Name:safa berat

Surname:otcu
İd number:180335009

UNIVERSITY OF TURKISH AERONAUTICAL ASSOCIATION

HOMEWORK

SAFA BERAT OTÇU

18033509

The foreword
Name:safa berat
Surname:otcu
İd number:180335009
First of all, internet and books were used while preparing this article.This article
constitutes the scope of information about ERP implementation.We know that
ERP application has been used by companies for many reasons in recent years.
Therefore, this article was written to learn more about ERP.The article first
describes how EPR emerged.Companies used programs such as MRP 1 and
MRP 2 at first.However, the intense demand and the desire to open up to
foreign markets have increased the need for ERP to be used.The article also
talked about the features of ERP.Problems can occur in companies for many
reasons.For example, there may be malfunctions in processes such as sales,
finance, procurement, human resources, general accounting and consumer
relations.When there are problems in these processes, managers or supervisors
can look at the overall picture as a whole, instead of examining the problems in
these processes one by one.So they can detect the problem earlier and more
easily.Because ERP application integrates all processes.Also, the article explains
the modules that make up the ERP one by one.The procurement, finance,
production and sales processes that we have just mentioned constitute the
modules of ERP.The article also talks about the benefits and functions of ERP so
that we can understand what ERP does and why it should be used.ERP has
many features such as human resource management, financial management,
standardization of the production process, resource planning and control
process.The article contains information about the concept and scope of ERP.
The article explained the concept of ERP and explained the points that
distinguish ERP2 from other programs.For example, its most basic feature is the
most used and successful program in western countries.It also reduces
inventory costs by keeping inventory at a minimum.ERP system includes MRP 1
and MRP 2 programs. That is, it is multifunctional.The article then talked about
what an integrated management system is and its features.İntegrated
management system is an approach implemented by the ERP system.Thanks to
the integrated management system, it helps the managers or supervisors to
look at the system as a whole by integrating all the processes or modules of the
ERP company.İn this way, they can identify problems more easily.ERP system
has some difficulties as well as its functions and benefits.We can examine them
under four headings. These challenges are Technical Challenges, Challenges
Due to Software, Human Challenges, and Organizational challenges.
Name:safa berat
Surname:otcu
İd number:180335009

Enterprise Resource Planning(ERP)

Definition of ERP: ERP is software that includes cutting-edge technology for
integrating different processes of a company. The different processes an
organization has are Finance, Human Resources, Marketing, Purchasing,
Planning, Manufacturing and more, depending on the exact job.Enterprise
resource planning (ERP) systems are generally easy-to-use systems that try to
bring together or help bring together all the data and processes of a business.
A classical ERP software uses various software and hardware of the computer
to operate.ERP systems basically use an integrated database where different
data can be stored. Enterprise resource planning is a system designed to
combine all the resources of the enterprise and use it efficiently.Although the
concept of ERP was first used in production circles; Today, ERP systems are
pronounced in a much wider area.ERP systems can gather all the basic
operations of a business under its own structure, regardless of the business
area or name of a business.Operators, nonprofits, foundations, governments or
other entities can use ERP systems.
Features of the ERP system: First of all, we need to state that ERP is an
'Information system'. Moreover, it is a system that brings together and
manages all data from different departments. The ERP system can plan the
supply, production and distribution resources in different geographical
locations in the most effective way in order to meet customer demands in the
most appropriate way in line with the strategic goals and objectives of the
enterprise. Moreover, in addition to these, ERP also includes up-to-date
approaches such as customer relationship management and human resources
practices.
 They are standard software packages that can be used in all sectors and
can be customized during installation.
 ERP is an application software rather than a database management
software or operating system.
 Provides solution suggestions about basic business processes.
 It has a highly functional structure.
 ERP systems also support repetitive business processes such as
procurement management, order management and payment processing.
Name:safa berat
Surname:otcu
İd number:180335009

