Download - Enterprise Resource Planning MIS
-
8/8/2019 Enterprise Resource Planning MIS
1/32
Enterprise resource planning (ERP)
-
8/8/2019 Enterprise Resource Planning MIS
2/32
Enterprise resource planning (ERP)
Enterprise resource planning (ERP) is an integrated computer-
based system used to manage internal and external resources
including tangible assets, financial resources, materials, and human
resources.
Enterprise Resource Planning
-
8/8/2019 Enterprise Resource Planning MIS
3/32
Enterprise resource planning (ERP)
It is a software architecture
Purpose is to facilitate the flow of information between all business functions inside the
boundaries of the organization Manage the connections to outside stakeholders.
Built on a centralized database and normally utilizing a common computing platform,
ERP systems consolidate all business operations into a uniform and enterprise wide system
environment.
Enterprise Resource Planning
-
8/8/2019 Enterprise Resource Planning MIS
4/32
History
The term "Enterprise resource planning" originally derived from ManufacturingResource Planning (MRP II) that followed material requirements planning (MRP). MRPevolved into ERP when "routings" became a major part of the software architecture and acompany's capacity planning activity also became a part of the standard software activity.
The ERP was first employed by research and analysis firm Gartner Group in 1990.
ERP systems saw a large boost in sales in the 1990s as companies faced theY2K problem in theirlegacy systems. Many companies took this opportunity to replace such information systems withERP systems.
ERP II, a term coined in the early 2000s, is often used to describe what would be the nextgeneration of ERP software.This new generation of software is web-based and allows bothemployees and external resources (such as suppliers and customers) real-time access to thesystem's data
-
8/8/2019 Enterprise Resource Planning MIS
5/32
What is ERP used for?
-
8/8/2019 Enterprise Resource Planning MIS
6/32
Components in detail..
y Transactional Backboney Financials
y Distribution
y Human Resources
y Product lifecycle management
y Advanced Applications Customer Relationship Management (CRM)
Supply chain management Purchasing
Manufacturing
Distribution
Warehouse Management System
Management Portal/Dashboard Decision Support System
-
8/8/2019 Enterprise Resource Planning MIS
7/32
Commercial applications
y Manufacturing Engineering, bills of material, scheduling, capacity,
workflow management, quality control, cost management, manufacturing
process, manufacturing projects, manufacturing flow
y Supply chain management Order to cash, inventory, order entry,
purchasing, product configuration, supply chain planning, supplier
scheduling, inspection of goods, claim processing, commission calculation
y Financials General ledger, cash management, accounts payable,
accounts receivable, fixed assets
-
8/8/2019 Enterprise Resource Planning MIS
8/32
Commercial applications
y Financials General ledger, cash management, accounts
payable, accounts receivable, fixed assets
y Project management Costing, billing, time and expense,
performance units, activity management
y Human resources Human resources, payroll, training, time
and attendance, rostering, benefits
-
8/8/2019 Enterprise Resource Planning MIS
9/32
y Data services Various "self-service" interfaces for customers,
suppliers, and/or employees
y Access control Management of user privileges for various
processes
-
8/8/2019 Enterprise Resource Planning MIS
10/32
Why implement an ERP System?
y To support business goals
y Integrated, on-line, secure, self-service processes for business
y Eliminate costly mainframe/fragmented technologies
y Improved Integration of Systems and Processes
y Lower Costs
y Empower Employees
y Enable Partners, Customers and Suppliers
-
8/8/2019 Enterprise Resource Planning MIS
11/32
How should we implement ERP Systems?y People
y Project Structure
y Should be aligned to processes
y
Processy Implementation Process (outlined in detail)y Adapt your processes to those of the ERP.
y Technologyy Hardware
y Software
y I
ntegrated Systems
-
8/8/2019 Enterprise Resource Planning MIS
12/32
Process
Design
y Prepare various functional reports - specifies current scenario and wish list
y Prepare Design document which specifies how the system is going to worky Prepare test scripts to be followed on system testing
y Map out the interface paths to various modules
Challenge :INFORMATION SHARING - Availability of staff
-
8/8/2019 Enterprise Resource Planning MIS
13/32
Process
Transition
y Train users on their specific areas
y Assist in test data compilation and system testing by usersy Finalise the Live system and captured opening balances
Challenge :USER RESISTANCE Understanding and acceptance
Data preparation
-
8/8/2019 Enterprise Resource Planning MIS
14/32
Technology
y Technology is an enabler, not the driver (it is there to assist the
organisation to achieve business goals)
y It is a means to an end, not the end itself. Businesss must use the
latest technology or refine their existing technologies to allign with
the implementation of ERP within an organisation.
