Enterprise resource

planning - DEFINITION
An Enterprise resource planning
system is a fully integrated business
management system covering
functional areas of an enterprise like
Logistics, Production, Finance,
Accounting and Human Resources etc
It organizes and integrates operation
processes and information flows to
make optimum use of resources.
 ERP Characteristics :
1. Flexibility : An ERP system should be
flexible to respond to the changing needs
of an enterprise.
2. Best Business Practices : It must have a
collection of the best business processes
applicable worldwide.
3. Comprehensive : It should be able to
support variety of organizational
functions and must be suitable for a wide
range of business organizations.
4. Beyond The Company : It should not
be confined to the organizational
boundaries, rather support the on-line
connectivity to the other business
entities of the organization.
5. Modular & Open :any module can be
interfaced or detached whenever
required without affecting the other
modules.
 FEATURES OF ERP:
1. ERP provides multi-functions
2. Functions are effectively integrated and
information is immediately updated upon
entry of any information.
3. Has end to end Supply Chain Management
4. ERP facilitates company-wide Integrated
Information System covering all functional
areas.
5. ERP performs core activities and increases
customer service, thereby augmenting the
corporate image.
6. ERP provides complete integration of
systems not only across departments but
also across companies under the same
management.
7. ERP is the solution for better project
management.
8. ERP allows automatic introduction of the
latest technologies
9. ERP eliminates most business problems
10.ERP provides intelligent business tools
 Advantages OF ERP
1. Increased control of invoicing and payment
processing
2. Reduce paper documents
3. Improves timeliness of information
4. Greater accuracy of information
5. Faster response and follow-up on customers
6. More efficient cash collection
7. Better monitoring and quicker resolution of queries
8. Helps to achieve competitive advantage by
improving its business process
9. Provides a unified customer database usable by all
applications
 Disadvantages of ERP
Systems
The scope of customization is limited in several
circumstances
The present business processes have to be rethought to
make them synchronize with the ERP
ERP systems can be extremely expensive to implement
Training
Integration
Data analysis and conversion
There could be lack of continuous technical support
ERP systems may be too rigid for specific organizations
that are either new or want to move in a new direction in
the near future
Takes time to implement
Security issues
 WHY COMPANIES
UNDERTAKE ERP:
1. Standardized and speed up
Manufacturing processes
2. Standardized HR information
3. Reduce Inventory
4. Integrate Customer order information
5. Integrate Financial Information
 ERP Modules

Finance module
Human resources Module
Production Module
Purchasing Module
Inventory Module
Sales and Marketing Module
ERP modules and functions
Some ERP packages
 ERP Implementation
Methodology
1
Some ERP packages
An Advertisement of ERP
software of SAP
Some other ERP Provides
are: