ERP- ENTERPRISE

RESOURCE PLANNING
Made by – Shravana Chakravarty (1876130)
Shreya Das (1876132)
Syed Armaan Ali (1876158)
Sanchayta Pati (1876122)
Bhawana Gupta (1876187)
 WHAT IS ERP?
 ENTERPRISE RESOURCE PLANNING(ERP) is
a cross functional enterprise system driven by
an integrated suite of software module that
supports the basic internal business processes
of a company
 WHAT IS ERP?
 The practice of consolidating an enterprise's
planning, manufacturing, sales and marketing
efforts Into one management system. It
Combines all databases across departments
into a single database that can be accessed by
all employees. ERP automates the tasks
involved in performing a business process.
 Typical Business Process:
 A typical enterprise has many Departments/
Business units(BU),These Departments/ BU
continuously communicate and exchange data
with each other .The success of any
organization lie's in effective communication
and data exchange within the
Departments ,BU as well as associated third
party such as Vendors, Outsourcers and
Customers . Also known as Decentralized
System.
Typical Business Decentralised System
 Problems with Decentralized System
 Numerous disparate information system are
developed Individually over the time.
 Integrating the data becomes time and money
consuming.
 Inconsistencies and duplication of data High
inventory material and human resource cost
 Centralized System:
 Data is maintained at a central location and is
shared with various Departments.
 Departments have access information data of
the other Departments /BU .
Business with centralized System
 Benefits of Centralized System
 Eliminates the duplicates discontinuity and
redundancy in data.
 Provides information across departments in real
time.
 Provides control over various business processes.
 Increased Productivity better inventory
management, promotes quality reduced material
cost boosts productional efficiency.
 Better Customers interaction, increased
throughput improves customer service.
 ERP Components – Financial
Management
 Financial Management At the core of ERP are the financial
modules, including general ledger, accounts receivable ,
accounts payable and fixed asset management. If your
organization is considering the move to an ERP system to
support expansion into global markets make sure that
multiple currencies and languages are supported as well
as regulatory compliance in the US and in foreign
countries . Other functionality in the financial
management modules will include budget cash-flow
expense and tax reporting. The evaluation team should
focus on areas that are most important to support the
strategic plans for your organization.
ERP Components- Business Intelligence
 Business Intelligence Business Intelligence (BI)
has become a standard component of most ERP
packages. general, Bl tools allow users to share
and analyse the data collected across the
enterprise and centralized in the ERP database.
BI can come in the form of dashboards,
automated reporting and analysis tools used to
monitor the organizational business
performance. BI supports informed decision
making by everyone from executives to line
managers and accountants.
 ERP Components – Supply Chain
Management
 Supply Chain Management 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.
Sub modules in SCM often include production
scheduling demand management,distribution
management, inventory management,
warehouse management, procurement and order
management
 ERP Components- Human Resource
Management
 Human Resource Management Human
resource management ERP modules should
enhance the employee experience - from initial
recruitment to time tracking. A Sub modules
can include payroll, performance management,
time tracking, benefits, compensation and
workforce planning. Self-service tools that
allow managers and employees to enter time
and attendance, choose benefits and manage
PTO are available in many ERP solutions.
Components of ERP
 ERP Components- Manufacturing
Operations
 Manufacturing Operations- Manufacturing modules make
manufacturing operations more efficient through product
configuration, job costing and bill of materials
management.
 ERP manufacturing modules often include Capacity
Requirements Planning, Material Requirements Planning
forecasting, Master Production Scheduling, work-order
management and shop floor control .
 Integration Key to the value of an ERP package is the
integration between modules, so that all of the core
business functions are connected. Information should flow
across the organization so that Bl reports on organization-
wide results
 ERP Evolution
 Inventory Management & Control-1960's Inventory Management and control is the
combination of information technology and business processes of maintaining the
appropriate level of stock in a warehouse .The activities of inventory management
include identifying inventory requirements, setting targets, providing replenishment
techniques and options, monitoring item usages, reconciling the inventory balances,
and reporting inventory status . Material Requirement Planning (MRP)-1970's Material
Requirement Planning MRP software applications for scheduling production process
MRP general schedule for the operations and raw material purchases based on the
production requirements finished goods the structure of the production system, the
current inventory levels and the lot ng procedure for each operation .Manufacturing
Requirements Planning (MRP II)-1980's Manufacturing Requirements Planning MRP tes
software applications for coordinating manufacturing processes from product planning
pons purchasing Inventory control to product distribution. Enterprise Resource
Planning (ERP)-1990's Enterprise Resource Planning or ERP uses multi-module
application software for improving the performance of the internal business processes.
ERP systems often integrates business activities across functional departments, from
product planning, parts purchasing, inventory control, product distribution, fulfillment,
to order tracking. ERP software systems may include application modules for
supporting marketing, finance, accounting and human resources .
Evolution of ERP
 Benefits of ERP
 Improving Integration, flexibility.
 Fewer errors.
 Improved speed and efficiency .
 More complete access to Information .
 Lower total costs in the complete supply chain.
 Shorten throughput times.
 Sustained involvement and commitment of the top management.
 Reduce stock to a minimum.
 Enlarge product assortment.
 Improve product quality.
 Provide more reliable delivery dates and higher service to the
customer.
 Efficiently coordinate global demand, supply and production.
Costs involved with ERP
 Causes of hindrances in ERP
 Business managers and IT professionals
underestimate the complexity of the planning,
development and training needed.
 Failure to involve affected employees in the
planning and development phases.
 Trying to do too much too fast in the
conversion process.
 Failure to do enough data conversion and
testing
 Conclusion
 The benefits of a properly selected and
implemented ERP system can be significant.
An average, 25 to 30% reduction on inventory
costs; 25% reduction on raw material costs.
Lead-time for customers, production time, and
production costs can be reduced. But cost of
implementing can be quite high and risks are
great.
Thank you