ERP is a method for effective planning and control of all resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.

ERP

ERP is a way to integrate the data and processes of an organization into one single system.

ERP systems will have many components including hardware and software, in order to achieve integration

ERP systems use a unified database to store data for various functions found throughout the organization.

WHAT IS ERP??

An ERP system has a service-oriented architecture with modular hardware and software units or "services" that communicate on a local area network.

The modular design allows a business to add or reconfigure modules (perhaps from different vendors) while preserving data integrity in one shared database that may be centralized or distributed

CONT…

EVOLUTION OF ERP

It reduces inventory levels. It reduces Component shortages. Improves Shipping Performance and Customer

Service. Productivity and Production levels increase. Reduces Manufacturing Costs and Lead Times. Simplified and accurate Scheduling. Higher Production quality. Communication Levels Increase

Advantages: Material Resource Planning(MRP)

Relation between MRP & ERP

  Hard to maintain, many languages, databases, inconMultiple systems, different interfaces, difficult to extract info about customers, sales,...

Can take weeks or months to obtain info about customers,sistencies  or where systems changes are needed

NEED FOR ERP

a)What it requires Strong executive support to implement Process approach rather than “silos” Change in business procedures (BPR) Change in organizational structure, culture,

strategy Technology change

How to Implement ERP?

IT costs too much

Costs of managing complexity

Difficult to install

Very large and complex software

b)Problems while Implementing ERP

c)Process of Implementing

Step 1. The Strategic Plan – Providing the

Rationale and Making the Business Case

Step 2. Assess the “Readiness” of the Institution – Determining

“preparedness” & Achieving Organizational

Understanding

Steps

Step 3. Prepare for Vendor Selection – Determining your SoftwareRequirements and Documenting yourBusiness Practices

Step 4. Select your ERP Vendors – Choosing Your Technology Partners

Steps…….

Step 5. Plan the Implementation – Preparing for Success

Step 6. Implement the ERP solution- Working the plan

Step 7. post implementation – Where are we Now

Steps….

Integrated systems Consistent interface One database Access to current data Improved planning capabilities Multinational capabilities.

After ERP

Schedules shipping Reserves material Orders parts from suppliers Schedules assembly Checks customer credit limit Updates sales & production forecasts Creates MRP & bill-of-material lists.

System automatically

• Project Planning• Business & Operational Analysis, including Gap Analysis• Business Process Re-engineering (BPR)• Installation & Configuration• Project Team Training• Business Requirements Mapping to Software• Module Configuration• System Modification and Interfaces • Data Conversion• Custom Documentation• End User Training• Conference Room Pilot• Acceptance Testing• Production• Post-Implementation Audit/Support

ERP INVOLVES

Cultural Lack of commitment of top management

Political Failure to follow “proper” system

selection methodology

Lack of sufficient implementation planning/ project

Management

Reasons for Failure

Highly Graphics based User Interface. Zero Down time/ planned down time. Readymade solutions for most of the Problems. Only Customization required. Integration of all functions ensured. ROI earlier than the software developed in-house. Easy ense wide information sharing. Suppliers and Customers can be on-line

communication. Knowledge transfer between industries guarantees

innovation. Automatic adaptation to new technology.