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An Approach To ERP Implementation

This document provides an overview of enterprise resource planning (ERP) and considerations for a successful ERP implementation. It discusses the evolution of ERP from inventory control and MRP systems, how ERP integrates various business functions, and benefits like standardized processes, cost savings, and improved decision making. The document also outlines critical success factors like top management support, a process-oriented organization, and dedicated project teams. It emphasizes that ERP implementation requires changes to organizational culture and business processes in addition to software deployment.

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Avijit Roy
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123 views16 pages

An Approach To ERP Implementation

This document provides an overview of enterprise resource planning (ERP) and considerations for a successful ERP implementation. It discusses the evolution of ERP from inventory control and MRP systems, how ERP integrates various business functions, and benefits like standardized processes, cost savings, and improved decision making. The document also outlines critical success factors like top management support, a process-oriented organization, and dedicated project teams. It emphasizes that ERP implementation requires changes to organizational culture and business processes in addition to software deployment.

Uploaded by

Avijit Roy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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An Approach to ERP Implementation

CONFIDENTIALITY STATEMENT

2004-2005 Tata Consultancy Services


The data contained herein shall not be disclosed, duplicated or used in whole or in part for any purpose other than to evaluate the proposal, provided that if a contract is awarded to this offer as a result of, or in connection with, submission of these data, the proposee shall have the right to duplicate, use or disclose the data to the extent provided in the agreement. The restriction does not limit the right to use information contained in the data if it is obtained from another source without restriction

23 April 2012

Agenda
PART I PART II ERP OVER VIEW SAP MODULES OVERVIEW

23 April 2012

PART I - ERP OVER VIEW

23 April 2012

Enterprise Resource Planning (ERP)


The Concept:
Broad set of activities supported by multi-module application software Manages the important parts of an organisations business Better customer orientation Optimum alignment of resources.

23 April 2012

Evolution of ERP
1960s - Inventory Control 1970's - MRP (Material Requirement Planning)

1980's - MRP-II (Manufacturing Resources Planning


extension of MRP to shop floor and Distribution management activities 1990's - ERP (Enterprise Resource Planning) MRP-II further extended to cover areas like Engineering, Finance, Human Resources, Projects Management etc i.e. the entire gamut of activities within any business enterprise

23 April 2012

ERP: A highly integrated application

Enterprise Resource Planning


Human Resources Fixed Assets Accounts Receivable General Ledger Accounts Payable Cost Accounting Project Accounting Project Management Sales & Marketing

Inventory

Multi-National Support

CRP

Purchasing

Multi-Language support

MRP

BOM

Decision Support

MPS

Order Entry

Shop Floor Control Service & Maintenance

Quality Assurance Plant Maintenance

Forecasting

DRP

Warehouse Management

Decision Support

Product Configurator

23 April 2012

Why are Companies around the world going for ERP today?
De-regulation Blurring distinctions between competitors Fierce Competition

Business outlook
Re-examination of business processes to better reflect the needs of customers while simultaneously reducing costs

New products generated


at fast pace

Customer service becomes


critical Selection of specific basket of products for specific customer segments New products

Companies need to

Fundamental re-look reqd.

ERP
ERP offers integrated business information systems that establishes a seamless network, enabling

Are Better informed loyalty linked to service quality perception Cost-conscious Demanding customers

organisations to capitalize on information collected during the normal course of business and to make informed, far-reaching decisions with confidence

23 April 2012

Realised Benefits from ERP

Systems

Processes

Integrated data management Better inventory management Operational Cost savings through productivity gains Flexibility to re-configure systems Flexibility enables faster reactions to changing business

Standardisation of business processes Best practices built-in Industry-specific functionality

ROI
People
Managers get the information to make real-time business decisions

demands

Building a clean base of data

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Benefits of ERP ...


High returns but requires extremely high commitment to change

Role of ERP

The highest ROI will be obtained if ERP is used as a strategic tool


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ERP implementation agenda


The Implementation iceberg

Aspects covered Package implementation Cultural assessment Top management sponsorship Business process change to be adopted Project management End-User training Clear upgrade program Aspects sometimes overlooked

ERP is not merely package implementation. Several other aspects need to be addressed to derive maximum benefits from the package
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Enterprise Applications
Customers

Supply Chain Collaboration

Suppliers

CAM SFA

Advanced Planning &


Scheduling
Procurement

Order
Mgt

ERP Backbone

Warehouse Management

Marketing Automation

MES

The Enterprise

Transportation Management

International Trade Logistics Plant Floor Automation

23 April 2012

Critical Success Factors


High level of sponsor commitment in terms of time. Strong process orientation in the organization. Dedicated project team from the user. Strong support for the changes to occur. Quick decision making process and empowered team.

23 April 2012

Successful ERP Implementation


Planning & Execution must be synergized

Training & Upgrade path must be accounted for Infrastructure must support the deployment strategy
The fact that ERP cannot fulfill all the requirements of the org. must be realized

23 April 2012

Successful ERP Implementation

NINE DISCIPLINES OF PROJECT SUCCESS

Change Management
Business Process Vertical Knowledge Program Management Strategic Intent Infrastructure Support

Geographic Coverage Implementation Tools Software Expertise

23 April 2012

Thank You
23 April 2012

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