enterprise resource planning

Enterprise Resource Planning
by
Aniket K. Kulkarni
Roll No:- MT14IND003
Industrial Engineering (2014-15)
Mechanical Engg. Department
VNIT Nagpur
ERP ANIKET KULKARNI 1

What is ERP?
• Enterprise resource planning (ERP) is a packaged
business management software that allows an
organization to use a system of integrated
applications to manage the business.
• An ERP system is an attempt to integrate all functions
across a company to a single computer system that
can serve all those functions, specific needs.

EVOLUTION
• 1960’s - Systems Just for Inventory Control
• 1970’s - MRP – Material Requirement Planning
(Inventory with material planning & procurement)
• 1980’s - MRP II – Manufacturing Resources Planning
(Extended MRP to shop floor & distribution
Management.)
• 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)

Functionality
An ERP software provides an end to end information
management solution for a company. The software used
by all the departments of the company to manage the
information.

Objective

ERP software integrates all the areas of operations
including:
• Product planning
• Manufacturing processes
• Sales
• Marketing
• Human resource management
• Procurement
• finance

Modular and Integrated
• An ERP software is typically modular but integrated,
meaning it consists of multiple modules that are
connected to each other.

• Each module is focused on one area of business
processing e.g. finance, human resources etc.

Communication among modules
• A module could share information stored in another
modules e.g. List of suppliers etc.
• Also information could flow from one module to the
other e.g. Accounting entries etc.

Management Reporting
Since modules are connected, management of a
company could run reports on any aspects of business to
get the complete view of activities. Reports help
executives make strategic decisions.

Licensing
• Modules can be individually purchased best on what
best meets the specific needs and technical
capabilities of the company.

Types of end users
• Business users: Perform day to day operations e.g.
Data entry, operational reports.
• Management or Executives: Run reports and perform
inquiries that would help them in decision making.

Implementation
• Term “Implementation” is used to make the ERP
software ready to be used by the company.

Implementation process
• Study the business requirements. Find out how the
ERP system should be behaving.
• Setup or configure the software such that it starts
working as per business requirements.
• Fill the gaps between business requirements and
functionality offered by the ERP software

Industry best practices
• Software is configured to honour company’s current
business processes. companies do take
implementation of ERP as an opportunity to
streamline their business processes.

ERP Implementation Project
• A project is initiated to perform ERP configuration.

Roles in a project

Data Base Management System
• ERP connects to Database software at the back end.
The data is managed in the database.

DBA
Data base administrator is also known as DBA is the
person who looks after the health of the database. He
also performs installation of ERP software.

ERP System Administrator
He is the person who looks after the health & security of
ERP software.

Operating System & OSA
Both database software and ERP software runs on an
operating system like Linux, Unix, or Windows.

Network & Network Administrator
• Network connects all the machines together in a
system.

Functional Consultant
Functional consultant gathers the business requirements
and performs ERP setup accordingly.

Business Analyst
Business analyst is an expert of business knowledge. He
is in touch with business users and verifies that the
business requirements are clear to functional consultant.

Customizations
In almost all the cases business requirements are so
unique that the ERP system has no built in functionality
to handle those requirements. The term “Gap” is used
for such requirements.

Interfaces
Technical consultants assist in writing the programs that
help communicate information back and forth between
ERP software and the third party software either within
the company or outside it, e.g. suppliers & customers.

Project Manager
Project manager is the person who is managing the
entire project. All the team members report to the
project manager. Most of the members also report to
their bosses as well.

New Developments In ERP
• Availability of web-based and wireless ERP systems.
• Adoption of easy-to-install ERP systems.
• Linkage to other software systems, e.g., supply chain
management system, e-commerce, customer
relationship management system.

References
• http://www.slideshare.net/amits797/enterpri
se-resource-planning
• http://en.wikipedia.org/wiki/List_of_ERP_soft
ware_packages
• http://www.sap.com/india/pc/bp/erp/softwar
e/overview.html

Thank you

Questionnaire
1. In what ways ERP is different from MRP & MRP-II ?
2. What are the possible mistakes committed during
implementation of an ERP system?
3. What are the different business areas covered by SAP
ECC & ORACLE E-BUSINESS SUITE ?
4. What is ERP II ?
5. What are the common goals of ERP and TQM ?

enterprise resource planning

More Related Content

What's hot (20)

Similar to enterprise resource planning (20)

More from Dinesh Nikam (20)

enterprise resource planning