erp - improve organization efficiency
DESCRIPTION
What is ERP or SAP?....For any organizations, whether small or big, softwares like SAP is must for growing business and improving profit. However implementing and using SAP is not same as using Excel sheets or Words. Its a business solution.TRANSCRIPT
Abhijit Pradhanwww.bigbangconsultancy.com
Talley
SAP
ERP
Impact on economy Slowing GDP growth Collapsed share market Currency devaluation
Impact on industries Slow demand Lower production Higher raw material cost
Answer is YES………
& this tool is called asERP
What is ERP? Improve organization efficiency and
profitability using ERP? Various ERP products and budget SAP information Why SAP is so popular globally? Is SAP useful for small and medium
companies? Can SAP projects fail?
Finance department decides to implement IT software….calls IT expert….develops IT solution for Finance department
Purchase Department decides to implement IT software….calls IT expert….develops IT solution for Purchase department
Sales team decides to implement IT software ….……….do…….………………. Develops Sales Software
Production Planning team decides to implement IT software ….……….do…….………………. Develops Planning Software
ResultToo many home grown , independent, standalone
and non-integrated software systems in the organization
Product Engineering
Finance
Costing
PlantMaintenance
xxxxx
Purchase Quality Production Stores
Sales Marketing Service Warranty
1. How much worth of faulty car batteries returned back from the market till now?
2. Reasons of failure? 3. Financial loss?
Product Engineering
Finance
Costing
PlantMaintenance
xxxxx
Purchase Quality Production Stores
Sales Marketing Service Warranty
Getting quick and accurate informationis almost impossible
Data in too many systems and hence
manual compilation
Duplication of data entry
Non Standard procedures
Variations in information formats
Only few people has access to key
information
Integration of existing system is technically very complex and expensive
Need dedicated IT team System can become very unstable after
addition of new functionalities Maintenance of system is expensive
Solution
Readymade Software with built-in integration
called as ERP
PP
GL
HR
FA
AP
AR
Payroll
Mg
ERP with built-in integration between various departments E.g. For every good despatched, Finance and inventory data
automatically gets updated
Single software can be used across the organization and from any part of the world
Instant availability of information E.g. material received at factory gate is immediately visible to
all concern depart across the organization
Information captured at source
Using various features in ERP, Organization efficiency can be improved –
e.g. Reduce procurement lead time Improve customer response time Reduce production cost Faster communication with customer and supplier
Profitability can be improved – e.g. Reduced inventory carrying cost Reduced production losses Reduced production cost Minimize wastages
SAP is a German company
SAP is the most popular ERP software globally
and in India
Almost all top companies are using SAP
Tata Motors, Mahindra, Reliance, Birla group, BMC,
CIDCO
Microsoft, GM, Chevron, Toyota, German Goverment
Sales & Distribution
Materials Management
Production Planning
Quality Management
Plant Maintenance
Finance
Costing
Project System
R/3R/3Client / ServerClient / Server
ABAP/4ABAP/4
COCO
PSPS
WFWF
ISIS
MMMM
HRHR
SDSD
PMPM
PPPP
QMQM
FIFI
More than 20 modules
Product is proven globally with almost zero bugs
It has most number of features as compared to other ERPs
Scalable solution - can be extended as per business
requirement
SAP is not implemented by IT team but by people from
business e.g. Consultant with CA or ICWA qualification is
responsible for implementation of Finance module
Yes…..SAP Project Can fail………
…………………but not because of product problem
Wrong implementation strategy Too many modules implemented together Too many sites implemented simultaneously
No supported from top management Proper infrastructure not available in time Inadequate implementation partner
knowledge & experience If change management issues are not
addressed
ERP selection -Which ERP is suitable? Deciding strategy - Which modules to be
implemented and at what stage? Finding out investment budget Helping customer in deciding infrastructure Helping in selection of implementation partner Help customer in timely completion of project?
Ensuring successful SAP Implementation