Enterprise Resource Planning

Anant Rastogi
Deepak Thomas
Dinesh Kumar Yadav
Naresh Kumar Gajam
Raman Gulati
Vimal Kumar
 What is ERP ?
System
 that manages all the business operations of an
enterprise.

Firms
 have increasingly adopted the information technology
based manufacturing systems.

MRP and ERP have been introduced into industry

successfully.

ERP originates
 from Manufacturing resource planning which
in turn is an extension of Material Requirement Planning.

MRP has
 4 modules.
 ERP Implementation Factors
Settingstrategic goals for ERP
implementation
Willingness to adapt and High
commitment from management and
employees alike
Proper ERP selection based on
organizational needs
Progressive implementation
Training programs
 ERP Implementation Phases

1. Preparation and Training Phase

2. Transition Phase
3. Performance and Usefulness
4. Maintenance
Implementation and Performance Stage
Model

 Initiation
 Compatibility
 Management vision
 Adoption
 Adaption
 Investment decision
 Cost/Benefit Analysis
 Choice of appropriate technology
Implementation and Performance Stage
Model

 Acceptance
 Routinization
 System modifications
 Training
 Integration of functional units
 Enhanced performance
 User acceptance
 Flaws correction
 Infusion
 Future Innovations
 Future Opportunities
 ERP SUCCESS

Proper Implementation and Completion

Adaptability according to organization
Combination of JIT in ERP to do cost
cutting
Fast operation and precise forecasting
Success rate for eg. 33% in China
 Why ERP fails?
Poor leadership from top management- If top
management is not strongly committed to the system,
does not foresee and plan for the profound changes
necessitated by ERP.
The integrated environment of the new ERP system
will require the organization to do business in a
different way, therefore, existing business processes
need to be reengineered from the bottom to top with the
ERP structure and requirements.
Significant technical difficulties-difficulties can include
bugs in the software, problems interfacing with existing
systems, and hardware difficulties.
 Why ERP fails?
Unrealistic expectations- Many companies grossly
underestimate the amount of resources, time, and outside
assistance required to implement and run the new system.
Inadequate education and training- Top managers and all
system users must be fully educated so they understand
how the ERP system should be integrated into the overall
company operation.
Inaccurate data- Data entered into an ERP system may be
used throughout the organization. Because of the
integrated nature of ERP, if inaccurate data is entered into
the common database, the erroneous data may have a
negative domino effect throughout the enterprise.
Steps for Successful ERP Implementation

StrategicPlanning
Procedure Review
Data Collection and Clean-up
Training and Testing
Go Live and Evaluation
 Strategic Planning

Assign a project team

Examine current business processes and
information flow
Set objectives
Develop a project plan
 Procedure Review

Review software capabilities

Identify manual processes
Develop standard operating procedures
DATA COLLECTION & CLEAN-UP

Convert data
Collect new data
Review all data input
Clean-up data
 TRAINING AND TESTING

Training
Pre-test the database
Verify testing
Perform final testing
GO LIVE AND EVALUATION

Develop a final Go-Live Checklist

Evaluate the solution
Thank you