2 - Erp General

8/2/2019 2 - Erp General

1/31

What is ERP

Enterprise Resource Planning


2/31

An inform ation system or process integrating allmanufacturing and related applicat ions for an ent ireenterprise.

ERP systems permit organizations to manage resourcesacross the enterprise and completely integrate allfunctional and m anufacturing systems.

ERP - Defin it ion


3/31

ERP solut ions seek t o streamline and

int egrate operat ion processes and inform at ion

flow s in the company t o synergise t he resourcesof an organisation namely men, m aterial,

money and machine t hrough informat ion.

ERP Solut ions


4/31

Agenda

Evolut ion of ERP

Need for ERP

Features of ERP

Component s of ERP

BPR & ERP

Select ion of ERP

I mplementation Steps and Phases of ERP

Benef it s of ERP

Well Know n ERP Systems


5/31

In the ever growing business environment the following demandsare placed on the industry :

o Aggressive Cost control initiatives

o Need to analyze costs / revenues on a product or customer basis

o Flexibility to respond to changing business requirements

o More informed management decision making

o Changes in ways of doing business

o Difficulty in getting accurate data, timely information and improperinterface of the complex natured business functions

Evolution of ERP


6/31

Diverse applications and planning systems have been introduced into the businessworld for crossing these hurdles and for achieving the required growth.

They are:

Management Information Systems (MIS)

Integrated Information Systems (IIS)

Executive Information Systems (EIS)

Corporate Information Systems (CIS)

Enterprise Wide Systems (EWS)

Material Resource Planning (MRP)

Manufacturing Resource Planning (MRP II)

Money Resource Planning (MRP III)

OUT OF ABOVE SYSTEMS ERP EVOLVED AS THE LATEST SYSTEM FOR ALLBUSINES SYSTEMS

Evolution of ERP


7/31

In a rapidly changing environment,

- it is impossible to create and maintain a custom designed softwarepackage which will cater to all their business requirements.

- and also be completely up-to-date.

Realizing the requirement of user organizations some of the leadingsoftware companies have designed Enterprise Resource Planningsoftware which will offer an integrated software solution to all thefunctions of an organisation.

Need for ERP


8/31

o ERP facilitates company-wide Integrated Information System covering allfunctional areas like Manufacturing, Selling and distribution, Payables,Receivables, Inventory, Accounts, Human resources, Purchases etc.

o ERP performs core Corporate activities and increases customer serviceand thereby augmenting the Corporate Image.

o ERP bridges the information gap across the organisation.

o ERP provides for complete integration of Systems not only across the

departments in a company but also across the companies under the samemanagement.

o ERP is the only solution for better Project Management.

Features of ERP


9/31

o ERP allows automatic introduction of latest technologies likeElectronic Fund Transfer(EFT), Electronic DataInterchange(EDI), Internet, Intranet, Video conferencing, E-Commerce, RFID, Bar Coding etc.

o ERP eliminates the most of the business problems like Material

shortages, Productivity enhancements, Customer service, CashManagement, Inventory problems, Quality problems, Promptdelivery etc.

o ERP not only addresses the current requirements of thecompany but also provides the opportunity of continuallyimproving and refining business processes.

o ERP provides business intelligence tools like Decision SupportSystems (DSS), Executive Information System (EIS), Reporting,Data Mining and Early Warning Systems (Robots) for enablingpeople to make better decisions and thus improve theirbusiness processes

Features of ERP


10/31

To enable the easy handling of the system the ERP has been divided into thefollowing Core subsystems:

o Sales and Marketing

o Master Scheduling

o

Material Requirement Planningo Capacity Requirement Planning

o Bill of Materials

o Purchasing

o Shop floor control

o Accounts Payable/Receivable

o Logistics

o Asset Management

o Financial Accounting

Components of ERP


11/31

The In t egrat ed Supply Chain


12/31

In tegerat ion Of In format ion Sys tem s


13/31

Business Process Re-engineering is a pre-requisite for going ahead with apowerful planning tool like ERP.

An in depth BPR study has to be done before taking up ERP.

