Enterprise Resource Planning

Overview

 Introduction to ERP

 What makes an ERP?

 Few ideal ERP Systems

 Advantages and Disadvantages of ERP

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 The Current Scenario
• Islands of Information
• Difficult to get timely & accurate information
• Heterogeneous Hardware & Software platforms
& practices
• Poor connectivity between different
organizational locations
• Sticking with obsolete technology
• Resist to change
• Lack of proven man-power to develop integrated
software
Information Islands
 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
 ERP

 Enterprise Resource Planning (ERP) systems integrate (or

attempt to integrate) all data and processes of an
organization into a unified system.

 A typical ERP system will use multiple components of

computer software and hardware to achieve the
integration.

 Today's ERP systems can cover a wide range of functions

and integrate them into one unified database.

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 What makes an ERP

 Integration is the key to an ERP system

 ERP's main goal is to integrate data and processes from

all areas of an organization and unify it for easy access
and work flow.

 Single database to employ different software modules

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 ERP Systems

An ideal ERP system is when a single database is utilized and contains all
data for various software modules. These software modules can include:

Manufacturing: Some of the functions include; engineering, capacity, workflow

management, quality control, bills of material, manufacturing process, etc.

Financials: Accounts payable, accounts receivable, fixed assets, general ledger and
cash management, etc.

Human Resources: Benefits, training, payroll, time and attendance, etc

Supply Chain Management: Inventory, supply chain planning, supplier scheduling,

claim processing, order entry, purchasing, etc.

Projects: Costing, billing, activity management, time and expense, etc.

Customer Relationship Management: sales and marketing, service, commissions,

customer contact, calls center support, etc.

Data Warehouse: Usually this is a module that can be accessed by an organizations

customers, suppliers and employees.

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 ERP Systems

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 Advantages of ERP

 All aspects of an organization can work in harmony.

 A totally integrated system

 The ability to streamline different processes

 The ability to easily share data across various departments

 Improved efficiency and productivity

 Better tracking and forecasting

 Lower costs

 Improved customer service

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 Disadvantages of ERP

 Customization is complex

 The need to re-engineer business processes

 Expensive to purchase and maintain

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