ERP

Presented by:-

Manoj Singh

Enterprise Resource Planning

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Presentation flow• Erp Basics

– Defination– Evolution– Why ERP

• Overview of ERP Solutions :-– Modules of ERP– The ERP application– Why clients buy ERP?– Business process benefits clients expect from an ERP project– Major ERP vendors

• SAP R/3 Overview– SAP R/1 , R/2,R/3– SAP R/3 : 3 Tier Architecture

• ERP LIFE CYCLE– Explanation of Different phases of ERP

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ERP – Defination

“Software solution that addresses theEnterprise needs, taking a process view ofthe overall organization to meet the goals,by tightly integrating all functions andunder a common software platform”

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Evolution of ERP

1960’s - Systems Just for Inventory Control

1970’s - MRP – Material Requirement Planning (Inventory with material planning & procurement)

1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.)

Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise)

2000 onwards – ERP II – Collaborative Commerce (Extending ERP to external business entities)

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Why ERP?

For Management – to know what is happening in the company

One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival

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Overview of an ERP solution...?

MarketingManufacturing

Materials Finance

Engineering Sales

Planning and Execution

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Modules of ERP

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The ERP application

• An integrated suite of business applications, which..

– Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money.

– Enables corporates to readily change their processes to adapt to the ever changing business scenario.

– Provides expertise in industry specific business processes.

• Entails– Parameterization / Configuration– Designing & Customization– Testing and Implementation– Training

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Companies before ERP Systems

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Why clients buy ERP?

• Corporate Initiatives– Strategic initiatives

• A requisite capability in a competitive global business– Operational initiative

• A foundation for performance and cost improvement via integration

– Organizational initiative• To initiate a major organizational change within the company

• Technology – IT is making the transition from a supporting operational entity to

becoming a strategic competitive tool.• Because others are buying it !!!

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Business process benefits clients expect from an ERP project

• Global process/ Product management• Integrated Supply Chain Management• Leverage purchasing and vendor management• Order cycle time/ customer service improvement• Inventory reductions• Reduced information systems costs on an ongoing basis• Improved business management through worldwide integration

and information

Logistics and Distribution Sales & Customer Service

Vendors Inbound Manufacturing Transportation Distribution Delivery Customer Consumer Logistics

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Major ERP vendors

SAP R/3

Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier, but are subsets of Oracle now )

Peoplesoft

JD Edwards

Baan

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SAP R/3 Overview Systems Applications & Products

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SAP R/1 , R/2 The R/1 system

Developed for ICI Chemical Released 1972 Focused on Sales & Distribution and Materials Management Discontinued after release of R/2

R/2Basis System

The R/2 system Reorganized as leading mainframe software for large multinational

corporations No sales effort planned – reactive only 4,300 copies worldwide in 1993 Mainframe-based to replace user legacy software;

co-existence and migration strategy underway for R/2 and R/3

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SAP R/3 : 3 Tier Architecture

Those SAP R/3 software components that specialize in the management , storage and retrieval of data form the Database Layer

The Database Layer

Those SAP R/3 software components that specialize in processing business applications form the Application Layer.

The Application Layer

Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer.

The Presentation Layer

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SAP R/3 : 3 Tier Architecture

Database servers:

Specialized systems

with fast and large

hard drives.

Application servers:

Specialized systems

multiple CPUs and

vast amounts of RAM.

Presentation servers:

Systems capable of

providing a graphical

interface.

Presentation Layer components

Application Layer

componentsDatabase Layer

components

reside in: reside in: reside in:

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SAP R/3 : 3 Tier Architecture

The Database Layer

components are installed on

high-end database server.

The Application Layer

components are installed

across one or more high-

end servers.

Presentation Layer components are installed across many PCs

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ERP LIFE CYCLE

• ERP lifecycle is in which highlights the different stages in implementation of An ERP

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Different phases of ERP

• Pre evaluation Screening• Evaluation Package• Project Planning• GAP analysis• Reengineering• Team training• Testing• Post implementation

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Pre-selection Process

Package Evaluation

Project Planning

Gap Analysis Reengineering Configuration

Implementation Team Training Testing End- user Training

Going Live

Post – implementation Phase

ERP implementation Life Cycle20

Pre evaluation screening

• Decision for perfect package

• Number of ERP vendors

• Screening eliminates the packages that are not at all suitable for the company’s business processes.

• Selection is done on best few package available.

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Package Evaluation

• Package is selected on the basis of different parameter.

• Test and certify the package and also check the coordination with different department

• Selected package will determine the success or failure of the project.

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Cont.

• Package must be user friendly

• Regular up gradation should available.

• Cost

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Project planning

• Designs the implementation process.

• Resources are identified.

• Implementation team is selected and task allocated.

• Special arrangement for contegencies.

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Gap analysis

• Most crucial phase.

• Process through which company can create a model of where they are standing now and where they want to go.

• Model help the company to cover the functional gap

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Team Training

• Takes place along with the process of implementation.

• Company trains its employees to implement and later, run the system.

• Employee become self sufficient to implement the software after the vendors and consultant have left.

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Testing

• This phase is performed to find the weak link so that it can be rectified before its implementation.

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Going Live

• The work is complete, data conversion is done, databases are up and running, the configuration is complete & testing is done.

• The system is officially proclaimed.

• Once the system is live the old system is removed

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End User Training

• The employee who is going to use the system are identified and trained.

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Post Implementation

• This is the maintenance phase.

• Employees who are trained enough to handle problems those crops up time to time.

• The post implementation will need a different set of roles and skills than those with less integrated kind of systems.

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