A Comprehensive Report on

ERP

Aneek Choudhury (1MS02ME014)

Anirudh Dhawan (1MS02ME015)
Ankit Anand (1MS02ME016)
Arjun C (1MS02ME019)
What is ERP?
 E = Enterprise
 R = Resource
 P = Planning
What is ERP?
 Attempts to integrate all departments and
functions across a company onto a single
computer system
 Set of applications that help manage and
automate a business
 Incorporates all of the elements of a
business into a unified whole that operates
more effectively and efficiently in today’s
competitive economy.
ERP Architechture
Components of ERP
 Client/Server System
 Enterprise-wide Databases
 Applications/Modules
 WWW/ERP
A Simple Example of ERP Flow
Payroll
Order

Sales Commission
Statistics
Customer
Inventory?
Pick Up
Customer
Billing
Pays
Order Make more
Parts Financial
Reports
History and Evolution of ERP
 1960’s – Inventory Control
 1970’s – MRP
 1980’s – MRP II
 1990’s – ERP
Evolution of ERP BOM
PROCESSOR

MRP

MRP II

ERP
ERP Implementation Lifecycle
The different phases of the ERP implementation are:
 Pre-evaluation Screening
 Package Evaluation
 Project Planning Phase
 Gap Analysis
 Reengineering
 Configuration
 Implementation Team Training
 Testing
 Going Live
 End-user Training
 Post-implementation
 PRE-SELECTION
SCREENING
GO AHEAD

PACKAGE EVALUATION

ERP VENDORS
COMPANY MANAGEMENT PROJECT PLANNING

GAP ANALYSIS RE-ENGINEERING CONFIGURATION

IMPLEMENTATION TEAM
TESTING END-USER TRAINING
TRAINING

GOING LIVE

POST-IMPLEMENTATION
PHASE
Benefits of ERP
 Access to accurate and timely information
 Workflow, Efficiency, and Reliance on paper
 Tightens, controls and automates e-mail
alerts
 User-friendly Web-based interfaces
 Streamlines processes and eases adoption
of best business practices
 Foundation for new systems and integrates
existing systems
Benefits of ERP
Industry wise advantages
 Manufacturing Sector ……Speeding up the
whole process.
 Distribution and retail Stores …… Accessing
the status of the goods
 Transport Sector …… Transmit commodities
through online transactions.
 Project Service industry …… Fastens the
compilation of reports.
Benefits of ERP
Advantages in a corporate entity
 The accounts department personnel can act independently.
 Ensures quicker processing of information and reduces the burden of
paperwork.
 Serving the customers efficiently by way of prompt response and follow
up.
 Disposing queries immediately and facilitating the payments
from customers with ease and well ahead of the stipulated
deadline.
 It helps in having a say over your competitor and adapting to the
whims and fancies of the market and business fluctuations.
 The database not only becomes user friendly but also helps to do away
with unwanted ambiguity.
 ERP is suitable for global operations as it is the perfect
commercial and scientific epitome of the verse Think Local. Act
Global.
 ERP Capabilities Expected
70%
Improve Quality/Visibility of Data 70%

Integrate Business Processes or Systems 37%

Improve Business Processes 37%

Standardize Info Systems/Platform 31%

Companies expect
Improve Customer Responsiveness 29% that implementing
Achieve Year 2000 Compliance 25% ERP will improve
the quality and
Reduce Cost or Improve Productivity 24%
visibility of data
Support Supply/Demand Chain Processes 20%

Support Globalization 17%

Construct Technology Infrastructure 15%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Deloitte Consulting % Respondents

 ERP Targeted Tangible Benefits
Personnel Reductions 44%

Inventory Reductions 42%

IT Cost Reduction 27%

Productivity Improvements 23%

Order Management/Cycle Time 19%

Cash Management 16%

Revenue/Profit 15% The main

anticipated benefit
Procurement 12% of ERP: cost
Financial Close Cycle 10% reduction

Maintenance 8%

Deloitte Consulting 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
% Respondents
Disadvantages of ERP
 Voluminous and exorbitant investment of
time and money
 It is alarming to note the time taken to
implement the system in the organization
 Information can be misused
 Customization of ERP Softwares to suit
Indian taxes and duty structures
 ERP softwares are standard packages and
need to be customized to suit specific
business processes or vice-versa
Costs of ERP
ERP Softwares
 SAP
 BAAN
 Oracle
 PeopleSoft
 Fourth Shift
 JD Edwards Enterprise One
 24SevenOffice
 BPCS
 Microsoft Dynamics
 PROMIS MES
 SYSPRO
 Tally E
 Compiere
 GNU Enterprise
 Tiny ERP
SAP
 Founded in 1972
 Based in Walldorf, Germany
 Has installations in more than 107
countries
 Two versions of ERP package: R/2
(mainframe) and R/3 (client/server)
SAP Advantage
 Distributes applications and computing
capabilities almost at will across multiple
levels
 Takes advantage of the strengths of
different hardware and software
components
 The number of workstations included with
R/3 in the client/server solution is
determined solely by the particular needs
 This scalability ensures that R/3 can always
grow with your requirements
SAP Slide 1
SAP Slide 2
BAAN
 Founded in the Netherlands in 1978 by brothers, Jan
and Paul Baan
 Has dual headquarters in Barneveld, The Netherlands
and Reston, Virginia, United States of America
 Since 1995, the Company has significantly expanded
its sales and service presence in North America, Latin
America, Europe and Asia
 The company's blue chip customer base includes
industry leaders such as Boeing, Philips, Mercedes
Benz, Nortel, Fujitsu Network Communications and
Motorola
ERP Benefits
 Inventory Visibility

 Information and tracking of pending orders

 Information Transparency across the

organisation

 Integrated system
Perceived Benefits
 Manufacturing
 Order specific routing (traveler card)
 WIP tracking on shop floor
 Development and prototype tracking
(Process & Costs)
 Purchase
 Vendor selection
 Supplier order tracking
 Order and pricing history
Perceived Benefits
 Sales
 Cost estimation & simulation
 Sales price calculation
 Warehousing
 Lot Control
 Inventory visibility
 Inventory Reporting
 Planned Inventory transactions
 Quality
 Inspection control in system
 Inspection history
 Data for detailed analysis
 Vendor Rating
Conclusion
 ERP is recommended in an organization not
only because the advantages outnumber
the disadvantages but also by keeping in
mind the ways to overcome the
disadvantages
 An organization has to correctly weigh the
advantages and disadvantages of ERP
before going for them