Enterprise Resource Planning (ERP) is a business management software that integrates various applications for data collection, storage, and interpretation across multiple business functions such as manufacturing, sales, and inventory management. ERP systems facilitate real-time visibility into business operations and enhance efficiency in various areas, including human resources, production management, and customer relationships. While ERP offers numerous advantages like centralized control and improved communication, it also poses challenges such as high initial investment and the need for employee training.

1. ENTERPRISE RESOURCE
PLANNING
BY
AMMAR QAZI

2. Enterprise Resource Planning is a business management software having
integrated applications that a company uses to collect, store , manage and
interpret the data for many business activities like product planning,
manufacturing ,market and sales, inventory management, shipping and payment.

3. ERP provides an integrated view of core business facilities that is often in real
time , using common database maintained by a database management system.
It tracks the business resources, cash flow, raw material, production capacity and
status of the business that will be coordinated at different levels of management.

4. EVOLUTION OF ERP

5. AREAS OF ERP

6. The ERP system is such a wide spread area that it can be applied to any field for better
and effective functioning of the plant or an organisation as a whole. It is useful at
every sector or area of application that will fulfil the needs and requirements of the
plant.
The following are some areas of application of ERP system:
1. Human Resources:
It helps for personal recruitment, training,pay-scale, increments, retirement,etc.
Direct information about a staff or worker working in that organisation can be
identified easily and can be updated whenever necessary.

7. 2.Manufacturing Management:
It provides data or information like production planning,bill of materials,work
orders,scheduling,capacity planning,work flow management on the shop floor.It also
gives updated status of the product or it’s place on the shop floor.

8. 3.Order processing:
It provides the status for processing the on-line products on the shop floor and gives
deadlines for the same, so that new products and processes can be developed in the
system.

9. 4. Product Management :
It integrates every aspect of product development and inventory management that
will incorporate together to move the products at different stages of production
and link with the inline process of the product

10. 5. Customer Relationship Management (CRM) :
It is the most effective process provided by the ERP system that directly responds to
customer requirements. In other words it manages the delivery dates or sales orders
through software, so that the planning or purchase management handles those customer
requests and processes it directly without documentation.

11. 6. Financial/Accounting Management :
It includes the budgeting, cost estimation, cash in-flow and out-flow within the
various departments and financial consolidation with other departments.

12. ADVANTAGES OF ERP
• There can be a centralized control over larger companies where
volume of production is more.
• Duplication of information is avoided.
• Exact and proper communication exists between various departments.
• The contribution of every department towards companies objectives
can be determined and well defined.
• Improvement in the efficiency of the organisation.
• Equal opportunities for various organisation to take initiatives which
would focus towards customer fulfilment of requirements.
• It reduces the time required for data or information travelling.

13. DISADVANTAGES
• The initial investment is higher for implementation of the process.
• Adaptibility of the workers to the new process is difficult initially
due to the habit of traditional techniques.
• Training needs to be provided to all the employees in the company
so that the system software can be used efficiently.
• Additional training cost for the company along with the time and
effort required for maintaining it.
• There must be a fixed or permanent trainee and expert to attend
to systems problems or clarifications and rectify them

14. THANK YOU