Erp presentation 22

Presentation by;
Mr. Abhijeet Shetty
Ms. Ragini Mohite
Mr. Aashay Khawte
Mr. Sagar Shirwaikar
Mr. Vinayak Dhumatkar
Date: 05TH AUGUST 2009

5 August 2009 ICAI - GMCS (LLIM - Jul/Aug 09) 2
Contents
• Introduction to ERP
• Business Process Re-engineering (BPR)
• ERP Implementation
• Vendors of ERP
• Business Modules in ERP
• ERP & Role of Chartered Accountants
• Conclusion

Why ERP ?
To Survive ,Thrive And Beat The Competition
Manage future
Manage Information
Automation of the process of Data Collection
Information Technology (ERP Solution)

History Of ERP
• ERP (Enterprise Resource
Planning) is the evolution of
Manufacturing Requirements
Planning (MRP) II.
• From business perspective, ERP
has expanded from coordination
of manufacturing processes to the
integration of enterprise-wide
backend processes.
• From technological aspect, ERP
has evolved from legacy
implementation to more flexible
tiered client-server architecture.

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 Manufacturin
g
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.

What is ERP ?
• ENTERPRISE:
An enterprise is a group of people with a common goal, which has
certain resources at its disposal to achieve that goal.
• RESOURCE:
Resources included are money, man-power, materials, and all other
things that are required to run the enterprise.
• PLANNING:
Planning is done to ensure that nothing goes wrong. Planning is
putting necessary functions in place and more importantly, putting
them together.
• ERP covers the techniques and concepts employed for the integrated
management of business as a whole, from the viewpoint of the
effective use of management resources, to improve the efficiency of
an enterprise.

Features of ERP
• Integrates Business Operations.
• Library of Business Process.
• Real Time updating of transactions.
• Multi-Tasking & Multi-Currency Features.
• Easy Web Enablement Features.
• Supports - Alert facilities, data warehouse & OLAP.
• Integration of Workflow Management.

Industry wise Uses of ERP…..
• Manufacturing
• Software
• Insurance
• Healthcare
• Hospitality

ERP: Advantages
• Reduction of lead-time.
• Reduction in cycle time.
• Better customer satisfaction.
• Improved supplier performance.
• Increased flexibility.
• Reduction in quality costs.
• Improved resource utility.
• Improved information accuracy
and decision-making capability.

ERP: Disadvantages
• Lack of clarity of expectations from ERP.
• Unreasonable scope & Inadequate Resources.
• Choice of wrong ERP product – not all products are suitable for all
industries.
• Not choosing the right people for implementation.
• Lack of participation of end-users.
• Lack of proper communication within the organization.

Introduction to BPR
• Business process reengineering (BPR)
is, in computer science and management, an
approach aiming at improvements by means
of elevating efficiency and effectiveness of
the business process that exist within and
across organizations. The key to BPR is for
organizations to look at their business
processes from a "clean slate" perspective
and determine how they can best construct
these processes to improve how they conduct
business.

Definitions of BPR
Thomas H. Davenport (1993)
• "encompasses the envisioning of new
work strategies, the actual process design
activity, and the implementation of the
change in all its complex technological,
human, and organizational dimensions."
Hammer and Champy (1993)
• "... the fundamental rethinking and radical
redesign of business processes to achieve
dramatic improvements in critical
contemporary measures of performance,
such as cost, quality, service, and speed."

Benefits of BPR
• Business process is streamlined
• Business process is optimized and more efficient
• Strict controls can be enforced and monitored.
• Best practices can be adhered to.
• Time and cost saving as a result of eliminated redundant tasks.

Principles of BPR
• Focus on the Right Processes
• Voice of the Customer
• Managing Change
• Active Participation
• Targets and Performance Measure
• Integration
• Flexibility
• Project Management

Conclusion of BPR
“The onus of the successful implementation lies with the
Organization”
To be successful, business process reengineering projects need to
be top down, taking in the complete organization, and the full end
to end processes. It needs to be supported by tools that make
processes easy to track and analyze.

