Enterprise Resource Planning
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Enterprise Resource Planning — Presentation Transcript
1. ENTERPRISE RESOURCE PLANNING 2. SUMMARY Meaning History Features & Components Modules Implementation Functioning Benefits & Drawbacks 3. MEANING 4. ENTERPRISE An enterprise is a company or business, often a small one. Enterprise is the activity of managing companies and businesses and starting new ones. Enterprise encompass corporations, small businesses, non-profit institutions, government bodies, and possibly other kinds of organizations. 5. RESOURCE The resources of an organization are the people, equipment, facilities, funding, materials, money, and other things that they have and can use in order to function properly. Also called Corporate Assets, any or all of the sources drawn on by a company for making profit, e.g. personnel, capital, machinery, or stock. 6. PLANNING Planning is the process of deciding in detail how to do something before you actually start to do it. Planning is the (psychological) process of thinking about the activities required to create a desired future on some scale / plan, or integration of it with other plans. A plan is a method of achieving something that you have worked out in detail beforehand or to intend to do something, or make arrangements to do something . 7. ENTERPRISE + RESOURCE + PLANNING Enterprise resource planning (ERP), broad set of activities supported by software-driven technique that is intended to help manufacturer or other business optimise the use, application of resources and manage mission-critical processes (such as workflows, time and expense reporting, collaboration, product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders ). The software incorporates a number of basic applications, such as: budget planning and forecasting, financial consolidation, financial and statutory reporting, profitability analysis, and Balanced scorecard. 8. HISTORY 9. HISTORY Term ERP was introduced by research and analysis firm Gartner in 1990’s. 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 Mgmt.) 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) 10. FEATURES & COMPONENTS 11. FEATURES A collection of software programs that tie together an enterprise’s various functions, such as human resources, finance, marketing and sales. The software also enables an analysis of the data to plan production, forecast sales and analyze quality. ERP systems provide an opportunity to support the integration of health, safety and environmental functions and processes into the business. The term ERP implied systems designed to plan the use of enterprise-wide resources. Its objective is to tightly integrate the functional areas of the organization and to enable seamless information flows across the functional areas. 12. COMPONENTS ERP Software : Module based ERP software. Modules include product planning, parts purchasing, inventory control, product distribution, accounting,
human resource, etc. Business process : Supports and streamline business process at all the three levels (Strategic, Management, Operational) ERP Users : Employees at all the three levels (Strategic, Management, Operational) Platform environment : UNIX, Windows and Linux. 13. MODULES 14. MODULES 15. PROPERTIES OF EACH MODULE Manufacturing : Manufacturing process, starting form the production schedule, engineering, material lists, workflow, process management, cost control, and quality control. Supply Chain Management : Supply chain planning, supplier monitoring, supplier data storage, purchasing function, and so on. Financial : Business issues related to finance - cash flow management, cash flow control, accounts payment and receive, treasury management, etc. 16. PROPERTIES OF EACH MODULE Customer Relationship Management : Customer supports, sales and distribution, after-sale follow up, and so on. One of the most important part of business. If you have a poor support system, people don’t want to buy anything from you anymore. Human Resource : Payroll, workforce planning, schedule & shift planning, time management and the people that working in the enterprises. Human Resource and Payroll System are to be working seamlessly with other financial modules. Project management or Data warehouse 17. IMPLEMENTATION 18. BIG BANG Install all modules in entire organization at once It reduces integration cost using thorough and careful execution of entire ERP system. 19. MODULAR Commonly used methodology Install one ERP module at a time Scope is limited to one department Suitable for companies that do not share common processes across departments Independent modules are installed in each unit and integration at later stage Reduces the risk in installation like complexity issues etc. 20. PROCESS ORIENTATION Suitable for small to mid-sized companies having less complex internal business process Supports one or few critical business process which involve few business units. 21. FUNCTIONING 22. FUNCTIONING 24. FUNCTIONING ERP automates business processes by the use of a common information system environment. This is achieved because ERP is multi-module application framework that functions through an integrated database. ERP solution consists of an integrated database with several functional modules that are built upon best practices. This helps businesses to better manage their resources 25. BENEFITS & DRAWBACKS 26. BENEFITS Transparency and integration of business functions. Stay competitive with technological enhancements. Provide excellent customer services. Gain visibility on day-to-day operations. Simulate what-if scenarios. Forecast future trends. Measure the pulse of a company's financial position. Business process reengineering. 27. DRAWBACKS ERP systems can be extremely complex, expensive and timeconsuming to implement. An ERP project can cost anywhere between Rs. 5 billion or more. This huge cost makes it unaffordable by smaller companies. Difficulty in implementing change. Difficulty integrating with other systems. Risks in using one vendor. Risk of implementation failure. Trained workers are needed.
