Erp Basic

ERP ENTERPRISE

RESOURCEPLANNING

Speaker Information

Tamanna Noor LunaSoftware Engineer

ERP System - definitions

ERP stand for Enterprise Resource Planning

E- Enterprise Huge business OrganizationR-Resource - Money

ManpowerMaterial

Machinery Marketing Methods

P-Planning- Effective utilization and optimization of resources

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ERP Definitions

ERP - Enterprise resource planning (ERP) is business management software that allows an organization to use a system of integrated applications to manage the business.

Being Specific ERP systems are large computer systems that integrate application programs in accounting (i.e., accounts receivable), sales (i.e., order booking), manufacturing (i.e., product shipping) and the other functions in the firm. This integration is accomplished. so ERP we have an integration of all the departments and they all use common database.

ERP systems helps to have a better controlling over the different process.As ERP is a integrated systems, it helps to provide the better reporting.

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Evolution Of ERP

1960’s - System just for Inventory Control1970’s - MRP (Material Requirement Planning)1980’s – MRPII (Manufacturing Resource Planning)

Adds financial accounting system1990’s – MRPII

Integrated systems for manufacturing executionMid 1990’s - ERP (Enterprise Resource Planning)

Covering all the activities Often EnterpriseLate 1990’s - ERP

Integrated manufacturing with supply chain21st century – ERPII

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Why implement an ERP System? l ERP systems allows to share the information and communicated

more effectively.l It is a single application integrated software program.l ERP automates customer orders, order fulfillment, shipping and

tracking and so onl It is single database systems, data is added only once and used by

all l To solve problems of legacy systems

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What makes ERP different? l Integrated modulesl Common definitionsl Common databasel Update one module, automatically updates othersl ERP systems reflect a specific way of doing businessl Must look at your value chains, rather than functions

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Before ERP

Problems:Delays, Lost Orders, Keying into different computer systems invite errors

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After ERP

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Advantage of Implementation of an ERP system

l Business Integration l Reduced redundancy in entering datal One common system - less duplication, more efficientl It allow to access, update instantly and saves lot of timel ERP system provides the real time information all needs of the organization

in a single systeml Improved customer service and order fulfillmentl Improved communication with suppliers and customersl It is a single source of systems that can be use through out the

organizationl Reduce inventory.l Improved business performance

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Disadvantages of Implementation of an ERP system

l Systems difficult to usel Limited technical staff l The usage of ERP system can be difficult for users, so appropriate training

is to required to use the ERP software.l ERP systems centralize the data in one place and this can increase the risk

of loss of sensitive information in the event of a security violation.l Not Internet ready.l

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ERP Component

Accounting and Finance ModuleHR & Payroll ModuleMerchandising ModuleManufacturing ComponentSupply Chain ManagementInventory ComponentCRM Component

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Accounting and Finance Module

AgreementsOrganization (order)Purchase/SaleAccountPayment DescriptionTransactionInvoiceTaxReport (Expense, Liabilities, Income, Assets)

HR & Payroll Module

Management InformationEmployee profile(Information)AttendanceSalary

This component maintains a employee database containing information about employees contact information, salary details, attendance, performance evaluation and promotion details. This component helps the management to make use of the employees best talent.

MERCHANDISINGVISUAL MEANING Relating to the sense of sight. MERCHANDISING MEANING Merchandising is a marketing practice in which the brand or image from one product or service is used to sell another.

Manufacturing

Manufacturing shipment Procedure Production info Production statusThis component provides the information needed for the manufacturing process to take place. It contains number of manufacturing methods, so that the organization can choose the best which fits for them

Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow.

Supply Chain Management Component Supply Chain Management (SCM), sometimes referred To as logistics, improves the flow of materials through an organization by managing, planning, scheduling, procurement and fulfillment to maximize customer satisfaction and profitability.

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Inventory/stock Component

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Inventory/stock

OrderInventory (information)ProductwarehouseSupplierShipment StatusPurchase / sale

Report (all information)

CRM Component Involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. Sales and Marketing, Commissions, Service, Customer Contact and Call Center support.

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ERP in Future l Internet – continue to help organizations integrate data and

process across functional departments l Availability of web-based and wireless ERP systemsl Adoption of easy-to-install ERP systems

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Conclusion l ERP systems provide a mechanism for implementing systems where a

high degree of integration between applications is required l ERP is a key backbone application for companies in a fast changing

industry. l The risks in an ERP implementation are usually outweighed by the

benefits.l The Business Case or Value Proposition for implementation must be

outlined l To successfully implement a proper mix of people, processes and

technology should be maintained l ERP is recommended in an organization not only because the

advantages outnumber the disadvantages but also by keeping in mind the ways to overcome the disadvantages. An organization has to correctly weigh the advantages and disadvantages of ERP before going for them.

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THANKS FOR YOUR ATTENTION!!!

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