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ERP System - Copy
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ERP Systems
Enterprise
Resource
Planning
Dedicated to
Mr. Ammar Khan
Presented By:
Umair Aziz (BME-1131)
Sajjad Raza Muhammad Nasir
Azeem Mansoori
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What is ERP
ERP is a solution, which
f acilitates company-wide integrated
inf ormation systems, covering allf unctional areas
per f orms core Corporate activities and
increases customer service augmentingCorporate Image
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Integration is Key to ERP
ERP is a way to integrate the data andprocesses of an organization into onesingle system
ERP systems is the use of a unif ieddatabase to store data f or the various
system modules.
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The Current Scenario
Islands of Inf ormation
Diff icult to get timely & accurate inf ormation
Heterogeneous Hardware & Sof tware
platf orms & practices
Sticking with obsolete technology
Resist to change
Lack of proven man-power to developintegrated sof tware
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Inf ormation Islands
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ERP Architecture
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ERP Structure
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Why ERP?
For Management ± to know what ishappening in the company
One solution f or better Management
For cycle time reduction
To achieve cost control & low working capital
To marry latest technologies
To satisf y the customers with highexpectations
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Evolution of ERP
1960¶s - Systems Just f or Inventory Control
1970¶s - MRP ± Material Requirement Planning(Inventory with material planning & procurement)
1980¶s - MRP II ± Manuf acturing Resources Planning(Extended MRP to shop f loor & 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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ERP ² Expectations
Integrating all the f unctions
Integrating the systems running in all thelocations
Transparency of inf ormation using a singledata source across the organization
Sof tware must be responsive Modular Flexible Easy to add f unctionalities Provide growth path
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ERP ² Options
OPTION 1 ± MAKE [Using Internal resources]
Developing a custom-built ERP package, specif ic to therequirements of the organization, with the help of the
in-house IT department
OPTION 2 ± BUY Readymade)
Going f or Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSof t etc.
OPTION 3 ± MAKE [using External resources]
Developing a custom-built ERP package, specif ic to therequirements of the organization, with the help of a
sof tware solution provider
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ERP Product selection Criteria
.
Technology
Support
Costs
5 Strategic5 Strategic
RequirementRequirement
LevelsLevels
FunctionalityGoal:Goal:
To select theTo select the
Most Suitable SoftwareMost Suitable Software
Package SolutionPackage Solution
Vendor
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ERP System Cost Component
Sof tware
Consulting
Hardware
ImplementationTeam
Training
Other
30.2%
24.1%
17.8%
13.5%
10.9%
3.3%
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Commercial ERP Package
Impleme
nte
d
SAP
ORACLE
BAAN
J.D.Edwards
People Sof t
Other Packages
25%
14.2%
8.8%
7.4%
2.5%
27.3%
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The Ideal ERP System
Manuf acturing :Engineering,
Management, Quality Control, CostManagement, Manuf acturing Process,Manuf acturing Projects
Supply Chain Management :Inventory,Order Entry, Purchasing, Supply ChainPlanning etc.
Financials :General Ledger, Cash
Management, Accounts Payable, AccountsReceivable, Fixed Assets etc.
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. Human Resources :Human Resources,
Payroll, Training, Time & Attendance,Benef its etc.
Customer Relationship Management :
Sales and Marketing, Commissions,Service, Customer Contact and CallCenter support etc.
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ERP Vendors
SAP (SD,MM,HRM,FI/CO,CRM,SCM,PP,QM,WMS)
Inf or Global Solution :
BAAN (manuf acturing, f inancial, projectestimating and management )
Oracle : 89 % SMB Customer . People sof t
(HRM,CRM,Manuf acturing,Financial)
JD Edward(HRM)
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Comparison :
SAP :1)Only 66% SMB Customer Recommendation
2)Average Vendor Support 3.4 f or SMB.
3)Deployment time 69% of the SAP were on time.
Oracle :
1)Only 89% SMB Customer Recommendation2)Average Vendor Support 4.0 f or SMB.
3)Deployment time 78% of the Oracle were ontime.
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ERP Selection
Check whether all f unction aspect of thebusiness are dully covered.
Check whether all the business f unctionand processes are f ully integrated .
Check whether all latest IT trends arecovered.
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ERP Markets
India
Malaysia
Singapore South Korea
Australia
Europe Japan
Pakistan
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ERP Cost
Based on the ERP survey conducted byMeta Group in 2002, the average cost of ERP ownership was $15 millions
ranging f rom half millions to $300 millions. The average cost per user per year could be as high as $20,000.
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Advantages of ERP Systems
A totally integrated system
Only Customization Required
The ability to easily share data acrossvarious departments in an organization
Improved eff iciency and productivity levels
Better tracking and f orecasting
Improved customer service
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Disadvantages of ERP Systems
Customization in many situations is
limited The need to reengineer business
processes
ERP systems can be cost prohibitive toinstall and run
Technical support can be shoddy
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.
Thank You