This document discusses an enterprise resource planning (ERP) system project submitted by a group of students to their professor. It provides definitions of ERP, discusses the history and goals of ERP systems. It outlines the ERP implementation process and various ERP modules including finance, sales, inventory, and human resources. The document also covers the advantages and disadvantages of ERP as well as implementation costs. It concludes that defining business processes, establishing a project team, developing an implementation plan, and ongoing monitoring are keys to a successful ERP deployment.

2. .
n
University Of Central Punjab

3. SUBMITTED TO:
• PROF IRTAZA AETZAZ

4. Group members
Aroz Amir (S2F18BBAM0013)
Ali Roshan (S2F18BBAM0004)
Ahmad Zeeshan (S2F18BBAM0016)
Amaan Bhatti (S2F18BBAM0003)

5. Topic:
ERP
(Enterprise Resource
Planning)

6. Table of content
 Definition of ERP
 History
 Goal of ERP
 Why ERP?
 Steps to implement an ERP system
 Difficulty of implementation
 The ERP Modules
 Advantages & disadvantages of ERP
 Costs of ERP
 Conclusion

8. Definition of ERP
• ..E..
An Enterprise is a group of people with a common
goal, which has certain resources at its disposal to
achieve that goal.
• ..R..
Resources included are money, and all other things
that are required to run the enterprise.
• ..P..
Planning is done to ensure that nothing goes
wrong.

9. Broadly Defined
• “a business strategy and set of industry domain-
specific applications that build customer and
shareholder communities value network system
by enabling and optimizing enterprise and inter-
enterprise collaborative operational and financial
processes”

10. • Enterprise resource planning, or ERP, is a way of
integrating organizational data and processes
into a single system. ERP systems will generally
have a hardware component, a software
component and a process documentation
component. ERP systems usually integrate with
several aspects of an organization. For example,
an ERP system may cover manufacturing, quality
control, manufacturing engineering, parts
ordering, accounts payable or human resources.
The type of system best suited for your business
will depend on the size of your business and the
functions that will support your business
requirements.

12. How it began
• The advent of early ERP systems began with
early attempts at using calculating machines for
business in the 1940’s. In the 1960’s, applications
that handled inventory management and control
were introduced . Enterprise Resource Planning
(ERP) systems was born in infancy in the early
1960s . It was a joint effort between J.I. Case, the
manufacturer of tractors and other construction
machinery, and their IT partner IBM. This further
led to the creation of software known as Materials
Requirements Planning(MRP).

13. The Early Days in the history of ERP
• By 1975, MRP software was running in hundreds of large
companies though it was only affordable for the larger
firms. The system ran on huge mainframe computers that
were very expensive though their computing power was
not comparable even to some of the portable computers of
today.
• In 1972, the firm SAP was started in Germany. The
company initials stood for “Systems, Applications &
Products”. SAP aimed to create business software that
worked in real time. This was really path breaking in an era
of reel-to-reel tapes and punch cards. SAP launched its first
financial accounting system in 1973.
• In the 1980s, MRP evolved to what many termed MRP II, or
Manufacturing Resource Planning by adding more
manufacturing processes and capabilities in order to
manage as a one stop production planning solution.

14. The term ERP system is first used
• The term ERP – Enterprise Resource Planning
was first used in the 1990’s. It was able to deal
with other business functions like engineering,
finance and accounting, HR and project
management etc. Netsuite created an ERP system
that worked across the business functions of a
company but was not on-premise and was
delivered over the internet.
• In 2000, the Gartner Group defined ERP II as
internet enabled software that gave real time
access to the ERP solution.

15. The Cloud appears in the history of ERP
• After 2005 or so, the trend has turned towards cloud
software systems and moved away from traditional
client servers models. Cloud ERP systems provided
comparable functionalities to on-premise ERP at a
much lower cost. They were attractive especially for
small and mid-sized businesses.
• They now have remote, web-based access via
advanced apps that run even on mobile devices.
Today’s Cloud ERP systems cover every necessary
aspect of business. Cloud ERP is also as secure if not
more than legacy ERP solutions. The future will see
the integration of Cloud ERP with IoT, IoE, social
media and even greater security competence.

17. Goals of ERP
Goals
Efficiency
Quality
Decentra
lization
Cost
reduction

18. The goal of our enterprise is simply to get, keep, and
grow customers.
GET
• Acquire profitable customers
KEEP
• Retain profitable customers longer. • Win back
profitable customers • Eliminate unprofitable customers
GROW
• Up sell additional products in a solution • Cross sell
other products to customers • Reduce service and
operations cost.

