ERP
Enterprise Resource Planning
People
Process Technology
ERP
A K Roy
A K Roy
An ERP Example: Before ERP
Customers
Customer
Demographic
Files Sales Dept.
Vendor
Orders
Parts
Accounting
Accounting
Files
Purchasing
Purchasing
Files
Order is placed
with Vendor
Invoices
accounting
Inventory
Files
Warehouse
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
“We Need parts #XX”
“We ordered the parts”
Sends report
Sends report
Sends report
Ships parts
A K Roy
Problems with function based application Sharing of data between systems Data duplication Data inconsistency Applications that don’t talk to one another Limited or lack of integrated information Isolated decisions lead to overall inefficiencies Increased expenses
A K Roy
An ERP Example: After ERP
Database
Customers Sales Dept.
Purchasing
Warehouse
Accounting
Vendor
Inventory Data
If no parts,
order is placed
through DB
Orders
Parts
Order is submitted
to Purchasing.
Purchasing record
order in DB
Order is placed
with Vendor
And invoices accounting
Financial Data exchange;
Books invoice against PO
Books inventory
against PO
Ships parts A K Roy
Solution to disparate systems? Integration Consolidation Right-sizing Business Process Redesign Enterprise wide system
A K Roy
Integrated systems or Enterprise Resource Planning System
A K Roy
ERP - Definition ERP is a process of managing all resources and their
use in the entire enterprise in a coordinated manner
ERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management
A K Roy
What is ERP?
The practice of consolidating an enterprise’s planning, manufacturing, sales and marketing efforts into one management system
Combines all databases across departments into a single database that can be accessed by all employees
ERP automates the tasks involved in performing a business process
A K Roy
Evolution of ERP
A K Roy
How Do ERP Systems Work?
Managers and Stakeholders
Central Database
Reporting Applications
Financial Applications
Manufacturing Applications
Inventory And Supply Applications
Human Resource
Management Applications
Service Applications
Sales and Delivery
Applications
Sales Force And Customer Service Reps
Customers Back-office Administrators And Workers
Suppliers
A K Roy
What makes ERP different Integrated modules Common definitions Common database Update one module, automatically updates others ERP systems reflect a specific way of doing business Must look at your value chains, rather than
functions
A K Roy
ERP Components Finance: modules for
bookkeeping and making sure the bills are paid on time. Examples: General ledger Accounts receivable Accounts payable
HR: software for handling personnel-related tasks for corporate managers and individual employees. Examples: HR administration Payroll Self-service HR
Manufacturing & Logistics: A group of applications for planning production, taking orders and delivering products to the customer. Examples: Production planning Materials management Order entry and
processing Warehouse management
A K Roy
Benefits of ERP Common set of data Help in integrating applications for decision making
and planning Allow departments to talk to each other Easy to integrate by using processed built into ERP
software A way to force BPR (reengineering)
A K Roy
Vendors
ERP vendors
Our ERP is Oracle based provided
by Light House A K Roy
Training schedule: Weighbridge Module (Day 1)
Gate Inward Weighbridge First Weight Loading Advice/Slip Weighbridge Second Weight Gate Outward
Accounting Module (Day 2) Financial Accounting [General Ledger] Financial Accounting: Accounts Payable –AP Financial Accounting: Accounts Receivable –AR Financial Accounting: Cash Management
Production Module (Day 3) Production Entry Details Bill of Material Breakdown Details Reports
A K Roy
Training schedule: (cont.…) Material Management Module (Day 4 & 5)
Requisition Issue Indent Enquiry Quotation Purchase Order GRN Stock Valuation
Sales & Marketing Module (Day 6 & 7) Customer Enquiry Sales Quotation Sales Contract Delivery Order Sales Invoice cum Dispatch Prepare Sales Invoice
Doubt Clearing & Evaluation (Day 8) A K Roy
A K Roy