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PRES

Company Name

Enterprise Resource Planning


(ERP)
Purchase Order Demand Purchase Requisition Vendor

Accounts Payable

Goods Receipt & Inventory Mgmt.

Smart Tech Group


Introduction & Definition (Lt Col Ghulam Shabbir, Roll # 61) The Ideal ERP System (Muhammad Tanveer , Roll # 65) Why ERP is Important (Zara Naeem, Roll # 5) Implementation of ERP (Tayyaba Ishtiaq, Roll # 15) Advantages of ERP (Imtiaz Nazeer, Roll # 19) Disadvantages of ERP (Raheel Tasleem, Roll # 10) http://www.open-source-erpsite.com Conclusion

Acknowledgment
We are thankful to respected Ma am Irum Jabeen For guidance in the selection of the presentation topic as well as compilation of the study

Table of Contents - ERP


Introduction & Definition The Ideal ERP System Why ERP is Important Implementation of ERP Advantages of ERP Disadvantages of ERP Conclusion
http://www.open-source-erpsite.com

ERP in Gen
ERP is an integration of business management practices and modern technology IT integrates with a corporate house s core business processes to streamline and accomplish specific business objectives

ERP in Gen


ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise information across all the functional units It provides the business management executives with a comprehensive overview of the complete business execution
http://www.open-source-erpsite.com

Components of ERP

Business Management Practices Information Technology


Specific Business Objectives

Well managed, centralized data repository that acquires information from & supplies information to the fragmented applications operating on a universal computing platform
Supplier Collaboration

Supply Chain Management

Key Process Integration via ERP Product Lifecycle Management Design Partners

Customer Management
Consumers and Channels

ERP Software Applications

Information accumulated on various servers across many functional units geographically separated

Such information islands can possibly service individual organizational units but fail to enhance enterprise performance, speed, and competence

The term ERP originally referred to the way a large organization planned to use its resources Formerly, ERP systems were used in larger and more industrial company types

 

ERP use has changed radically Today the term can be applied to any type of company operating in any kind of field at any magnitude

Schedule/Release Goods Issue

Shop Floor

Order Settlement

Goods Receipt

ERP software architecture can envelop a broad range of enterprise functions and integrate them into a single unified database repository

Company

3000 MSI US
Sales Area: Sales Organization Distribution Channel
90 Accessories

1000 4000 MSI German Canada yy


3000 US 12 1000 4000 Germany Canada 12 Resale 02

Company

Sales Area: Sales Organization Distribution Channel


02

Resale s Motorcycles

90 Accessories

Division

Division

Motorcycles

3000

Plant

New York

Seattle

http://www.open-source-erp3400 site.com Plant

1000 4000 Hamburg Montreal

1400 4100 Stuttgart Toronto

ERP Coverage
Human Resources Supply Chain Management Customer Relationship Management Finance Manufacturing Warehouse Management Logistics

ERP Coverage
were all previously stand alone software applications, generally housed with their own applications, database, and network Today, they can all work under a single umbrella the ERP architecture

Definition of ERP
ERP is a term for the broad set of activities that helps a business manage the important parts of its business

Functionalities of ERP
The information made available through an ERP system provides visibility for key performance indicators (KPIs) required for meeting corporate objectives

ERP software applications can be used to manage product planning, parts purchasing, inventories, interacting with suppliers, providing customer service, and tracking orders
Purchase Order Demand Purchase Requisition Vendor

Accounts Payable

Goods Receipt & Inventory Mgmt.

Recruitment Cost Planning & Reporting

Hiring

Course Credit

Employee Self-Service

Training and Personnel Development Managing Work Time

Travel Planning Payroll Administration Compensation & Benefits

SAP HR Processes

Millennium

Software provides a whole range of IT services and solutions Including off-shore programming and customized development through the complete software development life cycle of the project and its subsets

The domain includes: Software Development: Systems Study & Analysis Functional Specification Technical Design Prototyping Programming Testing/Quality Assurance User/Technical Documentation Implementation Implementation Support Post-implementation Audit

Example ERP HR Module


HR processes
PAYROLL BENEFITS RECRUITING TRAINING

IT resources

payroll programs, personnel files, health plan documents, recruiting, Servers & networks, etc.

