ERP

Enterprise Resource
Planning
Presented by:Manoj Singh
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Presentation flow

Erp Basics
Defination
Evolution
Why ERP

Overview of ERP Solutions : Modules of ERP

The ERP application
Why clients buy ERP?
Business process benefits clients expect from an ERP project
Major ERP vendors

SAP R/3 Overview

SAP R/1 , R/2,R/3
SAP R/3 : 3 Tier Architecture

ERP LIFE CYCLE

Explanation of Different phases of ERP
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ERP Defination

Software solution that addresses the

Enterprise needs, taking a process view o
the overall organization to meet the goals
by tightly integrating all functions and
under a common software platform

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)
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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 shun the geographical gaps
To satisfy the customers with high
expectations
To be Competitive & for survival
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Overview of an ERP
solution...?
Manufacturing

Materials

Engineering

Marketing

Planning
and
Execution

Finance

Sales

Modules of ERP

The ERP application

An integrated suite of business applications,
which..
Closely links, monitors, and controls primary
enterprise resources like manpower, machine,
material, methods, market and money.
Enables corporates to readily change their processes
to adapt to the ever changing business scenario.
Provides expertise in industry specific business
processes.

Entails

Parameterization / Configuration
Designing & Customization
Testing and Implementation
Training

Companies before ERP Systems

Why clients buy ERP?

Corporate Initiatives
Strategic initiatives
A requisite capability in a competitive global business

Operational initiative
A foundation for performance and cost improvement
via integration

Organizational initiative
To initiate a major organizational change within the company

Technology
IT is making the transition from a supporting operational
entity to becoming a strategic competitive tool.

Because others are buying it !!!

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Business process benefits clients expect

from an ERP project

Global process/ Product management

Integrated Supply Chain Management
Leverage purchasing and vendor management
Order cycle time/ customer service improvement
Inventory reductions
Reduced information systems costs on an ongoing
basis
Improved business management through
worldwide
integration
and
information
Vendors
Inbound
Manufacturing
Transportation
Distribution
Delivery Customer Consumer
Logistics

Logistics and Distribution

Sales & Customer Service

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Major ERP vendors

SAP R/3
Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier,
but are subsets of Oracle now )
Peoplesoft
JD Edwards

Baan

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SAP R/3 Overview

Systems Applications & Products

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SAP R/1 , R/2

The R/1 system

Developed for ICI Chemical

Released 1972
Focused on Sales & Distribution and Materials Management
Discontinued after release of R/2

The R/2 system

R/2
Basis System

Reorganized as leading mainframe software for large multinational

corporations
No sales effort planned reactive only
4,300 copies worldwide in 1993
Mainframe-based to replace user legacy software;
co-existence and migration strategy underway for R/2 and R/3

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SAP R/3 : 3 Tier

Architecture
The Presentation Layer
Those SAP R/3 software components that
specialize in interacting with end-users
form the Presentation Layer.

The Application Layer

Those SAP R/3 software components that
specialize in processing business
applications form the Application Layer.
The Database Layer
Those SAP R/3 software components that
specialize in the management , storage and
retrieval of data form the Database Layer
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04/19/15

SAP R/3 : 3 Tier Architecture

Presentation Layer
components

Application Layer
components

Database Layer
components

reside in:

reside in:

Presentation servers:

Application servers:

Database servers:

Systems capable of
providing a graphical
interface.

Specialized systems
multiple CPUs and
vast amounts of RAM.

Specialized systems
with fast and large
hard drives.

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reside in:

04/19/15

SAP R/3 : 3 Tier Architecture

Presentation Layer components are installed across many PCs

The Application Layer

components are installed
across one or more highend servers.
The Database Layer
components are installed on
high-end database server.
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04/19/15

ERP LIFE CYCLE

ERP lifecycle is in which highlights
the different stages in
implementation of An ERP

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Different phases of ERP

Pre evaluation Screening

Evaluation Package
Project Planning
GAP analysis
Reengineering
Team training
Testing
Post implementation
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Pre-selection Process
Package Evaluation
Project Planning

Gap Analysis
Implementation
Team Training

Reengineering

Testing

Configuration

End- user Training

Going Live
Post
implementation
Phase

ERP implementation Life Cycle

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Pre evaluation screening

Decision for perfect package
Number of ERP vendors
Screening eliminates the packages that are
not at all suitable for the companys business
processes.
Selection is done on best few package
available.
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Package Evaluation
Package is selected on the basis of
different parameter.
Test and certify the package and also
check the coordination with different
department
Selected package will determine the
success or failure of the project.
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Cont.
Package must be user friendly
Regular up gradation should available.
Cost

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Project planning
Designs the implementation process.
Resources are identified.
Implementation team is selected and task
allocated.
Special arrangement for contegencies.
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Gap analysis
Most crucial phase.
Process through which company can
create a model of where they are standing
now and where they want to go.
Model help the company to cover the
functional gap

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Team Training
Takes place along with the process of
implementation.

Company trains its employees to

implement and later, run the system.
Employee become self sufficient to
implement the software after the vendors
and consultant have left.
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Testing

This phase is performed to find the weak

link so that it can be rectified before its
implementation.

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Going Live
The work is complete, data conversion is
done, databases are up and running, the
configuration is complete & testing is
done.
The system is officially proclaimed.
Once the system is live the old system is
removed
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End User Training

The employee who is going to use the

system are identified and trained.

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Post Implementation
This is the maintenance phase.
Employees who are trained enough to
handle problems those crops up time to
time.
The post implementation will need a
different set of roles and skills than those
with less integrated kind of systems.
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