2. • “A process or approach which attempts to consolidate all of a
company's departments and functions into a single computer system
that services each department's specific needs.”

3. A Brief History of E.R.P.
During the 1960’s, Inventory Control was the main focus.
ERP term first employed by research firm Gartner Group (1990) as
extension of MRP
ERP= MRP II + Other Functions
In the 1980's the concept of MRP-II evolved.
ERP systems had a boost in sales in the ‘90s due to theY2K problem
ERP II-next generation ERP systems

4. Users Site manager CEO
Production
Manager
Other Users
Systems
Inventory
Management
Finance Sales Purchase HRMS
Site
Production

5. Example: Before ERP Systems
Secretary’s New printer
application
Transfer to
Accounting Office

6. Ideal Solution
Users Site manager CEO
Production
Manager
Other Users
Systems
Site
Manufacturing ERP

8. 1. Purchase order form for a new printer
2. Head of Department Confirmation- Faculty Head
3. Purchase order document sent to E.M.U. Account Office
4. Account Office Secretary sents the purchase order to the Responsibles
5. Purchase order- Responsible personal Confirmation
6. Purchasing department- Manager Confirmation
7. Transfer to Finance Department Secretary for processing
8. Finance Department Responsible’s Confirmation
9. Transfer to Secretary Office
10. Secretary- Confirmation
11. Confirmation Transfer, to Purchase Department Secretary
12. Purchase Responsible personal commends with Purchase:

9. SAP SYSTEM ONLINE
HEAD OF DEPARTMENT
REQUEST OF NEW
HP PRINTER
CONFIRMATION
SAP SYSTEM ONLINE
PURCHASE
RESPONSIBLE
FINANCIAL
ACCOUNTING
SAP SYSTEM ONLINE
PURCHASEING MANAGER
SECRETARY
CONFIRMATION
SAP SYSTEM ONLINE
FINANCE DEPARTMENT
CONFIRMATION
SAP SYSTEM ONLINE
RECTORS OFFICE
CONFIRMATION
SAP SYSTEM ONLINE
PURCHASE DEPARTMENT
PURCHASE
OF NEW
HP PRINTER

11. Inventory Reduction
Improved Cash Management
Increased Revenue and Profits
Reduced Transportation and Logistics Costs
Reduced Information Technology (IT) Costs

12. • Integrate Financial Information
• Integrate customer order information
• Standardize and speed up
manufacturing processes
• Reduce inventory
• Standardize HR
information

13. • Financial Management
• Inventory Management
• Purchasing
• Sales Management
• Production Planning
• Advanced Visual Planning
• Manufacturing Management

14. General
- Centralized data
- Streamline business process
- Reduce risk across enterprise
- Improve Productivity
Management
- Achieve growth objectives
- Meet revenue & profit
targets
- Increase market share
- Responsiveness to change
Finance
- Manage cash flow
- Gain financials insight
- Improve data integrity
- Manage assets
Sales
- Meet sales goal
- Reduce sales cost
- Better sales forecast
- Meet customer demands
- Better product quality
- Deliver products within
budget & time
- Manage demand pro actively
- Manage planning
Supply Chain
Production
- Simplify supply chain process
- Streamline & control
inventory
- Improve responsiveness
- Better partner collaboration
IT
- User friendliness
- Scalability
- Dynamic reporting tool
- Easy maintenance

15. • Customer Relationship Management
• Manages the enterprise's relationship with its customers
• Human Resource Management
• Streamlines the management of human resources and human capitals.
• Finance and management
• Gather financial data from various functional departments
• Supply chain management
• Includes the controlling the direction of resource movement
• Sales
• Implements functions of order placement, scheduling etc
• Marketing
• ERP marketing module supports lead generation, mailing
• Campaign and more.

