Erp

Contents
Introduction
Why ERP?
Evolution of ERP
Architecture of ERP
Scope of ERP
Benefits and Features of ERP
Advantages and Disadvantages of ERP
Companies implementing ERP
ERP Introduction
PLANNING the RESOURCES of an ENTERPRISE
ERP is a way to integrate the data and processes of an organization into one
single system with modules that support core business areas such as
manufacturing, distribution, financials and human resources.
ERP captures data from historical activity and current operations . That data can
be transformed into information that, along with external information, is useful in
planning and controlling operations, and in developing business strategies.
ERP is evolving into a Multi-Module Application Software Package that

automates inter-organizational business processes across the supply chain
which involve business partners, suppliers, customers, and more.
ERP
What is ERP?
ERP is a solution, which

facilitates company-wide integrated
information systems, covering all

functional areas.
performs core Corporate activities and
increases customer service augmenting Corporate

Image.
BEFORE ERP
Problems:
Delays, Lost Orders, Keying into different computer systems invites errors
AFTER ERP
Why ERP?
For Management to know what is happening
in the company.
One solution for better Management.
For cycle time reduction.
To achieve cost control & low working capital.
To Adopt latest technologies.
To remove the geographical gaps
To satisfy the customers with high expectations.
To be Competitive & for survival.
Prime Reasons for Implementing
ERP
Need for common platform
Process improvement.
Data visibility that could be used to improve operating
decisions.
Operation cost reductions.
Increased customer responsiveness.
Improved strategic decision making.
Personal Improvement.
Evolution of ERP
1960s - Systems Just for Inventory Control
1970s - MRP Material Requirement Planning

(Inventory with material planning & procurement)
1980s - MRP II Manufacturing Resources Planning

(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990s - ERP Enterprise Resource Planning

(Covering all the activities of an Enterprise)
2000 onwards ERP II Collaborative Commerce

(Extending ERP to external business entities)
ERP TODAY
Todays focus seem more to be external as organizations look
for ways to support and improve relationships and interactions
with customers, suppliers, partners and other stakeholders.
The increasing importance of E-Commerce and Globalization of

business makes support of inter-organizational processes more
important.
ERP helps Organization to

improve competitiveness.
increase profits.
prosper in the global economy.
ERPIIThe Future of ERP
ERPII is a business strategy and a set of
collaborative operational and financial processes
internally and beyond the enterprise.
These new business models reflect an increased

business focus on external integration.
There is movement away from Client-Server System

to Internet Based Architecture.
New Technologies in ERPII
E-Commerce (Electronic Commerce)
M-Commerce (Mobile & Wireless Technologies)
C-Commerce (Collaborative Commerce)
Middleware
Enterprise Portal Technologies
Web Services
RFID
Analytical Capabilities (Data Warehousing & Data Mining)
CRM, SCM, SRM
Knowledge Management
Business Intelligence
Companies Implementing
ERP
Maruti
Asian Paints
BSE/NSE
Accenture
Enterprise Systems
Architecture (ESA) Model
15
Architecture categories
Two-tiers architecture
Three-tiers architecture
16
The server handles both application and

database duties.
17
Benefits
Easy-to-use and access to information and services
Low cost in terms of infrastructure requirements
High performance with a limited number of workstations
Drawbacks
Inflexible in terms of adding more clients and software
Requires expensive middleware for integration
Changes or modifications in database affect applications
Limited flexibility in moving program functionality from one
server to another
Data Tier (Data Management)

Business Tier (Business logic of functional modules)
19 Presentation Tier (End-User InterfaceGUI)
Benefits
End-users have access to ERP applications over the Web.
Easily integrate ERP applications with existing systems.
Server-centricNo complex, expensive client software
installation.
Client-centricArchitecture has better response time
because user requests are mostly processed on the
clients computer.
Web-based architectures also allow better system-to-
system integration.
Drawbacks
Client-centric architectures lack security
Scope of ERP
ERP covers a wide range of business and typically it fulfills all
the business demand.
For customizing ERP completely, the users have to make some
changes in the implemented service package. Here is a list of
most of the services where ERP is vastly in use:
Production Department
Supply Chain Management
Financials
Projects
Human Resources
Customer Relationship Management
Data Warehouse.
Suppliers of ERP
Baan
D&B
IBM
JD Edwards
Oracle
Peoplesoft
Platinum
Ramco
SAP
SMI
Software 2000
Components of ERP
Sales and Marketing
Master Scheduling
Material Requirement Planning
Capacity Requirement Planning
Bill of Materials
Purchasing
Shop floor control
Accounts Payable/Receivable
Logistics
Asset Management

