ERP Systems: Nterprise Esource Lanning

ERP Systems
Dedicated to
Mr. Ammar Khan
 Enterprise
 Resource
Presented By:
Umair Aziz (BME-1131)
Sajjad Raza
 Planning Muhammad Nasir
Azeem Mansoori
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
Integration is Key to ERP
 ERP is a way to integrate the data and

processes of an organization into one
single system
 ERP systems is the use of a unified

database to store data for the various
system modules.
The Current Scenario
 Islands of Information
 Difficult to get timely & accurate information
 Heterogeneous Hardware & Software
platforms & practices
 Sticking with obsolete technology
Resist to change
 Lack of proven man-power to develop
integrated software
Information Islands
ERP Architecture
ERP Structure
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 marry latest technologies
 To satisfy the customers with high
expectations
Evolution of ERP
 1960’s - Systems Just for Inventory Control
 1970’s - MRP – Material Requirement Planning

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

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

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

(Extending ERP to external business entities)
ERP – Expectations
 Integrating all the functions
 Integrating the systems running in all the

locations
 Transparency of information using a single

data source across the organization
 Software must be responsive

○ Modular
○ Flexible
○ Easy to add functionalities
○ Provide growth path
ERP – Options
 OPTION 1 – MAKE [Using Internal resources]
Developing a custom-built ERP package, specific to the

requirements of the organization, with the help of the
in-house IT department
 OPTION 2 – BUY Readymade)
Going for Tailor-made ERP packages available in the market like

SAP, Oracle applications, Baan, PeopleSoft etc.
 OPTION 3 – MAKE [using External resources]
Developing a custom-built ERP package, specific to the

requirements of the organization, with the help of a
software solution provider
ERP Product selection Criteria
.
 Goal:
Functionality
To select the
Most Suitable Software 5 Strategic
Package Solution Requirement
Levels Technology
Vendor
Support
Costs
ERP System Cost Component
 Software 30.2%
 Consulting 24.1%
 Hardware 17.8%
 Implementation 13.5%
Team
 Training 10.9%
 Other 3.3%
Commercial ERP Package
Implemented
 SAP 25%
 ORACLE 14.2%
 BAAN 8.8%
 J.D.Edwards 7.4%
 People Soft 2.5%
 Other Packages 27.3%
The Ideal ERP System
 Manufacturing :Engineering,
Management, Quality Control, Cost
Management, Manufacturing Process,
Manufacturing Projects
 Supply Chain Management :Inventory,
Order Entry, Purchasing, Supply Chain
Planning etc.
 Financials :General Ledger, Cash
Management, Accounts Payable, Accounts
Receivable, Fixed Assets etc.
. Human Resources :Human Resources,
Payroll, Training, Time & Attendance,
Benefits etc.
 Customer Relationship Management :

Sales and Marketing, Commissions,
Service, Customer Contact and Call
Center support etc.
ERP Vendors
 SAP (SD,MM,HRM,FI/CO,CRM,
SCM,PP,QM,WMS)
 Infor Global Solution :

BAAN (manufacturing, financial, project
estimating and management )
 Oracle : 89 % SMB Customer .

 People soft
(HRM,CRM,Manufacturing,Financial)
JD Edward(HRM)
Comparison :
 SAP :
1)Only 66% SMB Customer Recommendation
2)Average Vendor Support 3.4 for SMB.
3)Deployment time 69% of the SAP were on time.
 Oracle :
1)Only 89% SMB Customer Recommendation
2)Average Vendor Support 4.0 for SMB.
3)Deployment time 78% of the Oracle were on
time.
ERP Selection
 Check whether all function aspect of the

business are dully covered.
 Check whether all the business function
and processes are fully integrated .
 Check whether all latest IT trends are
covered.
ERP Markets
 India
 Malaysia
 Singapore
 South Korea
 Australia
 Europe
 Japan
 Pakistan
ERP Cost
 Based on the ERP survey conducted by
Meta Group in 2002, the average cost of
ERP ownership was $15 millions
ranging from half millions to $300
millions. The average cost per user per
year could be as high as $20,000.
Advantages of ERP Systems
 A totally integrated system
 Only Customization Required
 The ability to easily share data across
various departments in an organization
 Improved efficiency and productivity levels
 Better tracking and forecasting
 Improved customer service
Disadvantages of ERP Systems
 Customization in many situations is
limited
 The need to reengineer business
processes
 ERP systems can be cost prohibitive to
install and run
 Technical support can be shoddy
.
Thank You

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ERP Systems

information systems, covering all

increases customer service augmenting

 ERP is a way to integrate the data and

 ERP systems is the use of a unified

 1970’s - MRP – Material Requirement Planning

 1980’s - MRP II – Manufacturing Resources Planning

 Mid 1990’s - ERP – Enterprise Resource Planning

 2000 onwards – ERP II – Collaborative Commerce

 Integrating the systems running in all the

 Transparency of information using a single

 Software must be responsive

Developing a custom-built ERP package, specific to the

 OPTION 2 – BUY Readymade)

Going for Tailor-made ERP packages available in the market like

 OPTION 3 – MAKE [using External resources]

Developing a custom-built ERP package, specific to the

 Customer Relationship Management :

 Infor Global Solution :

 Oracle : 89 % SMB Customer .

 Check whether all function aspect of the

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