erp- imran
TRANSCRIPT
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ERP Presentation 1
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` Objective
` Introduction to ERP
` Brief History & Evolution
` ERP Modules` PROS & CONS
` ERP Implementation Process
` Implementation Experience at PFL
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An overview of ERP & its Components, discuss
its merits demerits and implementation experience
ERP Presentation 3
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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))
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` 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
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` 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
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` 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)
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` Second Generation ERP Late 1990s software integrated supply chains
Systems focused on decision-making
Application Service Providers set-up and run systems forothers
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` 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
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` 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
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` 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.
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` 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
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` 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
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Ideally, ERP delivers a single
database that contains all datafor different software modules
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ERP Presentation 16
ERPAN OVERVIEWERPAN OVERVIEW
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` SAP
` Microsoft Dynamics
` Oracle Financials E-Business Suite
` PeopleSoft Enterprise
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` 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.
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` 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
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` 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.
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` Manufacturing` Logistics` Distribution` Inventory` Shipping` Invoicing` Accounting` Marketing, delivery, billing, production, quality
management and human resourcemanagement.
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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.
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` 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
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ERP Presentation 24
ERP Covering allAspectsERP Covering allAspects
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` Integration among different functional areas toensure proper communication, productivity andefficiency
` Order tracking, from acceptance through fulfilment` The revenue cycle, from invoice through cash
receipt
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` 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
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` 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.
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` Investment in Continuous Training of personnel
` Use of data / system by untrained personnel
` Re-engineering of business processes
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` 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
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` Management Commitment
` Appointment /Selection of Consultant
` Dedicated Team Formation
` System Selection (HW / SW)` Implementer Selection
` Training / GapAnalysis
` Scope
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` Data preparation
` Business Process Re-Engineering
` Training of Key Users
` Preparation of Test Server` Production server
` GO LIVE
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` Integration of following Business processes Accounts & Finance
Sales and Distribution
Purchasing
Inventory
HR & payroll
Production Planning
Asset Management
Business Intelligence
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` Post Implementation Support
` Training of all users
` Data Reconciliation
` Discontinuation of Old system
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ERP Presentation 34