ENTERPRISE RESOURCE

PLANNING (ERP)

BY:-
AMIT KUMAR BINDAL
ASSOCIATE PROFESSOR

M M U MULLANA
 What is Enterprise Resource Planning (ERP)?
 How ERP systems are implemented within
companies?
 Companies before ERP Systems
 EMU Real Case Example

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 Companies after ERP Systems

 EMU Real Case Example

 Sap Program Structure in Printing Process

 E.M.U. ERP Systems

 ERP Software Companies
 Istanbul Fast Ferries (IDO) Uses SAP
 How Engineers benefits from ERP systems?
 SAP shareholders
 COMPUTER INTEGRATED
MANUFACTURING - CIM

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 "CIM is the integration of total
manufacturing enterprise by using
integrated systems and data
communication coupled with new
managerial philosophies that improve
organizational and personnel efficiency."
SUBSYSTEMS OF CIM OPERATION:

 CAD/CAM (Computer-aided design/Computer-aided

manufacturing)

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 ERP (Enterprise resource planning)
 CAPP, (Computer-aided process planning)
 CNC (computer numerical control) machine tools
 DNC, direct numerical control machine tools
 FMS, flexible machining systems
 ASRS, automated storage and retrieval systems
 AGV, automated guided vehicles
 Robotics
 Automated conveyance systems
 Computerized scheduling and production control
 CAQ (Computer-aided quality assurance)
 A business system integrated by a common database.
 Lean Manufacturing
WHAT IS ENTERPRISE RESOURCE
PLANNING (ERP)?
 ERP is an enterprise-wide information system designed
to coordinate all the

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 resources,
 information,
 activities needed
to complete business processes such as;
order fulfillment
billing.
HOW ERP SYSTEMS WORKS?
 A typical ERP system would use multiple
component of computer software and hardware to

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achieve integration

 ERP delivers a single database that contains all

data for the software module
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SOLUTIONS OF ERP
 Financial Management
 Inventory Management

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 Purchasing

 Sales Management

 Production Planning

 Advanced Visual Planning

 Manufacturing Management
HOW ERP SYSTEMS ARE IMPLEMENTED
WITHIN COMPANIES?

 ERP Software Companies start analysing the prospective

company(s), identifing their individual needs.

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 Setup of ERP systems
 For Mid-size companies 5-12 months
 Large Companies 6-18 months
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COMPANIES BEFORE ERP SYSTEMS
EXAMPLE OF MMU
 Comp. Engineering Faculty wants to buy a new
Printer.

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 For this reason HOD / Secretary gives a purchasing
order by filling purchasing order forms.
 Next slide shows how this purchasing request
process flow was working before ERP systems.
NEW PRINTER PURCHASING PROCESS
1. Purchase order form for a new printer
2. Head of Department Confirmation- Faculty Head
3. Purchase order document sent to M.M.U. Account Office

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4. Account Office Secretary sents the purchase order to the Responsibles
5. Purchase order- Responsible personal Confirmation
6. Purchasing department- Manager Confirmation
7. Transfer to Finance Department Secretary for processing
8. Finance Department Responsible’s Confirmation
9. Transfer to Rector’s Office
10. Rector’s Secretary- Confirmation
11. Confirmation Transfer, to Purchase Department Secretary
12. Purchase Responsible personal commends with Purchase:
 Example: Before ERP Systems

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Transfer to
Accounting Office

Secretary’s New printer

application
COMPANIES AFTER ERP SYSTEMS

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EXAMPLE M.M.U. COE FACULTY
 Industrial Engineering Faculty wants to buy a new
HP Printer.

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 For this reason HOD / Secretary gives a purchasing
order with using M.M.U. Online ERP systems.
 Next slide shows the purchasing order process flow
with ERP Systems.
M.M.U. AFTER ERP SYSTEMS
REQUEST OF NEW SAP SYSTEM ONLINE
SECRETARY CONFIRMATION
HP PRINTER HEAD OF DEPARTMENT

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SAP SYSTEM ONLINE
SAP SYSTEM ONLINE FINANCIAL
CONFIRMATION PURCHASE
PURCHASEING MANAGER ACCOUNTING
RESPONSIBLE

SAP SYSTEM ONLINE SAP SYSTEM ONLINE

CONFIRMATION CONFIRMATION
FINANCE DEPARTMENT RECTORS OFFICE

PURCHASE
OF NEW SAP SYSTEM ONLINE
HP PRINTER PURCHASE DEPARTMENT
In this real case there the benefits of the
ERP systems

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 Online Data Flow decreases the process time
 Fast & Online Confirmation
 Less Paperwork
 No need for folder storage
 Database Security
 Less Employee needed
 Easy Financial Management
 Better Inventory Management
 ERP SYSTEMS
• 6.00cc SAP
• ORACLE 10.2

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MM MODULE Material Management
FI MODULE Financial Management
CO MODULE Controlling Operations
AA MODULE Asset Accounting
FM MODULE Funds Management
 WHAT IS SAP MM?
SAP MM (MATERIALS MANAGEMENT)
 SAP MM is a module is used for Procurement Handling
and Inventory Management.
 The module has two important master data - material

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and vendor.

