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‡Introduction of Teacher
‡Introduction of Class
‡Course Outline
‡Method of Teaching
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‡ Name: Sohaib Jamal
‡ Qualification: ACMA, ACA
(Finalist), CIMA-England (Finalist)
‡ ERP Consultant
‡ 5 years working experience
‡ 2 Implementation of Oracle Financial
‡ Currently working on ERP software
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‡ Name of the Student
‡ Any knowledge of ERP ?
‡ If yes, of which ERP
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‡ About ERP
‡ ERP Application
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‡ What is ERP?
‡ How ERP Evolved
‡ Principal ERP Vendors
‡ Advantages and Disadvantages of
ERP
‡ ERP Systems -- Implementation
‡ Critical Success Factors for
Implementation
‡ ERP Systems - The Future
‡ Core Sub System of ERP
‡ ERP and BPR
‡ Example of an ERP System
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‡ packaged business software systems that allow companies
to:
‡ automate and integrate the majority of their business
processes
‡ share common data and practices across the entire
enterprise
‡ produce and access information in real-time environment

|  is a
Software solution that addresses the enterprise needs
taking the process view of organization
to meet the organizational goals
tightly integrating all functions of an enterprise
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ERP (Enterprise Resource Planning) is an industry term for the broad a 
 a supported by multi-module application a 
that help a
manufacturer or other business manage the important parts of its business,
including product planning, parts purchasing, maintaining inventories,
interacting with suppliers, providing customer service, and tracking orders.
ERP can also include application modules for the finance and human
resources aspects of a business. Typically, an aa a a
a
 
  
a aa . The deployment of an ERP
system can involve considerable a aa
 aaaa,  


  

 
a.
Studies show that 70% of Fortune 1000 firms have or will soon install ERP
systems, which will boost the global ERP market from $15 billion now to $50
billion over the next five years. a  
 a


  a. 39% of large companies and
60% of smaller companies are deploying ERP systems.     

 
 
  
 
   
aa ! With the
power ERP has over business, it is important to see who the key vendors of
ERP software are.
M 
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The focus of manufacturing systems  "#$%&a was on Inventory control. Most
of the software packages then were designed to handle inventory based on
traditional inventory concepts.  "#%&a the focus shifted to MRP (Material
Requirement Planning) systems, which translated the Master Schedule, built for
the end items into time-phased net requirements for the sub-assemblies,
components and raw materials planning and procurement.  "#'%&a the
concept of MRP-II (Manufacturing Resources Planning) evolved which was an
extension of MRP to shop floor and Distribution management activities. O 


, MRP-II was further extended to cover areas like Engineering,


Finance, Human Resources, Projects Management etc i.e. the complete gamut of
activities within any business enterprise. Hence, the term ERP (Enterprise
Resource Planning) was coined. In addition to system requirements, ERP
addresses technology aspects like client/server distributed architecture, RDBMS,
object oriented programming etc . ERP Systems - Bandwidth ERP solutions
address broad areas within any business like Manufacturing, Distribution, Finance,
Project Management, Service and Maintenance, Transportation etc. A seamless
integration is essential to provide visibility and consistency across the enterprise.
 
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‡SAP
- R2 System
- R3 System
Baan
Oracle
Peoplesoft

ï  


 , founded in 1972 by 5 former IBM engineers, is the
biggest of the group. SAP¶s software is R/3 and is designed to help organize
manufacturing processes and accounting. SAP also offer modules for logistics and
human resources. Recently, SAP has expanded its product line by including supply
chain management, sales-force automation and data warehousing software.

 ïa 


   
. PeopleSoft made its mark with human
resource software. The company currently targets the service sector with products
designed to help companies handle their intangible costs.

SAP and PeopleSoft have seen continued success due to the fact that they offer
added features to existing customers as well consistently attracting large, brand name
customers.
 
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a!
Oracle has been selling ERP applications designed to work with its databases since
1987. Oracle sells most of its applications to manufactures and consumer goods
companies, making them a direct competitor with SAP.

Baan is a 19-year old Dutch company and sells manufacturing software to companies
wary of SAP. They have recently, like some of the other large vendors, stocked up on
small software suppliers, which has resulted in a wider variety of product offerings.

The last of the major vendors is J. D. Edwards. Although they have been selling
software for decades, they just went public one year ago. Since they launched their
product, One World open-systems ERP package, they have become a viable contender
for a slot among the other big 4 vendors. These companies make up the majority of the
$7 billion, ERP software industry.

ERP refers to enterprise-wide systems that knit together the operations of whole
companies. Generally speaking, they encompass a range of applications that permit
corporations to manage critical business functions. A major corporation might spend
$30 million over several years for a gigantic system that permits managers to monitor
inventory levels, customer service, operating/financial data, and human resources.
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‡ is very expensive to purchase, and even more costly to


customize
‡ requires major changes in the company and its
processes to implement
‡ is such a complex program that many companies
cannot adjust to it
‡ involves an ongoing process for implementation,
which is often never completed
‡ expertise in ERP is limited, with staffing an ongoing
problem
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This necessitates rapid implementations which lead to shortened ROI periods. á 

   to implementation has been to carry out a Business Process Re-engineering exercise
and 

""á
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  before the ERP system implementation. This led to mismatches
between the proposed model and the ERP functionality, the consequence of which was
customizations, extended implementation time frames, higher costs and loss of user confidence.
When a company determines that it would benefit from establishing an ERP system,  



 
 
 