Cross-functional Processes i.e., Product Development


competitor analysis market research MARKETING R&D PRODUCTION

Product development
needs analysis component design research product test market test product release process design equipment design production start

new product prototype

ERP for Organizational Value Chain


Profit Margin Support: Infrastructure, HR, R&D, Procurement Primary:
Inbound Outbound Marketing Operations Service logistics logistics & Sales

Stream of activities Applies to both products and services

BPR Example - Loan processing


Desk-to-desk approach
Origination of loan
prequalification document generation application processing credit analysis & underwriting approval & closing credit reporting

Servicing of loan
payment processing escrow management customer service collections & foreclosures

Follow-up processing
valuation & risk analysis transfer to secondary mkt

BPR example - Loan processing


Team approach
Loan origination team Field rep laptop

Regional production center


Loan servicing team

Production Process

Schedule/Release

Goods Issue

Shop Floor

Order Settlement

Goods Receipt

Organizational Unit

Company

3000 MSI US
Sales Area: Sales Organization Distribution Channel
90 Accessories

1000 4000 MSI German Canada yy


3000 US 12 1000 4000 Germany Canada 12 Resale 02

Company

Sales Area: Sales Organization Distribution Channel


02

Resale s Motorcycles

90 Accessories

Division

Division

Motorcycles

3000

3400 Seattle

Plant

New York

Plant

1000 4000 Hamburg Montreal

1400 4100 Stuttgart Toronto

SD Processes
Order Management: Business Processes in COM Cycle

Sales Order Processing Sales Order Processing Inventory Sourcing Inventory Sourcing Pre-Sales Activities Pre-Sales Activities

Invoice

Payment Payment Billing Billing

Delivery Delivery

SAP AG

)MRC ,e.i( noitargetnI drawroF

PRE

)MCS ,.e.i( noitargetnI drawkcaB

)SIE ,.e.i( noitargetnI drawpU

Extended ERP

Muhammad Tanveer MBE 11- 65

The Ideal ERP System


An ERP system would qualify as the best model for enterprise-wide solution architecture, if it chains all the below organizational processes together with a central database repository and a fused computing platform:      

Manufacturing Financials Human Resource Supply Chain Management Projects Customer Relationship Management Data Warehouse

The Ideal ERP System


Manufacturing. Engineering, resource & capacity planning, material planning, work flow management, shop floor management, quality control, bills of material, manufacturing process, etc. Financials. Accounts payable, accounts receivable, fixed assets, general ledger, cash management, and billing (contract/service). Human Resource. Recruitment, benefits, compensations, training, payroll, time and attendance, labour rules, people management.

The Ideal ERP System


Supply Chain Management. Inventory management, supply chain planning, supplier scheduling, claim processing, sales order administration, procurement planning, transportation and distribution Projects. Costing, billing, activity management, time and expense Customer Relationship Management. Sales and marketing, service, commissions, customer contact and after sales support Data Warehouse. Generally, this is an information storehouse that organizations, customers, suppliers, and employees can access for their learning and orientation. In short an ideal ERP Systems Improve Productivity, Speed, and Performance

HR Integration
Financial Accounting Logistics

Controlling

Sales and Distribution

SAP HR

Workflow

ZAHRA NAEEM
MBA_11_05

HISTORY & EVOLUTION OF ERP

History and Evolution of ERP

History and Evolution of ERP

WHY ERPS IS REQUIRED IN AN ORGANIZATION?

An organization uses ERPS for timely business Information. ERPS gives better customer relationship. ERPS improves internal processes. ERPS also increases profitability of bussines. This system could help us to improve quality. With this system we adopt ourselves with global systems and can compete in the market. ERPS improve effectivness of the business.

Facilitate Day-to-Day Day-toManagement


ERP systems offer better accessibility to data so that management can have up-to-theminute access to information for decision-making and managerial control. ERP software helps track actual costs of activities and perform activity based costing.