ERP Implementation And
Methodology
• ERP implementation is a special event
• Consultants and Users Should Work Together
• Improve The Flow of Information
• Customization

Steps in ERP Implementation
• Identifying the needs for implementing an ERP package
• Evaluating the ‘As is’ situation of the business
• Deciding the ‘would be’ situation of the business
• Reengineering the business process to achieve the desired results
in the existing processes
• Evaluating the various available ERP packages
• Finalizing the most suitable ERP packages
• Installing the required hardware & networks for selected ERP
• Finalizing the implementation consultants who will assist in
implementation
• Implementing the ERP packages

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.

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

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

Major Modules in ERP Packages
• Finance Module
• HR Module
• Manufacturing Module
• Material Management
(MM) Module
• Sales & Distribution
Module
SALES &
DISTRIBUTION
MANAGEMENT
LOGISTICS
&
CUSTOMER SERVICE
MANAGEMENT

Finance Module
• Finance functionality for organizations whose business is
spread over the world.
• Company wide control & Integration of Financial
Information.
• Sub Systems are :
– Financial Accounting
– Treasury
– Control
– Enterprise Management

Human Resource Module
• HR is an essential factor of any successful business. This Module
offer company wide solutions for HR departments and make it
possible for authorized users of the other departments to access
specific employee data.
– Personnel Administration
– Employee Master Data
– Recruitment Management
– Open Positions
– Selection & Hiring
– Travel Management
– Personnel cost planning

Manufacturing Module
• Components of Manufacturing Module :
– Material & Capacity Planning
– Quality Management
– Cost Management
– Shop Floor Control

Material Management Module
• It supports all phases of Material - Management, planning, control,
purchasing, receiving, inventory management & bill payment. Its
sub-modules are :
– Pre Purchasing Activities
– Purchasing
– Vendor Evaluation
– Inventory Management
– Invoice Verification

Sales & Distribution Module
Offers access to real-time, online information from sales to billing.
Sub-systems in this modules are –
• Masters Data Management
• Order Management
• Warehouse Management
• Dispatch
• Invoicing
• Pricing
• Sales Support
• Transportation

Role of Chartered Accountants
in ERP
• How does ERP matter Chartered Accountants?
• Rapidly changing & challenging business world and automation of
processes
• ERP helps the organization to realize its vision and objectives in an
optimized way.
• Role as consultants, auditors, advisors or managers in controlling,
managing and supporting the business.

Major Challenges in ERP Audits
• Complexity of ERP
• Manpower
• Inadequate Attention towards
security of Systems

Conclusion
“A Chartered Accountant without the
knowledge of ERP may feel as if he is a
fish out of the bowl”

Bibliography
• www.erpwire.com
• www.en.wikipedia.org
• www.icai.org
• www.teamtechnology.co.uk
• ICAI – Reference Books & Study Material.

About us
Federation of Industries is a Non-Profit-Non-Governmental organization (NGO),
Registered with Department of Charity Commissioner. Federation of Industries
offers its members a podium to collectively present their ideas, voice concern
and offer suggestions on relevant issues. Federation is deeply committed to
support its membership to increase competitiveness, enhance efficiency,
improve productivity, and ensure growth and prosperity. It is also an
representative body of Micro, Small and Medium Enterprises (MSMEs).
Federation of Industries motto is to create an enabling environment for the
development of MSMEs in today’s ever changing and extremely competitive
industrial scenario. It does so with the aim to assist the membership to become
cost effective, technology driven, and ever responsive to customers’ changing
needs. It interacts with the policy authorities and industry associations to
develop and maintain harmonious and conducive business conditions.
visit us @: www.federationofindustries.org
Contact us @: federationofindustries@gmail.com
Be with us in twitter: https://twitter.com/fedindustries
Join us face to face us in
facebook: http://www.facebook.com/federationofindustries

Erp presentation 22

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (14)

Similar to Erp presentation 22

Similar to Erp presentation 22 (20)

More from Federation of Industries

More from Federation of Industries (16)

Erp presentation 22