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ERP- Enterprise Resource Planning ( An Introduction)
Definition Of ERP ,[object Object]
What is ERP ? ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Evolution of Business Applications
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Evolution of Planning Systems
Is It Only a Jargon ? No.  MRP  and MRP II were there for a long time.  ERP is an enhancement over these. It is true that Year 2000 problem accelerated the sales  and acceptance of ERP. Introduction of ERP provides you a chance to have a new look at your working.
Is It Going to be there long? Yes  and No. ERP will be there for a long time, if you are willing to upgrade to new versions with new features as and when  the are released in the market Your ERP may still work after a long time without enhancements, if your company is not growing! Moral : Upgrading the systems are a must!
Can We wait ? Wait  if you have : Good systems running. No immediate threat of Y2K, Euro and  other known/unknown problems. No management commitment. Financial problems. Do not wait if you have : Tough competition in the market. Multiple location operations. Plans to grow Globally. Management Commitment for change.
Why ERP ?
Profitability You have Two Choices : Increase in sales -  Say 30% OR Reduce Procurement Cost   - say by 5-10 %
What IT Dept. shall look into? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
For Healthy Operations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Competition In the Market! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Demands on the Industry
[object Object],[object Object],[object Object],What  are your Problems ?
A Typical IT Story Manufacturing location 1 Manufacturing location 2 Sales Group Finance Corporate office My growth will be OK . No?
ERP -  The Enabler
What is that ERP enables ? Systematic Look into your Systems & procedures Optimizing the processes Enables you to adapt yourself to new technologies Discipline across the functions
What does ERP integrate ? ,[object Object],[object Object],[object Object],[object Object]
What drives ERP ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Problems Taken Care of ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Subsystems of ERP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Software Market Share 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 Note : These are Mar 1998 figures
Understanding ERP
Integration of Information Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Manufacturing  Head Quarters Marketing/Sales IS messages ,[object Object],[object Object],[object Object],[object Object],IS messages
Definition of Business Intelligence Any tools enabling people to make better decisions and thus improve their business processes ,[object Object],[object Object],[object Object],[object Object],[object Object],Examples:
Enabling Best Business Practices Business  Engineering Workbench New Technologies Best Business Practices New  Business Concepts Customer Supplier’s Reference Model Customer  Require- ments
Changes of Customer Information Customer  Representative Sales Manager Credit Manager Increase credit limit Product Manager Launch Workflow Change customer master data Schedule customer visit Prepare production Please Accept my new order for 1000 more sets
The Integrated Supply Chain Finance Balance sheet Capital Costs Machines Operating resources Human resources Purchasing Production Sales. Procurement market Managing Resources Control Profit/Loss
Process Automation and Lead Time Workflow for  exception handling, Trigger for mail, transactions, EDI ATP Credit limit Picking Transport Pricing Allocation Standard functions EDI Sales order entry Delivery Billing EDI EDI note Blocked EDI entry Scan log Loading list
Go Ahead with ERP
Business Process Re-Engineering ( BPR) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Re-engineering ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ERP without Re-engineering ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Re-Engineering -a part Life with ERP! ,[object Object],[object Object],[object Object],[object Object]
[object Object],If the Modifications are small and important to the business, you may customize and implement.  If the proposed changes are more, discuss with all concerned .  Else you may be going towards a  dead-end!
The USA Principle ,[object Object],Understand  Existing  Practices Simplify Processes by  Eliminating waste Automate the  Process EDI ERP Eliminating Combining Rearranging Diagramming Story-boarding Brain storming
ERP Selection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Prepare Base for ERP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Define Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ERP Implementation ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ERP Involves
Implementation Approach Detailed Discussions Design & Customization Implementation/ Prepare to Go Live Production/ Go Live ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Tasks Deliverables Phase
Advantages Of ERP
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Decide Make Or Buy !
Inhouse Development  ERP package Project Development  takes time . Ready made Projects. Reinventing the wheel.   Needs only customization Process specific to your industry  Best Business practices followed are implemented Documentation may not be present Documentation is part of system EDI implementation modifications EDI Compatible. Universally accepted to be taken care of Enterprise implementation is  The package itself  is designed as difficult as each unit follows    Enterprise Package. different S/W option Latest  Developments to be studied Constant Updates on Technology as and when they are introduced. and Processes assured
Embrace  New Technologies
Internet/Intranet enabled
    Transporters   Banks     Vendors Customs  Retailers  Electronic Data Interchange EDI
Video Conferencing
Value Chain Management Supply Chain Management Demand Chain Management
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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testing

  • 1. ERP- Enterprise Resource Planning ( An Introduction)
  • 2.
  • 3.
  • 4.
  • 5.
  • 6. Is It Only a Jargon ? No. MRP and MRP II were there for a long time. ERP is an enhancement over these. It is true that Year 2000 problem accelerated the sales and acceptance of ERP. Introduction of ERP provides you a chance to have a new look at your working.
  • 7. Is It Going to be there long? Yes and No. ERP will be there for a long time, if you are willing to upgrade to new versions with new features as and when the are released in the market Your ERP may still work after a long time without enhancements, if your company is not growing! Moral : Upgrading the systems are a must!
  • 8. Can We wait ? Wait if you have : Good systems running. No immediate threat of Y2K, Euro and other known/unknown problems. No management commitment. Financial problems. Do not wait if you have : Tough competition in the market. Multiple location operations. Plans to grow Globally. Management Commitment for change.
  • 10. Profitability You have Two Choices : Increase in sales - Say 30% OR Reduce Procurement Cost - say by 5-10 %
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. A Typical IT Story Manufacturing location 1 Manufacturing location 2 Sales Group Finance Corporate office My growth will be OK . No?
  • 17. ERP - The Enabler
  • 18. What is that ERP enables ? Systematic Look into your Systems & procedures Optimizing the processes Enables you to adapt yourself to new technologies Discipline across the functions
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Software Market Share 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 Note : These are Mar 1998 figures
  • 25.
  • 26.
  • 27. Enabling Best Business Practices Business Engineering Workbench New Technologies Best Business Practices New Business Concepts Customer Supplier’s Reference Model Customer Require- ments
  • 28. Changes of Customer Information Customer Representative Sales Manager Credit Manager Increase credit limit Product Manager Launch Workflow Change customer master data Schedule customer visit Prepare production Please Accept my new order for 1000 more sets
  • 29. The Integrated Supply Chain Finance Balance sheet Capital Costs Machines Operating resources Human resources Purchasing Production Sales. Procurement market Managing Resources Control Profit/Loss
  • 30. Process Automation and Lead Time Workflow for exception handling, Trigger for mail, transactions, EDI ATP Credit limit Picking Transport Pricing Allocation Standard functions EDI Sales order entry Delivery Billing EDI EDI note Blocked EDI entry Scan log Loading list
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 45.
  • 46. Decide Make Or Buy !
  • 47. Inhouse Development ERP package Project Development takes time . Ready made Projects. Reinventing the wheel. Needs only customization Process specific to your industry Best Business practices followed are implemented Documentation may not be present Documentation is part of system EDI implementation modifications EDI Compatible. Universally accepted to be taken care of Enterprise implementation is The package itself is designed as difficult as each unit follows Enterprise Package. different S/W option Latest Developments to be studied Constant Updates on Technology as and when they are introduced. and Processes assured
  • 48. Embrace New Technologies
  • 50. Transporters Banks Vendors Customs Retailers Electronic Data Interchange EDI
  • 52. Value Chain Management Supply Chain Management Demand Chain Management
  • 53.