8/2/2019 ERP- Imran

1/34

ERP Presentation 1

8/2/2019 ERP- Imran

2/34

` Objective

` Introduction to ERP

` Brief History & Evolution

` ERP Modules` PROS & CONS

` ERP Implementation Process

` Implementation Experience at PFL

ERP Presentation 2

8/2/2019 ERP- Imran

3/34

An overview of ERP & its Components, discuss

its merits demerits and implementation experience

ERP Presentation 3

8/2/2019 ERP- Imran

4/34

ERP is a company-wide computer

software system used to manage andcoordinate all the resources, information,and functions of a business from shareddata stores.

ERP Presentation 4

Enterprise Resource PlanningEnterprise Resource Planning ((ERPERP))

8/2/2019 ERP- Imran

5/34

` What Is ERP? Software designed for organizing and managing business

processes

Modules share information across all business functions Sharing sales data with the supply chain to help with global

replenishment

Fully Integrated modules using common database

ERP Presentation 5

8/2/2019 ERP- Imran

6/34

ERP Presentation 6

8/2/2019 ERP- Imran

7/34

` Finance and accounting Investment, cost, asset, capital, and debt management Budgets, profitability analysis, and performance

` Sales and marketing Handles pricing, availability, order management,

shipments, & billing` Production and materials management

Process planning, product costing, MRP, allocatesresources, schedules, POs, & inventory

` Human resources Workforce planning, payroll, benefits, & org chart

ERP Presentation 7

8/2/2019 ERP- Imran

8/34

` First generation ERP Managed all routine internalbusiness activities

From order entry to after-sales customer service Lacked supply chain support modules (added in second

generation)

ERP Presentation 8

8/2/2019 ERP- Imran

9/34

` Second Generation ERP Late 1990s software integrated supply chains

Systems focused on decision-making

Application Service Providers set-up and run systems forothers

ERP Presentation 9

8/2/2019 ERP- Imran

10/34

` Many companies with ERP use e-commerce` E-commerce needs to interface with ERP` Cybex International is a good example:

Needed to integrate B2C and B2B transactions Cybex installed a Peoplesoft, Inc. ERP Reduced suppliers from 1000 to 550, paperwork by 2/3 Reduced customer order-to-ship time from 4 to 2 weeks

ERP Presentation 10

8/2/2019 ERP- Imran

11/34

` ERP presents a systematic view of the business functions froma single information and IT architecture

` Increases organizational information flow

` Increases ability to incorporate better management control,

speedier decision making, and cost reductions` Allows replacement of disparate systems

e.g. Exxon Mobile used ERP to replace 300 different systems

` A study of ERP implementations reports that benefits typicallystart 8 months post implementation with annual savings of $1.6

million

ERP Presentation 11

8/2/2019 ERP- Imran

12/34

` Major suppliers are SAPAG, PeopleSoft, Oracle` Costs for larger ERP systems range from hundreds

of thousands to several million dollars.

` Outside consultants are usually involved inselection, configuration, and implementation.

ERP Presentation 12

8/2/2019 ERP- Imran

13/34

` Consultant costs can run up to 3 times the cost ofthe system itself

` Added costs also include additional people, new

computer hardware, and the cost to develop a new,integrated database` Successful implementation requires leadership and

top management commitment

ERP Presentation 13

8/2/2019 ERP- Imran

14/34

` An ERP system has a service-oriented architecturewith modular hardware and software units or"services" that communicate on a local area

network. The modular design allows a business toadd or reconfigure modules (perhaps from differentvendors) while preserving data integrity in oneshared database that may be centralized or

distributed

ERP Presentation 14

8/2/2019 ERP- Imran

15/34

Ideally, ERP delivers a single

database that contains all datafor different software modules

ERP Presentation 15

8/2/2019 ERP- Imran

16/34

ERP Presentation 16

ERPAN OVERVIEWERPAN OVERVIEW

8/2/2019 ERP- Imran

17/34

` SAP

` Microsoft Dynamics

` Oracle Financials E-Business Suite

` PeopleSoft Enterprise

ERP Presentation 17

8/2/2019 ERP- Imran

18/34

` Introduced by Gartner(R & D firm) in 1990` Extension of MRP (material requirements

planning;` Later called manufacturing resource planning) and

CIM (Computer Integrated Manufacturing).` ERP systems cover all core functions of an

enterprise, regardless of the organization'sbusiness or charter.

