Presented by: Bharat Ahir (910003) Kanaiya Gadhvi (910011) Hardeep Jadeja (910016) Mayur Jadeja (910017) Darshan Joshi (910020) Jaimin Patel (910040) Mittal Shah (910048)

Presented To:Pro. Purvish ShahBE (Mech), MBA (Marketing)

VICTORY GROUP

What is ERP? Enterprise resource planning (ERP) systems

were developed as an extension of materials requirements planning (MRP) systems. ERP was introduced in the late 80s.

ERP stands for Enterprise Resource Planning.

ERP is a way to integrate the data and processes of an organization into one single system.

The term ERP originally referred to how a large organization planned to use organizational wide resources.

Continue…. ERP systems are used in almost any type of

organization - large or small.

Some ERP packages exist that only cover two functions for an organization, most ERP systems cover several functions.

Today's ERP systems can cover a wide range of functions. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.

Integration is Key to ERP

Integration is an extremely important part to ERP's. ERP's main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow.

The Ideal ERP SystemAn ideal ERP system is when a single database is utilized and contains all data for various software modules.

Manufacturing: Some of the functions include; engineering,capacity, workflow management, quality control, bills of material,manufacturing process, etc.

Financials: Accounts payable, accounts receivable, fixed assets,general ledger and cash management, etc.

Human Resources: Benefits, training, payroll, time andattendance, etc

Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.

Projects: Costing, billing, activity management, time and expense, etc.

Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.

Data Warehouse: Usually this is a module that can be accessedby an organizations customers, suppliers and employees.

ERP Growth Rings

BOMP

MRP

CL MRP

ERP

MRP II

Evolution of ERP1.Bills of material processor(BOMP):

2. Material requirement planning:MRP1 is the predecessor of enterprise resource

planning application.

When there is much hype around it is also equally important to trace the origin of ERP and its Predecessors

Predicting the demands in advance

Continue…..MRP1

Dr Joseph Orlicky invented MRP1 in the year 1960.

Nature of functioning

Applications

Manufacturing resource planning (MRP II):

MRP was in existence right from the year 1960

ERP IMPLEMENTATIONERP implementation takes time.:- . Implementing

an ERP system is not an easy task to achieve, in fact it takes lots of planning, consulting and in most cases 3 months to 1 year +.

Commitment from management:-One of the most important traits that an organization should have when implementing an ERP system is ownership of the project.

Step-by-Step rather than big bang introduction:-Usually organizations use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

Continue……Consulting Services :-usually consulting services are

responsible for the initial stages of ERP implementation, they help an organization go live with their new system, with product training, workflow, improve ERP's use in the specific organization, etc.

Customization Services :-Customization services work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code.

Support Services:-Support services include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

DATA MIGRATIONThe following are steps of a data migration

strategy that can help with the success of an ERP implementation:-

1. Identifying the data to be migrated2. Determining the timing of data

migration3. Generating the data templates4. Freezing the tools for data

migration5. Deciding on migration related

setups6. Deciding on data archiving

METHODS FOR IMPLEMENTATION Some popular methods for implementation are as

follows:-

Joint ventures with the Respective Industry:-The company need not necessarily implement ERP all on its own. They can as well share it with leading players in the same industry.

Doing it all alone:-This is in fact one of the primitive methods and is no doubt followed till date. This method takes a lot of risks in this method.

Full/Partial Implementation:-It has always been said that ERP products and services are purelybased on the needs and resources of the company. This is not a risk for ERP implementation.

Challenges in ERP Implementation

Convincing peopleTechno stressHigh costReturn on InvestmentDownsizing

ADVANTAGES OF ERP Design engineering (how to best make the product)Order tracking, from acceptance through fulfillmentEase of use. ERP is an accounting application.Timely and accurate information.Easy enterprise wide information sharing. ERP can be an indispensable tool is the area of security.Automatic adaptation to new technologies.

DISADVANTAGES OF ERP

ERP system can be very Expensive. Some large organizations may have multiple departments.Customization of software is limited.Takes time to implement.The system may be too complex measured against the actual needs of the customers.

How to avoid ERP failures ?

Phased-in approachEstimation of the complex natureInvolvement of affected employees

Slow processEffective testing

MIS Vs ERPDefinition of MIS

MIS (Management Information System) is a system to give information to Managers for making decision.

Definition of ERP“Enterprise Resource Planning software is complete integrated business management software, which captures data in chronological order, and is used to link businesses processes automatically and give real time information to authorized user.

MIS Vs ERPMIS’s Role:

1. To Generate Reports-for Example2. To Answer What-if Questions Asked By Management3. To Support Decision Making

ERP’s Role:

1. Staff Reduction2. Better Inventory Management 3. Improve Customer Responsiveness 4. Efficient Procurement5. Enhanced Financial Management And Corporate

Governance:6. Software Security: E.G. Seradex ERP 7. Encouraging Uniqueness 8. Changing The Working Pattern 9. Web-enable ERP

Why ERP Is The BestReliable information accessAvoid data and operation redundancyDelivery and cycle time reductionCost reductionEasy adaptationImprove scalabilityImprove maintenanceGlobal outreachE-commerce, e-business

ERP: Integration with CRM and SCM

ERP : Integration With CRM and SCM:

1

Key Process Integration

via ERP

Key Process Integration

via ERP

Product Lifecycle

Management

Product Lifecycle

Management

SCMSCM

CRMCRM

Supplier Collaboration

Supplier Collaboration

Design PartnersDesign

PartnersConsumers

and Channels

Consumers and Channels

Trends In ERP

Flexible ERP

Web-Enable ERP

Inter enterprise ERP

E-business suite

ConclusionReduced overheads and inventory.Timely responsiveness.Market share and image

enhancement.Keep up with technology changes.Only way for integrated systems for

client with multiple locations.