A Technical Seminar On

Enterprise Resource Planning

Prepared By

R. Pradeep Kumar (09671A0571)

Today we will be covering:

What is ERP?

History of ERP

What will ERP do for the accounting department?

Costs of ERP

The Hidden Costs

Advantages

Disadvantages

Why ERP ?

To ERP or not to ERP?

1. What is ERP?

Integration Of all departments and functions across a company onto a

single computer system

Some of ERP’s functions:

• Bookkeeping & Accounting

• Human Resource Management

• Planning Production

• Supply-Chain Management

Typical ERP Functionality

2. History of ERP

ERP has its roots in the MRP and MRPII systems.

Companies realized Necessity Of ERP.

ERP has evolved with computer and technology advances.

3. What will ERP do for the Accounting Department?

To integrate financial data

Real time information

Improves efficiency

4. Costs of ERP

Costs to implement an ERP system is not just a ‘one-time thing.’

Real costs are in constant training, upgrading, and maintenance.

Average Total Cost of Ownership (TCO) is $15 million.

Benefits are not seen right away.

5. The Hidden Costs

Integration and testing

Data conversion

Data analysis

Replacing your best and brightest

6.Advantages

• Information entered once into system

• Allows customization

• Provides functionality to interact with other modules

7. Disadvantages

Implementation is expensive and lengthy

Maintenance is costly and time consuming

Data errors are replicated through the system

To improve the profitability of the company

To solve problems of legacy systems (year 2000)

To be able to cope with new production requirements

To provide interoperability of its organizations

To provide the means for Supply Chain Management

One data base, data is added only once and used by all

8.Why ERP ?

9. To ERP Or Not To ERP?

Cost vs. long term gain

Let’s do it!!