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ERP- Enterprise Resource Planning

PRESENTED BY : SHWETA NARAYAN MCA(II) ROLL NO: 600 408

UNDERSTANDING ERP
NEED FOR ERP

REASONS FOR UNDERTAKING ERP
EFFECT OF ERP TIME AND COST CONSIDERATION FOR ERP COMPARISON WITH R&D OF ERP PACKAGE ERP VENDORS ADVANTAGES AND DISADVANTAGES OF ERP

Definition Of ERP

Software solution that addresses all the needs of an enterprise with the process view of an organization to meet the organizational goals and integrate all the functions of the enterprise.

Integration of Information Systems IS messages IS messages Manufacturing  Local Head Quarters  Information Marketing/Sales  Sales. shipping and billing  Profit/loss  Capacity utilization Systems:  Project Mgmt  Inventory  Purchasing Sales  Budget  Cash Management  shipping and billing  Purchasing of trading goods  Inventory Management  Customer service . invoice verification  Inventory management  Internal sales. purchasing.

EXAMPLE OF ERP .

Introduction of ERP provides a chance to have a new look at the working system. .Evolution of Planning Systems • Materials Requirement Planning (MRP) • Manufacturing Resource Planning ( MRP II) • Enterprise Resource Planning ( ERP) ERP is an enhancement over these.

Why ERP ? .

Customer Service Representative Human Resource Sales Group ERP Finance Manufacturing Group .

Manufacturing location Finance ERP SYSTEM Sales Group Warehouses .

•Integrates Customer Order Information. •Standardize and Speed Up Manufacturing Process •Reduced Inventory(manufacturing process flows smoothly improving the visibility of order fulfillment) .MAJOR REASONS WHY COMPANIES UNDERTAKES ERP • Integrates Financial Information.

How can ERP improve a company’s Business Performance .

Changes of Customer Information Please Accept my new order for 1000 more sets Change customer master data Customer Representative Increase credit limit Launch Workflow Schedule customer visit Prepare production Credit Manager Product Manager Sales Manager .

HOW LONG WILL AN ERP PROJECT TAKE 1-3 YEARS ON AN AVERAGE (but in principle this question should not be of much concern and more emphasis should be given on “why ERP should be adopted?” and “how will it improve the business?”) .

COST OF ERP According to a study by Meta Group: Average TCO(total cost of ownership) $15 million Highest TCO Lowest TCO $ 300 million $ 400.000 Conclusion:ERP is expensive .

EXPECTED PAYBACK ERP FOCCUSSES ON OPTIMIZING THE WAY THINGS ARE DONE INTERNALLY. MEDIAN ANNUAL SAVINGS FROM NEW ERP SYSTEMS….RATHER THAN WITH CUSTOMERS.PARTNERS OR SUPPLIERS. TAKES ON AN AVERAGE 8-10 MONTHS TO SHOW BENEFITS.$ 1.. .6 million.

HIDDEN COST OF ERP TRAINING INTEGRATION AND TESTING CUSTOMIZATION DATA CONVERSION DATA ANALYSIS REPLACING YOUR BEST AND BRIGHTEST .

HOW DO COMPANIES ORGANIZE THEIR ERP PROJECTS  THE BIG BANG-installing a single ERP system FRANCHISING STRATEGY -installing independent ERP system SLAM DUNK -installing separate module in ERP system   .

Decide Make Or Buy ! .

Constant Updates on Technology and Processes assured . Process specific to your industry are implemented Documentation may not be present ERP package Ready made Projects.Inhouse Development Project Development takes time . Best Business practices followed Documentation is part of system Enterprise implementation is difficult as each unit follows different S/W option Latest Developments to be studied as and when they are introduced. The package itself is designed as Enterprise Package.

VARIOUS ERP VENDORS .

thus their Materials Management / Inventory Management and Financial Management is very strong. Number one vendor of standard business applications software.000. Leading global provider of client/server business application solutions.000 companies worldwide. SAP started out in the manufacturing space. Offices in over 50 countries. .Founded in 1972 in Walldorf. Implemented by more than 9. Germany Employs a workforce of over 9.

 SAP’s major products are R/2 . . Less flexible i.Applications for open client/server systems.e if implemented once it’s like being cast in concrete.Applications for the mainframe environment R/3 .Implementation takes longer time compared to other ERP products and if you are dealing with project manufacturing or construction it’s very difficult to be teamed.

in more than 145 countries around the world.Oracle Corp. along with related consulting. tools and applications products. Very strong in Financial Management . education. The company offers its database. is the world’s second largest Software Company and the leading supplier of software for enterprise information management. and support services.

. 80% of all SAP sites use Oracle as a relational database and hence this is a Win-Win sitiuation for Oracle. which is a E-Business Suit.  Oracle's selling points versus SAP are greater flexibility and affordability.  Oracle’s latest product is – Oracle Application 11i.

§Peoplesoft is more cost-effective solutions compared to others. That is why it can build their market segments with the competitors although the market .§ PeopleSoft is a company dedicated to client/server technology and continues to prove its value in enterprise-wide applications that it developed. § Peoplesoft developed a human resource management system that automated one of the most laborand timeintensive functions for business.

Other vendors:- .

For suppliers and partners. 2.HOW DOES ERP FIT WITH E-COMMERCE 2 Channels of access into the ERP system 1. Middle ware software .For customers.

Advantages Of ERP .

Advantages Of ERP Package Highly Graphics based User Interface. Readymade solutions for most of the Problems. Suppliers and Customers can be on-line communication. Integration of all functions ensured.       . Easy enterprise wide information sharing.  Zero Down time/ planned down time. Knowledge transfer between industries guarantees innovation. Only Customization required.

DISADVANTAGES the systems can be very expensive to install and maintain some systems can be difficult to use the system is no better than the weakest link in the chain .a problem in one department or at one of the partners will affect all the other participants withdrawing in between the system is being installed or stepping back after installation is not easy .

Summary • • • • • • • • • Optimum utilization of resources Customer satisfaction Seamless integration between Functions Reduced overheads & inventory Timely responsiveness Market share & image enhancement Faster design to manufacturability Keep up with technology changes Only way for integrated systems for a client with multiple locations .

Thank you!!! .

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