 Broadly, the various levels that can be defined for a SAP

MM implementation are:
 Client,
 Company Code,
 Plant,
 Storage Location,
 Purchase Organization.
 MATERIAL MANAGEMENT (MM)
LOGICAL STRUCTURE
 supplier  Distribution

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 vendor  customer
 production
 SAP FICO

FINANCIAL ACCOUNTING (FI) MODULE

The SAP FICO module includes 2 major categories;

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

 Financials (FI)

 Controlling (CO)

FI (Financial Accounting) module includes;

 Accounts payable
 Accounts receivable
 General ledger
CONTROLLING (CO) MODULE
The CO (Controlling) Module has multiple configuration
steps that must be followed for complete implementation
of this module.

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 Cost Center
 Order Management
 Commitment Mgt
 Profit Analysis
 Acty-Based Costing
ERP SOFTWARE COMPANIES
& MARKETSHARES
Software Market Share
SAP 15.6
Peoplesoft 4.9

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SAP; 15,6 Oracle 4.8
Baan 3.0
Peoplesoft;
4,9
CA 3.0
Oracle ; 4,8
JDE 2.2
Baan; 3
Others ; 59 CA; 3 SSA 2.1
JDE; 2,2
GEAC 2.0
SSA; 2,1
GEAC; 2
IBM 1.8
IBM; 1,8 JBA 1.7
JBA; 1,7
Others 59.0
ISTANBUL FAST FERRIES (IDO) USES
SAP SOFTWARE A STUDY

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 ISTANBUL FAST FERRIES (IDO)
• Annually 91 million passanger
• Annually 5,5 million vehicles

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• Dailly 1,200 navigation capacity
• 90 Ships
• 82 Terminals
• 3,200 personel
• 314 Million YTL endorsement
SAP Systems arranges relationship between;

 shipping conditions,
 route determination,
 shipping point,

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 employee conditions,
 fuel supply,
 maintenance

Combine these variables in order to

determine optimal transportation mode and
service levels.
CONTROLLING MODULE (CO)
 IDO passanger can send SMS to IDO
SAP system and get the information

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about shipping route times.
 This process is a service of
Controlling Module.
SAP SYSTEM’s first step
PM Plant Maintanance

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MM MODULE Material Management
CO-CCA MODULE Controlling Operations
FI MODULE Financial Management
• FI-AA MODULE Asset Accounting
• FM MODULE Funds Management

HR-PA Human Resource- Professional

Association
PM - PLANT MAINTENANCE
 Equipment and Technical Objects (PM-EQM)
 Preventive Maintenance ( PM-PRM)

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 Maintenance Order Management (PM-MOM)

 Work Clearance Management (PM-WCM)

 Information System (PM-IS)

 Workflow Scenarios (PM/CS)

SAP SYSTEM 2nd step

TR-CM Data Adjustment in Cash Management

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TR-TM Treasury Management
HR-PD Human Resources Performance Evaluation
CO-PA Profitability Analysis
WF Work Flow
 BENEFITS OF SAP SYSTEM

 Increased efficiency of whole system,

 Prevented from the same procedures repetition,

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 Easy access of any information from the huge databank,
 Easy tracking and control of past transactions,
 Standardization of transactions and information security,
and
 Measurable timing of transactions and delagation.
HOW CAN ENGINEERS BENEFIT FROM
ERP SYSTEMS ?

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USESFUL SAP MODULES FOR ENGINEERS
 MM- Material Management
 Better Procurement Handling

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 Orginized Inventory Management

 Easy Purchase Organization

 Faster Storage Location

 PM – Plant Maintenance
 Maintenance Order Management
 Equipment and Technical Objects Coordination

 Preventive Maintenance

 Workflow Scenarios

 Work Clearance Management

MM Information System

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MM
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MATERIAL MANAGEMENT SYSTEM IS FEED BY THE
INFORMATION THAT COMES FROM;

- PURCHASING INFORMATION SYSTEM AND,

- STOCK CONTROL
Production Finance / Management - ERP
ERP Solutions and software are comprehensive, which
covers almost everything that you need to run effective
manufacturing starting from the employee entry inside the
gate to final product to customer.

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•Handles Customer Complaints
•Production & Quality Control
•Finance
•HR
•Sales & Marketing
•Purchase
•Inventory
•Documentation
•Tax & VAT Management
Production ERP is classified into
following Modules
•Purchase Management ERP
•Sales Management ERP

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•Inventory Management ERP
•Production Management ERP
•Finance & Accounts Management
ERP
•CRM (Customer Management ERP)
SAP Packet Providers

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SAP Packet Providers

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