Development of ERP Systems

By: Sonalisa Samal

1MV09MCM19
 Introduction
• Enterprise resource planning (ERP) is an integrated computer-based
system used to manage internal and external resources including tangible
assets, 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 the
organization and manage the connections to outside stakeholders.

• An ERP system can either reside on a centralized server or be distributed

across modular hardware and software units that provide "services" and
communicate on a local area network.

• ERP system development broadly occurs in two phases: i) System Analysis

Phase and ii) System Design and Development Phase.
 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

SYSTEM DESIGN &DEVELOPMENT
 At analysis stage, the activities are generic but at design and
implementation stage they get focused. In general the major system
development 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 %
 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
 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 of data processing (structured design).

• A DFD provides no information about the timing of processes, or about

whether 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
 Figure Data Flow Diagram

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
 Feasibility Analysis Feasibility Report

• The viability of the project • cost-benefit evaluation

• Operational and economic feasibility • overall impact
• Technical feasibility • 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
 Design and Development Phase
Detailed Design

This entails the development of the following

 Functional specifications
 Data dictionary
 Input forms and output reports design
 Database design
 Program design
screen print out of Input forms
 SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
Sanction budget

Business
Planning Capacity Finance
Intended
enhancement
capacity
report
Production Associated
Daily production report and resources
SYSTEM
component details
(Gear
Shop) Design and
Marketing
Development
Forecasted Parts
demand report communization
report
Sales and Market
Service performance
Report
Level o DFD (high Level Diagram)
 SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
Intended Production (A) Operation level
Business
capacity details Process details
Planning
production
database (B)
Component shop
number details Operation
Beak up of
Component processes and m/c s
level report model
Production wise
Shop Cycle time &
Allocation and (C) capacity details
scheduling Record of
Associated Break up of report Process available
resource required and details for capacity and
requirement available m/c s similar machine
details etc product Gap analysis utilization
Machine report
requirement
Finance details
Business
Planning
Estimated
budget Level 1 DFD (Expansion of Level 0 DFD)
 SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
Similar
Beak up of processes Decides Cycle time Process
processes and
Component the models details details of m/c s details
number to be available
focused m/c for
Record of similar Decides if
available Gap analysis products underutilize
capacity and d m/c s can
machine be used or
utilization not
Associated
resources
requirement Decides if
Finance new m/c s Similar processes
is to be and common part
procured details
Estimated No of new m/c s
budget & space
requirement Production
Business
Planning

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

It basically constitutes :
 Transition planning
 Training
 Security
 Protection
 Quality control
 Conclusion
• System analysis is the building block for any kind of Information System

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

• Various software like CASE etc. are aid for system analysts particularly for exploding, drawing the
Data flow/Document flow diagrams, specifying processes, prototyping, developing input/output
forms, 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 physical
storage elements, their partition, etc. based on requirement specification as accessed by the
analyst during requirement analysis.