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Nterprise Esource Lanning

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31 views24 pages

Nterprise Esource Lanning

Uploaded by

ufaqnavid29
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Enterprise

Resource
Planning
Presentation - Path

ERP – General Concepts



ERP based applications - Options

Building ERP solutions using Internal Sources

Adapting Tailor-made ERP Solutions

Developing ERP applications using External Sources

Brainstorming on the Options
ERP

General Concepts
ERP – General Concepts

❖ What is ERP?
❖ The Current Scenario
❖ Why ERP?
❖ Definition
❖ Evolution
❖ Expectations
What is ERP?
ERP is a solution, which

facilitates company-wide integrated information


systems, covering all functional areas

performs core Corporate activities and increases


customer service augmenting Corporate Image
Information Islands

Prof Rajendra D Kumbhar


B
Reasons for growth of ERP Market
• Enables improved business performance.
Viz. Cycle time & inventory reduction, order fulfillment
• Support business growth requirement
New product/product lines, new customers
• Provide flexible, integrated, real time decision support
• Eliminate limitations in legacy systems
• Take advantage of untapped mid market.
ERP: An Effective Tool For Information Integration

Strategic &
Finance
Operational Planning

Human Resource

Manufacturing

ERP System

Logistic
Material Management
Management

Quality Maintenance
Management Management

Sales &
Distribution
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 - Definition
“Software solution that addresses the
Enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform”
Or
Techniques and concepts for integrated Mgt. of
businesses as whole from the viewpoint of the
effective use of management resources to improve
the efficiency of enterprise management.
Evolution of ERP

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 Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000 onwards – E-ERP – Collaborative Commerce
(Extending ERP to external business entities)
ERP – Expectations
Integrating all the functions

Integrating the systems running in all the locations

Transparency of information using a single


data source across the organization

Software must be responsive


Modular
Flexible
Easy to add functionalities
Provide growth path
ERP Advantages/Benefits
Direct benefits
• Business integration
• Flexibility
• Better analysis and planning capabilities
• Use of latest technologies
Indirect benefits
Reduction of lead time On-time shipment
Reduction in cycle time Better customer satisfaction
Improved supp. perfo. Reduction in quality cost
Improved resource utility improved Decision making
ERP Product selection Criteria
Goal:
Functionality
To select the
Most Suitable Software 5 Strategic
Package Solution Requirement
Levels Technology

Vendor

Support

Costs
ERP Implementation- Phases
1. Pre-evaluation Screening
2. Package Evaluation
3. Project Planning Phase
4. Gap Analysis
5. Reengineering
6. Customization
7. Implementation Team Training
8. Testing
9. Going Live
10. End-user Training
11. Post-implementation
Fig. ERP Implementation Life Cycle- Different Phases

Company Management Pre-selection Screening ERP Vendors

Package Evaluation

Project Planning

Implementation Testing End- user


Gap Analysis Reengineering Customization Training
Team Training

Going Live

Post-implementation
Phase
1. Package Evaluation
1. Functional fit with company’s business
2. Degree of integration between the various components of
the ERP system
3. Flexibility
4. Complexity
5. User friendliness
6. Quick implementation
7. Ability to support multi-site planning & control
8. Technology- client-server capability, database independence
9. Security
10. Availability of regular upgrades
11. Amount of customization required
12. Local support infrastructure
13. Total cost- cost of license, training, implementation.
Maintenance, customization & hardware requirement
Why Do Many ERP Implementations Fail?
1. Lack of Top Management Commitment

2. Improper Planning & Budgeting

3. Lack of Training

4. Work Culture of the Organization


ERP Implementation - Key Enablers (APQC American
Productivity & Quality Center Best-Practice Report)

• The organization is prepared for the change.


• The executive leaders are active and visible in their
support.
• The initiative is seen as a business imperative by the
organization.
• The resources are available to conduct the project
completely.
• A good packaged system is used and not customized.
• The user group is trained to use the software before it is
implemented.
ERP Implementation Practices
(APQC Best-Practice Report)

• Project Management
• Organizations link implementation teams to both the technical
(IS) and functional departments.
• They tightly control implementation processes
• They appropriately use consultants throughout the
implementation process
• They manage turnover of key implementation employees
• They have basic business reasons for implementation
• They align implementation with organizational strategies
ERP Implementation Practices
(APQC Best-Practice Report)

•Change Management
• Redesigned jobs call for higher levels of skills and accountability
• Change management is viewed as more than just increased
training and communication
• Enterprise-wide systems drive redesigned changes.
• The executive sponsor is the change agent.
• Resistance from the work force (including management) is the
most significant obstacle.
ERP Implementation Practices
(APQC Best-Practice Report)

• Technology Excellence
• Organizations rely heavily on the ERP package as
the majority of their application configuration.
• Organizations implement ERP packages on time and
within budget
• Organizations centralize support groups within their
IT departments
Critical Success Factors

✓ The firm & optimistic approach of the Management


- on adapting the ERP product driven methodologies
- on customization
- on monetary commitments
✓ The dedicated Team
✓ Good Training
✓ Strict adherence to the Project schedules
✓ Right technical infra-structure
✓ Change Management
Beyond ERP

Supplier
Collaboration

tive Pla
ra n
bo Supply Chain

ni
Management
lla

ng
computer icons
Co

Enterprise
Key Process
Integration
Connectivity
via ERP
Product
Lifecycle Customer
Management Management

Design Consumers
Partners and Channels

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