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ERP Systems: Nterprise Esource Lanning

This document provides an overview of Enterprise Resource Planning (ERP) systems. It defines ERP as a unified software solution that facilitates integrated information sharing across all departments of a company. The document discusses how ERP systems aim to replace disconnected legacy systems with a single integrated system. It also outlines some key components of ERP systems, common ERP vendors, implementation considerations, advantages and disadvantages.

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66 views24 pages

ERP Systems: Nterprise Esource Lanning

This document provides an overview of Enterprise Resource Planning (ERP) systems. It defines ERP as a unified software solution that facilitates integrated information sharing across all departments of a company. The document discusses how ERP systems aim to replace disconnected legacy systems with a single integrated system. It also outlines some key components of ERP systems, common ERP vendors, implementation considerations, advantages and disadvantages.

Uploaded by

Obaidullah22
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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ERP Systems

Dedicated to
Mr. Ammar Khan
 Enterprise

 Resource
Presented By:
Umair Aziz (BME-1131)
Sajjad Raza
 Planning Muhammad Nasir
Azeem Mansoori
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
Integration is Key to ERP

 ERP is a way to integrate the data and


processes of an organization into one
single system

 ERP systems is the use of a unified


database to store data for the various
system modules.
The Current Scenario
 Islands of Information
 Difficult to get timely & accurate information
 Heterogeneous Hardware & Software
platforms & practices
 Sticking with obsolete technology
Resist to change
 Lack of proven man-power to develop
integrated software
Information Islands
ERP Architecture
ERP Structure
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 satisfy the customers with high
expectations
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 – ERP II – 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 – Options
 OPTION 1 – MAKE [Using Internal resources]

Developing a custom-built ERP package, specific to the


requirements of the organization, with the help of the
in-house IT department

 OPTION 2 – BUY Readymade)

Going for Tailor-made ERP packages available in the market like


SAP, Oracle applications, Baan, PeopleSoft etc.

 OPTION 3 – MAKE [using External resources]

Developing a custom-built ERP package, specific to the


requirements of the organization, with the help of a
software solution provider
ERP Product selection Criteria
.
 Goal:
Functionality
To select the
Most Suitable Software 5 Strategic
Package Solution Requirement
Levels Technology

Vendor

Support

Costs
ERP System Cost Component

 Software 30.2%
 Consulting 24.1%
 Hardware 17.8%
 Implementation 13.5%
Team
 Training 10.9%
 Other 3.3%
Commercial ERP Package
Implemented
 SAP 25%
 ORACLE 14.2%
 BAAN 8.8%
 J.D.Edwards 7.4%
 People Soft 2.5%
 Other Packages 27.3%
The Ideal ERP System
 Manufacturing  :Engineering,
Management, Quality Control, Cost
Management, Manufacturing Process,
Manufacturing Projects
 Supply Chain Management :Inventory,
Order Entry, Purchasing, Supply Chain
Planning etc.
 Financials :General Ledger, Cash
Management, Accounts Payable, Accounts
Receivable, Fixed Assets etc.
. Human Resources :Human Resources,
Payroll, Training, Time & Attendance,
Benefits etc.

 Customer Relationship Management :


Sales and Marketing, Commissions,
Service, Customer Contact and Call
Center support etc.
ERP Vendors
 SAP (SD,MM,HRM,FI/CO,CRM,
SCM,PP,QM,WMS)

 Infor Global Solution :


BAAN (manufacturing, financial, project
estimating and management )

 Oracle : 89 % SMB Customer .


 People soft
(HRM,CRM,Manufacturing,Financial)
JD Edward(HRM)
Comparison :
 SAP :
1)Only 66% SMB Customer Recommendation
2)Average Vendor Support 3.4 for SMB.
3)Deployment time 69% of the SAP were on time.

 Oracle :
1)Only 89% SMB Customer Recommendation
2)Average Vendor Support 4.0 for SMB.
3)Deployment time 78% of the Oracle were on
time.
ERP Selection

 Check whether all function aspect of the


business are dully covered.
 Check whether all the business function
and processes are fully integrated .
 Check whether all latest IT trends are
covered.
ERP Markets

 India
 Malaysia
 Singapore
 South Korea
 Australia
 Europe
 Japan
 Pakistan
ERP Cost
 Based on the ERP survey conducted by
Meta Group in 2002, the average cost of
ERP ownership was $15 millions
ranging from half millions to $300
millions. The average cost per user per
year could be as high as $20,000.
Advantages of ERP Systems
 A totally integrated system
 Only Customization Required
 The ability to easily share data across
various departments in an organization
 Improved efficiency and productivity levels
 Better tracking and forecasting
 Improved customer service
Disadvantages of ERP Systems
 Customization in many situations is
limited
 The need to reengineer business
processes
 ERP systems can be cost prohibitive to
install and run
 Technical support can be shoddy
.

Thank You

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