Development of ERP Systems

8/7/2019 Development of ERP Systems

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Development of ERP Systems

By: Sonalisa Samal

1MV09MCM19


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Introduction Enterprise resource planning (ERP) is an integrated computer-based

system used to manage internal and external resources including tangibleassets, financial resources, materials, and human resources

It is a software architecture whose purpose is to facilitate the flow of

information between all business functions inside the boundaries of theorganization and manage the connections to outside stakeholders.

An ERP system can either reside on a centralized server or be distributedacross modular hardware and software units that provide "services" andcommunicate on a local area network.

ERP system development broadly occurs in two phases: i) System AnalysisPhase and ii) System Design and Development Phase.


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System Analysis

Building a computer based information system needs a careful analysis

and design before implementation.

system analysis can be viewed as the job of an architect, System analysis is

conceptual in nature than programming that involves details.

system analysis is holistic while programming is individualistic


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SYSTEM DESIGN &DEVELOPMENT


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At analysis stage, the activities are generic but at design and

implementation stage they get focused. In general the major systemdevelopment effort is concentrated on design

Since design constitutes much of the development life cycle, computer

support for this activity (through 4GLs and CASE-Computer Aided

Software Engineering tools) is being applied increasingly.

Both in terms of time and effort the first 10-15 % is consumed by

analysis, 50-70 % goes to the design and implementation accounting for

remaining 15-20 %


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Requirement Analysis

The basic requirements of a computerized/information system

would be as follows: Almost error-free and secure operation

Very fast processing

Cost effective with emphasis on low cost

Intensity of implementation i.e. organization wide or unit wide

etc.

Requirement Specification

The requirements are translated into technical tasks by the analyst

that can be programmed and implemented

Demanding and often conflicting technique

A wide variety of techniques

Diagramming techniques mostly used


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Diagramming Techniques

A data-flow diagram (DFD) is a graphical representation of the "flow" of

data through an information system. DFDs can also be used for the

visualization ofdata processing (structured design).

A DFD provides no information about the timing of processes, or aboutwhether processes will operate in sequence or in parallel. It is therefore

quite different from a flowchart.

the system may be decomposed into component sub-systems, and to

identify the transaction data in the data model


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Developing a Data-Flow Diagram

Top-down approach

A context level DFD or Level 0

Decomposed lower-level DFD or Level 1 or High level diagram

Low level diagram or Level 2

Figure Data Flow Diagram


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Feasibility Analysis

The viability of the project

Operational and economic feasibility Technical feasibility

FeasibilityReport

cost-benefit evaluation

overall impact benefits

Time phasing and prioritization

To take up those activities that

are easy to implement

can be implemented relatively fast

benefits the largest portion of users and

are likely to encounter the least resistance

Figure Work Breakdown Structure for

Time phasing and prioritization


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Design and Development Phase

This entails the development of the following

Functional specifications

Data dictionary Input forms and output reports design

Database design

Program design

Detailed Design


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screen print out ofInput forms


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SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY

SYSTEM

(Gear

Shop)

Business

Planning

Production

Marketing

Sales and

Service

Design and

Development

Finance

Sanction budget

Intended

capacity

Capacityenhancement

report

Associated

resources

Parts

communization

report

Market

performance

Report

Forecasted

demand report

Daily production report and

component details

Level o DFD (high Level Diagram)


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database

Business

Planning

Componentnumber

Production

Shop

Business

Planning

Record of

available

capacity and

machine

utilization

Finance

Production

details

Intended

capacity

Allocation andscheduling

report

Operation level

details

Cycle time &

capacity details

Gap analysis

report

Associated

resource

requirement

details

Beak up of

processes

Level 1 DFD (Expansion of Level 0 DFD)

Component

level report

Process

production

shopdetails Operation

and m/c s

model

wise

Process

details for

similar

product

Break up of

required and

available m/c s

etc

Machinerequirement

details

Estimated

budget

(A)

(B)

(C)


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Component

number

ProductionBusiness

Planning

Finance

Cycle time

details

No of new m/c s

& spacerequirement

Similar

processes and

m/c s details

Similar processes

and common part

details

Gap analysis

Beak up of processes

Level 2 DFD (Expansion of process C in Level 1 DFD)

Process

details of

available

m/c for

similar

productsDecides if

underutilize

d m/c s can

be used or

not

Decides if

new m/c s

is to be

procured

Associated

resourcesrequirement

Estimated

budget

Record of

available

capacity and

machine

utilization

Decides

the models

to be

focused


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Implementation

It basically constitutes :

Transition planning

Training

Security

Protection

Quality control


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Conclusion

System analysis is the building block for any kind ofInformation System

It is purely holistic in nature and this is what makes it difficult to teach and even further difficult toevaluate.

Various software like CASE etc. are aid for system analysts particularly for exploding, drawing theData flow/Document flow diagrams, specifying processes, prototyping, developing input/outputforms, database design and even in coding by providing linkages to 4GL and databases.

A CASE tool typically generates data dictionary automatically.

Database design involves logical design of databases and physical design of databases.

Logical design amounts to structuring the data store elements of the data flow diagrams

which has been provided in the analysis phase

Physical design includes the actual structuring, actual storage of database into physicalstorage elements, their partition, etc. based on requirement specification as accessed by theanalyst during requirement analysis.

Development of ERP Systems

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