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    ERP-Enterprise Resource Planning: Presented By

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    Divya Shritha
    This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as software that integrates all functions and processes of an organization. The reasons for implementing ERP include integrating financial and customer information, standardizing manufacturing processes, and reducing inventory levels. ERP aims to improve business performance by facilitating information sharing across departments. Key considerations for ERP implementation include time, cost, customization needs, and vendor selection between options like SAP, Oracle, and PeopleSoft. Both advantages like process optimization and disadvantages like high expenses are discussed.

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    ERP-Enterprise Resource Planning: Presented By

    Uploaded by

    Divya Shritha
    68 views32 pages
    This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as software that integrates all functions and processes of an organization. The reasons for implementing ERP include integrating financial and customer information, standardizing manufacturing processes, and reducing inventory levels. ERP aims to improve business performance by facilitating information sharing across departments. Key considerations for ERP implementation include time, cost, customization needs, and vendor selection between options like SAP, Oracle, and PeopleSoft. Both advantages like process optimization and disadvantages like high expenses are discussed.

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    This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as software that integrates all functions and processes of an organization. The reasons for implementing ERP include integrating financial and customer information, standardizing manufacturing processes, and reducing inventory levels. ERP aims to improve business performance by facilitating information sharing across departments. Key considerations for ERP implementation include time, cost, customization needs, and vendor selection between options like SAP, Oracle, and PeopleSoft. Both advantages like process optimization and disadvantages like high expenses are discussed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    68 views32 pages

    ERP-Enterprise Resource Planning: Presented By

    Uploaded by

    Divya Shritha
    This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as software that integrates all functions and processes of an organization. The reasons for implementing ERP include integrating financial and customer information, standardizing manufacturing processes, and reducing inventory levels. ERP aims to improve business performance by facilitating information sharing across departments. Key considerations for ERP implementation include time, cost, customization needs, and vendor selection between options like SAP, Oracle, and PeopleSoft. Both advantages like process optimization and disadvantages like high expenses are discussed.

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    Download as ppt, pdf, or txt
    of 32

    ERP- Enterprise Resource Planning

    PRESENTED BY : SHWETA NARAYAN MCA(II) ROLL NO: 600 408

    UNDERSTANDING ERP
    NEED FOR ERP

    REASONS FOR UNDERTAKING ERP


    EFFECT OF ERP TIME AND COST CONSIDERATION FOR ERP COMPARISON WITH R&D OF ERP PACKAGE ERP VENDORS ADVANTAGES AND DISADVANTAGES OF ERP

    Definition Of ERP

    Software solution that addresses all the needs of an enterprise with the process view of an organization to meet the organizational goals and integrate all the functions of the enterprise.

    Integration of Information Systems


    IS messages IS messages

    Manufacturing
    Local

    Head Quarters
    Information

    Marketing/Sales
    Sales,

    purchasing, invoice verification Inventory management Internal sales, shipping and billing Profit/loss Capacity utilization

    Systems: Project Mgmt Inventory Purchasing

    Sales Budget Cash Management

    shipping and billing Purchasing of trading goods Inventory Management Customer service

    EXAMPLE OF ERP

    Evolution of Planning Systems

    Materials Requirement Planning (MRP) Manufacturing Resource Planning ( MRP II) Enterprise Resource Planning ( ERP)
    ERP is an enhancement over these.

    Introduction of ERP provides a chance to have a new look at the working system.

    Why ERP ?

    Customer Service Representative


    Human Resource Sales Group

    ERP

    Finance

    Manufacturing Group

    Manufacturing location

    Finance

    ERP SYSTEM Sales Group Warehouses

    MAJOR REASONS WHY COMPANIES UNDERTAKES ERP

    Integrates Financial Information. Integrates Customer Order Information. Standardize and Speed Up Manufacturing Process

    Reduced Inventory(manufacturing process flows


    smoothly improving the visibility of order fulfillment)

    How can ERP improve a companys Business Performance

    Changes of Customer Information


    Please Accept my new order for 1000 more sets Change customer master data

    Customer Representative

    Increase credit limit

    Launch Workflow

    Schedule customer visit

    Prepare production

    Credit Manager

    Product Manager

    Sales Manager

    HOW LONG WILL AN ERP PROJECT TAKE

    1-3 YEARS ON AN AVERAGE (but in principle this question should not be of much concern and more emphasis should be given on why ERP should be adopted? and how will it improve the business?)