ERP enables the elimination of bottlenecks in production, better planning
of distribution resources, improvement of customer service and the best
use of stocks by keeping them at a minimum.
 ERP Purchasing, production planning, sales, warehouse management,
financial accounting and human resources functions are all combined in a
workflow consisting of business processes between departments and
functions.
 ERP systems can also meet the special needs of many sectors. ERP
systems are implemented as a combination of standard business
functionality and typical business processes specific to a particular
industry.
 ERP provides a flexible organizational structure. The flexibility of ERP
systems allows companies to turn the change in their favor.
 ERP systems have a modular structure.Modules can be used alone.Firms
can expand the system to meet their needs.The modularity of ERP
systems allows companies to choose between phased implementation or
the simultaneous implementation of the entire system.
 ERP systems provide integrated workflow management.ERP helps
employees work as a team.Because ERP connects interrelated processes,
each employee can quickly access the necessary information.
 Information is current and consistent. Employees can get the right
information on time.
 With ERP systems, companies can combine their business processes in
factories and branches in different regions.
 By installing ERP systems at the headquarters, factories or branches,
they perform their transactions independently from others.
 ERP systems provide smooth communication when business messages
are sent between these systems that are far from each other.
 With its integrated processes to meet business needs, ERP has the
potential to restructure traditional structure and organizational methods.
ERP Concept: ERP is the most common and successful one among the
applications of industrial management techniques with computers,
especially preferred in western countries.ERP system better plans
distribution resources.It improves customer service and reduces the firm's
inventory costs by keeping stocks at a minimum.No stock in warehouse.
Name:safa berat
Surname:otcu
İd number:180335009
The most basic feature of this system is that it can be customized to adapt
to the different needs of enterprises producing in different sectors.
contributes to the market economy by selling some state-owned
production units to private institutions and companies.
Scope of ERP System: it covers erp mrp 1 and mrp 2 systems as well.
therefore, everything that falls under the scope of mrp 1 and mrp 2 also
covers erp.BOMs, production plan, inventory management and
workstation functions within the scope of MRP, logistics management,
production control, sales planning, purchasing planning, financial planning
and accounting functions within the scope of MRP II are also included in
ERP systems.In addition, ERP systems also perform functions such as
quality management, warehouse management, information management
and human resources.
Some functions provided by ERP:
 Human Resources Management
 Financial management
 Standardization of Production Processes
 Resource Planning
 Process Control
 Business accounting
 Data Communication, Control and Synchronization
 Reporting and Process Analysis
 Logistics Planning
 Direct communication with production facilities
Benefits of ERP:
 ERP ensures the effective execution of daily business activities such
as accounting, sales, purchasing, planning, production, foreign
trade, project management, risk management and supply chain
operations.
 Thanks to ERP, the company can combine all processes under a
single roof, so the company can use its time efficiently and reduce
its costs.
 Access to real-time data enables more accurate decisions to be
made in a shorter time.
Name:safa berat
Surname:otcu
İd number:180335009
 ERP programs provide a common platform for all business units to
act as a single unit, thus contributing to the development of
organizational culture.
 Thanks to the customization of ERP programs according to the
operation and processes of the company, it is possible to predict
customer expectations and access comprehensive stock information
in a short time. In this way, costs can be reduced.
 Employees who gain ERP competence are more productive. ERP
systems contribute significantly to increasing the speed of
standardization and manufacturing processes, thus increasing
efficiency in production processes.
 Corporate agility ensures that customers' expectations are met. This
increases customer satisfaction.
 Unnecessary raw material, semi-finished and finished product stocks
can be eliminated and costs arising from unnecessary stocks can be
reduced.
 Faster information communication takes place. For example, the
duration of price lists prepared in storage units can be minimized
thanks to ERP.
 Thanks to automation and coordination, product shipments can be
made faster
Challenges in Transition to ERP System: It covers the problems related to
the structure and functioning of the enterprise in the transition to the
ERP system.Insufficient performance of the project evaluation activity;
instability of the installation team, workforce circulation; problems
such as the need to change business processes.
Technical Challenges: The first of these difficulties is data transfer from
the currently used system to the newly installed system.Loss of support
or infrastructure deficiencies with outdated technologies can hinder an
efficient transfer.The establishment of factories, sales stores and similar
connections in different regions of the enterprises is made over data
lines, and the insufficiency of the lines may complicate the start or flow
of the project.
Name:safa berat
