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ERP 05

  1. 1. Seminar (2730001) Semerstr-3 Presented by MIHIR SOLANKI (140110746005) SEMINAR (ERP) - MIS- 140110746005 1 G.H.Patel college of Engineering & Technology Mechanical Engineering Department Enterprise Resource Planning Seminar-05
  2. 2. SEMINAR (ERP) - MIS- 140110746005 2 OUT LINE 1) ORDER PROCESSING CYCLE 2) FINANCIAL MODULE 3) MANUFACTURING MODULE 4) MATERIAL MANAGEMENT MODULE 5) QUALITY MODULE 6) HR MODULE 7) ERP IT’S PRESENT & FUTURE 8) LIMITATION OF ERP SYSTEMS 9) ENTERPRISE APPLICATION INTEGRATION (EAI) 10) ERP & SCM INTEGRATION 11) ERP & e-BUSINESS 12) ERP- WORLD WIDE WEB-ERP-II 13) FUTURE DIRECTION AND TRENDS IN ERP
  3. 3. IN STOCK ?? FG INVENTORY NO PRODUCTION PLANNINGMATERIALS MANAGEMENT PRODUCTION MAINTENANCE ADMINISTRATION FINANCESALES & DISTRIBUTION ORDER PROCESSING CYCLE ORDER YES SEMINAR (ERP) - MIS- 140110746005 3
  4. 4. FINANCIAL MODULE  People and business have unlimited wants and needs money, but regardless individuals and business size have limited funds , as a result FINANCIAL MANAGEMENT need to involve in efficiently raising and using fund.  It gathers financial data from several departments and generates valuable financial reports such as balance sheet, general ledger, quarterly financial statements and provide in from that makes critical difference to to take strategic decisions. SUB SYSTEM OF ERP FINANCE MODULE FINANCIAL ACCOUNTING GENERAL LEDGER ACCOUNTS- RECEIVABLE/PAYABLE LEGAL CONSOLIDATION FIXED ASSET ACCOUNTING INVESTMENT MANAGEMENT INVESTMENT PLANNING BUDGETING SIMULATION & CALCULTION FORECAST CONTROLLING OVERHEAD COST CONTROL ACTIVITY BASED COSTING PROFITABILITY ANALYSIS TREASURY CASH MANAGEMENT TREASURY MANAGEMENT MARKET RISK MGMT. FUNDS MANAGEMENT SEMINAR (ERP) - MIS- 140110746005 4
  5. 5. GENERAL LEDGER PURCHASING VENDOR (PAYABLE) CONSUMER (RECEIVABLE) SALES (ORDERS & BILLS) FIXED ASSET EMPLOYEES ( SALARY & WAGES) FINANCIAL MODULE COMPONENTS SEMINAR (ERP) - MIS- 140110746005 5
  6. 6. SEMINAR (ERP) - MIS- 140110746005 MANUFACTURING MODULE ( PRODUCTION)  Manufacturers must respond quickly & effectively to customer demand  Manufacturing module must integrate technology with business processes to create effective solution  Manufacturer satisfy customer in 2 ways 1) Make to buy 2) Make to stock MANUFACTURING MODULE FUNCTION STRATEGIC (VISION) REDUCE TIME TO MARKET EFFECTIVE BUSINESS PROCESS TECTICAL (MISSION) IMPROVED INVENTORY TURNS EFFECTIVE PLANNING IMPROVE CUSTOMER SATISFACTION OPERATIONAL QUICK RESPONSE TO PROCESS VARIABILITY SHORT CYCLE TIME 6
  7. 7. SEMINAR (ERP) - MIS- 140110746005 MANUFACTURINGMODULES SUBTYPE SHOP FLOOR CONTROL MAERIAL & CAPACITY PLANNING QUALITY MANAGEMENT JIT/REPEATITIVE PLANNING COST MANAGEMENT ENGINEERING DATA MANAGEMENT CONFIGURATION MANAGEMENT ENGINEERING CHANGE CONTROL SPECIALIZATION/ LOT CONTROL TOOLING D E G R E E O F C U S T O M I Z A T I O N7
  8. 8. SEMINAR (ERP) - MIS- 140110746005 MATERIALS MANAGEMENT 8 Why…?? The material management module optimize all purchasing process with automated supplier evaluation, lowers procurement, lower warehousing costs with accurate inventory, warehouse management and invoice verification. PRE PURCHASING INVENTORY MANAGEMENT VENDOR EVALUATION INVOICE VERIFICATION PURCHASING REQUIREMENT CALCULATION REQUISITION FOR QUOTATION QUOTATION EVALUATION VENDOR SELECTION CONTRACT COST ACCOUNTING SYSTEM FINANCIAL ACCOUNTING MONITORING DELIVERIES BASESD ON CRITERIA EVALUATION (PRE SET OR CUSTOMISED) PRICE QUALITY DELIVERY SERVICE SUPPORT REPLACEMENT OF RETURNS AUTOMATIC UPDATION OF INVENTORY FROM R/M TO F/G CREDIT MEMO AVOID DUPLICATION MATERIAL INSPECTION PERTAINING TO ORDER
