Int:r oduction

• Enterprise resource planning (ERP) is b~sin~ss

management software that allows an organ1zat1on
to us-e a system of integrated application to manage
the business.
• A typical ERP system will use multiple components
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as \•\' e 11 as lo auto r11 ate co r1, r11 on bus Ines s jJ r oc es s lo
save the cor11 JJa ny t1r,1e a nci n·1oney
• Its p!urpose is to make easy th•e information flow
between all business functions w1ithin the boundaries
of the organizat,ion's connections with its outside
stakeholders.
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 Benefits of ERP
• Business Integration
• Flexibility
• Better analysis and planning capabilities
• Use of latest technology
• Redl!Jt;..
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• Reduced manpower cost

• Reduced material cost
• Improve sales an,d customer service
• Efficientfinancial management
• Common database
 Benefits of ERP
• Business lntegration 1

• Flexibility
• Better analysis and plan,ning capabi Iities
• Use of latest technology
• Re~,~~dfiV~~j'poj :,n.a av1,n1e,rd~er-l~ t9~1
• Reduced manpower cost
• Reduced materiail cost
• lm,p rove salesand customer service
• Efficientfinan,cial mainagement
• Common database
• IURdate ~qe. . modu.1~, a_
utom,a.ti(:_
~_IJY. upd~tes.oth~rs_._
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 ( ~ tr fG

)( ERP stand for Enterprise Resource

Planning

)(Used to manage the data of an Enterprise

)( HelQs in automation of the task involved
in ~rfonning a business ~roceS§.
 lltl

ERP system helps different organizatio11s to

deal \~th differe11t departments of an
e11terprise.
 ~ • Gl IC Sl ~f :

Before ERP A ft er ERP

Before an ERP s st em , ERP · J da ta ba se s
th er e ar e · erent ~
ac ro s .
cl ep ar tr · ·
'

tabases of different ~ ·
ib ll en ts w hi ch th ey lia ta ba s .
managed b}! their own. (1cccssiblt t
T he em pl oy ee s of on e of th at en te rp ns e.
de pa rt m en t do es no t lm ow
about an yt hi ng about
ot he r department.
 Benefits of ERP
►Improved Resource Utilizations
► Better Customer Satisfaction
► Improved Supplier Performance
► Increased Flexibility
► Reduce Quality Costs
► Improved Information Accuracy & Decision
Making Capability
► Reduction in Lead-Time
► On-Time Shipment
 Improved Resource Utilizations
• The effective functionality of different modules in ERP
system like
■Manufacturing
■Material Management
■Plat maintenance
■Sales and distribution
•Ensure that the
■inventory is kept to minimum level
■The machine down time in minimum
■The goods are produced only as per the demand
■And finished goods are delivered to the customer in most efficient
way
 Better Customer Satisfaction

• As ERP system produce goods at the flexibility of

make -to-order approach;
■This mean that the customer will get individual attention and
■customization of the product
• With web-based ERP customer can
■Place the order in customized manner
■Track the status of the order
■Make the payment
■Get the technical support
 Improved Supplier Petformance
•Provide vendor management and procurement support tools designed
to coordinate all aspects of:
■Effective negotiation
■Monitoring
■And control procurement cost and schedules
• Help organization to keep track of
■purchased order
■Requisition
■And final procurement
• Help organization in managing the
■Supplier relation
■Monitoringthe vendor activity
■Managing the supplier quality
 Increased Flexibility

• Help companies to remain flexible :

■By making the company infor1nation available across
the departmental barriers
■By automating most of the process
■By enabling the company to react quickly to the
changing market condition
•Can be adapted to the new technological change
 Reduce Quality Costs

• ERP system support benchmarking

•Quality assurance data by all functional department
• Provide tools to implement TQM program within the
organization
• Easy to implement the quality standard due to
centralized database
 Improved Information Accuracy &
Decision Making Capability - .
• ERP ensure three fundamental characteristics
of infor1nation
■Accuracy
■Relevancy
■Timeliness
 Reduction in Lead-Time
• Lead time : Time between placing an order and receiving
it
• ERP help in automating the task of inventory control
■Alert
on quantity below the re-order level
■When to release PO
■When to procure the raw m.aterial
• Integrate the inventory module with other module like
sale, marketing, purchasing , manufacturing and
production planning
• ERP supports virtual transaction with the use of latest
technology like E-business, EDI, E-cash and so on.
 I

On-Time Shipment

• Able to change the mode of production from make-to-

stock to make-to-order
• Allow greater customization and customer satisfaction