05-04-2012, 10:10 AM
Enterprise Resource Planning
Enterprise Resource Planning.ppt (Size: 1.44 MB / Downloads: 100)
Presentation - Flow
What is ERP?
The Current Scenario
Why ERP?
Definition
Evolution
Expectations
BPR & ERP
BPR – The Steps
What is ERP?
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
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
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
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
BPR & ERP
Just automating the existing business practices
will not help ERP to achieve the anticipated results
because, OO + NT = EOO
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
ERP – Options
OPTION 1 – MAKE [Using Internal resources]
Developing a custom-built ERP package, specific to the
requirements of the organization, with the help of the
in-house IT department
OPTION 2 - BUY
Going for Tailor-made ERP packages available in the market like
SAP, Oracle applications, Baan, PeopleSoft etc.
OPTION 3 – MAKE [using External resources]
Developing a custom-built ERP package, specific to the
requirements of the organization, with the help of a
software solution provider
ERP – Building using Internal
resources – The Facts
Lack of adequate & qualified manpower
Not driven with clear focus on expectations,
time & cost
Poor software project management
Lack of seriousness with the Management & the
IT Team
High employee turnover
Lot of schedule gaps during Project execution
Normally project life is more
Frequent change in the scope with the approval
of the Management
Tailor-made ERP solutions
About this option
Execution Phases
ERP product selection phase
Product selection - Parameters
Preparation Phase
ERP product acceptance - Options
Gap Analysis
Production Phase
Implementation Phase
Post-Implementation Phase
Pitfalls & Points of Concern
Critical Success factors
About
Generalized off the shelf application s/w packages
Modules based on rich functionalities for all business
functions
User tested with lot of installations
No lead time requirement for software development
Tuned for more users/networks with adequate & in-
built security
Parameterized for flexibility
Can sit on latest hardware & software platforms
Upgradation of functionalities with version control
Execution phases
ERP product selection
Preparations
Production
Implementation
Post-Implementation