ENTERPRISE RESOURCE PLANNING

Presented by :-
 Akhilesh
 Amrita
 Dipti
 Mittal
 Naveen
 Wasim
 Why ERP Came?

• ERP has become a powerful tool in hands of

management for effective use of resources
and to improve the efficiency of an enterprise.
 Targets of ERP
• Originally on manufacturing industries,
but now---
 Material Management
 Quality Management
 Logistic Management
 Human Resources
 Finance
 ERP Packages

• SAP AG
• ORACLE
• PEOPLESOFT
 What is Enterprise Resource
Planning (ERP)?
• ERP is an enterprise-wide information system
designed to coordinate all the
– resources,
– information,
– activities needed
to complete business processes such as;
• order fulfillment
• billing.
 Why ERP?
• There are several reasons why a company will consider the
Implementation of a New Backbone Business System:

ERP serves and supports multiple business functions

 ERP systems allow companies to better understand their
business
 ERP enhancing management decision making
 ERP helps in improving profitability of the company
 ERP helps to cope up with new production requirements
 Why ERP?(continued)
Reduce Costs – How will ERP Help?
Enable Reduced Resource Requirements due to:

ERP involves less paper work

 ERP Provides a means to supply chain
management
 ERP provides instant access with latest
information
 Why ERP?(continued)
Reduce Costs – How will ERP Help?
Enable Reduced Resource Requirements due to:

ERP provides rapid transfer of information

ERP reduces cost

On demand reports

 How ERP Systems Works?
• Implementation done by consultants
• Integration of all information
• Integration involves all the processes and
enhancing the process to current business
scenarios
• Hardware and software both constitute
integration
• ERP delivers a SINGLE DATABASE that contains
all data for the software module
 ERP SOLUTIONS

QUALITY
PRODUCTIVITY
CUSTOMER

SATISFACTION
COST MARKET
SHARE

PROFIT
 Architecture Of ERP
Interaction Web Mobile Call Center
e-Mail
Channels Internet Wireless ICM/Telephony

Analytical Marketing Sales Customer Call Center

Application Intelligence Intelligence Intelligence Intelligence
s

Business Marketing Sales eCommerce OSS HR

Application
s

Installed Base Resources Territories Assignment Engine

CRM
Foundation Tasks Notes Calendar 1-to-1 Fulfillment

TCA Escalations Interaction History Universal Work Q

E-Business
Foundation
Common Data and Object Models, Security, Interfaces

Tech Stack E-business Platform

 Business Modules in an ERP
Package

• Finance Module
• Manufacturing Module
• Human Resources Module
• Material Management Module
• Sales and Distribution Module
 Sub-Systems of Finance Module
• Financial Accounting : General Ledger, Account
Receivable, Account Payable, Fixed Assets
Accounting etc.
• Investment Management : Investment Planning,
Budgeting, Depreciation, Forecast, Simulation etc.
• Controlling : Overhead Cost Controlling, Activity
Based Costing, Product Costing, Profitability
Analysis etc.
• Treasury : Cash Management, Treasury
Management, Market Risk Management, Funds
Management etc.
 Sub-Systems of Manufacturing
Module
• Material and Capacity Planning
• Jit/Repetitive Manufacturing
• Engineering Data Management
• Cost Management
• Quality Management
• Configuration Management
• Tooling etc.
 Sub-Systems of Human Resource
Module
• Personal Management : HR Master Data,
Personal Administration, Recruitment
Deployment, Transfer etc.
• Organizational Management : Job Specification,
Personal Cost Planning etc.
• Payroll Accounting : Salary Calculation, Income
Tax Calculation
• Time Management : Staff Planning, Work
Scheduling, Time Recording, Absence Recording
 Sub-Systems of Material
Management Module

• Material Procurement Planning

• Purchasing
• Vendor Evaluation
• Inventory Management
• Material Inspection etc.
 Sub-Systems of Sales and
Distribution Module
• Master Data Management
• Order Management
• Warehouse Management
• Shipping
• Billing
• Pricing
• Sales Support
• Transportation
• Foreign Trade etc.
 Who is using and installing ERP?
America’s most successful companies

• 6 out of the top 10 companies

• 7 of the 10 most profitable companies
• 9 of the 10 companies with highest market value
• 7 of the top 10 pharmaceutical companies
• 7 of the top 10 computer companies
• 7 of the top 10 petroleum companies
• 6 of the top 10 electronics companies
• 8 of the top 10 chemical companies
• 8 of the top 10 food companies
 ERP Software Companies
& Marketshares
Software Market Share
SAP 15.6
PeopleSoft 4.9
SAP; 15,6
Oracle 4.8
Peoplesoft; Baan 3.0
4,9
CA 3.0
Oracle ; 4,8

Baan; 3
JDE 2.2
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
How ERP systems are implemented
within companies?
• ERP Software Companies start analysing
the prospective company(s), identifing
their individual needs.
• Setup of ERP systems
– For Mid-size companies 5-12 months
– Large Companies 6-18 months
Companies before ERP Systems
 Example: Before ERP Systems

Tr
Acco ansfer to
untin
g Offi
ce
ance
n
r t o Fi n
n s fe tme
Tra epar
D Transfer to
Accounting Office
Transf
er t o M an
ager
Companies after ERP Systems
 After ERP Systems

• 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 Evolving Reality

 Erp systems are being implemented in

company of all sizes.
 Erp is generally viewed as a business
solution ,not an it solution.
 Erp simplifies and standardizes systems
across the firm.
 Erp systems significantly improve data
availability and quality.
 Benefits Of ERP

 Operational benefits.

 Business benefits.

 Management benefits
 Operational Benefits

 Reduced processing cycle.

 Access to multidimensional information.
 Effective cost control.
 Increase productivity.
 Business Benefits

 Higher profits and improved ROI.

 Better utilization of resources due to easy

control.

 Better customer services

 Managements Benefits

 Helpful in decision making.

 Secured information.

 Less number of employees.

 Disadvantages

 Expensive to install and run.

 Initially it can be difficult to use.

 Customization in many situations is ltd.