ENTERPRISE RESOURCE PLANNING

Prajith.R.SReg No:0805134

Marketing

HRProduction

Finance

Marketing

HRProduction

Finance

ERP

ERP• Software solution

that addresses the enterprise needs taking the process view of an organization to meet the organizational goals tightly integrating all functions of an enterprise.

Why ERP..???

•To enhance

profitability

•For healthy operation

Competition in the

market

Demand in the

industry

ERP Implementation

• Project planning

• GAP analysis

• Business process re-engineering

• Configuration

• Project team training

• Testing

• End user training

• Going live

• Post implementation

1.Project planning• Designs the implementation process

• Project plan is developed. Roles are

identified and responsibilities are

assigned.

• This phase will decide when to begin

the project, how to do it and when the

project is supposed to be completed.

2.GAP Analysis• The gap between the existing company requirements

and what the ERP package is offering is analyzed.

• When the ERP package does not meet the company’s full requirements then the company can simply agree to live without a particular function or one can opt for :-

a) Upgrade, or

b) Identifying a third party product that might fill the gap, or

c) Altering the ERP source code.

3.Business process re-engineering

• In-depth study of existing systems/processes is required before ERP is considered.

• This study brings out deficiencies of the existing system/process.

• BPR attempts to re-structure and re-organize the human resources, functional areas, Man-Machine interfaces in the organization.

• Hence BPR attempts to maximize productivity

4.Configuration

• A prototype of the actual business processes of the company is used for thorough testing of the model in a controlled environment.

• Configuring reveals not only the strengths of a company’s business process but also- and perhaps more importantly - its weaknesses.

5.Project team training

• This is the phase where the company trains its employees to implement and later, run the system.

• After implementation, the company to be self-sufficient in running the ERP system, it should have a good in-house team that can handle the various situations.

6.Testing• This is the phase where one try to break

the system.

• The test cases must be designed specifically to find the weak links in the system and these bugs should be fixed before going live.

7.End user training

• In this phase the actual users of the system will

be given training on how to use the system.

• The employees who are going to use the new

system are identified. Their current skills are

noted and based on the current skill levels, they

are divided into groups. Then each group is given

training on the new system.

8.Going live

• The system is officially proclaimed operational.

• Once the system is ‘live’, the old system is removed,

and the new system is used for doing business.

9.Post implementation phase

• There should be people, within the company, who have the

technical prowess to make the necessary enhancements to the

system as and when required. The system must be upgraded

as and when new versions or new technologies are introduced.

Advantages

On time delivery

Increase flexibility

Reduced quality costs

Reduction of lead time

Reduction in cycle time

Improve resource utilization

Better customer satisfaction

Improved supplier performance

Better analysis and planning capabilities

Disadvantages• Cost is very high for implementation of ERP

package

• Time

12-18 months implementation

1-3 years real transformation

• Training

• Acceptance

Everyone gets brought down to the same knowledge level

ERP Vendors

Application

No. Vendor Revenue(million $)

Market share

1 SAP 4726 28.7

2 Oracle Applications

1674 10.2

3 The sage group 1221 7.4

4 Microsoft Dynamics

616 3.7

5 SSA Global Tech 464 2.8

Summary• Optimum utilization of resources

• Customer satisfaction

• Seamless integration between Functions

• Reduced overheads & inventory

• Timely responsiveness

• Market share & image enhancement

• Faster design to manufacturability

• Keep up with technology changes

Thank you..!!