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Development of ERP Systems
By: Sonalisa Samal
1MV09MCM19
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Introduction Enterprise resource planning (ERP) is an integrated computer-based
system used to manage internal and external resources including tangibleassets, financial resources, materials, and human resources
It is a software architecture whose purpose is to facilitate the flow of
information between all business functions inside the boundaries of theorganization and manage the connections to outside stakeholders.
An ERP system can either reside on a centralized server or be distributedacross modular hardware and software units that provide "services" andcommunicate on a local area network.
ERP system development broadly occurs in two phases: i) System AnalysisPhase and ii) System Design and Development Phase.
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System Analysis
Building a computer based information system needs a careful analysis
and design before implementation.
system analysis can be viewed as the job of an architect, System analysis is
conceptual in nature than programming that involves details.
system analysis is holistic while programming is individualistic
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SYSTEM DESIGN &DEVELOPMENT
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At analysis stage, the activities are generic but at design and
implementation stage they get focused. In general the major systemdevelopment effort is concentrated on design
Since design constitutes much of the development life cycle, computer
support for this activity (through 4GLs and CASE-Computer Aided
Software Engineering tools) is being applied increasingly.
Both in terms of time and effort the first 10-15 % is consumed by
analysis, 50-70 % goes to the design and implementation accounting for
remaining 15-20 %
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Requirement Analysis
The basic requirements of a computerized/information system
would be as follows: Almost error-free and secure operation
Very fast processing
Cost effective with emphasis on low cost
Intensity of implementation i.e. organization wide or unit wide
etc.
Requirement Specification
The requirements are translated into technical tasks by the analyst
that can be programmed and implemented
Demanding and often conflicting technique
A wide variety of techniques
Diagramming techniques mostly used
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Diagramming Techniques
A data-flow diagram (DFD) is a graphical representation of the "flow" of
data through an information system. DFDs can also be used for the
visualization ofdata processing (structured design).
A DFD provides no information about the timing of processes, or aboutwhether processes will operate in sequence or in parallel. It is therefore
quite different from a flowchart.
the system may be decomposed into component sub-systems, and to
identify the transaction data in the data model
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Developing a Data-Flow Diagram
Top-down approach
A context level DFD or Level 0
Decomposed lower-level DFD or Level 1 or High level diagram
Low level diagram or Level 2
Figure Data Flow Diagram
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Feasibility Analysis
The viability of the project
Operational and economic feasibility Technical feasibility
FeasibilityReport
cost-benefit evaluation
overall impact benefits
Time phasing and prioritization
To take up those activities that
are easy to implement
can be implemented relatively fast
benefits the largest portion of users and
are likely to encounter the least resistance
Figure Work Breakdown Structure for
Time phasing and prioritization
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Design and Development Phase
This entails the development of the following
Functional specifications
Data dictionary Input forms and output reports design
Database design
Program design
Detailed Design
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screen print out ofInput forms
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SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
SYSTEM
(Gear
Shop)
Business
Planning
Production
Marketing
Sales and
Service
Design and
Development
Finance
Sanction budget
Intended
capacity
Capacityenhancement
report
Associated
resources
Parts
communization
report
Market
performance
Report
Forecasted
demand report
Daily production report and
component details
Level o DFD (high Level Diagram)
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SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
database
Business
Planning
Componentnumber
Production
Shop
Business
Planning
Record of
available
capacity and
machine
utilization
Finance
Production
details
Intended
capacity
Allocation andscheduling
report
Operation level
details
Cycle time &
capacity details
Gap analysis
report
Associated
resource
requirement
details
Beak up of
processes
Level 1 DFD (Expansion of Level 0 DFD)
Component
level report
Process
production
shopdetails Operation
and m/c s
model
wise
Process
details for
similar
product
Break up of
required and
available m/c s
etc
Machinerequirement
details
Estimated
budget
(A)
(B)
(C)
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SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
Component
number
ProductionBusiness
Planning
Finance
Cycle time
details
No of new m/c s
& spacerequirement
Similar
processes and
m/c s details
Similar processes
and common part
details
Gap analysis
Beak up of processes
Level 2 DFD (Expansion of process C in Level 1 DFD)
Process
details of
available
m/c for
similar
productsDecides if
underutilize
d m/c s can
be used or
not
Decides if
new m/c s
is to be
procured
Associated
resourcesrequirement
Estimated
budget
Record of
available
capacity and
machine
utilization
Decides
the models
to be
focused
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Implementation
It basically constitutes :
Transition planning
Training
Security
Protection
Quality control
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Conclusion
System analysis is the building block for any kind ofInformation System
It is purely holistic in nature and this is what makes it difficult to teach and even further difficult toevaluate.
Various software like CASE etc. are aid for system analysts particularly for exploding, drawing theData flow/Document flow diagrams, specifying processes, prototyping, developing input/outputforms, database design and even in coding by providing linkages to 4GL and databases.
A CASE tool typically generates data dictionary automatically.
Database design involves logical design of databases and physical design of databases.
Logical design amounts to structuring the data store elements of the data flow diagrams
which has been provided in the analysis phase
Physical design includes the actual structuring, actual storage of database into physicalstorage elements, their partition, etc. based on requirement specification as accessed by theanalyst during requirement analysis.
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