Enterprice resource planning
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Transcript of Enterprice resource planning
Enterprise Resource Planning
What is ERP?
ERP
Lets find out what is ERP in a plain and simple language.
THE TERM ERP
The term “ERP” stands for “Enterprise Resource Planning”
ERP Stands for Enterprise Resource Planning
TYPE OF SOFTWARE
ERP is not a name of any Software , instead it is a class (or type) of Software.
ERP
software
A Brief History of ERP
The term ERP was coined in 1990 by Gartner1, but its roots date to the 1960s. Back then, the concept applied to inventory management and control in the manufacturing sector. By the 1970s, this had evolved into Material Requirements Planning (MRP) systems for scheduling production processes.In the 1980s, MRP grew to encompass more manufacturing processes. By 1990, these systems had expanded beyond inventory control and other operational processes to other back-office functions like accounting and human resources.Today, ERP has expanded to encompass business intelligence (BI) .
FUNCTIONALITYAn ERP software provides an end to end information management solution for a company. The Software could be used by all departments of the company to manage the information.
company
Enterprise Resource Planning Software
Department 1 Department 2 Department 3
company
OBJECTIVE
The goal is that right information is available to the right person at the right time.
The right information is available to the right person at the right time.
Goal
BUSINESS AREASERP software integrates all areas of operations
Including:• Product planning• Manufacturing Process• Sales• Marketing• Finance• Human Resources• Procurement
Product planning
Manufacturing Process sales marketing
Finance Human Resource
Procurement
Why ERP Systems are Important
• Saving Money• Improved Collaboration• Better Analytics• Improved Productivity• Happier Customers• Simplified Regulatory Compliance• Improved Inventory and Production Management
MODULAR AND INTEGRATED
An ERP software is typically modular but integrated .Meaning it consists of multiple module that are connected to each other.
Module 2
Module 3
Module 1
FOCUS OF A MODULE
Each module is focused on one area of business processes e.g. finance, human resources etc.
Product Planning Manufacturing Process
sales Marketing
Finance Human Resource Procurement
Module 1 Module 2 Module 3 Module 4
Module 5 Module 6 Module 7
COMMUNICATION AMONG MODULES
Module 2Module 1
Table
When we say modules are integrated that means:• A modules could share information stored in another modules
e.g. list of suppliers etc.• Also information could flow from one module to the other e.g.
accounting entries etc.
Read
Module 1
Table
Module 2
TableTransfer
MANAGEMENT REPORTINGSince modules are connected, management of a company could run reports on aspects of the business to get a complete view of activities. Reports help executives make strategic decisions.
Reports
Module 1 Module 2
Module 3
management
LICENSING
Modules could be individually purchased based on what best meets the specific needs and technical capabilities of the company.
Module 1 Module 2 Module 3 Module 4
TYPE OF USERS
The end users of ERP software could be divided into these groups:• Business Users: Performs day to day
operations e.g. data entry, operational reports etc.
• Management and Executives: Run reports and perform inquiries that would help them in decision making.
IMPLEMENTATIONTerm “Implementation” is used to make the ERP software ready to be used by the company.
Study Requirements Perform Setup Customize Software
Install Software
IMPLEMENTATION PROCESS
• Study the business requirement .Find out how the ERP system should be behaving.
• Setup and Configure the software such that it starts working as per business requirements. By this time the software must be installed and available for setup.
• Fill the gaps between business requirements and the functionality offered by ERP software.
INDUSTRY BEST PRACTICES
The software is configured to honor company’s current business processes. However the company also alters processes where necessary, to bring them align to industry best practices. Company do take the implementation of ERP as an opportunity to streamline their business process.
ERP IMPLEMENTATION PROJECT
A project is initiated to perform ERP implementation.
ERP configuration Project
ROLES IN A PROJECT
Various roles play part in a typical ERP project. A role may be filled by one or more people depending on the needs. Sometimes one person may be given more than one roles.
Network Administrator
Operating System
administrator
Database Administrator
Project Manager
ERP System administrator
Functional Consultant
Technical Consultant
Business Analyst
DATABASE MANAGEMENT SYSTEM
ERP software connects to a database software at the back end. The data is managed in the database.
ERP Application Database Management system
DATABASE ADMINISTRATOR
Database Administrator also known as DBA is the person who looks after the health of the database. He also performs installation of ERP software.
