Final ERP System
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Transcript of Final ERP System
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Enterprise Resource Planning(ERP) System
Presented ByNirdosh TirkeyPankaj Kumar
Prabhat Kundulna
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What is ERP?
facilitates company-wide integrated
information systems, covering allfunctional areas
performs core Corporate activities and
increases customer service augmentingCorporate Image
ERP is a solution, which
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What is an ERP?
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ERP is a way to integrate the data and processes of anorganization into one single system. Usually ERP systemswill have many components including hardware andsoftware, in order to achieve integration, most ERPsystems use a unified database to store data for variousfunctions found throughout the organization.
Today's ERP systems can cover a wide range of functions
and integrate them into one unified database.For instance, functions such as Human Resources, Supply
Chain Management, Customer Relations Management,Financials, Manufacturing functions and WarehouseManagement functions were all once stand alone software
applications, usually housed with their own database andnetwork, today, they can all fit under one umbrella .
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Why ERP?
For Management to know what is happeningin the companyOne solution for better Management
To achieve cost control & low working capitalTo satisfy the customers with high expectationsTo be Competitive & for survival
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ERP - Definition
Software solution that addresses the
Enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform
A set of integrated programs capable of managing acompanys vital business operations for an entire multi-
site, global organisationStair, Reynolds and Chesney
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Evolution of ERP
1960s - Systems Just for Inventory Control
1970s - MRP Material Requirement Planning(Inventory with material planning & procurement)
1980s - MRP II Manufacturing Resources Planning(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990s - ERP Enterprise Resource Planning
(Covering all the activities of an Enterprise)2000 onwards ERP II Collaborative Commerce(Extending ERP to external business entities)
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The Ideal ERP System
Manufacturing: Some of the functions include;
engineering, capacity, workflow management, qualitycontrol, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixedassets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and
attendance, etcSupply Chain Management: Inventory, supply chainplanning, supplier scheduling, claim processing, orderentry, purchasing, etc.Projects: Costing, billing, activity management, time and
expense, etc.Customer Relationship Management: sales andmarketing, service, commissions, customer contact, callscenter support, etc.Data Warehouse: Usually this is a module that can beaccessed by an organizations customers, suppliers andemployees.
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The ERP as package
The ERP is a package encompassing allmajor functions of the business.
The product is generic in nature and issupposed to incorporate the best businesspractices.
The system design of the ERP isintegrated with the features and functionsproviding an enterprise wide solution tohandle all the process functionalities.
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Contd
The ERP packages build informationbase and provide knowledge base for
planning and control of the businessthrough the business functionmanagement.
The ERP is the main system, interfacedor assisted by the other systems in theorganization.
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ERP package solution Modules
Sales, marketing, distribution
Manufacturing
Stores management
Finance Personnel
Maintenance
Purchase, inventory
Planning and control
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Features of ERP
Security authorization,
Referencing responsibility,
The implementation of the businessrules.
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ERP Systems: SAP
SAP (Systems - Applications -
Products): One of leading software
vendors for ERP systems
SAP R/3: Separate modules
Each module
contains a number of transactions(>5,000 all together)
can be used independently of others
must be configured (customized)
can be supplemented with add-ons
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ERP- Integration @ what levels?
Transaction level
Management control levelDecision analysis level
Strategic planning level
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Implementation of an ERP System
Implementing an ERP system is not an easy task toachieve, in fact it takes lots of planning, consulting andin most cases 3 months to 1 year +.
Implementing an ERP system will ultimately requiresignificant changes on staff and work practices.
Consulting Services
Customization ServicesSupport Services
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Why implement an ERPSystem?
To support business goals
Integrated, on-line, secure, self-service
processes for business
Eliminate costly mainframe/fragmentedtechnologies
Improved Integration of Systems and
ProcessesLower Costs
Empower Employees
Enable Partners, Customers and Suppliers
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How should we implementERP Systems?
People Project Structure
Should be aligned to processes
Process Implementation Process (outlined in detail)
Adapt processes to those of the ERP.
Technology Hardware
Software
Integrated Systems
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Core and Extended ERPComponents
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Technology
Support
Costs
5 Strategic
Requirement
Levels
FunctionalityGoal:
To select the
Most Suitable Software
Package Solution
Vendor
ERP Product selection Criteria
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Advantages of ERP Systems
A totally integrated system
The ability to streamline different processes
and workflows
The ability to easily share data across variousdepartments in an organization
Improved efficiency and productivity levels
Better tracking and forecasting
Lower costs
Improved customer service.
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Disadvantages of ERP Systems
Customization in many situations is limited
The need to reengineer business processes
ERP systems can be cost prohibitive to install
and run
Technical support can be shoddy
ERP's may be too rigid for specific
organizations that are either new or want to
move in a new direction in the near future.
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Contd
Expense and time in implementation
Difficulty implementing change
Difficulty integrating with other systems
Risks in using one vendor
Risk of implementation failure
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Conclusion
ERP systems provide a mechanism for
implementing systems where a high degree
of integration between applications is
required
The Business Case or Value Proposition for
implementation must be outlined
To successfully implement a proper mix of
people, processes and technology should be
maintained
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OpenSession
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Thanks for your
Participation &Co-operation