Erp & MRP

SEMINAR 1:
ENTERPRISE RESOURCE
PLANNING (ERP)
&
MATERIAL REQUIREMENTS
PLANNING (MRP)
TODAY'S PRESENTERS
Aernaztasha
Deidree Elsa Harry
Zachary
(2020589029) (2020970269)
Azreena binti Faizal Julaikha Annisa
Osman Reuben Abdullah
(2020982515) (2020980619)
Aryff Izam Bin Ab Mohd Amierul Razali
Jamal (2020971717) (2020974675)
LEARNING OUTCOMES
DEFINITION & OBJECTIVE OF DEFINITION, SCOPE &
ERP OBJECTIVE OF MRP
TYPES OF ERP
STEPS OF MRP
ELEMENTS OF ERP
INPUT & OUTPUT OF MRP
KEY FEATURES OF ERP
ADVANTAGES &
IMPLEMENTATION STAGES OF
DISADVANTAGES OF MRP
ERP
LIMITATIONS OF ERP
ENTERPRISE RESOURCE
PLANNING
(ERP)
WHAT IS ERP?
ERP is a management
software that
integrates a business
essential department.
SALES
PLANNING MARKETING
ERP
PURCHASING FINANCE
ACCOUNTING HUMAN
RESOURCE
OBJECTIVE OF ERP
The most important

core objective of ERP
is understanding real
time information
regarding various
strategies of your
business field.

TYPES OF ERP

1) CLOUD ERP
Software runs on a provider’s
cloud computing platform.
Maintenance of the system is
handled by the provider.
Low upfront costs.
2) ON-PREMISE ERP
Traditional model for deploying
software where you control
everything
Installed in your data centre at
the locations of your choice.
Many companies are modernizing
and upgrading their on-premises
ERP systems to cloud
deployments.
3) HYBRID ERP
Mixture of both (cloud &
on-premise)
Also known as two-tier
ERP.
ELEMENTS OF
ERP
ELEMENTS OF ERP :
Customer Relationship
Human Resource
Management
Able to handle employee
Collects essential customer
management tasks.
data
Monitors the performance of
Stores and allows you to
employees and sends periodic
track generated customer
reports to their managers.
and lead data.
Supply Chain Management

Business Intelligence Collects real-time data and
Collects data and performs fixes issues as and when they
analysis that can provide happen.
Can monitor demand, supply,

actionable insights about
manufacturing status, logistic
business processes.
and distribution in real time.
ELEMENTS OF ERP
(CONT'D) :
Financial Management Inventory Management
Takes note of business-critical Managing order fulfillment and
transactions. maintaining a warehouse’s
stocking functions.
Analyzes and keeps track of
Tracking features that can

financial data
reduce manual inventory control.

KEY FEATURES
OF ERP
Enterprise-wide Real-time (or near real-
integration time) operations.
Business processes are Problems are identified quickly,
integrated end to end across giving the seller more time to
departments and business units. correct the situation.
KEY FEATURES
OF ERP :
A common database. Consistent look and
feel.
Enables data to be defined once
for the enterprise with every Software with a consistent user
department using the same interface reduces training costs
definition. and appears more professional.
IMPLEMENTATION STAGES OF ERP
Discovery and
Planning
Design Development
Form project team. Work out Prepare the entire
Identify current issues configurations for new system for deployment.
and solutions. system. Define roles. Customizations
Construct project Document standard available. Develop
procedures. training. Data should be

plan.
imported.
IMPLEMENTATION STAGES OF ERP
Ongoing
Testing Deployment
support
Evaluate the issue and As the way users work
Fine-tune the
make a final decision on
configurations. Assess within system evolves,
whether to proceed or not.
if the system's adjustments and
Data has been loaded and
functionality fits to changes to system
checked in its complete
the project's version. Employees should may be needed.
requirements. be trained.
LIMITATION OF ERP
HIGH COST TRAINING HIGH

