Internals Presentation

8/14/2019 Internals Presentation

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A Comprehensive Report onERP

Aneek Choudhury (1MS02ME014)Anirudh Dhawan (1MS02ME015)Ankit Anand (1MS02ME016)

Arjun C (1MS02ME019)


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What is ERP?

E = Enterprise

R = Resource

P = Planning


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What is ERP?

Attempts to integrate all departments andfunctions across a company onto a singlecomputer system

Set of applications that help manage andautomate a business

Incorporates all of the elements of abusiness into a unified whole that operatesmore effectively and efficiently in todayscompetitive economy.


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ERP Architechture


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Components of ERP

Client/Server System

Enterprise-wide Databases

Applications/Modules WWW/ERP


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A Simple Example of ERP Flow

Inventory?

Order

Order

PartsMake more

Billing

Customer

Pick Up

SalesStatisticsCommission

Payroll

Customer

Pays

Financial

Reports


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History and Evolution of ERP

1960s Inventory Control

1970s MRP

1980s MRP II 1990s ERP


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Evolution of ERP

ERP

MRP II

MRP

BOMPROCESSOR


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ERP Implementation Lifecycle

The different phases of the ERP implementation are: Pre-evaluation Screening Package Evaluation Project Planning Phase Gap Analysis Reengineering Configuration Implementation Team Training

Testing Going Live End-user Training Post-implementation


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PACKAGE EVALUATION

PRE-SELECTIONSCREENING

PROJECT PLANNING

RE-ENGINEERING CONFIGURATIONGAP ANALYSIS

TESTING END-USER TRAININGIMPLEMENTATION TEAM

TRAINING

GOING LIVE

POST-IMPLEMENTATIONPHASE

COMPANY MANAGEMENTERP VENDORS

GO AHEAD


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Benefits of ERP

Access to accurate and timely information

Workflow, Efficiency, and Reliance on paper

Tightens, controls and automates e-mailalerts

User-friendly Web-based interfaces

Streamlines processes and eases adoption

of best business practices Foundation for new systems and integrates

existing systems


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Benefits of ERP

Industry wise advantages

Manufacturing Sector Speeding up thewhole process.

Distribution and retail Stores Accessingthe status of the goods

Transport Sector Transmit commoditiesthrough online transactions.

Project Service industry Fastens thecompilation of reports.


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Benefits of ERP

Advantages in a corporate entity The accounts department personnel can act independently. Ensures quicker processing of information and reduces the burden of

paperwork. Serving the customers efficiently by way of prompt response and follow

up. Disposing queries immediately and facilitating the payments

from customers with ease and well ahead of the stipulateddeadline.

It helps in having a say over your competitor and adapting to thewhims and fancies of the market and business fluctuations.

The database not only becomes user friendly but also helps to do away

with unwanted ambiguity. ERP is suitable for global operations as it is the perfect

commercial and scientific epitome of the verse Think Local. ActGlobal.


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Construct Technology Infrastructure

Support Globalization

Support Supply/Demand Chain Processes

Reduce Cost or Improve Productivity

Achieve Year 2000 Compliance

Improve Customer Responsiveness

Standardize Info Systems/Platform

Improve Business Processes

Integrate Business Processes or Systems

Improve Quality/Visibility of Data

15%

17%

20%

24%

25%

29%

31%

37%

37%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80%

% Respondents

70%

Companies expect

that implementing

ERP will improve

the quality and

visibility of data

ERP Capabilities Expected

Deloitte Consulting


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ERP Targeted Tangible Benefits

44%

42%

27%

23%

19%

16%

15%

12%

10%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Personnel Reductions

Inventory Reductions

IT Cost Reduction

Productivity Improvements

Order Management/Cycle Time

Cash Management

Revenue/ProfitProcurement

Financial Close Cycle

Maintenance

% Respondents

The main

anticipated benefit

of ERP: cost

reduction

Deloitte Consulting


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Disadvantages of ERP

Voluminous and exorbitant investment oftime and money

It is alarming to note the time taken to

implement the system in the organization Information can be misused Customization of ERP Softwares to suit

Indian taxes and duty structures

ERP softwares are standard packages andneed to be customized to suit specificbusiness processes or vice-versa


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Costs of ERP


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ERP Softwares

SAP BAAN Oracle PeopleSoft

Fourth Shift JD Edwards Enterprise One 24SevenOffice BPCS Microsoft Dynamics PROMIS MES

SYSPRO Tally E Compiere GNU Enterprise Tiny ERP


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SAP

Founded in 1972

Based in Walldorf, Germany

Has installations in more than 107countries

Two versions of ERP package: R/2(mainframe) and R/3 (client/server)


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SAP Advantage

Distributes applications and computingcapabilities almost at will across multiplelevels

Takes advantage of the strengths ofdifferent hardware and softwarecomponents

The number of workstations included withR/3 in the client/server solution isdetermined solely by the particular needs

This scalability ensures that R/3 can alwaysgrow with your requirements


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SAP Slide 1


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BAAN

Founded in the Netherlands in 1978 by brothers, Janand Paul Baan

Has dual headquarters in Barneveld, The Netherlandsand Reston, Virginia, United States of America

Since 1995, the Company has significantly expandedits sales and service presence in North America, LatinAmerica, Europe and Asia

The company's blue chip customer base includesindustry leaders such as Boeing, Philips, Mercedes

Benz, Nortel, Fujitsu Network Communications andMotorola


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ERP Benefits

Inventory Visibility

Information and tracking of pending orders

Information Transparency across theorganisation

Integrated system


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Perceived Benefits

Manufacturing Order specific routing (traveler card) WIP tracking on shop floor

Development and prototype tracking(Process & Costs)

Purchase Vendor selection

Supplier order tracking Order and pricing history


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Perceived Benefits Sales

Cost estimation & simulation Sales price calculation

Warehousing Lot Control Inventory visibility

Inventory Reporting Planned Inventory transactions

Quality Inspection control in system

Inspection history Data for detailed analysis Vendor Rating


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Conclusion

ERP is recommended in an organization notonly because the advantages outnumberthe disadvantages but also by keeping in

mind the ways to overcome thedisadvantages

An organization has to correctly weigh theadvantages and disadvantages of ERP

before going for them

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