Enterprise Resource Planning

 Introduction to ERP  What makes an ERP?  Few ideal ERP Systems  Advantages and Disadvantages of ERP


The Current Scenario
• Islands of Information • Difficult to get timely & accurate information • Heterogeneous Hardware & Software platforms & practices • Poor connectivity between different organizational locations • Sticking with obsolete technology • Resist to change • Lack of proven man-power to develop integrated software

Information Islands

Why ERP?
• For Management – to know what is happening in the company • One solution for better Management • For cycle time reduction • To achieve cost control & low working capital • To marry latest technologies • To shun the geographical gaps • To satisfy the customers with high expectations • To be Competitive & for survival

 Enterprise Resource Planning (ERP) systems integrate (or attempt to integrate) all data and processes of an organization into a unified system.  A typical ERP system will use multiple components of computer software and hardware to achieve the integration.  Today's ERP systems can cover a wide range of functions and integrate them into one unified database.


What makes an ERP
 Integration is the key to an ERP system  ERP's main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow.  Single database to employ different software modules


ERP Systems
An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:
Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc. Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc. Human Resources: Benefits, training, payroll, time and attendance, etc Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc. Projects: Costing, billing, activity management, time and expense, etc. Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc. Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.

ERP Systems


Advantages of ERP
 All aspects of an organization can work in harmony.  A totally integrated system  The ability to streamline different processes  The ability to easily share data across various departments  Improved efficiency and productivity  Better tracking and forecasting  Lower costs  Improved customer service


Disadvantages of ERP
 Customization is complex  The need to re-engineer business processes  Expensive to purchase and maintain


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