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VICTORY GROUP

Presented by :
Bharat Ahir
(910003)
Kanaiya Gadhvi
(910011)
Hardeep Jadeja
(910016)
Mayur Jadeja
(910017)
Darshan Joshi
(910020)
Jaimin Patel
(910040) Presented To:
Mittal Shah Pro. Purvish Shah
(910048) BE (Mech), MBA (Marketing)
What is ERP?
ØEnterprise resource planning (ERP) systems were
developed as an extension of materials
requirements planning (MRP) systems. ERP was
introduced in the late 80s.
Ø
ØERP stands for Enterprise Resource Planning.
Ø
ØERP is a way to integrate the data and processes
of an organization into one single system.
Ø
ØThe term ERP originally referred to how a large
organization planned to use organizational wide
resources.
Continue….
ØERP systems are used in almost any type of
organization - large or small.
Ø
ØSome ERP packages exist that only cover two
functions for an organization, most ERP systems
cover several functions.
Ø
ØToday's ERP systems can cover a wide range of
functions. For instance, functions such as Human
Resources, Supply Chain Management, Customer
Relations Management, Financials, Manufacturing
functions and Warehouse Management functions were
all once stand alone software applications, usually
housed with their own database and network, today,
they can all fit under one umbrella - the ERP
system.
Integration is Key to ERP
Integration is an extremely important part
to ERP's.
ERP's main goal is to integrate data and
processes from all areas of an organization and
unify it for easy access and work flow.
The Ideal ERP System
An ideal ERP system is when a single database is utilized
and contains all data for various software modules.

Manufacturing : Some of the functions include;


engineering,
capacity, workflow management, quality control, bills of
material,
manufacturing process, etc.

Financials : Accounts payable, accounts receivable, fixed


assets,
general ledger and cash management, etc.

Human Resources : Benefits, training, payroll, time and


attendance, etc
Supply Chain Management : Inventory, supply chain
planning, supplier scheduling, claim processing, order
entry, purchasing, etc.

Projects : Costing, billing, activity management, time and


expense, etc.

Customer Relationship Management : sales and


marketing, service, commissions, customer contact, calls
center support, etc.

Data Warehouse : Usually this is a module that can be


accessed
by an organizations customers, suppliers and employees.
ERP Growth Rings

ERP

MRP II

CL MRP

MRP

BOMP
E v o lu tio n o f E R P
1 . Bills of material processor ( BOMP ):
2.
2 . Material requirement planning :
MRP1 is the predecessor of enterprise resource
planning application.

When there is much hype around it is also equally


important to trace the origin of ERP and its Predecessors

Predicting the demands in advance


Continue…..
MRP1
Dr Joseph Orlicky invented MRP1 in the
year 1960.

Nature of functioning

Applications

Manufacturing resource planning ( MRP II ):


MRP was in existence right from the year
1960
ERP IMPLEMENTATION
ERP implementation takes time.:- . Implementing an
ERP system is not an easy task to achieve, in fact it
takes lots of planning, consulting and in most cases 3
months to 1 year +.

Commitment from management:-One of the most
important traits that an organization should have
when implementing an ERP system is ownership of the
project.

Step-by-Step rather than big bang introduction:-
Usually organizations use ERP vendors or consulting
companies to implement their customized ERP
system. There are three types of professional services
that are provided when implementing an ERP system,
they are Consulting, Customization and Support.
Continue……
Consulting Services :-usually consulting services are
responsible for the initial stages of ERP
implementation, they help an organization go live with
their new system, with product training, workflow,
improve ERP's use in the specific organization, etc.

Customization Services :-Customization services


work by extending the use of the new ERP system or
changing its use by creating customized interfaces
and/or underlying application code.

Support Services:-Support services include both
support and maintenance of ERP systems. For
instance, trouble shooting and assistance with ERP
issues.
DATA MIGRATION
The following are steps of a data migration

strategy that can help with the success of


an ERP implementation:-

1. Identifying the data to be migrated


2. Determining the timing of data
migration
3. Generating the data templates
4. Freezing the tools for data
migration
5. Deciding on migration related
METHODS FOR
IMPLEMENTATION
 Some popular methods for implementation are as
follows:-

Joint ventures with the Respective Industry:-The


company need not necessarily implement ERP all on
its own. They can as well share it with leading players
in the same industry.

Doing it all alone:-This is in fact one of the primitive
methods and is no doubt followed till date. This
method takes a lot of risks in this method.

Full/Partial Implementation:-It has always been said
that ERP products and services are purelybased on the
needs and resources of the company. This is not a risk
for ERP implementation.
Challenges in ERP
Implementation
Convincing people
Techno stress
High cost
Return on Investment
Downsizing
ADVANTAGES OF ERP
Design engineering (how to best make
the product)
Order tracking, from acceptance
through fulfillment
Ease of use.
ERP is an accounting application.
Timely and accurate information.
Easy enterprise wide information
sharing.
ERP can be an indispensable tool is the
area of security.
Automatic adaptation to new
technologies.

DISADVANTAGES OF ERP

ERP system can be very Expensive.


Some large organizations may have
multiple departments.
Customization of software is limited.
Takes time to implement.
The system may be too complex
measured against the actual needs of
the customers.

How to avoid ERP
failures ?
Phased-in approach
Estimation of the complex nature
Involvement of affected
employees
Slow process
Effective testing
MIS Vs ERP
Definition of MIS
 MIS (Management Information System)
is a system to give information to Managers
for making decision.
Definition of ERP
 “Enterprise Resource Planning software
is complete integrated business
management software, which captures data
in chronological order, and is used to link
businesses processes automatically and
give real time information to authorized
user.
MIS Vs ERP
MIS’s Role:

1.To Generate Reports-for Example


2.To Answer What-if Questions Asked By Management
3.To Support Decision Making

ERP’s Role:

1.Staff Reduction
2.Better Inventory Management
3.Improve Customer Responsiveness
4. Efficient Procurement
5. Enhanced Financial Management And Corporate
Governance:
6.Software Security: E.G. Seradex ERP
7.Encouraging Uniqueness
8.Changing The Working Pattern
9.Web-enable ERP
Why ERP Is The Best
Reliable information access
Avoid data and operation redundancy
Delivery and cycle time reduction
Cost reduction
Easy adaptation
Improve scalability
Improve maintenance
Global outreach
E-commerce, e-business

ERP : Integration With CRM and SCM:

ERP: Integration with CRM and SCM


Supplier
Supplier Collaboration
Collaboration

i
rat Pl
bo SCM
SCM
a
ng nni
ll a e
Co v
Enterpr
ise
Connecti
Key Process Integration
Key Process Integration via
via ERP
ERP
vity
CRM
CRM
Product
Product Lifecycle
Lifecycle Management
Management
Design
Design Partners
Partners Consumers
Consumers and
and Channels
Channels

1
Trends In ERP
Flexible ERP

Web-Enable ERP

Inter enterprise ERP

E-business suite
Conclusion
Reduced overheads and inventory.
Timely responsiveness.
Market share and image
enhancement.
Keep up with technology changes.
Only way for integrated systems for
client with multiple locations.