1. ENTERPRISE RESOURCE
PLANNING
TANIYA BANERJEE
PRATAP SHEE

2. DEFINATION OF 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.

3. WHAT IS ERP?
 ERP systems are the software tools used to
manage enterprise data.
 Facilitates Company-wide integrated Information
Systems Covering all functional Areas.
 Performs core corporate activities and increases
customer service augmenting Corporate Image.
 Organizes & optimizes the data input
methodologies systematically.

4. A Typical Story
Manufacturing Finance
My growth
will be OK . No?
Corporate office
Sales Group Human Resource

5. WHAT DOES ERP INTEGRATE?
 Databases
 Applications
 Interfaces
 Tools

6. Evolution of ERP systems
Types of systems Time
 Reorder point 1960s
 Material requirement 1970s
planning (MRP)
 Manufacturing resource 1980s
planning (MRP-II )
 Enterprise resource 1990s and
planning (ERP) onwards

7. Why ERP ?

8. Why ERP?
 Business
Customer satisfaction
Business Development- new areas, products, services
Ability to face competition
Efficient processes required to push the company to top gear
 IT
Present software does not meet business needs
Obsolete hardware/ software difficult to maintain

9. ERP Implementation

10. ERP Implementation phases
1. Project Planning
2. Gap Analysis
3. Business Process Re-engineering (BPR)
4. Configuration
5. Project Team Training
6. Testing
7. End User Training
8. Going live
9. Post-Implementation

11. 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.

12. 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.

13. 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.

14. 3.Business Process Reengineering
 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

15. 5. Implementation 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. Advantages Of ERP

21. BENEFITS OF ERP
 Reduction of lead time
 Reduction in cycle time
 Improve resource utilization
 Better customer satisfaction
 Improved supplier performance
 Increase flexibility
 Reduced quality costs
 On time delivery
 Better analysis and planning capabilities

22. DISADVANTAGES OF ERP
 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

23. HOW ERP HAS AFFECTED
CONSUMERS?
 Consumers demands are met by faster
order to shipping dates
 Tracking information on orders is available
to consumers
 Consumers can easily view inventory,
sale prices, delivery dates from the
company web page
 Painless electronic transactions

24. ERP VENDORS
Application

25. SAP
 SAP is an ERP (Enterprise Resource Planning)
system
 SAP = Systems, Applications and Products in
Data Processing
 German Based Company
 One of Largest Independent Software Vendor in
the World
 ERP Market Leader (SAP R/3 and mySAP ERP)
 80% Fortune 500 Companies Use SAP
 Over 18,500 Customers in 120+ Countries
 Over 12 million users

26. SAP application modules
 Financial Accounting – collects all the data in
the company relevant to accounting.
 Asset Management – manage and supervise
individual aspects of fixed assets.
 Controlling – coordinating the contents and
procedures of a company’s internal processes.
 Production Planning – plan and control
manufacturing activities.
 Materials Management – supports the
procurement and inventory functions occurring
in day-to-day business operations.

27. SAP Application Modules
 Plant Maintenance and Service Management – provides
planning, control and processing of scheduled
maintenance and to ensure availability of operational
systems.
 Quality Management – monitors and manages all
processes relevant to quality assurance along the entire
supply chain.
 Project System – designed to support planning, control
and monitoring of long term highly projects with defined
goal.
 Sales and Distribution – optimize all the activities
carried out in sales and distribution.
 Human Resource Management – planning and
managing company’s human resource.

28. System Wide Features of SAP
 Customizing – it is the configuring of the system to
represent organization’s legal structure, reporting
requirement and business processes.
 Organizational element –
* Financial
* Materials mgmt
* Sales & distribution
 Master data – it is records that remain in the database over
an extended period of time.
 Employee Self Service
 Classification
 Match codes
 Security

29. CONCLUSION
 ERP integrate all aspects of a company into one
solution.
 There are both Pros and Cons, depending on
the company one will out weigh the other.
 ERP is very time consuming and costly project.
 SAP is the major key vendor, with maximum
market share.
 ERP has a strong future and will continue to
grow.

30. Thank You