ERP Presentation 18

8/2/2019 ERP- Imran

19/34

` At least Two systems should be combined to becalled an ERP

Example:A software package that provides both payroll andaccounting functions could technically beconsidered an ERP software package

ERP Presentation 19

8/2/2019 ERP- Imran

20/34

` Product lifecycle management

` Supply chain management

` Purchasing

` Warehouse Management (Inventory)

` Customer Relationship Management (CRM)

` Sales / Order Processing, Online Sales

` Financials, Human Resources, and DecisionSupport System.

ERP Presentation 20

8/2/2019 ERP- Imran

21/34

` Manufacturing` Logistics` Distribution` Inventory` Shipping` Invoicing` Accounting` Marketing, delivery, billing, production, quality

management and human resourcemanagement.

ERP Presentation 21

8/2/2019 ERP- Imran

22/34

In the absence of an ERP system, a

large manufacturer may find itself

with many software applications that

cannot communicate or interface

effectively with one another.

ERP Presentation 22

8/2/2019 ERP- Imran

23/34

` ERP systems connects the necessary software inorder for accurate forecasting. This allows tomaintain efficient levels of:

Inventory & Human Resources Accounts

Management Information Systems

Customer care / Relations

Resulting in MORE PROFITS

ERP Presentation 23

8/2/2019 ERP- Imran

24/34

ERP Presentation 24

ERP Covering allAspectsERP Covering allAspects

8/2/2019 ERP- Imran

25/34

` Integration among different functional areas toensure proper communication, productivity andefficiency

` Order tracking, from acceptance through fulfilment` The revenue cycle, from invoice through cash

receipt

ERP Presentation 25

8/2/2019 ERP- Imran

26/34

` Managing inter-dependencies of complexprocesses bill of materials

` Tracking the three-way match between purchase

orders (what was ordered), inventory receipts(what arrived), and costing (what the vendorinvoiced

ERP Presentation 26

8/2/2019 ERP- Imran

27/34

` ERP centralize the data in one place:

` Eliminates problem of synchronizing

` Top-down view of the enterprise (no "islands of

information"), real time information availability` Reduces the risk of loss of sensitive data by

consolidating multiple permissions and securitymodels.

ERP Presentation 27

8/2/2019 ERP- Imran

28/34

` Investment in Continuous Training of personnel

` Use of data / system by untrained personnel

` Re-engineering of business processes

ERP Presentation 28

8/2/2019 ERP- Imran

29/34

` ERP (An Expensive System)

` Too rigid and too difficult to adapt to the specificworkflow

` Integrated links need high accuracy in otherapplications

` Once established, High switching cost

ERP Presentation 29

8/2/2019 ERP- Imran

30/34

` Management Commitment

` Appointment /Selection of Consultant

` Dedicated Team Formation

` System Selection (HW / SW)` Implementer Selection

` Training / GapAnalysis

` Scope

ERP Presentation 30

8/2/2019 ERP- Imran

31/34

` Data preparation

` Business Process Re-Engineering

` Training of Key Users

` Preparation of Test Server` Production server

` GO LIVE

ERP Presentation 31

8/2/2019 ERP- Imran

32/34

` Integration of following Business processes Accounts & Finance

Sales and Distribution

Purchasing

Inventory

HR & payroll

Production Planning

Asset Management

Business Intelligence

ERP Presentation 32

8/2/2019 ERP- Imran

33/34

` Post Implementation Support

` Training of all users

` Data Reconciliation

` Discontinuation of Old system

ERP Presentation 33

8/2/2019 ERP- Imran

34/34

ERP Presentation 34