INEFFICIENCY IMPLEMENTATION
Other requirements Skills, experience, TIMES
such as computer labour, and optimum
hardware, updated The total
utilization of resources implementation and
network equipment, are key within a
and security software training time can take
manufacturing over a year.
may entail additional operation.
costs.
MATERIAL REQUIREMENT
PLANNING
(MRP)
WHAT IS MRP?
Definition:-
MRP works as decision tool-which the
production planning and inventory
management system used to manage logistics
processes and designed to assist production
managers in scheduling and placing order for
items of dependent demand to make a
finished product
MRP SCOPE
WHAT IS NEEDED HOW MUCH IS NEEDED WHEN IT IS NEEDED

knowing the material Identify the quantity of raw When it is needed to be
that is needed for material that is required purchased or restock the
productions inventory
OBJECTIVES OF MRP
To organize To sustain the lowest To ensure that raw
manufacturing, delivery raw materials and materials are readily
schedules, and finished product levels in available for production
purchasing activities. store. and products are readily
available for delivery to
consumers.
STEPS AND PROCESSES
Step 1 Step 2 Step 3 Step 4

Checking inventory
Identifying demands Identifying issues and
Scheduling
and allocating
and the requirements making
production
resources
to meet demand recommendations
Bill of Materials
Demand (BOM)
Sales forecasts and List of the materials needed to
customer orders make a product, as well as
instructions on how to
assemble it together
MRP INPUTS Inventory

Master production
schedule (MPS)
A real-time inventory Determines which production
view throughout the components are required and
entire organisation which components must be
purchased
Planned order receipts
Future projected receipt based on the generation
of a planned order that has not yet been firmed
into a scheduled receipt.
MRP
OUTPUTS
Planned order release
Related to the release of planned replenishment
orders by the material planner
Order rescheduling
Emphasises the importance of expediting, de-
expediting, and cancelling open orders, among
other things, in the event of unforeseen
circumstances.
ADVANTAGES OF MRP
Better material Improves customer

Improve internal
planning satisfaction
communication
accurate reduce
act as
estimation customer lead
intermediary
minimize stock- time
between
outs and avoid efficient
departments
overstocking
production
DISADVANTAGES OF MRP
Dependence on Time and cost

accurate input consuming
information requires
fail to maintain consistent
records maintenance
experiencing installation is
issues costly

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SEMINAR 1:

ERP OBJECTIVE OF MRP

The most important

cloud computing platform.

Maintenance of the system is

handled by the provider.

Low upfront costs.

software where you control

Installed in your data centre at

the locations of your choice.

Many companies are modernizing

and upgrading their on-premises

ERP systems to cloud

Also known as two-tier

Supply Chain Management

Collects data and performs fixes issues as and when they

analysis that can provide happen.

Can monitor demand, supply,

transactions. maintaining a warehouse’s

Tracking features that can

reduce manual inventory control.

Form project team. Work out Prepare the entire

Identify current issues configurations for new system for deployment.

and solutions. system. Define roles. Customizations

Construct project Document standard available. Develop

procedures. training. Data should be

the project's version. Employees should may be needed.

HIGH COST TRAINING HIGH

MRP works as decision tool-which the

production planning and inventory

management system used to manage logistics

processes and designed to assist production

managers in scheduling and placing order for

items of dependent demand to make a

WHAT IS NEEDED HOW MUCH IS NEEDED WHEN IT IS NEEDED

that is needed for material that is required purchased or restock the

To organize To sustain the lowest To ensure that raw

manufacturing, delivery raw materials and materials are readily

schedules, and finished product levels in available for production

purchasing activities. store. and products are readily

available for delivery to

Step 1 Step 2 Step 3 Step 4

MRP INPUTS Inventory

of a planned order that has not yet been firmed

into a scheduled receipt.

orders by the material planner

expediting, and cancelling open orders, among

other things, in the event of unforeseen

Better material Improves customer

Dependence on Time and cost

fail to maintain consistent

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