ERP

1. ERPERP
Enterprise Resource PlanningEnterprise Resource Planning

2.  Enterprise resource planning, techniquesEnterprise resource planning, techniques
and concepts for integrated managementand concepts for integrated management
of business as a whole from the viewpointof business as a whole from the viewpoint
of the effective use of management toof the effective use of management to
improve the efficiency of enterpriseimprove the efficiency of enterprise
management.management.

3.  ERP software is designed to model andERP software is designed to model and
automate many of the basic of the basicautomate many of the basic of the basic
processes of a company from finance to theprocesses of a company from finance to the
shop floor with the goal of integrating informationshop floor with the goal of integrating information
across the company and eliminating complex,across the company and eliminating complex,
expensive links between computer system thatexpensive links between computer system that
were never meant to talk to each other.were never meant to talk to each other.

4. ERP MythsERP Myths
 ERP means more work and procedureERP means more work and procedure
 ERP will make many employees redundant andERP will make many employees redundant and
joblessjobless
 ERP is just for the Manager/decision makersERP is just for the Manager/decision makers
 ERP is just for manufacturing organization.ERP is just for manufacturing organization.
 ERP slows down the organizationERP slows down the organization
 ERP is expensiveERP is expensive
 Organization can succeed without ERPOrganization can succeed without ERP
 ERP package will take care of everythingERP package will take care of everything

5. History of ERPHistory of ERP
 Inventory management and controlInventory management and control
 Material Requirement PlanningMaterial Requirement Planning
 Manufacturing Requirement PlanningManufacturing Requirement Planning
(MRPII)(MRPII)
 ERPERP

6. Inventory management and controlInventory management and control
 19601960
 Combination of information technologyCombination of information technology
and business process of maintaining theand business process of maintaining the
appropriate level of stock in warehouse.appropriate level of stock in warehouse.

7. Material Requirement PlanningMaterial Requirement Planning
 19701970
 Utilizes software application for schedulingUtilizes software application for scheduling
production process.production process.
 Generates schedules for the operationGenerates schedules for the operation
and raw material purchases based on theand raw material purchases based on the
production requirement of finished goods.production requirement of finished goods.

8. MRP(II)MRP(II)
 Utilizes software application forUtilizes software application for
coordinating manufacturing process, fromcoordinating manufacturing process, from
product planning, parts purchasingproduct planning, parts purchasing
inventory control to product distribution.inventory control to product distribution.

9. ERPERP
 ERP system often integrate businessERP system often integrate business
activities across functional departments,activities across functional departments,
from product planning, parts purchasing,from product planning, parts purchasing,
inventory control, product distribution,inventory control, product distribution,
order fulfillment, to order tracking.order fulfillment, to order tracking.

10. Advantage of ERPAdvantage of ERP
 Business IntegrationBusiness Integration
 FlexibilityFlexibility
 Better analysis and planningBetter analysis and planning
 Use of latest technologyUse of latest technology
 Corporate imageCorporate image
 Improved customer goodwillImproved customer goodwill
 Customer satisfactionCustomer satisfaction

11. Difference between traditionalDifference between traditional
package and ERP software.package and ERP software.
 Has the total range of main businessHas the total range of main business
necessary for company operationnecessary for company operation
 It can be composed of highly flexibleIt can be composed of highly flexible
decentralized database and andecentralized database and an
information system cluster linked by ainformation system cluster linked by a
networknetwork
 Global adaptation, represented by ERPGlobal adaptation, represented by ERP
packages, multi-currency capacity.packages, multi-currency capacity.

12. Roadmap for successful ERPRoadmap for successful ERP
implementation.implementation.
 Most important step of ERPMost important step of ERP
implementation is the phase called Gapimplementation is the phase called Gap
analysis, which is the step between theanalysis, which is the step between the
company requirements and the function acompany requirements and the function a
package possesses.package possesses.

13. Future of ERP packagesFuture of ERP packages
 Essential to collect and grasp a broadEssential to collect and grasp a broad
range of accurate information.range of accurate information.
 Controlling the implementationControlling the implementation
methodologymethodology
 Adapt to version upgrades of packagesAdapt to version upgrades of packages
themselves.themselves.