025 Enterprise Resources Management

Contents Introduction to ERP Business Process Re-engineering

(BPR) ERP Implementation Vendors of ERP Business Modules in ERP ERP & Role of Chartered Accountants Conclusion

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04-10-2010www.construction-productivity.co.uk 3

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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.

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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.

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Features of ERP

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Features of ERP

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Features of ERP

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

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ERP: Advantages

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ERP: Advantages

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ERP: Advantages

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ERP: Advantages

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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.15

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.

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ENTERPRISE RESOURCE PLANNING(ERP)

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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."

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Benefits of BPR

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Benefits of BPR

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Principles of BPR

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Principles of BPR

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Conclusion of BPR“The onus of the successful

implementation lies with the Organization”

To be successful, business processreengineering projects need to be topdown, taking in the complete organization,and the full end to end processes.It needs to be supported by tools that makeprocesses easy to track and analyze.

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ERP Implementation And Methodology

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Steps in ERP Implementation

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Steps in ERP Implementation

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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.

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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

Manufacturing3131

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

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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

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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

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Finance ModuleFinance functionality for organizations whose business is spread over the world.

Company wide control & Integration of Financial Information.Sub Systems are :

1. Financial Accounting2. Treasury3. Control4. Enterprise Management

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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.

Human Resource Module

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Manufacturing Module Components of Manufacturing

Module :

Material & Capacity Planning

Quality Management

Cost Management

Shop Floor Control


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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

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Sales & Distribution ModuleOffers access to real-time, online

informationfrom sales to billing.Sub-systems in this modules are –

Masters Data Management Order Management Warehouse Management Dispatch Invoicing Pricing Sales Support Transportation


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Role of Chartered Accountants in ERP

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Major Challenges in ERP Audits

Complexity of ERP

Manpower Inadequate

Attention towards security of Systems

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

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Bibliography

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

Material.

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025 Enterprise Resources Management

Engineering

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