 



 , or even
determining if what they intend to implement will add value where value is needed most.
á
 
 in ensuring a good fit between the organization and the new information
technology that will be used, 
 


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 . For example,

‡ What type of strategies are being used by industry leaders to increase value? What type of
information systems are being used and how?
‡ What type of changes to the industry are being predicted, and how are firms already
successfully managing information technology pertaining for these upcoming changes?
‡ What are the strategic opportunities to be gained by introducing an ERP system and are these
opportunities applicable to the organization in question?
‡ Will new systems need to be developed to meet the needs of the industry or are current software
applications adequate?
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With the completion of these questions pertaining to the use of ERP systems in the industry, the organization
will have an empirical knowledge of what types of systems are the most beneficial to the organization¶s
industry.
á
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   is to conduct a concurrent Business Process Re-engineering during the ERP
implementation and aim to shorten the total implementation time frame. á
 



   :
% , comprehensive Implementation Scenario: Here the focus is more on business improvement than on
technical improvement during the implementation. This approach is suitable when: Improvements in business
processes are required. Customizations are necessary Different alternative strategies need to be evaluated
High level of integration with other systems are required Multiple Sites have to be implemented.
 & compact Implementation Scenario: Here the focus is on technical migration during the
implementation with enhanced business improvements coming at a later stage. This approach is suitable
when; Improvements in business processes are not required immediately Change-minded organization with
firm decision making process Company operating according to common business practices. Single site has to
be implemented.
The worldwide ERP (Enterprise Resource Planning) consulting and integration services market is expected to
expand at a compound annual growth rate (CAGR) of 17%, while the client/server segment will exceed a
CAGR of 25% over the next 5 years. IDC estimates that the U.S. ERP education and training services market
was $770 million in 1997 and will exceed 30% growth over the next 5 years.
ERP application suites are popular in businesses for offering an integrated view and reporting of information
from all areas of an enterprise. These applications also reduce costs, improve business processes as well as
replace legacy, non-year-2000-com pliant custom applications. Training must be conducted as an integral part
of the ERP project, and the earlier the knowledge transfer occurs in the implementation process, the better the
chances for successful ERP adoption.
ë 
 
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An organization decides to take the plunge into the ERP route. A lot has been said about
the competitive advantage provided by ERP. The particular software, say, SAP R/3 is being
touted as the "best of the breed". The consultants, probably from the "big five" will be
hired to bring the "best practices" in the industry. The air is thick with excitement. Right
from the top man or woman all the way up to the field worker is awaiting with bated
breath the arrival of the "black magic" called ERP.
% 

  


 

 The large investments needed
to implement ERP ensure that the decisions are invariably taken at the top management
level. It is fortunate, but not sufficient. This ensures top management involvement, but it is
not tantamount to top management commitment. Here is an example. á

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 &
 
 

' 

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 ( 
 Unlike top management takes a conscious decision to take out
the "best" people for an extended period of time (several months) at the cost of "losing the
best people" during implementation, ERP has little chance of success.
á


 



 ERP is likely to
turn the organization "upside down" unleashing lots of energy from vested interests.
Unless top management is involved directly, it is impossible for any line manager to face
the opposition to such changes.
Another real test of top management commitment is the resistance to over-customization.
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 á
%  
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O represents the next major technology enabler, which allows
rapid supply chain management between multiple operations and trading
partners. Most ERP systems are enhancing their products to become "Internet
Enabled'' so that customers worldwide can have direct to the supplier's ERP
system. ERP systems are building in the 6 ! 
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functionally which provides a mechanism to manage and control the flow of
work by monitoring logistic aspects like workload, capacity, throughout
times, work queue lengths and processing times.

 * the need to go beyond the MRP-II and ERP vendors are busy
adding to their product portfolio. BAAN for example has already introduced
concepts like IRP (Intelligence Resource Planning), MRP-III (Money
Resources Planning).
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‡Sales and Marketing
‡Master Scheduling
‡Material Requirement Planning
‡Bill of Materials
‡Purchasing
‡Shop Floor Control
‡Accounts Payable / Receivable
‡Logistics
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‡ in-depth business process re-engineering (BPR)
study to be done before taking up ERP
‡ BPR brings out deficiencies of the existing
system
‡ BPR attempts to maximize productivity through
re-structuring and re-organizing the human
resource as well as the divisions and departments
in the organization
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Finance &
Accounts

Production & Centralized ERP Database


Shipping
Material Management Software & Servers

Human
Resource
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Human Supply
Front Office Financial Manufacturing
Resource Chain

General Ledger Detail Course will be Taught

Assets Overview

Payable Overview

Receivable Overview
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‡Introduction
‡Set of Books
‡Creating Chart of Account
‡Creating Set of Books
‡Journals
‡Creating Basic Journals
‡Creating Recurring and Formula Journals
‡Budgeting
‡Creating Budget
‡Entering Budget Amount
‡Reviewing and Updating Budget
‡Advance Account Structure and Control
‡Using Balance Account
‡Setting up Financial Controls
‡Reports and Analysis Tools
‡Running Standard Report
‡Creating Basic FSG
‡Creating Optional FSG
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‡Accounting for Foreign and Multiple Currencies


‡Creating Foreign Currency Journals
‡Reporting in Multiple Currencies
‡Multiple Company Accounting
‡CENTRA
‡Assignments



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‡ Class sessions
‡ Class Quizzes
‡ Monthly Test (3)
‡ Final Test (1)

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