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Assignment of Management Information System

Submitted To: Mam Ayesha

Submitted By: Majid Khan

Roll No: 9206

Semester: 8th

Department: Business Administration

Date: 20-03-2017

Enterprise resource planning (ERP) is business process management software that

allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services and
human resources.

Features of ERP
Some of the salient features of ERP

1. Accommodating variety: The ERP software solution provides both multi lingual and
multi-currency capabilities. Also multi-mode manufacturing and multi-facility provide the
capability required to compete and succeed globally.

2. Integrated Management Information:

(i) Today business managers use ERP for Flexible reporting tools to extract the
information as and when needed without depending on an information system
department (MIS department).

(ii) Electronic data interchange (EDI) to electronically accept customer information like
purchase orders, schedule amendments, or cash payment and electronically send order
acknowledgement and invoices to customers.

(iii) Imaging to provide the ability to display drawings or specification, ability to- store
original sale orders, purchase orders, and quotations, and contracts.

(iv) Data base creation: Starting with time and attendance reporting, monitoring and
control of machines and post-sales statistics.

Supply chain management:

End-to-end supply chain management is crucial for enterprises having multiple

manufacturing units and distribution networks. Intelligent resource Planning (IRP) is
used to optimize the overall flow of demand and supply data and to build relationship
between various activities to optimally identify the demand supply chain.
Resource management:

The resources such as equipment and human resources should be effectively

managed. To facilitate effective management of equipment resources, on line records of
equipment location and status need to be kept and proper accounting methods need to
be followed in respect of operating costs and maintenance costs.

To manage human resources effectively, functions such as employee database job

descriptions and evaluations, applicant tracking, requisition management, performance
review, cost benefits, career and succession planning, creating alternate organization
structures, taking care of training needs etc. are provided by the ERP software package.

To facilitate total quality management (TQM), the ERP provides for quality planning
required for ISO 9000 certification.

Importance of ERP

It integrates all departments and functions across a company

in a single computer system that is able to serve all those different department's
particular needs. An ERP system also automates business processes by placing them
into a useful format that is standardized and common for the whole organization.

Advantages of ERP

1. Complete visibility into all the important processes, across various departments of
an organization (especially for senior management personnel).

2. Automatic and coherent workflow from one department/function to another, to

ensure a smooth transition and quicker completion of processes. This also ensures
that all the inter-departmental activities are properly tracked and none of them is
missed out.
3. A unified and single reporting system to analyze the statistics/status etc. in real-time,
across all functions/departments.

4. Since same (ERP) software is now used across all departments, individual
departments having to buy and maintain their own software systems is no longer

5. Certain ERP vendors can extend their ERP systems to provide Business
Intelligence functionalities that can give overall insights on business processes and
identify potential areas of problems/improvements.

Disadvantages of ERP

1. The cost of ERP Software, planning, customization, configuration, testing,

implementation, etc. is too high.

2. ERP deployments are highly time-consuming projects may take 1-3 years (or
more) to get completed and fully functional.

3. Too little customization may not integrate the ERP system with the business process
& too much customization may slow down the project and make it difficult to upgrade.

4. The cost savings/payback may not be realized immediately after the ERP
implementation & it is quite difficult to measure the same.

5. The participation of users is very important for successful implementation of ERP

projects hence, exhaustive user training and simple user interface might be critical.
But ERP systems are generally difficult to learn (and use).