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goutam Singh (Mba-I)

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• Enterprise Resource Planning

• ERP covers the technique and concepts
employed for the integrated management
of business as a whole,

• ERP packages are integrated software
packages that support the above ERP

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Is ERP for Everyone..

 A business must analyze its own business strategy, organization, culture and
operations before choosing an ERP approach.
 A company may not be ready to implement ERP.
 The company’s business processes may not be well defined or managed.
 If a company is not prepared to make its processes more efficient, then it will
not gain the benefits an ERP system can provide.

Is ERP for Inflexible..

ERP software is designed around best practices, so companies are
encouraged to adapt their processes to the way ERP software works.
With SAP, companies can customize the software by creating custom
capabilities using its Advanced Business Application Programming
(ABAP) language.
SAP is an open-source product, meaning that the customer has access
to the software’s source code.
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•Selection process of an ERP Package

The Common Criteria for selection for a package:

1.How best the package fits the requirement of the company.

2. Provision for accommodating the changes in the system.

3. Implementation and Post Implementation support from vendor.

4. Reliability of Vendor.

5. Change in Hardware and Skill requirement.

6. Cost of the Package and Budget.

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•Cost of ERP Implementation
The following costs are to be considered:-

1.ERP package cost.

2. Consultant cost.

3. Cost of Data conversion.

4. Cost of training.

5. Cost of testing.

6. Cost of Post-Implementation support.

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•Modules in an ERP Package

•Finance Module
•Manufacturing Module
•Human Resources Module
•Material Management Module
•Sales and Distribution Module

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• ERP lifecycle is in which highlights the different
stages in implementation of an ERP.

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Pre-selection Process

Package Evaluation

Project Planning

Gap Analysis Reengineering Configuration

Implementation Team
Training Testing End- user Training

Going Live

Post – implementation

ERP implementation Life Cycle

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• Different phases of ERP
• Pre evaluation Screening
• Evaluation Package
• Project Planning
• GAP analysis
• Reengineering
• Team training
• Testing
• Post implementation
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• Pre evaluation screening
• Decision for perfect package

• Number of ERP vendors

• Screening eliminates the packages that are not at
all suitable for the company’s business

• Selection is done on best few package available.

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Package Evaluation
• Package is selected on the basis of different

• Test and certify the package and also check the

coordination with different department

• Selected package will determine the success or
failure of the project.
• Package must be user friendly.

• Regular up gradation should available.

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Cost gautam singh-ERP 12

Project planning
• Designs the implementation process.

• Resources are identified.

• Implementation team is selected and task

• Special arrangement for contegencies.
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Gap analysis
• Most crucial phase.

• Process through which company can create
a model of where they are standing now
and where they want to go.

• Model help the company to cover the
functional gap

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• Implementation is going to involve a
significant change in number of
employees and their job

• Process become more automated and

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Team Training
• Takes place along with the process of

• Company trains its employees to implement
and later, run the system.

• Employee become self sufficient to

implement the software after the vendors
and consultant have left.
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• This phase is performed to find the
weak link so that it can be rectified
before its implementation.

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Going Live
• The work is complete, data conversion is
done, databases are up and running, the
configuration is complete & testing is

• The system is officially proclaimed.

• Once the system is live the old system is
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End User Training

• The employee who is going to use the
system are identified and trained.

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Post Implementation
• This is the maintenance phase.

• Employees who are trained enough to
handle problems those crops up time to

• The post implementation will need a
different set of roles and skills than those
with less integrated kind of systems.

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The reason for accepting ERP System

• Improved business performance through optimum resource

• Reduction in manufacturing cycletime by integrated planning
• Better support Customers in fast changing in market conditions.
• Better Cost Control mechanism by way of accurate costing
• Enhanced efficiency in control through feedback information and
online access to accurate information.
• Establishment of Decision Support System etc.

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• An organization can get the maximum value

of these inputs if it successfully adopts and
effectively uses the system.

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