Business Process Re-engineering brings out deficiencies of the existingsystem and attempts to maximize productivity through restructuring andre-organizing the human resources as well as divisions and departments

in the organisation

Business Process Engineering evolves the following Steps:

o Study the current system

o Design and develop new systems

o Define Process, organisation structure and procedure

o Develop customize the software

o Train people

o Implement new system

The principle followed for BRP may be defined as USA Principle(Understand, Simplify Automate)

BPR and ERP


14/31

THE USA PRINCIPAL


15/31

A Model Design


16/31

How do We St art For ERP


17/31

Selection of ERP

Evaluation and selection an ERP involves checking :-

o All functional aspects of the Business are duly covered

o All the business functions and processes are fully integrated

o All the latest IT trends are covered

o The vendor has customizing and implementing capabilities

o

The business can absorb the cost The ROI is optimum


18/31

Implementation Steps of ERP

The normal st eps involved in implement at ion of an ERP

are - below :o Proj ect Planning

o Business & Operat ional analysis including Gap analysis

o Business Process Reengineer ing

o I nstallation and configur ation

o Project t eam t raining

o Business Requirement mapping

o Module configurat ion

o System int erfaces

o Data conver siono Custom Document ation

o End user t raining

o Acceptance t esti ng

o Post im plementation/ Audit support


19/31

Implementation Phases of ERP

The above st eps are grouped and sub-divided int o four maj or phases namely

1) Detailed discussions,

2) Design & Customisat ion,

3) Implementat ion

4) Production.


20/31

Phase Tasks and Deliverables

1. Detailed Discussion Phase:

Task :-

Project initialization

Evaluat ion of current processes, business pract ices

Set-up proj ect organizat ion

Deliverables :-

Accepted norm s and Condi t ions

Proj ect Organisation chart

I dent i ty w ork teams


21/31


2. Design and customisation Phase:

Task :-

Map organisat ion

Map business process

Define functions and processes

ERP soft w are configurati on and

Build ERP system modif icati ons.

Deliverables :-

Organisation structur e

Design specification

Process Flow Diagrams

Funct ion Model

Configuration recording

System modif icat ion.


22/31


3. I mplementat ion Phase:

Task :-

Create go-live plan and documentat ion

I ntegrate applications

Test t he ERP customisat ion

Train users

Deliverables :- Test ing environment report

Custom isation Test Report

I mplementation report


23/31


4. Product ion Phase:

Task:-

Run Trial Product ion

Maintain Systems

Deliverables:-

Reconciliat ion report s Conversion Plan Execut ion


24/31

Advant ages Of ERP Pac k age


25/31

Zero Dow nt im e


26/31

o Increased control of invoicing and payment processing andthereby boosting productivity and eliminating reliance on computerpersonnel for these operations.

o Reduce paper documents by providing on-line formats for quicklyentering and retrieving information.

o Improves timeliness of information by permitting, posting daily

instead of monthly.

o Greater accuracy of information with detailed content, betterpresentation.

o Improved Cost Control

o Faster response and follow up on customers

o More efficient cash collection, say, material reduction in delay inpayments by customers.

o Better monitoring and quicker resolution of queries.

Benefits of ERP


27/31

o Enables quick response to change in business

operations and market conditions.o Helps to achieve competitive advantage by improving

business process.

o Improves supply-demand linkage with remote locations

and branches in different countries.o Provides a unified customer database usable by all

applications.

o Improves International operations by supporting avariety of tax structures, invoicing schemes, multiplecurrencies, multiple period accounting and languages

o Improves information access and managementthroughout the enterprise.

o Provides solution for problems like Y2K and Single

Monitory Unit(SMU)

Benefits of ERP


28/31

Summary


29/31

LEADIN G ERPs


30/31

o Baan

o CODA

o IBM

o JD Edwards

o Marcarn

o Oracle

o People soft

o Ramco

o SAP

o Software 2000

Some Well Known ERP Systems


31/31

Thank You

2 - Erp General

Documents

Transcript of 2 - Erp General