ERP

ENTERPRISE RESOURSE PLANNING

ENTERPRISE RESOURCE PLANNING (ERP):

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

• ERP software integrates all facets of an operation, including development, manufacturing, sales and marketing business. ERP systems is a shared database that supports multiple functions used by different business units.

BENEFITS:• Streamlining processes and workflows with a single

integrated system.

• Reduce redundant data entry and processes and in other hand it shares information across the department.

• Establish uniform processes that are based on recognized best business practices.

• Improved workflow and efficiency.

• Improved customer satisfaction based on on-time delivery, increased quality, shortened tickets delivery time.

• Reduced inventory costs resulting from better planning, tracking and forecasting of requirements.

• Provide a consolidated picture of sales, inventory and receivables to respective people only

• Provide immediate access to enterprise information

• Reduce risk

IMPLEMENTATION TIME OR ERP:

• An ERP system up and running can take approximately six months to 2 years as it took to Pakistan railways. The time frame depends on the size of the business and the complexity of the system to be implemented.

• For a mid-sized business, implementation shouldn’t take much more than six months if everything goes according to plan since Pakistan Railways is a giant organization linked up through out the country so its implementation took a longer time than usual

• Just like implementation costs, implementation time frames vary widely based upon size and sophistication of the organization

ERP PROVIDING A SOLUTION TO PAKISTAN RAILWAYS:

• Integrate financial information

• Portability

• Integrate customer order information

• Reliability:

• Usability:

• Correctness:

• Standardize HR information

• Flexibility:

• Maintainability

• Security

ERP AND BUSINESS:

• ERP fitting in business environment.• ERP software will change their one of important business

process.• Company can change their business process according to

ERP or they can change the ERP software according to their business process.

FAILURES OF ERP:

• Employees of the Pakistan Railways think that the better methods are used in ERP.

• Customization makes the software more unstable and harder to maintain.

• Changing people’s habits will be easier than customization.

HIDDEN COST OF ERP:

• Pakistan Railways underestimate cost while implementing ERP.• Real cost while implementing ERP.• Examples of hidden cost: Customization, Consultation, Data

analyst, and Integration & Testing.

REAL COST OF ERP:

• The original cost of the ERP for implementing ERP.

• The cost which Pakistan Railways cannot underestimate as without these cost ERP cannot be implemented.

• Hardware, Software, Training, Reengineering and Data conversation are the examples of real cost.

CONFIGURING ERP:

• Century Old.

• Manually.

• Culture.

ERP AND E-COMMERCE:

Two Different Departments:

• Customers.

• Business.

• Difficult Aspects.

IMPORTANCE OF ERP:

• Coordinating, Integrating, Quality.

• Information in real Time.

• Communication Gap is Reduced.

• Changes the way of doing Business.