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An information system or process integrating all manufacturing and related applications for an entire enterprise. ERP systems permit organizations to manage resources across the enterprise and completely integrate all functional and manufacturing systems.
Evolution of ERP
In the ever growing business environment the following demands are placed on the industry :
o Aggressive Cost control initiatives o Need to analyze costs / revenues on a product or customer basis o Flexibility to respond to changing business requirements o More informed management decision making
o Changes in ways of doing business o Difficulty in getting accurate data, timely information and improper interface of the complex natured business functions
Evolution of ERP Diverse applications and planning systems have been introduced into the business world for crossing these hurdles and for achieving the required growth. They are: Management Information Systems (MIS) Integrated Information Systems (IIS) Executive Information Systems (EIS) Corporate Information Systems (CIS) Enterprise Wide Systems (EWS) Material Resource Planning (MRP) Manufacturing Resource Planning (MRP II) Money Resource Planning (MRP III) OUT OF ABOVE SYSTEMS ERP EVOLVED AS THE LATEST SYSTEM FOR ALL BUSINES SYSTEMS .
From technological aspect. From business perspective. Evolution Of ERP ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II. ERP has evolved from legacy implementation to more flexible tiered client-server architectur . ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes.
better presentation. Greater accuracy of information with detailed content. material reduction in delay in payments by customers. Improves timeliness of information by permitting. Better monitoring and quicker resolution of queries. Improved Cost Control Faster response and follow up on customers More efficient cash collection. Reduce paper documents by providing on-line formats for quickly entering and retrieving information. say. Enables quick response to change in business operations and market conditions. Helps to achieve competitive advantage by improving business process .Benefits of ERP : Increased control of invoicing and payment processing and thereby boosting productivity and eliminating reliance on computer personnel for these operations. posting daily instead of monthly.
Provides solution for problems like Y2K and Single Monitory Unit(SMU) . multiple currencies. Provides a unified customer database usable by all applications. Improves International operations by supporting a variety of tax structures. multiple period accounting and languages Improves information access and management throughout the enterprise. Improves supply-demand linkage with remote locations and branches in different countries. invoicing schemes.
BPR is one of the fundamental steps undertaken prior to ERP implementation. The best way to manage change is to adopt it. Business Process Re-engineering is a pre-requisite for going ahead with a powerful planning tool like ERP. Business process reengineering analyses and suggests the structural changes. This is regarded to be very important because it helps in knowing how the organization should be customized in order to become ERP friendly. BPR is inevitable not only for ERP but as far as any business process is concerned. . Business process reengineering is taken to conduct feasibility study and other restructuring exercises. BPR becomes the first step in the process of ERP implementation. Nothing can be done to prevent change.
Time and again it has been proved that imposing change of any magnitude all on a sudden is not the proper way. Business process reengineering is one scientific study that helps organizations largely to analyse the viability of not only ERP but any other dynamic change. There needs to be a proper method to bring about it. An in depth BPR study has to be done before taking up ERP. BPR ERP are not watertight compartments. Business Process Re-engineering brings out deficiencies of the existing system and attempts to maximize productivity through restructuring and reorganizing the human resources as well as divisions and departments in the organisation .
Business Process Engineering evolves the following Steps: ± Study the current system ± Design and develop new systems ± Define Process. organisation structure and procedure ± Develop customize the software ± Train people ± Implement new system .
automate. attract. It involves using technology to organize. customer service. you need an integrated business environment and automated processes that can consolidate the data from your ERP and CRM systems with your other business applications.ANS 5: A. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments To be and remain competitive. clients and sales prospects. nurture and retain those the company already has.) Customer relationship management (CRM) is a widely-implemented strategy for managing a company s interactions with customers. and technical support. To achieve this. Integrating your ERP with your CRM. and win new clients. The overall goals are to find. quickly and simply. but also those for marketing. today s businesses require the ability to have a full and up-to-date view of their business whenever they need it. entice former clients back into the fold. and reduce the costs of marketing and client service. and synchronize business processes principally sales activities. and integrating ERP and CRM with your company s other internal systems and with systems external to your business may help you to extend functionality by automating business processes such as .
Automating manual communication with your trading partners Connecting your e-Commerce site to your ERP Handling service requests via the Web Allowing your customers to submit their orders via the Web Facilitating EDI transactions Sharing data across systems and/or combining processes Consolidating a chart of accounts Synchronizing your company s data across multiple sites Logging your incoming email .
S. RFID will eventually become a universal. in addition to a regulatory environment where issues of food/product security. The relatively high cost of RFID labels and the lack of standardization of the format are still obstacles. but RFID will become a standard in these industries over time . foresee large savings in labour and increased data accuracy. Driven backwards through the supply chain. lot traceability and real-time data accuracy are paramount. portals can be positioned so that a forklift driver could pass through with a full pallet of mixed items. radio frequency identification (RFID) tags. for the purpose of identification and tracking. which deal with millions of pallets of material a year. and all of the RFID labels could be read simultaneously and discretely. With RFID. which provide an efficient solution for regulatory and customer food/product security requirements. primarily by large retailers.) Radio-frequency identification (RFID) is a technology that uses communication via radio waves to exchange data between a reader and an electronic tag attached to an object. particularly in high volume environments. Some tags can be read from several meters away and beyond the line of sight of the reader. entrenched part of the physical buyer/seller transactions in industries where large volume transactions exist. by employing RFID technology. Department of Defense. C. The application of bulk reading enables an almost parallel reading of tags. Large organizations like Wal-Mart and the U.
If you do that. you will see results! The Internet s role in business can be compared to that of the telephone. online stock and bond transactions. D.). and business-to-business transactions. graphics.) Electronic commerce is the paperless exchange of business information using electronic data interchange (EDI). electronic bulletin boards. In fact. etc. e-mail. documents. It is a way for people to communicate with each other. fax transmissions. the downloading and selling of soft merchandise (software. It is about giving customers controlled access to your computer systems and letting people serve themselves. It is about committing your company to a serious online effort and integrating your Web site with the heart of your business. music. The concept of e-commerce is all about using the Internet to do business better and faster. the Internet is a communication medium like the many others we use in business every day . and electronic funds transfer. It is also a way for a consumer to communicate with a company s computer systems without human intervention. It refers to Internet shopping.
and tools used throughout the lifecycle of the content Instant messaging Newsgroups Online shopping and order tracking Online banking Online office suites Domestic and international payment systems Shopping cart software Teleconferencing Electronic tickets Group Buying . Some common applications related to electronic commerce are the following: Email Enterprise content management Enterprise Content Management (ECM) is a formalized means of organizing and storing an organization's documents. that relate to the organization's processes. and other content. The term encompasses strategies. methods.
3) Implementation 4) Production. 2) Design & Customisation.ANS 3: four major phases namely 1) Detailed discussions. Detailed Discussion Phase: Task :± Project initialization ± Evaluation of current processes. business practices ± Set-up project organization .
Organisation structure Design specification Process Flow Diagrams Function Model Configuration recording System modification. Deliverables :± Accepted norms and Conditions ± Project Organisation chart ± Identity work teams Design and customisation Phase: Task :± ± ± ± ± ± ± ± ± ± ± Map organisation Map business process Define functions and processes ERP software configuration and Build ERP system modifications. Deliverables :- .
Implementation Phase: Task :± ± ± ± Create go-live plan and documentation Integrate applications Test the ERP customisation Train users Deliverables :± Testing environment report ± Customisation Test Report ± Implementation report Production Phase: Task:± Run Trial Production ± Maintain Systems Deliverables:± Reconciliation reports ± Conversion Plan Execution .
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