19. Why ERP?
I. ERP offers solutions for all business functions
II. Packages available for organizations of all sizes
and types
III. Global nature (multi currency)

20. Steps to implement an ERP system
Definition
& analysis
Design
BuildTransaction
Production

21. Difficulty of implementation
• Very complex
• Extremely costly and time intensive Typical: over 80,000pkr
or more and over a year to implement
• Company may implement only certain modules of entire
ERP system
• You will need an outside consultant

22. Offices before ERP

23. Office after ERP

24. The ERP Modules
• Human Resource.
• Inventory.
• Sales & Marketing.
• Purchase.
• Finance & Accounting.
• Customer Relationship Management(CRM)
• Engineering/ Production.
• Supply Chain Management (SCM)

27. • Human Resource Module(HR):
Human Resource module helps to HR team for efficient
management of human resources. HR module helps to manage
employee information, track employee records like performance
reviews, designations, job descriptions, skill matrix, time &
attendance tracking. One of the important submodules in the HR
module is Payroll System which helps to manage salaries, payment
reports etc. It can also include Travel Expenses & Reimbursement
tracking. Employee Training tracking can also be managed by ERP.

29. • Inventory Module:
Inventory module can be used to track the stock of
items. Items can be identified by unique serial numbers.
Using that unique numbers inventory system can keep
track of item and trace its current location in the
organization.e.g. you have purchased 100 hard disks, so
using inventory system you can track how many hard
disks are installed, where they are installed, how many
hard disks are remaining etc.Inventory module includes
functionalities like inventory control, master units, stock
utilization reporting etc.There may be an integration of
the inventory module with the purchase module of ERP.

31. • Sales Module :
Typical sales process includes processes like Sales
queries & inquiry analysis & handling, quotation
drafting, accepting sales orders, drafting sales
invoices with proper taxation, dispatch/Shipment
of material or service, tracking pending sales order.
All these sales transactions are managed by the
sales module of ERP. CRM module can take the
help of the Sales module for future opportunity
creation & lead generation.

33. • Purchase Module:
As the name indicates, purchase modules take care of all
the processes that are part of the procurement of items
or raw materials that are required for the
organization. Purchase module consists of
functionalities like supplier/vendor listing, supplier &
item linking, sending quotation request to vendors,
receiving & recording quotations, analysis of quotations,
preparing purchase orders, tracking the purchase items,
preparing GRNs(Good Receipt Notes) & updating
stocks & various reports. Purchase module is integrated
with Inventory module & Engineering/production
module for updating of stocks.

35. Finance & Accounting module:
• Whole inflow & outflow of money/capital is
managed by the finance module. This module
keeps track of all account-related transactions like
expenditures, Balance sheet, account ledgers,
budgeting, bank statements, payment receipts,
tax management etc. Financial reporting is an
easy task for this module of ERP. Any Financial
data that is required for running the business is
available on one click in Finance module

37. • Customer Relationship Management (CRM)
module:
CRM department is helping to boost the sales
performance through better customer service &
establishing a healthy relationship with customers.
All the stored details of the customer are available
in the CRM module.

39. • Engineering / Production module:
Production module is a great help for the
manufacturing industry for delivering the product.
This module consists of functionalities like
production planning, machine scheduling, raw
material usage,(Bill of material)preparation, track
daily production progress production forecasting &
actual production reporting.

41. • Supply Chain Management (SCM):
SCM module manages the flow of product items from
manufacturer to consumer & consumer to manufacturer.
Common roles involved are a manufacturer, Super
Stockiest, Stockiest, distributors, retailers etc. SCM
involves demand & supply management, sales returns &
replacing process, shipping & transportation tracking
etc.
Today many SMBs face challenges in their process
automation. ERP is a great help for such organizations.
ERP can efficiently streamline the business operations of
the organization. Above introduction of modules can
help you to choose & customize the ERP modules
depending on your organization’s requirements.

43. Advantages of ERP
• • Integration
• • Efficiency
• • Cost reduction
• • Less personnel
• • Accuracy

44. Disadvantages
• • Take time to implement
• • Security issues

45. Costs of ERP
• Direct costs
hardware
Software
and people on the project
• Indirect costs
the total cycle life of ERP
maintenance and upgrades

46. Conclusion
There are as many reasons for successful ERP implementations as there are for
failed projects. However, success seems to often be measured by whether or
not the project came in on time and under budget. Whereas, fully utilizing the
system to achieve improved business practices appears to be
ignored. Performance measures must be developed and standardized to give
organizations a clearer picture of the benefits derived from Enterprise Resource
Planning implementation. Much has been written about and learned from
some well-publicized successes and failures in ERP implementations. Some of
it has even been directly contradictory. However, most agree on some basic
rules:
1. Establish the business processes prior to selecting the software.
2. Staff the project team with members of the user community in addition to
IT staff.
3. Develop an implementation plan and stick to it.
4. Train the users thoroughly on the process changes and flow of information
in addition to the actual software.
5. The project doesn’t end with “go-live”, but must be continually monitored.

47. • These slides are maded by Aroz Amir
• Facebook: https://web.facebook.com/arozrao224