1. ENTERPRISE RESOURCE PLANNING 2. SUMMARY Meaning History Features & Components Modules Implementation Functioning Benefits & Drawbacks 3. MEANING 4. ENTERPRISE An enterprise is a company or business, often a small one. Enterprise is the activity of managing companies and businesses and starting new ones. Enterprise encompass corporations, small businesses, non-profit institutions, government bodies, and possibly other kinds of organizations. 5. RESOURCE The resources of an organization are the people, equipment, facilities, funding, materials, money, and other things that they have and can use in order to function properly. Also called Corporate Assets, any or all of the sources drawn on by a company for making profit, e.g. personnel, capital, machinery, or stock. 6. PLANNING Planning is the process of deciding in detail how to do something before you actually start to do it. Planning is the (psychological) process of thinking about the activities required to create a desired future on some scale / plan, or integration of it with other plans. A plan is a method of achieving something that you have worked out in detail beforehand or to intend to do something, or make arrangements to do something . 7. ENTERPRISE + RESOURCE + PLANNING Enterprise resource planning (ERP), broad set of activities supported by software-driven technique that is intended to help manufacturer or other business optimise the use, application of resources and manage mission-critical processes (such as workflows, time and expense reporting, collaboration, product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders ). The software incorporates a number of basic applications, such as: budget planning and forecasting, financial consolidation, financial and statutory reporting, profitability analysis, and Balanced scorecard. 8. HISTORY 9. HISTORY Term ERP was introduced by research and analysis firm Gartner in 1990’s. 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 Mgmt.) 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) 10. FEATURES & COMPONENTS 11. FEATURES A collection of software programs that tie together an enterprise’s various functions, such as human resources, finance, marketing and sales. The software also enables an analysis of the data to plan production, forecast sales and analyze quality. ERP systems provide an opportunity to support the integration of health, safety and environmental functions and processes into the business. The term ERP implied systems designed to plan the use of enterprise-wide resources. Its objective is to tightly integrate the functional areas of the organization and to enable seamless information flows across the functional areas. 12. COMPONENTS ERP Software : Module based ERP software. Modules include product planning, parts purchasing, inventory control, product distribution, accounting,
human resource, etc. Business process : Supports and streamline business process at all the three levels (Strategic, Management, Operational) ERP Users : Employees at all the three levels (Strategic, Management, Operational) Platform environment : UNIX, Windows and Linux. 13. MODULES 14. MODULES 15. PROPERTIES OF EACH MODULE Manufacturing : Manufacturing process, starting form the production schedule, engineering, material lists, workflow, process management, cost control, and quality control. Supply Chain Management : Supply chain planning, supplier monitoring, supplier data storage, purchasing function, and so on. Financial : Business issues related to finance - cash flow management, cash flow control, accounts payment and receive, treasury management, etc. 16. PROPERTIES OF EACH MODULE Customer Relationship Management : Customer supports, sales and distribution, after-sale follow up, and so on. One of the most important part of business. If you have a poor support system, people don’t want to buy anything from you anymore. Human Resource : Payroll, workforce planning, schedule & shift planning, time management and the people that working in the enterprises. Human Resource and Payroll System are to be working seamlessly with other financial modules. Project management or Data warehouse 17. IMPLEMENTATION 18. BIG BANG Install all modules in entire organization at once It reduces integration cost using thorough and careful execution of entire ERP system. 19. MODULAR Commonly used methodology Install one ERP module at a time Scope is limited to one department Suitable for companies that do not share common processes across departments Independent modules are installed in each unit and integration at later stage Reduces the risk in installation like complexity issues etc. 20. PROCESS ORIENTATION Suitable for small to mid-sized companies having less complex internal business process Supports one or few critical business process which involve few business units. 21. FUNCTIONING 22. FUNCTIONING 24. FUNCTIONING ERP automates business processes by the use of a common information system environment. This is achieved because ERP is multi-module application framework that functions through an integrated database. ERP solution consists of an integrated database with several functional modules that are built upon best practices. This helps businesses to better manage their resources 25. BENEFITS & DRAWBACKS 26. BENEFITS Transparency and integration of business functions. Stay competitive with technological enhancements. Provide excellent customer services. Gain visibility on day-to-day operations. Simulate what-if scenarios. Forecast future trends. Measure the pulse of a company's financial position. Business process reengineering. 27. DRAWBACKS ERP systems can be extremely complex, expensive and timeconsuming to implement. An ERP project can cost anywhere between Rs. 5 billion or more. This huge cost makes it unaffordable by smaller companies. Difficulty in implementing change. Difficulty integrating with other systems. Risks in using one vendor. Risk of implementation failure. Trained workers are needed.
