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    An Insight of ERP SystemsWhy is it important for Engineers to

    understand

    Date March 28, 2011

    Presenters Mr. Hassan Aziz (B.E. IM-019)

    Mr. Saad Yousuf (B.E. IM-065)

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    AGENDA

    What is ERP?

    What can be the Resources of different

    Enterprises?

    What happens when Enterprises dont have ERPSystem?

    What are Pros of implementing ERP System?

    What are different ERP Software?

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    Components of Enterprises Customers => Customer Relationship Dept.

    Employee => Human Resource Dept.

    Suppliers => SupplyChain Dept.

    Finance => Finance Dept.

    Machinery => Maintenance Dept.

    Investors => Investor Relationship Dept.

    Raw Material => Material Requirement Dept.

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    PROS of ERP

    1. Integration

    2. Better Database Management

    3. Portability

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    2) Better Database ManagementBefore ERP

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    2) Better Database ManagementBefore ERP

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    2) Better Database ManagementAfter ERP

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    3) PortabilityTOYOTA President without ERP

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    MODULES OF ERP

    The generic ERP package

    represents the commonly

    operated business model

    of the organization. It isbuild with function model

    like :

    Finance

    Materials

    Production

    Marketing

    Sales & Distribution

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    ERP FINANCE MODULE

    All kind of organizations small scale, large scale

    organizations benefit from the implementation

    of ERP financial module. The financial module is

    the core of many ERP software systems. It can

    gather financial data from various functional

    departments, and generates valuable financialreports such general ledger, trail balance, as

    balance sheet and quarterly financial

    statements.

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    ERP HR MODULE

    Human Resources is another widely implemented ERPmodule. HR module streamlines the management ofhuman resources and human capitals. HR modulesroutinely maintain a complete employee database

    including contact information, salary details,attendance, performance evaluation and promotionof all employees. Advanced HR module is integratedwith knowledge management systems to optimallyutilize the expertise of all employees.

    Produce pay checks and payroll reports; Maintain personnel records;

    Pursue Talent Management,

    Training,

    Time and attendance benefit

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    ERP PRODUCTION

    MODULEProduction planning module optimizes theutilization of manufacturing capacity,

    parts, components and material resources

    using historical production data and salesforecasting.

    Process definition with inputs, outputs,

    byproducts and overheads

    Definition of Bill of Material for allproducts up to any number of levels

    Planning based on customer wise

    production advice and sales forecast.

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    ERP PURCHASE MODULE

    Purchase module streamline procurement of required raw

    materials. It automates the processes of identifying

    potential suppliers, negotiating price, awarding purchase

    order to the supplier, and billing processes. Purchase

    module is tightly integrated with the inventory control

    and production planning modules. Purchasing module is

    often integrated with supply chain management software.

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    ERP INVENTORY MODULE

    Purchase module streamline procurement of required raw

    materials. It automates the processes of identifyingpotential suppliers, negotiating price, awarding purchase

    order to the supplier, and billing processes. Purchase

    module is tightly integrated with the inventory control

    and production planning modules. Purchasing module is

    often integrated with supply chain management software.

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    ERP SALES &

    MARKETING MODULESales module implements functions of order placement,

    order scheduling, shipping and invoicing. Sales module is

    closely integrated with organizations' ecommerce

    websites. Many ERP vendors offer online store front as

    part of the sales module. ERP marketing module along with

    CRP supports lead generation, direct mailing campaign and

    other marketing works. Scheduling of the promotion is

    possible using this.

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    CHARACTERISTICS OF ERP

    SYSTEMSAn ERP system is not only the integration of various

    organization processes. Any system has to possess few key

    characteristics to qualify for a true solution. These

    feature are:

    Flexibility: An ERP system should be flexible to respond to

    the changing needs of an enterprise. The client server

    technology enables ERP to turn across various data base

    back ends through Open Data Base Connectivity (ODBC)

    Comprehensive: It should be also to support variety of

    organizational function and must be suitable for a wide

    range of business organizations

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    CHARACTERISTICS OF ERP

    SYSTEMSModular & Open: ERP system has to have an open system

    architecture. This means that any module can be

    interfaced or detached whenever required without

    affecting the other modules. It should support multiplehardware platforms for the companies having

    heterogeneous collection of systems. It must support some

    third party addons also.

    Best Business Practices: It must have a collection of the

    best business processes applicable world

    wide.Simulation of Reality: Last but not the least, it must

    simulate the reality of business processes on the

    computers. In no way it should have the control beyond

    the business processes and it must be able to assign

    accountabilities to the users controlling the system.

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    FEATURES OF ERP

    SYSTEMS ERP provide business intelligence tools like Decision

    Support Systems (DSS), Executive Information Systems

    (EIS), Reporting, Data Mining and Early Warning Systems

    for enabling people to make better decisions and thus

    improve their business processes.

    ERP bridges the information gap across the organization.

    ERP provides for complete integration of systems not only

    across the department in a company but also across the

    companies under the same management.

    ERP is an effective solution for better Project

    Management.

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    WIDELY USED ERP

    SOFTWARESSome widely used ERP softwares are: SAP

    Oracle

    MS Dynamics Baan

    J D Edwards

    WebERP

    Scoopsoft

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    ADVANTAGES OF ERP

    SYSTEMS ERP can also be responsible for altering how a product ismanufactured. It allows the products themselves to be

    produced with a higher level of quality.

    Can protect a company against crimes such as embezzlementor industrial espionage

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    DISADVANTAGES OF ERP

    SYSTEMSWhile advantages usually outweigh disadvantages formost organizations implementing an ERP system, here are

    some of the most common obstacles experienced:

    The scope of customization is limited in several

    circumstances

    The present business processes have to be rethought to

    make them synchronize with the ERP

    ERP systems are hard to customize.

    ERP systems can be extremely expensive to implement. At

    present, only large corporations can truly take advantage

    of the benefits that are offered by this technology

    There could be lack of continuous technical support

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    THANK YOUTHANK YOU