  9. 9. SEMINAR (ERP) - MIS- 140110746005 9 QUALITY MANAGEMENT Why ..???  Quality assurance is no longer viewed in terms of inspection and elimination of defects alone, instead integration of quality management is essential  According to ISO, ERP system helps to intergrade existing system with quality management system Joseph Juran : Quality does not happen by Accident; it has to be planned. QUALITY MANAGEMNT MODULE QUALITY CONTROL QUALITY INSPECTION QUALITY PLANNING IDENTIFY CUSTOMER REQUIREMENT OPTIMIZE PRODUCT OR PROCESS AUDIT , PERIODIC REVIEW BRING PROCESS IN CONTROL MAKE EFFORTS TO CONTROL CHRONIC WASTES QUALITY BREAKTHROUGH IMPROVEMENT PROJECT BY PROJECT IMPROVEMENT
  10. 10. SEMINAR (ERP) - MIS- 140110746005 10 HUMAN RESOURCE MANAGEMENT As firm goes globalize it need to understand country specific requirements of employees Need to provide medical benefits, education for children, Heath care etc. Modules: 1) Personnel Management : HR master data, Personnel administration Recruitment Travel management 2) Organizational Management: Job description Personnel cost planning 3) Payroll accounting: Multi currency capability International solutions 4) Personnel Development : career & succession planning Qualification assessments Additional Training Event Management
  11. 11. SEMINAR (ERP) - MIS- 140110746005 11 ERP- PRESENT & FUTUTRE LIMITATIONS OF ERP SYSTEM 1) Managers can not generate custom reports or queries without programmer. 2) ERP system provides current status only , no past record 3) Data in ERP is not integrated with other division system & external intelligence EAI (Enterprise Application Integration) In Global competitive and dynamic business environment application such as supply chain management(SCM), customer relationship management(CRM), supplier relationship management(SRM), Business Intelligence(BI), Integrated Collaboration environment have become imperative. EAI is the process of linking these application in order to realize financial and operational competitive advantage.
  12. 12. INTEGRATION OF ERP, SUPPLY CHAIN AND CUSTOMER RELATION MANAGEMENT SUPPLIER SIDE CUSTOMER SIDE ERP BUSINESS OPERATIONS CUSTOMER RELATION MGMT. SUPPLIER RELATION MGMT. SERVICE MGMT. PROJECT MGMT. BUSINESS ANALYSIS BUSINESS INTELLEGENCE FINANCIAL MGMT. SC EXECUTION SC MGMT. SEMINAR (ERP) - MIS- 140110746005 12
  13. 13. SEMINAR (ERP) - MIS- 140110746005 13 ERP AND E-COMMERCE & E-BUSINESS E- COMMERCE is set of business activities involving consumers, service providers , manufacturers and intermediaries Who uses computer network (INTERNET) for conducting there business. OBJECTIVE  Bring organization closer to the ACTUAL customer  Providing the customer with the products and services much FASTER and LESSER cost  improve customer response time ( Through effective communication & technological advancement) DIFFERENCE ( TRADITIONAL /e-COMMERCE) Traditionally information conversion is done through phone, mail (Post), or through direct personnel contact, while in E-commerce information is converted through communication network (AUTOMATION).
  14. 14. SEMINAR (ERP) - MIS- 140110746005 14 ERP, INTERNET AND WWW - ERP II Why …???  The reason why ERP-II come into existence was need to look at a way to give customer and partners access to scheduling, delivery, inventory, manufacturing, invoicing and planning information and integrate SCM with SRM and CRM  ERP essentially requires integration with other business technologies to deliver the productivity improvements and remain in competition  Organizations which evolve ERP at its full potential need to extend ERP application to Internet and WWW is next logical step  ERP-II forms basis for E-business and collaborative commerce
  15. 15. SEMINAR (ERP) - MIS- 140110746005 15 ERP-II MOBILE EMPLOYEES SALES EXECUTIVES MANAGERS ORGANIZATION’S PORTAL & WEBSITE SRM CRM BUSINESS INTELLIGENCE BUSINESS ANALYTICS ORGANIZATION SUPPLIER CUSTOMER INTERNALEXTERNAL
  16. 16. References • ERP Demystified , Second addition by Alexis Leon • “ERP Systems – Using IT to gain a cometetive advantages; Shankarnarayan S. 16

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