This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as multi-module software that helps businesses manage important business processes like production, purchasing, inventory, customer service and order tracking in an integrated way. The document outlines the evolution of ERP from isolated systems in the 1960s to more integrated systems today. It also discusses key considerations for ERP selection and implementation like functionality, costs, vendor support and technology.

1. Enterprise Resource Planning Presented by: Sandeep Tiwari PGDM 3 rd sem.

2. ERP – General Concepts 1. What is ERP? 2. Evolution 3. Why ERP? 4. Definition 5. Expectations Enterprise Resource Planning

3. THREE KEY POINTS Enterprise Resource Planning ERP ENTERPRISE RESOURCE PLANNING

4. Enterprise resource planning (ERP) is the industry term used to describe a broad set of activities supported by multi-module application software that helps a manufacturer or other business manage the important parts of its business. These parts can include product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP can also include application modules for the finance and human resources aspects of a business. Some of the bigger players in the ERP outsourcing market are SAP, Peoplesoft, and J. D. Edwards. New comers include Oracle, IBM, and Microsoft. MEANING OF ERP Enterprise Resource Planning

5. What is ERP? ERP is a solution, which Enterprise Resource Planning facilitates company-wide integrated information systems, covering all functional areas performs core Corporate activities and increases customer service augmenting Corporate Image

6. FUNCTIONS OF MANAGEMENT Enterprise Resource Planning

7. Why ERP? For Management – to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival Enterprise Resource Planning

8. ERP – Expectations Integrating all the functions Integrating the systems running in all the locations Transparency of information using a single data source across the organization Software must be responsive Modular Flexible Easy to add functionalities Provide growth path Enterprise Resource Planning

9. Evolution of ERP 1960’s - Systems Just for Inventory Control 1970’s - MRP – Material Requirement Planning (Inventory with material planning & procurement) 1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.) Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise) 2000 onwards – ERP II – Collaborative Commerce (Extending ERP to external business entities) Enterprise Resource Planning

10. Information Islands Enterprise Resource Planning

11. The Current Scenario Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software platforms & practices Poor connectivity between different organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop integrated software Enterprise Resource Planning

12. ERP – Options OPTION 1 – MAKE [Using Internal resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of the in-house IT department OPTION 2 - BUY Going for Tailor-made ERP packages available in the market like SAP, Oracle applications, Baan, PeopleSoft etc. OPTION 3 – MAKE [using External resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of a software solution provider. Enterprise Resource Planning

13. ERP Product selection Criteria Goal: To select the Most Suitable Software Package Solution 5 Strategic Requirement Levels Functionality Technology Vendor Support Costs Enterprise Resource Planning

15. How can Engineers benefit from ERP systems ? Enterprise Resource Planning

16. Usesful SAP Modules for Engineers MM- Material Management Better Procurement Handling Org a nized Inventory Management Easy Purchase Organization Faster Storage Location PM – Plant Maintenance Maintenance Order Management Equipment and Technical Objects Coordination Preventive Maintenance Workflow Scenarios Work Clearance Management

17. Istanbul Fast Ferries (IDO) Uses SAP Software

18. SAP CENTER EMPLOYEE PASS E NGER PASS E NGER PASS E NGER FUEL MAINTENANCE

19. Annually 91 million passanger Annually 5,5 million vehicles Daily 1,200 navigation capacity 90 Ships 82 Terminals 3,200 personel 314 Million YTL endorsement Istanbul Fast Ferries (IDO) Enterprise Resource Planning

20. SAP Systems arranges relationship between ; shipping condition s , route determination, shipping point , employee conditions, fuel supply, maintenance Enterprise Resource Planning

21. Controlling Module (CO) IDO pass e nger can send SMS to IDO SAP system and get the information about shipping route times. This process is a service of Controlling Module. Enterprise Resource Planning

22. OUTPUTS of ERP Systems DOCUMENTS Proposal Orders approval Delivery plans Shipping papers Warehouse check list Material document Accounting document Delivery/shipping document Invoice Dept & credit doc.

24. The Cost of ERP Systems Major suppliers are SAP AG, Peoplesoft, Oracle, and Baan. Also smaller PC based suppliers. Costs for larger ERP systems range from hundreds of thousands to several million dollars. Outside consultants are usually involved in selection, configuration, and implementation. Enterprise Resource Planning

25. The Cost of ERP Systems Consultant costs can run up to 3 times the cost of the system itself according to a Gartner Group study. Added costs also include additional people, new computer hardware, and the cost to develop a new, integrated database Successful implementation requires leadership and top management commitment to a vision for the business Enterprise Resource Planning

26. ERP Software Companies & Marketshares Software Market Shar e SAP 15.6 Peoplesoft 4.9 Oracle 4.8 Baan 3.0 CA 3.0 JDE 2.2 SSA 2.1 GEAC 2.0 IBM 1.8 JBA 1.7 Others 59.0

27. Enterprise Resource Planning

28. How ERP systems are implemented within companies? ERP Software Companies start analysing the prospective company(s), identifing their individual needs. Setup of ERP systems For Mid-size companies 5-12 months Large Companies 6-18 months Enterprise Resource Planning

29. Secretary’s New printer application Transfer to Finance Departmen Transfer to Accounting Office Transfer to Manager Transfer to Accounting Office Example: Before ERP Systems

30. Companies after ERP Systems Enterprise Resource Planning

31. Prepare Base for ERP Do not start without Management commitment Allocate sufficient funds Identify Core Project Team Select specialists from all functional areas Evaluate and select ERP package Evaluate Implementation Partner Make an Implementation Plan Present plan to Management Committee for sanctions Present plan to Employee groups for feedback/acceptability Plan for User Training Plan for Future upgrades

32. VENDORS OF POPULAR ERP SOFTWARE unknown 14.2 million EUR CDC Software 2006 2,648 million INR Ramco Systems 2006 45 million EUR ABAS Software 2006 67.2 million USD Net Suite 2007 50.5 million GBP COA Solutions Ltd 2007 130 million USD Consona Corporation 2006 225 million USD QAD 2005 288 million USD IFS 2005 1,907 million NOK Visma 2006 384.1 million USD Epicor 2006 390.776 million USD Lawson Software 2008 409.1 million USD CDC Software 2005 352.6 million EUR Unit 4 Agresso 2006 44.2 billion USD Microsoft Dynamics 2006 935.6 million GBP The Sage Group 2006 2.1 billion USD Info global solutions 2006 14.38 billion USD Oracle Applications 2006 9.4 billion EUR SAP YEAR REVENUE(NATIVE CURRENCY) VENDOR

33. Solutions of ERP Financial Management Inventory Management Purchasing Sales Management Production Planning Advanced Visual Planning Manufacturing Management Enterprise Resource Planning

34. In this real case there the benefits of the ERP systems Online Data Flow decreases the process time Fast & Online Confirmation Less Paperwork No need for folder storage Database Security Less Employee needed Easy Financial Management Better Inventory Management Enterprise Resource Planning

35. Python OpenERP Java Openbravo Apache, Java OFBiz LedgerSMB Kuali Foundation Java JFire PHP, MySQL GRR (software) GNU Enterprise Python ERP5 PHP Dolibarr Java Compiere PHP BlueErp Java Adempiere LANGUAGE BASE ERP PACKAGE

36. Summary Optimum utilization of resources Customer satisfaction Seamless integration between Functions Reduced overheads & inventory Timely responsiveness Market share & image enhancement Faster design to manufacturability Keep up with technology changes Only way for integrated systems for a client with multiple locations

37. Open Session

38. Thanks for your Participation & Co-operation

39. THANK ‘U’