Post on 27-Apr-2015
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ERP is a method for effective planning and control of all resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.
ERP
ERP is a way to integrate the data and processes of an organization into one single system.
ERP systems will have many components including hardware and software, in order to achieve integration
ERP systems use a unified database to store data for various functions found throughout the organization.
WHAT IS ERP??
An ERP system has a service-oriented architecture with modular hardware and software units or "services" that communicate on a local area network.
The modular design allows a business to add or reconfigure modules (perhaps from different vendors) while preserving data integrity in one shared database that may be centralized or distributed
CONT…
EVOLUTION OF ERP
It reduces inventory levels. It reduces Component shortages. Improves Shipping Performance and Customer
Service. Productivity and Production levels increase. Reduces Manufacturing Costs and Lead Times. Simplified and accurate Scheduling. Higher Production quality. Communication Levels Increase
Advantages: Material Resource Planning(MRP)
Relation between MRP & ERP
Hard to maintain, many languages, databases, inconMultiple systems, different interfaces, difficult to extract info about customers, sales,...
Can take weeks or months to obtain info about customers,sistencies or where systems changes are needed
NEED FOR ERP
a)What it requires Strong executive support to implement Process approach rather than “silos” Change in business procedures (BPR) Change in organizational structure, culture,
strategy Technology change
How to Implement ERP?
IT costs too much
Costs of managing complexity
Difficult to install
Very large and complex software
b)Problems while Implementing ERP
c)Process of Implementing
Step 1. The Strategic Plan – Providing the
Rationale and Making the Business Case
Step 2. Assess the “Readiness” of the Institution – Determining
“preparedness” & Achieving Organizational
Understanding
Steps
Step 3. Prepare for Vendor Selection – Determining your SoftwareRequirements and Documenting yourBusiness Practices
Step 4. Select your ERP Vendors – Choosing Your Technology Partners
Steps…….
Step 5. Plan the Implementation – Preparing for Success
Step 6. Implement the ERP solution- Working the plan
Step 7. post implementation – Where are we Now
Steps….
Integrated systems Consistent interface One database Access to current data Improved planning capabilities Multinational capabilities.
After ERP
Schedules shipping Reserves material Orders parts from suppliers Schedules assembly Checks customer credit limit Updates sales & production forecasts Creates MRP & bill-of-material lists.
System automatically
• Project Planning• Business & Operational Analysis, including Gap Analysis• Business Process Re-engineering (BPR)• Installation & Configuration• Project Team Training• Business Requirements Mapping to Software• Module Configuration• System Modification and Interfaces • Data Conversion• Custom Documentation• End User Training• Conference Room Pilot• Acceptance Testing• Production• Post-Implementation Audit/Support
ERP INVOLVES
Cultural Lack of commitment of top management
Political Failure to follow “proper” system
selection methodology
Lack of sufficient implementation planning/ project
Management
Reasons for Failure
Highly Graphics based User Interface. Zero Down time/ planned down time. Readymade solutions for most of the Problems. Only Customization required. Integration of all functions ensured. ROI earlier than the software developed in-house. Easy ense wide information sharing. Suppliers and Customers can be on-line
communication. Knowledge transfer between industries guarantees
innovation. Automatic adaptation to new technology.