Surname:otcu
İd number:180335009
Challenges Due to Software: Problems caused by software, software
errors; incompatibilities between business processes and software; lack
of software documentation; inadequacy of software consulting service;
insufficient local support of the software used, etc. can be listed as.
Human Challenges: One of the most important difficulties in transition to
ERP system is human resources. It can be difficult for staff to accept
change or resist innovation.Such situations can create serious problems
during the transition to ERP.For this reason, the top management should
definitely own the newly established ERP system.Thus, it can be
prevented that the employees of the enterprise reject the system.
Organizational challenges: Inadequate project evaluation activities,
difficulties in creating a budget or creating a budget without calculating
the total cost of ownership, inability of the installation team to remain
stable, inability to ensure harmony between units, the necessity of
changing business processes, and inability to stop production during
installation can be given as examples of organizational difficulties.
Other challanges:
 ERP is a kind of 'Knowledge Management' process.
It is important to manage information as much as information.
ERP systems provide the best planning of resources. Not knowing
about ERP creates complexity between ERP and managers. This
causes managers to not understand the ERP implementation and
the appropriate solution for the company's operation.
 For the ERP implementation to be successful, the company needs
trained participants. The participants who will implement the ERP
program are as important as the ERP program.These participants
need to be educated about the ERP program. Many of the ERP
risks and challenges are actually associated with people who have
never been trained.This lack of knowledge does not have much of
an impact on the project.If you take into account the lack of
knowledge this may have a secondary impact on the project.
 There are many solutions that ERP companies can offer to their
customers.There are hundreds of solutions on the market.
Name:safa berat
Surname:otcu
İd number:180335009
Organizations need to understand what systems best fit their
needs in terms of size and scope.
 Having full knowledge of the company's processes is very
important for ERP implementation.Because ERP implementation is
very costly for companies. In addition, many financial resources
are used in the ERP program. however, in some cases software
companies find out that they missed one of the core business
tasks to be included in the ERP system.
ERP Modules: What manages the resources and processes of an
organization is actually the modules of the Erp Software.In other words, the erp
module of that process is needed to manage and monitor each process.
Sales management: ERP Sales Management Module increases the
efficiency and effectiveness of your sales team.By using the Sales management
module, you allow your Sales teams to manage their opportunities and perform
their administrative tasks without errors.
ERP Stock Management:With the stock management module, you
can track your stocks effectively.By defining an unlimited number of transaction
types within the predefined transaction classes, you can define different
business processes related to stock management and make accounting
connections.
Supply Processes:Warehouse Shipping and Packing process takes
place before the product, which is ordered in the sales process, is shipped.
However, if the product to be shipped is not in stock, it initiates the
procurement process by making a purchase request from the warehouse
supply and purchasing unit.
Production Processes:The production process is related to both the
supply and the sales process.Its closest supporter is the warehouse unit. The
production planning process within the production process receives orders,
creates the production plan with labor and material resources, creates transfer
orders for the warehouse, as well as creates purchase requests to the
purchasing unit for production needs.In all these processes, the Work Order
Module, Material Transfer Module, MRP1 Material Requirements Planning
Name:safa berat
Surname:otcu
İd number:180335009
Module, MRP2 Production Resource Planning Module and Quality Control
Module are used in the production module.
Finance Processes:Finance processes are managed with Cash, Bank
and Check-Voucher modules.All collection transactions, credit, pos, account
transactions, checks, promissory notes, receivables and transfer transactions
are managed through this module.In addition to these, Budget and Cash Flow
Plan reports can also be mentioned as modules.
Human Resources Processes: In Human Resources Processes, many
data such as personal information about the company's human resources,
contact information, training, course and license information, health and
registry reports are tracked with the Personnel Management Module.
Customer Relationship Management Process: Customer
Relationship Management processes are one of the most important processes
of a company.Because this reflects the company's own identity. In fact, the
success of the company is evident from this process.
General Accounting Processes:Jobs in all processes of a company
are linked to an account in the accounting chart of accounts module. A
summary table is obtained in which the totals and balances of the debit and
credit statuses of the accounts are displayed.The balance sheet shows the
assets of a firm and the sources of these assets.Then the profit and loss income
statement is obtained.The most important point in all these accounting
modules is that the Accounting Chart of Accounts is consistent with accounts
