € 3 5,000 (Basic) to  €  180,000 (Com...
ERP SOFTWARE HOUSES <ul><li>www.sap.com </li></ul><ul><li>www.ezijobz.com </li></ul><ul><li>www.eXegesys.com </li></ul><ul...
Logistics Business Scenarios <ul><li>Contents </li></ul><ul><ul><li>Logistics Business Process </li></ul></ul><ul><ul><li>...
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What Is Enterprise Resource Planning System

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What Is Enterprise Resource Planning System

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What Is Enterprise Resource Planning System

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

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