-
8/8/2019 Enterprise Resource Planning MIS
15/32
Different phases of ERPy Pre evaluation Screening
y Evaluation Packagey
Project Planningy GAP analysis
y Reengineeringy Team trainingy T
estingy Post implementation
-
8/8/2019 Enterprise Resource Planning MIS
16/32
Pre-selection Process
Package Evaluation
Project Planning
Gap Analysis ReEngineering Configuration
Implementation
Team TrainingTesting End- user Training
Going Live
Post implementation
Phase
ERP Implementation Life Cycle
-
8/8/2019 Enterprise Resource Planning MIS
17/32
Pre evaluation screeningy Decision for perfect package
y Number of ERP vendors
y
Screening eliminates the packages that are not at all suitable forthe companys business processes
y Selection is done on best few package available.
-
8/8/2019 Enterprise Resource Planning MIS
18/32
Package Evaluationy Package is selected on the basis of different parameter.
y Test and certify the package and also check the coordination with
different departmenty Selected package will determine the success or failure of the
project.
y Package must be user friendly.
y
Regular up gradation should available.y Cost must be within the pre decided budget limits.
-
8/8/2019 Enterprise Resource Planning MIS
19/32
Project planningy Designs the implementation process.
y Resources are identified.
y Implementation team is selected and task allocated.y Special arrangement for contingencies.
-
8/8/2019 Enterprise Resource Planning MIS
20/32
Gap analysisy Most crucial phase.
y Process through which company can create a model of where they
are standing now and where they want to go.y Model help the company to cover the functional gap
-
8/8/2019 Enterprise Resource Planning MIS
21/32
ReEngineeringy Implementation is going to involve a significant change in number
of employees and their job responsibilities.
yProcess become more automated and efficient.
-
8/8/2019 Enterprise Resource Planning MIS
22/32
Team Trainingy Takes place along with the process of implementation.
y Company trains its employees to implement and later, run thesystem.
y Employee become self sufficient to implement the software after
the vendors and consultant have left.
-
8/8/2019 Enterprise Resource Planning MIS
23/32
Testing
y This phase is performed to find the weak link so that it
can be rectified before its implementation.
-
8/8/2019 Enterprise Resource Planning MIS
24/32
Going Livey The work is complete, data conversion is done, databases are up
and running, the configuration is complete & testing is done.
y T
he system is officially proclaimed.y Once the system is live the old system is removed
-
8/8/2019 Enterprise Resource Planning MIS
25/32
End User Training
y The employee who is going to use the system are identified and
trained.
-
8/8/2019 Enterprise Resource Planning MIS
26/32
Post Implementationy This is the maintenance phase.
y Employees who are trained enough to handle problems those
crops up time to time.y The post implementation will need a different set of roles and
skills than those with less integrated kind of systems.
-
8/8/2019 Enterprise Resource Planning MIS
27/32
Arch
itecture of ERP
-
8/8/2019 Enterprise Resource Planning MIS
28/32
Advantage of ERP Systems
What benefit
y Reliable information access
y Avoid data and operations redundancy
y Delivery and Cycle time reduction
y Cost reduction
y
Easy adaptability
How
y CommonDBMS,Consistent and accuratedata, improved reports.
yModules access same data from thecentral database, avoids multiple datainput and update operations.
y Minimizes retrieving and reportingdelays
y Time savings, improved control byenterprise-wide analysis oforganizational decisions.
y Changes in business processes easy toadapt and restructure.
-
8/8/2019 Enterprise Resource Planning MIS
29/32
Advantage of ERP Systems
y Improved scalability
y Improved maintenance
y GlobalOutreach
y E-Commerce, E-Business
y Structured and modular design
with "add-ons"
y Vendor supported long term
contract as part of the system
procurement.
yExtended modules such as CRMand SCM
y Internet Commerce,Collaborative culture.
-
8/8/2019 Enterprise Resource Planning MIS
30/32
Disadvantages of ERP Systems
y Time consuming
y Expensive
y Conformity of the modules
y Vendor dependence
y Minimize sensitive issues, internal politics andraise general consensus.
yCost may vary from thousands of dollars tomillions.Business process re-engineering costmay be extremely high.
y The architecture and components of theselected system should conform to the businessprocesses,culture and strategic goals of theorganization.
y Single vendor vs multi-vendor consideration, optionsfor "best of breeds", long term committed support.
Disadvantages How to overcome
-
8/8/2019 Enterprise Resource Planning MIS
31/32
-
8/8/2019 Enterprise Resource Planning MIS
32/32