16. 1. Focus on business processes and requirements first
2. Take measures to achieve a healthy ERP ROI
3. Strong project management and resource commitment is key
4.Commitment from organization executives
5. Take time to plan up front
6. Ensure adequate training and change management
7.Make sure to understand why you are implementing ERP
8. Focus on data migration early in the process
9. Chart the course
10. Patience – The key to success

17. SALES & DISTRIBUTION
• Sales Register
• Customer Invoice Register
• Customer Outstanding
Register
• Pending Sales Order List
• Daily Dispatch Program
• Sales Day Book
INVENTORY
• Stock Ledger
• Stock Movement Analysis
• Inventory Issues List
• Material Indent List
PURCHASE
• Purchase Order List
• Material Receipt Note
List
• Pending Purchases
• Purchase Day Book
FIXED ASSETS
MANAGEMENT
• Asset Group
• Asset Location
• Opening Balance Voucher
• Capital Budget
• Asset Transfer
• Depreciation
• Generate Asset
• Process Depreciation
• Asset Revaluation
• Asset Disposal
• Capitalization Voucher
PRODUCTION
• Consumption of Raw
Materials Report
• Daily Production Report
• Performance Report
• Production Summary
HRMS
• Pay Sheet
• Pay Slip Report
• Salary Statement
• Tax Reports
• Attendance Check List
• Leave Balance List
Report
© 2013 Knowledge Matrix Inc.

18. ERP Challenges
• Calculating Return on Investment (ROI)
• Obtaining Support from Major Executives and Third Parties
• Major Business Process Reengineering (BPR)
• ERP Is Cost Prohibitive
• Scope Creep
• Difficulty of Training End Users

19. • Training
• Integration and testing
• Customization
• Data conversion

21. •SAP and Oracle are the top two ERP
vendors
•SAP rank highest by capturing 32%-
39% of the market

22. SAP; 15,6
Peoplesoft;
4,9
Oracle ; 4,8
Baan; 3
CA; 3
JDE; 2,2
SSA; 2,1
GEAC; 2
IBM; 1,8
JBA; 1,7
Others ; 59
Software Market Share
SAP 15.6
Peoplesoft 4.9
Oracle 4.8
Baan 3.0
CA 3.0
JDE 2.2
SSA 2.1
GEAC 2.0
IBM 1.8
JBA 1.7
Others 59.0

23. • Reduce cost and maximize profits
• Better decision taking capability
• Streamline and accelerate processes to improve efficiency and
productivity
• Standardize business processes
• Provide visibility to business processes across functions and
departments
• Optimize the use of current capacity
• Link global operations to improve interoperability and collaboration

24. • Online Data Flow decreases the process time
• Fast & Online Confirmation
• Less Paperwork
• No need for folder storage
• Database Security
• Less Employee needed
• Easy Financial Management
• Better Inventory Management

25. • ERP delivers a single database that contains all data for the
software modules across an entire company. People in
different departments all see the same information and can
update it.
• Computer security is included within an ERP system to protect
against both outsider and insider crime

26. • ERP systems tie together varied processes using data from
across the company. For instance, a typical ERP system
manages functions and activities as different as the bills of
materials, order entry, purchasing, accounts payable, human
resources, and inventory control, to name just a few of the
modules.
• ERP software combined the data of formerly separate
applications. This made the worry of keeping information in
synchronization across multiple systems disappear. It
standardized and reduced the number of software specialties
previously required.

27. • ERP systems allow companies to replace multiple complex
computer applications with a single integrated system.
• ERP systems replace two or more independent applications
and eliminate the need for external interfaces previously
required between systems and provide additional benefits
that range from standardization and lower maintenance to
make reporting capabilities easier.

28. • There are several disadvantages to enterprise
resource planning:
• Cost
• Implementing ERP is very expensive, price can range from
$30,000 - $500,000, depending on the size of the company.
• ERP vendors can charge a license renewal fee annually which can
also be costly for any business.
• Consultants may need to be used for installation or to maintain
the ERP.
• Employees may need to be trained in ERP so they can fully utilize
the system. Training times takes away from work time and can
also cost additional funds.

29. Disadvantages
• Expertise
• Success of ERP depends on the skill level and experience of the
company’s work force.
• Enterprises view cutting training funds as a way to cut costs.
• Smaller companies may even need to under fund training this
means their ERP system is often operated by personnel with
inadequate education in ERP and the ERP vendor package being
used.
• Proper training of the workforce is dependent to success with
ERP.
• New employees must be trained before they can properly start
working because of the ERP system

30. • Change
• Employees may be needed to change the way they work to
become more efficient. They may feel resistant to change which
can be a negative.
• Bugs!