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RESOURCE
PLANNING (ERP)
Enterprise resource
planning (ERP)
Enterprise resource planning (ERP) is an
integrated computer-based system used to manage
internal and external resources including tangible
assets, financial resources, materials, and human
resources.
Enterprise resource
planning (ERP)
It is a software architecture
purpose is to facilitate the flow of information between all
business functions inside the boundaries of the organization
manage the connections to outside stakeholders.
Built on a centralized database and normally utilizing a
common computing platform,
ERP systems consolidate all business operations into a
uniform and enterprise wide system environment.
ERP system can either reside on a centralized
server
distributed across modular hardware and software
units that provide "services" and communicate on
a local area network.
Origin/history
MRP (Material Requirements Planning
list
Prepare Design document which specifies how the system is going to
work
Prepare test scripts to be followed on system testing
Effectiveness assessment
Package Evaluation
Project Planning
Going Live
Post – implementation
Phase
ERP implementation Life Cycle
Pre evaluation screening
Decision for perfect package
Cost
Project planning
Designs the implementation process.
Delivery and Cycle time reduction Minimizes retrieving and reporting delays
Time savings, improved control by
enterprise-wide analysis of organizational
Cost reduction decisions.
Changes in business processes easy to adapt
and restructure.
Easy adaptability
Advantage of ERP Systems
Improved scalability Structured and modular design
with "add-ons"
Improved maintenance
Vendor supported long term
contract as part of the system
procurement.
Global Outreach
Extended modules such as CRM
and SCM
E-Commerce, E-Business
Internet Commerce, Collaborative culture.
Disadvantages of ERP Systems
Disadvantages How to overcome
Minimize sensitive issues, internal politics and
Time consuming raise general consensus.