1. Snoop M.K Deepti Kanjani Manoj Kumar Sharma Poulomi SenShaswati Sen Chaitanya Banal

2. Definition : ERP (Enterprise resource planning) can be definedas a software solution that addresses the enterpriseneeds taking the process view of the organization, tomeet the organizational goals tightly integrating allfunctions of an enterprise 3. Evolution of ERP System 4. Till 1960s (Pre-computer age) Re-order point# Kardex Card (Bin Card)# Visual Checking (2-bin sys)# A Class more often (monthly)# Fixed Quantity / Period Consumption Once in a Quarter 5. 1960s (IBM 1401 ERA) Purchase Order issue, and not only IC Stock Figure available only at Month end Purchase schedules & inventory adjusted by shortage every month for 3-4 months All Run Once-A-Month 5 6. 1970s (IBM 370 ERA) CLOSED-LOOP MRP Importance of MPS (in weeks) Planning, rescheduling in weeks All Weekly 6 7. 1980s MRP-II (burrows 20-30 terminals) Planning & Monitoring all resources Mfg. Mkt. , Fin., Engg., Matls 7 8. 1990s (C/S tech.) According to Gartner ERP is an integrated application software suite that balances manufacturing, distribution and financial business functions when fully implemented, ERP can enable enterprises and allows for necessary management ERP is the technical evolution of MRP-II through the introduction of RDBMS, CASE, GUI, 4GLDevelopment Tools and Client Server Architecture. 8 9. Evolution of Mfg. Systems DEMERPMRP II MRP IC19601970 1980 1990 2000 9 10. Enterprise by Function The 1980s Enterprise MFG. Distribution FinanceProjectsPurchasing Sales 10 11. Functional Applications The 1980s EnterpriseMRP thenDistribution MRP II FinanceProjectsPurchasing Sales 11 12. Simplifying Baan ERP into Components MFG. DistributionERPFinanceProjects Purchasing Sales12 13. Extended EnterpriseTodays EnterpriseCustomersMFG.Dist. SuppliersFinance ProjectsPur. Sales Value Chain13 14. Beyond ERP : Extending the Enterprise Todays EnterpriseCustomersMFG.Dist.SuppliersFinance ProjectsPur. SalesBaan Front Office Baan ERPBaan SCS 14 15. Competing in Your MarketEnterprise 1MRPNew potentialCustomerFIN Enterprise 3 Enterprise 2MFG DISTSuppliersCustomers MFGDISTFIN PCSFIN PCSSLSPUR SLS PUR15 16. Why ERP :Helps in reduction of organizations operating costs canbe reduced.Integrates all parts of an organizationIncreases the efficiency of operations as a result of thisintegrationIntegration of information systems which enablesseamless flow of information across the organization.Enables consolidation of different software in theorganizationHelps in better customer service 17. Capability of ERP Delivery Time (Speed) :Explicitly Flexibility (Customization) :Explicitly After Sales Services:Explicitly Quality / Reliability :Implicitly Cost:Implicitly17 18. Implementation of ERP The implementation of most of the ERP packages begin with the ENTERPRISE MODELING which defines 1.The enterprise structure, 2.The authority functions, 3. The process and the business rules . oThe enterprise modeling is the platform for the ERP system implementation. oThe ERP solution is structured in the modular fashion to cover the entire business operation. 19. A typical ERP package solution has the following modules : 1. Sales , Marketing , Distribution 2. Manufacturing 3. Stores Management 4. Finance 5. Personnel 6. Maintenance 7. Purchase Inventory 8. Planning and Control. 20. The modules are designed for 1. Data capture, 2. Data transaction validation 3. Its analysis 4. Accounting upgradation and 5. Reporting. 21. ERP Features : 1. Security Authorization 2. Referencing Responsibility 3. Implementation of business rules These features are provided to 1. Safeguard the business of the organization from illegal practice 2. To protect the valuable information from misuse. 22. Authorization is a feature provided for ensuring that the transaction is completed with regards to the business rules set by the management. Referencing is a feature for tracking the chain of events for monitoring , progress checking and control. The business organization runs through the rules and responsibility allocation. A strict adherence to them is essential for creation of controlled environment. The ERP satisfies this need of the business. 23. ERP Architecture :Any information system has three basic components :- 1. Data Management 2. Application Logic 3. Presentation 24. The architecture of ERP can be a two tier or three tier :Data Management Application Logic PresentationTwo Tier Architecture 25. Data ServerData Management FunctionApplicationApplication Logic Server FunctionPresentation Client FunctionThree Tier Architecture 26. Data Management Server Application LogicApplication Logic Client Presentation Client / Server Architecture 27. Present Complexities of BusinessSolutions ProblemsProcess thinking Functional role conflict Mfg. & Dist. Strategies Product VarietyGeo. Distributed core Multi-site enterprisescompetencies ERP support to these complexities27 28. Traditional Organization Structures CEOGM GM GM GM GMMATL PRODUCTION MKT/SALES FINANCEIT 28 29. Functional Role Conflicts Marketing/SalesVS.FinanceHigh AvailabilityLow CostHigh StocksLow Stocks Marketing/Sales VS. ProductionCustomer SatisfactionEmployee moraleHigh Variety Ease of opn.Frequent Set-up ChangesLow Set-up Changes 29 30. Functional Role Conflicts Purchase VS. Production Low Cost Low Shortages Low WipHigh Wip Purchase VS. Quality Production VS. Quality Distribution VS. Production IT VS. Production 30 31. Result ? PIECE-MEAL OPTIMIZATION COMPUTERIZATION AUTOMATION31 32. Solutions ? Business process Re-engineering (BPR) Process thinking rather than Functional thinking Cross-functional team working ERP Supports all these 32 33. Benefits Of ERP: 1. Better Management of resources reducing the cost of operations. 2. Planning at function and process level . Simultaneous increase in the productivity of the business possible. 3. Customer satisfaction increases due to shorter delivery cycle. Closer contact with the customer. 4. As ERP is scalable architecture, it remains valid solution with expansion of business. 5. The process becomes faster due to work group technology and application of workflow. 34. Limitations of ERP Strategic Thinking Environment Scanning Innovation Product Design