Financial Accounting
Features of ERP
ERP not only addresses the current requirements of
the company but also provides the opportunity of
continually improving and refining business
processes.
ERP provides business intelligence tools like
Decision Support Systems (DSS), Executive
Information System (EIS), Reporting, Data Mining
and Early Warning Systems (Robots) for enabling
people to make better decisions and thus improve
their business processes.
ERP bridges the information gap across the
organisation.
ERP eliminates the most of the business problems
Business and Technical Benefits
Automation of business transactions

Flexibility in changing the system catering to newer
business processes.
Coordination across business functions
Coordination across geographical distances resulting in
better Managerial control
Consistent information and interface thus easier to
understand and work in
Single system
Challenges of Enterprise Systems
Difficult to build: Require fundamental changes in the

way the business operates
Technology: Require complex pieces of software and

large investments of time, money, and expertise
Centralized organizational coordination and decision

making: Not the best way for the firms to operate
Advantages
Modular Approach
Integration
Efficiency
Accuracy
Decision Support
Reduction in production and delivery
lead time.
Disadvantages
Expensive
Not very flexible.
Success depends on the skill and experience
of the workforce, including training about how
to make the system work correctly.
Customization of the ERP software is limited.
Risk of implementation failure.
Difficulty integrating with other system.
Implementation of ERP
Project Planning
Business & Operational analysis including Gap analysis
Business Process Reengineering
Installation and configuration
Project team training
Business Requirement mapping
Module configuration
System interfaces
Data conversion
Custom Documentation
End user training
Acceptance testing
Post implementation/Audit support
Cont.
The above steps are grouped and sub-divided into
four major phases namely:
1)detailed discussions
2) Design & Customisation
3) Implementation and
4) Production
Detailed Discussion Phase
Task :- Project initialization, Evaluation of current

processes, business practices, Set-up project
organization
Deliverables:- Accepted norms and Conditions,
Project Organisation chart, Identity work teams
Design and customisation Phase
Task :- Map organisation, Map business process,
Define functions and processes, ERP software
configuration and Build ERP system modifications.
Deliverables :- Organisation structure, Design
specification, Process Flow Diagrams, Function
Model, Configuration recording and system
modification.
Implementation Phase
Task :- Create go-live plan and documentation,
Integrate applications, Test the ERP customisation,
Train users
Deliverables :- Testing environment report,
Customisation Test Report and Implementation report
Production Phase
Production Phase:
Task:- Run Trial Production, Maintain Systems
Deliverables:- Reconciliation reports, Conversion

Plan Execution
CONCLUSION
Enterprise systems are evolving because organizations are

changing.
To know what the future of ERP holds, one must look to the
changing environment of business and changing business needs.
Systems will evolve to meet the business needs. Based on current
trends, these will be increasingly inter-organizational and global.
Inter-organizational systems (ERPII) will pose challenges beyond
the ones faced with ERP because of the need to integrate the
diverse systems of different organizations.
Global supply chains mean inter-organizational systems that span
different cultures and countries. That will bring even greater
challenges due to cultural differences, legal issues, and more.

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Contents

ERP is evolving into a Multi-Module Application Software Package that

ERP is a solution, which

information systems, covering all

increases customer service augmenting Corporate

1970s - MRP Material Requirement Planning

1980s - MRP II Manufacturing Resources Planning

Mid 1990s - ERP Enterprise Resource Planning

2000 onwards ERP II Collaborative Commerce

The increasing importance of E-Commerce and Globalization of

ERP helps Organization to

These new business models reflect an increased

There is movement away from Client-Server System

The server handles both application and

Data Tier (Data Management)

Automation of business transactions

Difficult to build: Require fundamental changes in the

Technology: Require complex pieces of software and

Centralized organizational coordination and decision

Task :- Project initialization, Evaluation of current

Deliverables:- Reconciliation reports, Conversion

Enterprise systems are evolving because organizations are

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