Help reduce operating costs


ERP software attempts to integrate business processes across departments onto a single enterprise-wide information system. The immediate benefit from implementing ERP systems we can expect is reduced operating costs, such as lower inventory control cost, lower production costs, lower marketing costs and lower help desk support costs.

Support Strategic Planning


Part of ERP software systems is designed to support resourceplanning portion of strategic planning. Strategic Planning is "a deliberate set of steps that assess needs and resources; define a target audience and a set of goals and objectives; plan and design coordinated strategies.

By Tayyaba Ishtiaq

Implementing an ERP system:


Organizations generally use ERP vendors or consulting services for the implementation of ERP. Famous ERP vendors are as follows:

Professional ERP services:


Consulting services- help the organizations to bring their new system to life through product training, workflow etc. Customization services-extend the new ERP systems use or change its use by creating customized interfaces or underlying application code. Support services-include both support and maintenance of ERP systems, for instance, troubleshooting and assistance with ERP issues.

Implementation stages:
1.Strategic planning. 2.Procedure review. 3.Data collection and cleanup. 4.Training and testing. 5.Go live and evaluation.

1.Strategic Planning:
Project team is selected, present business processes are studied, information flow within and outside the organization is scrutinized, vital objectives are set, and a comprehensive implementation plan is formulated.

Project team

Business process

Objectives and Plan

2.Procedure Review:
Prospective software capabilities are examined, manual business processes are recognized, and standard working procedures are constructed.
Software capabiliti es Manual process
Procedure constructio n

3.Data collection and cleanup:


Identify data to be converted and the new information that would be needed. The compiled data is then analyzed for accuracy and completeness, throwing away the worthless/unwanted information. Data conversion

Analysis

Cleanup

Training and testing:


The project team tests and verifies the complete database via multiple testing methods and processes. A broad inhouse training is held where all the concerned users are oriented with the functioning of the new ERP system.

Testing

verification

Training

Go live and evaluation:


The lately implemented ERP is deployed live within the organization and the project team checks it regularly for any flaw or error detection.

The Earthgrains Co.


Founded in 1925. It produces breads, cookie dough, pie crusts, and other bakery items in the United States and Europe. The division has no integration and managers lacked detailed understanding of business operations.

The Earthgrain Co.


In 1995 corporate turned around its SAP R/3 implementations to deliver better customer service and to help integrate different business functions, such as accounting, reporting, order management, and distribution.

The Earthgrain Co.


The ERP project has been critical to Earthgrains' turnaround, helping boost operating margins from 2.4% to 3.9% and pushing its on-time product delivery rate to 99% in fiscal 1997. It is expanding the services to 1200 partner stores.

MBA_11_19

Advantages of ERP systems


A perfectly integrated system chaining all the functional areas together The capability to streamline different organizational processes and work flows. The ability to effortlessly communicate information across various department Improved efficiency, performance, and productivity levels.

Advantages of ERP systems


Enhanced tracking and forecasting Improved customer service and satisfaction. An often overlooked advantage in having over workable and efficient ERP system in place is savings in a relation to energy consumtion and data mangement.

Advantages of ERP systems

Having an ERP system in place implies having a single hardware system to handle the different requirement, translation into reduced power consumption operating of a single data base that translate to saving on storage. The savings generated from a minimum of hardware and storage, coupled with operational efficiencies created from a single system across all department, translates into measureable profit for the company.

MBA_11_10

Disadvantages of ERP Systems


The

scope of customization is limited in several circumstances. The present business processes have to be retaught to make them synchronize with the ERP. ERP systems can be extremely expensive to implement.

Disadvantages of ERP Systems


There

could be lack of continuous technical support. ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.

Conclusion
is a process or approach that attempts to consolidate all of a companys departments and functions into a single computer system that services each departments specific needs. It is, in a sense, a convergence of people, hardware, and software into an efficient production, service, and delivery system that creates profit for the company.
ERP