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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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