    COST OF ERP
    According to a study by Meta Group:

    Average TCO(total cost of ownership) $15 million Highest TCO Lowest TCO $ 300 million $ 400,000

    Conclusion:ERP is expensive

    EXPECTED PAYBACK
    ERP FOCCUSSES ON OPTIMIZING THE WAY THINGS ARE DONE INTERNALLY,RATHER THAN WITH CUSTOMERS,PARTNERS OR SUPPLIERS.

    TAKES ON AN AVERAGE 8-10 MONTHS TO SHOW BENEFITS.

    MEDIAN ANNUAL SAVINGS FROM NEW ERP SYSTEMS..$ 1.6 million.

    HIDDEN COST OF ERP


    TRAINING

    INTEGRATION AND TESTING


    CUSTOMIZATION DATA CONVERSION DATA ANALYSIS REPLACING YOUR BEST AND BRIGHTEST

    HOW DO COMPANIES ORGANIZE THEIR ERP PROJECTS

    THE BIG BANG-installing a single ERP system


    FRANCHISING STRATEGY -installing independent ERP system SLAM DUNK -installing separate module in ERP system

    Decide Make Or Buy !

    Inhouse Development
    Project Development takes time .
    Process specific to your industry are implemented Documentation may not be present

    ERP package
    Ready made Projects.
    Best Business practices followed

    Documentation is part of system

    Enterprise implementation is difficult as each unit follows different S/W option Latest Developments to be studied as and when they are introduced.

    The package itself is designed as Enterprise Package.

    Constant Updates on Technology and Processes assured

    VARIOUS ERP VENDORS

    Founded in 1972 in Walldorf, Germany Employs a workforce of over 9,000. Offices in over 50 countries. Implemented by more than 9,000 companies worldwide. Leading global provider of client/server business application solutions. Number one vendor of standard business applications software. SAP started out in the manufacturing space, thus their Materials Management / Inventory Management and Financial Management is very strong.

    Implementation takes longer time compared to other ERP products and if you are dealing with project manufacturing or construction its very difficult to be teamed. Less flexible i.e if implemented once its like being cast in concrete. SAPs major products are R/2 - Applications for the mainframe environment R/3 - Applications for open client/server systems.

    Oracle Corp. is the worlds second largest Software Company and the leading supplier of software for enterprise information management. The company offers its database, tools and applications products, along with related consulting, education, and support services, in more than 145 countries around the world. Very strong in Financial Management

    80% of all SAP sites use Oracle as a relational database and hence this is a Win-Win sitiuation for Oracle. Oracle's selling points versus SAP are greater flexibility and affordability.

    Oracles latest product is Oracle Application 11i, which is a E-Business Suit.

    PeopleSoft is a company dedicated to client/server technology and continues to prove its value in enterprise-wide applications that it developed. Peoplesoft developed a human resource management system that automated one of the most laborand timeintensive functions for business. Peoplesoft is more cost-effective solutions compared to others. That is why it can build their market segments with the competitors although the market

    Other vendors:-

    HOW DOES ERP FIT WITH E-COMMERCE

    2 Channels of access into the ERP system 1.For customers. 2.For suppliers and partners. Middle ware software

    Advantages Of ERP

    Advantages Of ERP Package


    Highly Graphics based User Interface.

    Zero Down time/ planned down time. Readymade solutions for most of the Problems. Only Customization required. Integration of all functions ensured. Easy enterprise wide information sharing. Suppliers and Customers can be on-line communication. Knowledge transfer between industries guarantees innovation.

    DISADVANTAGES
    the systems can be very expensive to install and maintain some systems can be difficult to use the system is no better than the weakest link in the chain - a problem in one department or at one of the partners will affect all the other participants withdrawing in between the system is being installed or stepping back after installation is not easy

    Summary
    Optimum utilization of resources Customer satisfaction Seamless integration between Functions Reduced overheads & inventory Timely responsiveness Market share & image enhancement Faster design to manufacturability Keep up with technology changes Only way for integrated systems for a client with multiple locations

    Thank you!!!

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