WELCOME

A PRESENTATION ON

ENTERPRISE RESOURCE PLANNING

(ERP)

WHY ENTERPRISE RESOURCE PLANNING ?

The opening up of the global economy has led to a significant development of
This growth has been across industry verticals in the manufacturing, retail,
services, pharma, telecommunication and information technology sectors.
This growth and along with that the new competition and quest for enhancing
total market share has led the companies to re-look at its processes and
procedures.

Then after companies were are tried to utilize their all resources effectively to
make business more efficient and effective, at that time companies are

looking
for enterprise software and other quality techniques to over come from
drawbacks and to boost their productivity and to make their organisation
system sound.

WHAT IS
ENTERPRISE RESOURCE PLANNING (ERP)?
Enterprise Resource Planning (ERP) is a concept that
integrates two or more functions of a firm for smoother operations.
This process by which a company (often a manufacturer) manages
and integrates the important parts of its business.
An ERP management information system integrates areas such
as planning, purchasing, inventory, sales, marketing, finance,
human resources, etc.

ORIGIN OF "ERP
In 1990 Gartner Group first employed the acronym ERP as an extension
of Material Requirements Planning (MRP), later Manufacturing Resource
Planning (MRP) and Computer Integrated Manufacturing(COM).
Without supplanting these terms, ERP came to represent a larger whole,
reflecting the evolution of application integration beyond manufacturing.
Not all ERP packages were developed from a manufacturing core.
Vendors variously began with accounting, maintenance, and human
resources.
By the mid1990s ERP systems addressed all core functions of an
enterprise. Beyond corporations, governments and nonprofit
organizations also began to use ERP systems.

INTEGRATION OF ERP

Organizations perceive ERP as a vital tool for organizational competition,

as it integrates dispersed organizational systems and enables flawless

transactions and production.

ERP vendors traditionally offered a single ERP system. ERP systems

suffered from limitations in coping with integration challenges dealing with

changing requirements.

However, companies preferred to implement an ERP suite from one

vendor that incorporated stand-alone point solutions (that once filled feature
gaps in older ERP releases) to achieve higher levels of integration and
improve customer relationships and the supply chain's overall efficiency.

CHARACTERISTICS OF ERP
ERP (Enterprise Resource Planning) systems typically include the
following characteristics:
An integrated system that operates in real time (or next to real-time),
without
relying on periodic updates.
A common database, which supports all applications.
A consistent look and feel throughout each module.
Installation of the system without elaborate application/data integration by
the Information Technology (IT) department, provided the implementation
is
not done in small steps.

FUNCTIONAL AREAS OF ERP

An ERP system covers the following common functional areas. In many
ERP systems these are called and grouped together as ERP modules:
Financial accounting
Management accounting
Human resources
Manufacturing
Supply chain management
Project management
Customer relationship management
Data services

COMPONENTS OF ERP
Transactional database
Management portal/dashboard
Business intelligence system
Customizable reporting
Simple resource planning - Who Is Doing What and When?
Analysing the product
External access via technology such as web services
Search
Document management
Messaging/chat/wiki
Workflow management

MODULARITY OF ERP

Most systems are modular, to permit automating some functions but

not others. Some common modules, such as finance and accounting, are
adopted by nearly all users; others such as human resource management are
not.

For example, a service company probably has no need for a

manufacturing module. Other companies already have a system they believe

is adequate.

Generally speaking, the greater the number of modules selected, the

greater the integration benefits, but also the greater the costs, risks, and
changes involved.

CONNECTIVITY TO
PLANT FLOOR INFORMATION IN ERP
ERP systems connect to realtime data and transaction data in a variety
of ways. Those systems are:

Direct integration: ERP systems have connectivity (communications to

plant floor equipment) as part of their product offering.

Database integration: ERP systems connect to plant floor data sources

through staging tables in a database.

Enterprise appliance transaction modules (EATM): These devices

communicate directly with plant floor equipment and with the ERP system via
methods supported by the ERP system.

Customintegration solutions: These systems tend to have the highest

level of initial integration cost, and can have a higher long term maintenance
and reliability costs.

ERP PROCESS PREPARATION

Direct integration: ERP systems have connectivity (communications to

plant floor equipment) as part of their product offering.

Database integration: ERP systems connect to plant floor data sources

through staging tables in a database.

Enterprise appliance transaction modules (EATM): These devices

communicate directly with plant floor equipment and with the ERP system via
methods supported by the ERP system.

Customintegration solutions: These systems tend to have the highest

level of initial integration cost, and can have a higher long term maintenance
and reliability costs.

ERP DATA MIGRATION

Data migration is the process of moving, copying, and
restructuring data from an existing system to the ERP system.

Identify data to migrate

Determine migration timing
Generate data templates Freeze the toolset
Decide on migration-related setups
Define data archiving policies and procedures

ADVANTAGES OF ERP
The fundamental advantage of ERP is that integrating myriad businesses
processes saves time and expense. Management can make decisions faster and
with fewer errors. Data becomes visible across the organization. Tasks that
benefit from this integration include:

Sales forecasting, which allows inventory optimization

Chronological history of every transaction through relevant data

compilation in every area of operation.

Order tracking, from acceptance through fulfillment

Revenue tracking, from invoice through cash receipt

Matching purchase orders (what was ordered), inventory receipts (what

arrived), and costing (what the vendor invoiced).

ERP systems centralize business data, which:

Eliminates the need to synchronize changes between multiple systems

consolidation of finance, marketing, sales, human resource, and
manufacturing applications .

Brings legitimacy and transparency to each bit of statistical data.

Facilitates standard product naming/coding .

Provides a comprehensive enterprise view (no "islands of information"),

making real time information available to management anywhere, any time
to make proper decisions. Protects sensitive data by consolidating multiple
security systems into a single structure.

BENEFITS OF ERP
ERP can greatly improve the quality and efficiency of a business. By
keeping a company's internal business process running smoothly, ERP can
lead to better outputs that benefit the company such as customer service, and
manufacturing.

ERP provides support to upper level management to provide them with

critical decision making information. This decision support allows the upper
level management to make managerial choices that enhance the business down
the road.

ERP also creates a more agile company that better adapts to change. ERP

makes a company more flexible and less rigidly structured so organization

components operate more cohesively, enhancing the businessinternally and
externally.

DISADVANTAGES OF ERP
Customization is problematic.
Re-engineering business processes to fit the ERP system may damage
competitiveness or divert focus from other critical activities.
ERP can cost more than less integrated or less comprehensive solutions.
High ERP switching costs can increase the ERP vendor's negotiating
power, which can increase support, maintenance, and upgrade expenses.
Overcoming resistance to sharing sensitive information between
departments can divert management attention.
Integration of truly independent businesses can create unnecessary
dependencies.
Extensive training requirements take resources from daily operations.

CONCLUSION
Recognized ERP limitations have sparked new trends in ERP
application development. Development is taking place in four
significant areas: more flexible ERP, Web-enable ERP, interenterprise ERP, and e-business suites.

THANK YOU