Nterprise Esource Lanning

Enterprise
Resource
Planning
What is ERP?
Enterprise Resource Planning
ERP is a solution, which

facilitates company-wide integrated
information systems, covering all
functional areas
performs core Corporate activities and

increases customer service augmenting
Corporate Image
Information Islands
B
ERP - Definition
“Software solution that addresses the

Enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform”
Evolution of ERP
1960’s - Systems Just for Inventory Control

1970’s - MRP – Material Requirement Planning
(Inventory with material planning & procurement)
1980’s - MRP II – Manufacturing Resources Planning
(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000 onwards – ERP II – Collaborative Commerce
(Extending ERP to external business entities)
ERP – Expectations
Integrating all the functions
Integrating the systems running in all the locations
Transparency of information using a single

data source across the organization
Software must be responsive

Modular
Flexible
Easy to add functionalities
Provide growth path
Quality
sales
HR
distrib
ution
Maintain
ance ERP
logistic
Database
s
Manufactu
ring
service
Material
Account
Project ing
Sales
 Forecasting
 Demand management
 Quotations and proposals
 Sales order processing
 Shipping
 Sales analysis
Distribution
 Distribution Resource planning
 Electronic data Interchange
 Inventory tracking and control
 Invoicing
 Transportation
 Export documentation
Service
 After sales service

 Service contract control
 Installation control
 Warranty operations
 Service analysis
Accounting
 General Ledger
 Books of accounting
 Accounts payable
 Accounts receivable
 Budgetary control
 Cash flow management
 Loans
 Auding
 Letter of credit and Bill of exchange
Project Management
 Project definition
 Project budgeting and estimation
 Project monitoring and control
 Project requirement planning
Materials
 Materials requirement planning
 Purchasing
 Vendor development
 Contracting
Manufacturing
 Capacity requirement planning
 Master production scheduling
 Production planning and control
 Plant operations
 Shop floor
 Bills of materials
 Engineering change
 Product definition/ change
Plant maintenance
 Equipment maintenance operations
 Corrective and preventive
maintenance
 Planning and execution
 Calibration
 Maintenance store management
Human resource
 Recruitment and selection
 Payroll and compensation
 Statutory compliance
 Performance appraisal
Quality
 Inbound and outbound quality
planning
 Inbound and outbound quality
assurance
 Inward inspection
 Outward inspection
Logistics
 Inventory
 Raw materials
 Work in progress
 Finished material
Tangible benefits of ERP
 Reduction in inventory levels
 Improvement in customer service
level
 Improvement in purchasing cost
 Productivity improvement
Intangible benefits of ERP
 Information availability
 System maintainability
 Reduction in response time
Entities involved in ERP implementation
 Customers
 ERP vendors
 Implementation partners
BPR & ERP
Business Process Re-engineering
Just automating the existing business practices

will not help ERP to achieve the anticipated results.
Business Process Re-engineering [BPR] brings out the
deficiencies of the existing setup
BPR and ERP will give way to implement new
systems and the long pending improvements in the
existing systems
BPR may be time consuming but the scope can be
restricted & controlled by the Management
BPR - Steps
Business Process Re-engineering
Step 1 Step 2 Step 3
Understand Simplify/Improv Automate

e
Understand Draft & frame the Implement
the existing possibilities & ways with the help
systems to simplify or of ERP
associated Improve or
with all the eliminate the
functionalities processes
Vendor
SAP
Oracle Applications
Infor Global Solutions
The Sage Group
Microsoft Dynamics (Formerly Microsoft Busin

ess Solutions)
Lawson Software
Epicor
Visma
Industrial and Financial Systems (IFS)
NetSuite
ABAS Software
Ramco Systems
Technology One
As mentioned before SAP is an acronym for "System
Application & Products" which creates a common centralised
database for all the applications running in an organization.
The application has been assembled in such a versatile way
that it handles all the functional department within an
organisation. Today major companies including Microsoft
and IBM are using SAP's Products to run their own
businesses.
R/2, which ran on a Mainframe architecture, was the first
SAP version. Sap's products are generally focused on
Enterprise Resource Planning (ERP). Sap's applications are
built around R/3 system which provide the functionality to
manage product operations, cost accounting, assets,
materials and personnel. The R/3 system of SAP runs on
majority of platforms including windows 2000 and it uses
the client/sever model.
SAP provides majority of enterprise applications that
includes:
1. SAP Knowledge Warehouse (KW)
2. Product Lifecycle Management (PLM)
3. Human Resource Management Systems (HRMS)
4. Supplier Relationship Management (SRM)
5. Supply Chain Management (SCM)
6. Customer Relationship Management (CRM)
7. Advanced Planner and Optimizer (APO)
8. Business Information Warehouse (BW)
SAP NetWeaver is the latest technology introduced by SAP.
SAP's products are mainly focussed on large organizations
which mainly comprises of Fortune 500 companies and its a
number one choice for ERP system worldwide. SAP has software
solutions called SAP Business One (SAP B1) and SAP all in one
which are mainly created for small and mid sized organizations.
SAP products are used by millions people worldwide and in
more than 120 countries and is constantly increasing. SAP had
over 38, 4000 employees in over 50 countries, and more than
36,200 customers around the world as on Jan 2007

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Enterprise

ERP is a solution, which

performs core Corporate activities and

“Software solution that addresses the

1960’s - Systems Just for Inventory Control

Integrating all the functions

Integrating the systems running in all the locations

Transparency of information using a single

Software must be responsive

 After sales service

Just automating the existing business practices

Step 1 Step 2 Step 3

Understand Simplify/Improv Automate

Microsoft Dynamics (Formerly Microsoft Busin

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