ERP - Enterprise Resource Planning by Rajat Jhingan

8/4/2019 ERP - Enterprise Resource Planning by Rajat Jhingan

http://slidepdf.com/reader/full/erp-enterprise-resource-planning-by-rajat-jhingan 1/19

ENTERPRISE

RESOURCE PLANNING

(ERP)

By Rajat Jhingan



What is a ERP ?

ERP is an IT solution that is based on a single database so that the functionalities of various departments can be uniformly

upgraded and shared .

It is an integrated set of programs/data .. …that can be used to better analyze the

Resources(5M) .

…that an Enterprise/organisation/ Deptt. is using.

…to take better decisions for Planningand Implementation.



ERP GENESIS

Descended from Materials Management Systems from the late 1950s through the 1980s.

In its initial form it handled functions of only:

Inventory Management

Economic Order Quantity (EOQ) Calculation

Work-Order / Bill of Materials Processing. Material Requirements Planning (MRP).



NOW ERP HANDLES… Organization’s Front & Back Office Functions

such as:

Procurement

Inventory Management

Manufacturing

Marketing & Sales

Accounts Payable/Receivable

Human Resources / Payroll

Cash Management

Budgeting

Performance Reporting



ERP :

One System – One Answer One System

ERP vanquishes the old standalone computersystems.

One AnswerERP creates a single version of the data thatcannot be questioned.

One Set of Transactions

An integrated computer system that can save timeand increase productivity.

No ReconciliationPeople in different departments all see the

same information.



Why ERP Applications?

1.Shorten the time to integratebusiness solutions.

2.Buy vs. build functionalitywhen possible.

3.Allow focus on core business

functions . 4.Leveraging technology for acompetitive advantage.



ERPERP integrates data derived from

various functional systems in theorganisations/ deptts and provides a

unified and consistent view of the

overall organisational situation in avery user-friendly way.

ERP applications typically …

•Support mission-critical business functions •With an external, customer facing

component & r

•Transaction intensive



ERP

[ Infrastructure Needed ] Software tools for building, maintaining and using the

data warehouse

Hardware for Servers, Memory, I/O, Processing

Power Communication Requirement (Network Accessories )

Database Designers, Administrators and Consultants

Change-Mgmt Issues

Meta Group.’s study points that Average Total Cost of Ownership (TCO) of ERP installation is from $15million (range: $300 million to $400K)



Typical ERP Architecture

3 Logical Layers

:

1.Presentationlayer 2.App layer

3.DB Layer



FEATURES OF PRESENTATION

& APPLICATION LAYERS

•Customizable

•Can be tailored to meet customer

requirements•Multi-platform support

•Accommodates heterogeneous

computing environments•Modular design

•Enables staged implementation and

flexibility



Use of Data Warehousing in DB

LAYER Implementation



CHANGE MGMT ISSUES: Points

to Ponder

1. The software is less important than the change tobusiness processes.

2. This is not just an IT Project.

3. Process reengineering after the system isimplemented can be more challenging than if therehad been no system at all.

4. Transformational impacts will take 3 – 5 years tomaterialize.

5. A successful ERP implementation depends onstaffing the project at the right level with the rightskills.

6. Testing for agency interfaces tends to be

underestimated for complexity, cost, and time.



Main ERP Problem

•Impossible to tune a

packaged application •ERP vendors do not allow

tuning; limited to versions •No visibility into the black

boxes •Changes introduce moreproblems like…



HIDDEN COSTS COME FROM:

NEW TRAINING REQUIREMENTS

INTEGRATION & TESTING PROBLEMS

MULTI-MODULE CUSTOMISATION

DATA CONVERSION

HETROGENEOUS PLATFORMS

COST OF CONSULTANTS

SALARY COMPONENTS

EVER ON-GOING PROCESS

DIP IN PERFORMANCES



CHANGE OVER STRATEGIES

DIRECT CHANGEOVER( Top Support,

committed People)

STAGED CHANGEOVER (Independent

PILOTs are tested & then bridges are

built..v.Lengthy)

MODULAR CHANGEOVER of just KEYPROCESSES such as only FINANCE



SOME COMMON VENDORS

SAP

ORACLE

BAAN

PEOPLESOFT



SOME INSIGHT



SOME MORE INSIGHT

PURCHASE

PRODUCTION

MARKETING

STORES

PERSONNEL

FINANCE

ACCOUNTS PAYABLE

ORACLE MANUFACTURING

& FIXED ASSETS

ORDER ENTRY & ACCOUNTSRECEIVABLE

INVENTORY

PAYROLL

GENERAL LEDGER



Thank you

ERP - Enterprise Resource Planning by Rajat Jhingan

Documents

Transcript of ERP - Enterprise Resource Planning by Rajat Jhingan