Database Administrator(DBA) looks after
Database Management System
ERP SYSTEM ADMINISTRATOR
ERP system administrator is the person who looks after the health of the ERP software. ERP system administrator looks after
ERP Application
OPERATING SYSTEM
Both database and ERP software runs on an operating system like Linux, Unix, or Windows.
operating system
ERP Application Database Management System
OPERATING SYSTEM ADMINISTRATOR
Operating system administrator is the person who looks after the health of the operating system .
networkMachine 1 Machine 2
NETWORK ADMINISTRATOR
Network Administrator is the person who looks after the health of the network connecting all the computers together. Network Administrator looks after
Network
FUNCTIONAL CONSULTANT
Functional Consultant gathers the business requirements and performs ERP setup accordingly. Functional Administrator configures
performs
Requirement Gathering
ERP system
BUSINESS ANALYST
Business analyst is the person who is an expert of business knowledge. He is in touch with the business users and verifiers.
FUNCTIONAL GAPS
In almost all the cases some business requirements are so unique that the ERP system has no built-in functionality to handle those unique cases. The term “Gap” is used for such business requirements.
differences
Business requirement ERP functionality
Gaps
mapping
CUSTOMIZATIONS
This is where technical consultants comes in. They modify the software by going under the hood and add the missing functionality e.g. new reports are created in the system that were needed by the business. This step is called customization or extension.
Gaps Custom solutions
COMMUNICATON AMONG APPLICATION
In most cases ERP system talks to other third party system running with the same company or in an external company e.g. suppliers and customers.
ERP system Third Party Applicationinterfaces
INTERFACES
Technical consultants assists in writing programs that help communicate information back and forth between the ERP software and the third party software either within the company or outside it. Programs that aids communication between two software is called “interfaces”.
PROJECT MANAGER
Project manager is the person who is managing the project. All other team members report to the project manager during the project. For example, a database administrators will be reporting to the manager or direction of the IT department as well as to the project manager during the life of the project.
WARRANTY AND SUPPORT PERIODS
After the go-live, warranty period begins. Any problems that come up will be handled by the implementation team.
Implementation Go live Warranty period Regular support period
Support provided
by project team
Support provided
by support
staff
time
TRAINING
Consultants would provide training to the new person or team who will be providing support.
Functional consultants
Future support staff
Performs knowledge transfer to
Three Tier Environment
One computer hosts the application and another one hosts the database. Users connect to the computer running ERP system through their browsers, this called a three tier environment.
network networkpc
Application server
Database server
Environments
ERP systems usually keep 3 sets of environments:• Development• Test• Production
development test production
TRANSPORTING SETUP
The configuration is performed in the development environment first by the team, copied over the test environment where user perform testing. The term used for copying configuration from one environment to other is “transport”.
STAGE ENVIRONMENT
REFRESH
All environment are periodically refreshed with recent production data.
PROJECTS DOCUMENTATIONS
Documents are created through the project and are stored in the central place for the project.
STATUS REPORTS
Document: period status reports by all.Contents: what was completed last week and what is due next week.
IMPLEMENTATION METHODOLOGY
A methodology dictates:• Which document will be created at which
point.• How the documents will look like.• What will be the sequence of configurations
tasks.
IMPLEMENTATION METHODOLOGY AND PROJECT PLAN
• The steps are incorporated in desired sequence. As dictated by the methodology. In the over all project plan managed by project manager.
SIGN-OFF
Written sign-offs are required from the business at various stages e.g. before moving configuration from test to production.
TYPES OF TESTING
UNIT TESTING
Unit testing refers to testing of one module individually.
SYSTEM TESTING
System testing refers to the testing of the whole system(all module together)
USERS ACCEPTANCE TESTING
Users Acceptance Tasting is a mandatory testing. Here users drive the system. The consultants train and guide the users. The testing takes places in test environment dedicated for the purpose.
PERFORMANCE TESTING
In some projects where heavy data is involved, a separate performance testing is performed. Performance testing could take place in the same test environment when UAT is finished, or on a separate environment.
LEADING ERP SOFTWARELeading ERP products are:• SAP ECC from SAP AG• Oracle E-Business suite from oracle corporation• PeopleSoft from oracle corporation• J D Edwards from oracle corporation• Great plains
THE END