such as production, sales, purchasing, human resources, financial processes,
technical service, and head management.
The emergence of Enterprise Resource Planning:MRP II systems have been
applied in companies since the late 1970s.MRP II systems collect all company-
level resources in a common database. However, intense competition and the
need to open up to international markets have created a new requirement for
businesses that have their headquarters in different geographical regions to
ensure integration across international companies.Thus, steps were taken for
the beginning of Enterprise resource planning, namely ERP.The emergence of
the concepts of global economy and global competition has revealed the
concept of "Supply Chain Management", which includes the entire production
process and the customer, starting from the supplier.After the strong changes
Name:safa berat
Surname:otcu
İd number:180335009
in the market and technological developments took place, a new concept, the
Concept of Enterprise Resource Planning, emerged.Today's MRP II systems can
manage activities such as sales management, production planning and control,
purchasing at the firm level.At other points where MRP II packages were
insufficient, additional modules or packages that could work integrated were
introduced, but this remained at the company level and could not provide
information communication between companies.Due to complex databases
and globalization of business activities in different geographical regions and
their management through integration has gained importance. This situation
has increased the importance of ERP.ERP is a holistic software strategy that
realizes global information integration between companies.
Reasons for the emergence of ERP:High Competition and the Need to Open to
International Markets have increased the need for an ERP system.The ERP
system has enabled the rapid exchange of information between workplaces in
different regions.In addition, thanks to ERP, data was collected in a
coordination center and an overview of the system was provided.Thus, it is
prevented to look at the data one by one and it is ensured that the problem in
an organization is detected more easily.
Being able to respond quickly to changes in the developing world markets,
where competition continues at a high level, has been a necessary and
indispensable element for success.It has not been possible to react quickly to
this change with hierarchical organizations.Companies have had to switch to a
new organization for easier communication.Thanks to ERP, companies were
able to reconsider their organizational structure.
The integration of manufacturing functions in companies in different regions
has only been possible thanks to Enterprise Resource Planning ERP systems.
As multinational companies begin to reprogram their supply chains based on
multiple workplaces rather than individual workplaces, the need for ERP
systems has started to increase at the same rate.ERP systems optimally plan a
wide range of distribution resources, ensuring that demands are met locally
and inventory levels are not unnecessarily increased.
MRP 2 systems are systems applied for only one type of production process.
but today, many companies work with more than one production process.This
situation has pushed companies to use ERP software systems.
Name:safa berat
Surname:otcu
İd number:180335009
Integrated management system:Integrated Management System is a set of
systems created by bringing together more than one management system of
institutions.Instead of solving problems separately, systems gain gains in many
ways by approaching and solving them holistically within this structure.
Benefits of Integrated Management System:
 It saves companies from wasting time and allows you to focus on the
whole.
 Increases profitability by reducing costs.
 It increases the motivation of the employees
 Thanks to continuous improvement, commercial permanence and
superiority are ensured.
 Increases corporate synergy
 It prevents unnecessary resource usage.
 In the audit, problems and deficiencies are detected more easily.
Factors that increase the success of ERP systems:
 ERP systems are not a software replacement business. companies
determine a new position for themselves thanks to ERP systems.
companies move their business applications to the new system
thanks to ERP. Therefore, for ERP to be successful, top management
must support it.
 A company's needs and expectations change all the time.Therefore
processes need to be consistent with changing expectations.ERP
cannot be successful unless firms redesign their ERP models to fit
existing processes.
 The cost of implementing the ERP system, which is an expensive
system, varies from business to business, depending on the size of the
business and the scope of the application.
 The cost of implementing an ERP system is higher than the cost of
purchasing and installing the software package. In order for the ERP
implementation to be successful, the company must establish this
balance well.
 Businesses planning to implement the ERP system should actively
involve some of their best employees within the project for a
successful implementation. they should be appointed. Both directing
Name:safa berat
Surname:otcu
İd number:180335009
the consultants and informing the other employees about the project
also allow them to enter the new system. It is an extremely important
and important issue in terms of accelerating adaptation.
 The emergence of new information technologies in ERP increases the
skills required of ERP consultants.Therefore, the firm needs external
consultants with functional, technical, personal knowledge and skills.