enterprise resource planning

ERP ANIKET KULKARNI 1

Enterprise Resource Planning by

Aniket K. Kulkarni

Roll No:- MT14IND003

Industrial Engineering (2014-15)

Mechanical Engg. Department

VNIT Nagpur


What is ERP?

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

• An ERP system is an attempt to integrate all functions across a company to a single computer system that can serve all those functions, specific needs.


EVOLUTION

• 1960’s - Systems Just for Inventory Control• 1970’s - MRP – Material Requirement Planning

(Inventory with material planning & procurement)• 1980’s - MRP II – Manufacturing Resources Planning

(Extended MRP to shop floor & distribution Management.)

• Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise)

• 2000 onwards – ERP II – Collaborative Commerce (Extending ERP to external business entities)


Functionality

An ERP software provides an end to end information management solution for a company. The software used by all the departments of the company to manage the information.


Objective


ERP software integrates all the areas of operations including:• Product planning• Manufacturing processes• Sales • Marketing • Human resource management• Procurement• finance



Modular and Integrated

• An ERP software is typically modular but integrated, meaning it consists of multiple modules that are connected to each other.


• Each module is focused on one area of business processing e.g. finance, human resources etc.


Communication among modules

• A module could share information stored in another modules e.g. List of suppliers etc.

• Also information could flow from one module to the other e.g. Accounting entries etc.


Management Reporting

Since modules are connected, management of a company could run reports on any aspects of business to get the complete view of activities. Reports help executives make strategic decisions.


Licensing

• Modules can be individually purchased best on what best meets the specific needs and technical capabilities of the company.


Types of end users

• Business users: Perform day to day operations e.g. Data entry, operational reports.

• Management or Executives: Run reports and perform inquiries that would help them in decision making.


Implementation

• Term “Implementation” is used to make the ERP software ready to be used by the company.


Implementation process

• Study the business requirements. Find out how the ERP system should be behaving.

• Setup or configure the software such that it starts working as per business requirements.

• Fill the gaps between business requirements and functionality offered by the ERP software


Industry best practices• Software is configured to honour company’s current

business processes. companies do take implementation of ERP as an opportunity to streamline their business processes.


ERP Implementation Project

• A project is initiated to perform ERP configuration.


Roles in a project


Data Base Management System

• ERP connects to Database software at the back end. The data is managed in the database.


DBA

Data base administrator is also known as DBA is the person who looks after the health of the database. He also performs installation of ERP software.


ERP System Administrator

He is the person who looks after the health & security of ERP software.


Operating System & OSA

Both database software and ERP software runs on an operating system like Linux, Unix, or Windows.


Network & Network Administrator

• Network connects all the machines together in a system.


Functional Consultant

Functional consultant gathers the business requirements and performs ERP setup accordingly.


Business Analyst

Business analyst is an expert of business knowledge. He is in touch with business users and verifies that the business requirements are clear to functional consultant.


Customizations

In almost all the cases business requirements are so unique that the ERP system has no built in functionality to handle those requirements. The term “Gap” is used for such requirements.


Interfaces Technical consultants assist in writing the programs that help communicate information back and forth between ERP software and the third party software either within the company or outside it, e.g. suppliers & customers.


Project ManagerProject manager is the person who is managing the entire project. All the team members report to the project manager. Most of the members also report to their bosses as well.








New Developments In ERP

• Availability of web-based and wireless ERP systems.

• Adoption of easy-to-install ERP systems.

• Linkage to other software systems, e.g., supply chain management system, e-commerce, customer relationship management system.


References

• http://www.slideshare.net/amits797/enterprise-resource-planning

• http://en.wikipedia.org/wiki/List_of_ERP_software_packages

• http://www.sap.com/india/pc/bp/erp/software/overview.html

http://www.slideshare.net/amits797/enterprise-resource-planning

http://www.slideshare.net/amits797/enterprise-resource-planning

http://en.wikipedia.org/wiki/List_of_ERP_software_packages

http://en.wikipedia.org/wiki/List_of_ERP_software_packages

http://www.sap.com/india/pc/bp/erp/software/overview.html

http://www.sap.com/india/pc/bp/erp/software/overview.html


Thank you


Questionnaire

1. In what ways ERP is different from MRP & MRP-II ?

2. What are the possible mistakes committed during implementation of an ERP system?

3. What are the different business areas covered by SAP ECC & ORACLE E-BUSINESS SUITE ?

4. What is ERP II ?

5. What are the common goals of ERP and TQM ?

enterprise resource planning

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enterprise resource planning