SUBMITTED BY SUBMITTED TO

ASHUTOSH YADAV MR. BHUPENDRA GEHLOT

U.I.D.-K10995 ASST. PROFESSOR OF M.E.

BRANCH-MECHANICAL ENGG. DEPT. C.P.U. KOTA

Introduction

Definition

Characteristics

Functions of ERP

Implementation

CASE-1

CASE-2

CASE-3

CASE-4

Conclusion

References

The primary functions of Enterprise Resource Planning

(ERP) are to integrate the inter-departmental operation

procedures and Management Information System (MIS)

modules, and to reallocate the resources of a company.

The Gartner Group first used the acronym ERP in the

1990s.

ERP systems experienced rapid growth in the 1990s.

Because of the year 2000 problem and the introduction of

the euro that disrupted legacy systems, many companies

took the opportunity to replace their old systems with ERP

Enterprise resource planning (ERP) is a category of business-management software—typically a suite of

integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including:

product planning, purchase

manufacturing or service delivery

marketing and sales

inventory management

shipping and payment

ERP (Enterprise Resource Planning) systems typically include the following characteristics:

An integrated system that operates in (or near) real time without relying on periodic updates.

A common database that supports all applications

A consistent look and feel across modules

Installation of the system with elaborate application/data

integration by the Information Technology (IT) department, provided the implementation is not done in small steps.

Financial accounting General ledger, fixed asset, payables including

vouchering, matching and payment, receivables cash application and collections, cash management ,financiaL consolidation

Management accounting: Budgeting, costing, cost management, activity based costing

Human

resources: Recruiting, training, rosterin, payroll, benefits, 401K, diversity management, retirement, separation

Manufacturing: Engineering, bill of materials, work

orders, scheduling, capacity, workflow management, quality control,

manufacturing process, manufacturing projects, manufacturing flow, product life cycle management

ERP's scope usually implies significant changes to staff

work processes and practices. Generally, three types of

services are available to help implement such

changes—consulting, customization, and support.

. Implementation time depends on business size,

number of modules, customization, the scope of

process changes, and the readiness of the customer to take ownership for the project

Problem-A family owned chemical manufacturer needed to replace its old

information, inadequate system and solve some important business

problems. The company was growing and management needed to

understand customer profitability.

Solution-Management believed that they did not have the knowledge to

select a new system by themselves and they wanted to be sure not to make

a mistake. They began to interview consulting firms who had the

knowledge they lacked.

. Management selected Ultra to assist the company with a selection of a

new information system. Ultra was selected for two reasons: first, the

ability of the Ultra Partners to work with the management team, and

second, Ultra’s depth of knowledge about ERP software vendors

This client has received the following benefits through an

Ultra engagement:

Development of new processes for sales and service

Management understanding of how to solve a critical business problem

Clear justification for the new system

Accurate selection of a new information system that fits their unique business requirements

Purchase of a tier I ERP vendor at tier II prices

Availability of outside ERP knowledge and experience to supplement the management

team during the implementation of the selected system.

CHALLENGE-Miljoco gauges and thermometers are

installed by original equipment manufacturers and

mechanical contractors on products such as refrigerated

cases, boilers, compressors, burners, chillers and food

holding cabinets. With 35 people in its headquarters and

manufacturing facility in Detroit, and 55 more at a plant

in Shanghai, China and with more than 1,500 customers

around the world Miljoco’s management knew it needed

an Enterprise Resource Management (ERP) system to

manage the increasing complexity and still remain

competitive in a market.

After the decision, that same team of four future users

built the datasets that would drive the new ERP system.

The datasets were complex and extensive: 25,000

stock-keeping units (SKUs) the company sells, 15,000

SKUs they make, 5,000 components from more than

300 vendors, and, of course, detailed records from

1,500 customers.

Market-Manufacturer of Structural Steel Tubing Annual

Revenues $200 million.

Problem-LTV - Copperweld was constantly forced into a

position of borrowing convertible raw materials from

various production runs to meet spikes in demand in

another production line. Copperweld’s Materials Resource

Planning (MRP) system did not support visualization of the

stock outs or inventory fluctuations that resulted from these

practices. Consequently, Copperweld suffered from

inaccurate raw material inventory levels and periodic shortages of vital materials in several productionruns.

Working directly with Copperweld IT Executives and Production staff, Ultra

Consultants designed a Raw Materials Pipeline Model. Utilizing a custom

application and Microsoft SQL Server, this model extracted raw materials

inventory data, pipeline data, finished goods orders and forecasts from the

operational systems. Detailed conversion/precedence rules, and exceptions to

rules, were acquired from the operational system and interviews with the

master scheduler. These rules allowed the Raw Materials Pipeline Model to

simulate raw-material consumption into the future. Furthermore, Ultra

Corporation technicians designed a Decision Support System (DSS) and reporting writer,

Benefits

Stock-out reduced significantly by giving suppliers longer lead times

Scrap was reduced by nearly 2%

Raw materials inventory reduced by 40%

Market-Full Compass Systems, Inc. distributes professional audio, visual,

and lighting equipment. Located inMadison, Wisconsin, the company markets over 100,000 SKU’s to over 300,000 customers.

Problem-Twenty-five years ago the company implemented its current

information system. They called the system TeleManager because is

primarily supported the telemarketing efforts or their in house sales

organization. The system used the Informix database and was eventually

ported to a Linux operation system. Over the years the information system has grown to include purchasing, warehouse operations, and accounting.

In 2010, management began to see that TeleManager was beginning to

impact the company’s double-digit growth. It became difficult for IT to

keep up with changing business environment and business process change.

The company was becoming a true multi channel marketing company and

the business users needed an information system that addressed the needs of this rapid changing industry.

In early 2011, Full Compass Systems retained Ultra Consultants to help them with the transition from a 25- year-old legacy system to a modern multi-channel marketing ERP system. The top management of the company was involved in every step of the process. The team involved the top officers of the company including the founder, COO, CFO, procurement, operations, and sales and marketing.With Ultra’s guidance, the team documented all of the current business processes. Over 300 business processes were identified and documented. Ultra facilitated an ERP education curriculum we called ERP University. Ultra provided ERP professionals from the industry to teach the team about ERP best practices for their industry so they could envision “what is possible” with modern ERP.

There is a limiting factor, and this brings us full circle. Small suppliers do need to integrate with their larger suppliers’ ERP systems, but their internal processes and requirements will often be very different. Many will buy the ERP application that most suits their internal use and seek to integrate it with whatever applications are used by organisations they trade with. In other words, tier-two fragmentation of ERP is not just something that exists in large organisations, it is also a fact of life across broader business communities. The interests of ERP users are so diverse that the market will continue to support a wide range of products, including those for enterprise-wide needs and those for specialist niches, and the various products will always need to talk to each other at some level

THANK YOU