Enterprise
Resource Planning
Aim:

To know the importance of Enterprise Resource
Planning.
Objectives:
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To
To
To
To
To
know the basics of ERP
understand the key implementation issues of ERP
know the business modules of ERP
be aware of some popular products in the area of ERP
appreciate the current and future trends in ERP
What is ERP ?
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ERP stands for: Enterprise Resource Planning
ERP system attempts to integrate all data and processes
of an organization into a unified system , by use of
multiple components of computer software and
hardware.
A method for the effective planning and controlling of ALL the
sources needed to take, make, ship and account for customer orders
in order to do the manufacturing, distribution or service in the
company.
A best feature of most ERP systems is the use of a
unified database to store data for the various system
modules.
SYLLABUS
FUNDAMENTALS
ERP – Enterprise – Benefits of ERP – ERP and
related technologies – Business Process
Reengineering (BPR) – Data warehousing and
data mining – OLAP – SCM
ERP IMPLEMENTATION
ERP Implementation lifecycle – Implementation methodology
– Hidden costs –Organizing the implementation – Vendors–
Consultants and users – Contracts with vendors –
Consultants and employees – Project management and
monitoring.
BUSINESS MODULES
Business modules in an ERP package –
Finance – Manufacturing – Human resources –
Plant maintenance – Materials management –
Quality management – Sales and distribution.
ERP MARKET
ERP market place – SAP AG – Peoplesoft – Baan – JD
Edwards – Oracle – QAD –SSA
ERP – PRESENT AND FUTURE
Turbo charge the ERP system – EIA – ERP and
e - Commerce – ERP and internet –Future
directions
UNIT
UNIT
UNIT
UNIT
UNIT
19
29
39
49
59
HOURS
HOURS
HOURS
HOURS
HOURS
TOTAL=45 HOURS
UNIT I
What is ERP?
ERP is a solution, which
facilitates company-wide integrated
information systems, covering all
functional areas
ERP is a System for the Entire Company – A Global Tightly
Integrated Closed-Loop System
An enterprise is a group of people work together to achieve a
common goal with the help of resources.
Online Data Flow decreases the process time
Fast & Online Confirmation
Less Paperwork
No need for folder storage
Database Security
Less Employee needed
Easy Financial Management
Better Inventory Management
ERP - Definition
“Software solution that addresses the
Enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform”
Evolution of ERP
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 Mgnt.)
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)
ERP – Expectations
Integrating all the functions
Integrating the systems running in all the locations
Transparency of information using a single
data source across the organization
Software must be responsive
Modular
Flexible
Easy to add functionalities
Provide growth path
1-16
Sales
Human resources
Inventory
Engineering
Design
Production
Planning
Enterprise
Finance
Quality
legal
Maintenance
Controlling
. . A logical series of related transactions
that converts inputs to outputs or results.
• a chain of logical connected, repetitive activities
• utilizes the enterprise’s resources
• refine an object (physical or mental)
• for a purpose of specific /measurable results/products
• internal or external customers
18
BPR - Steps
Step 1
Step 2
Step 3
Understand
Simplify/Improve Automate
Understand the
existing
systems
associated with
all the
functionalities
Draft & frame the
possibilities & ways
to simplify or
Improve or
eliminate the
processes
Implement
with the help
of ERP
Separates
functions of the
DW, eliminates
resource
constraints, can
create data marts
DSS engine runs
on same
platform as the
DW, so more
economical
◦ Data mining—core of
knowledge discovery
process
Pattern Evaluation
Data Mining
Task-relevant Data
Data Warehouse
Data Cleaning
Data Integration
Databases
Selection
UNIT II
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Pre-Evaluation Screening
Package Evaluation
Project Planning Phase
Gap Analysis
Reengineering
Configuration
Implementation Team Training
Testing
End-User Training
Going Live
Post Implementation Phase
Company
Management
Go ahead
Pre-Evaluation Screening
ERP Vendors
Package Evaluation
Project Planning
Gap Analysis
Implementation Team
Training
Reengineering
Testing
Going Live
Post Implementation Phase
ERP implementation Lifecycle
Configuration
End-User Training

Vendors- They

Consultants –They
make ERP s/w
who are responsible to implement
the project

End users -They are the people who use the
ERP system once it has been developed
VENDORS
MAKE ERP S/W
TIME, EFFORT, MONEY FOR R & D OF ERP S/W
FLEXIBLE, EASY TO USE & EFFICIENT
CONSULTANTS
WHO ARE RESPONSIBLE TO IMPLEMENT THE PROJECT
CLEAR CUT IDEA
TELLS THE CHANGE MUST BE MADE SO THAT WITH HIS DECISISON CHANGES ARE MADE
HE IS RESPONSIBLE FOR ADMINISTRATION OF THE PHASES
UNIT III
Role of Sales Organisation
Once the sales plan has been formulated, the next logical step is to
organise a sales force to achieve the organisational objectives.
Major Qualified Sales Objectives
Overall Objectives
Break Up or Division
1.
Total volume of products
1.
Quarter, month and week
2.
Total annual value of products
2.
Product line and range
3.
Total annual selling costs
3.
Region and sales area
4.
Total annual profit contribution
4.
Type of customer
Cont….
Shipping
Transport
Sales and
Distribution
(SD)
Sales
Information
System
Sales
Support
Master
Data
Billing
Foreign
Trade
Sales
Credit
Mgmt.
30
India Sales
S000
South India Sales
Tamilnadu
Sales Group
North India Sales
Kerala
Sales Group
UP
Sales Group
MP
Sales Group
Salesperson
1
Salesperson
3
Salesperson
5
Salesperson
7
Salesperson
2
Salesperson
4
Salesperson
6
Salesperson
8
31
Human resource management is an essential factor of
any successful business.
The various subsystems under HR module are:
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Personnel management:
Organizational management:
Payroll Accounting:
Time management:
Personnel development:
◦
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Materials and capacity planning
Shop floor control
Quality management
JIT/repetitive manufacturing
Cost management
Engineering change control
Engineering data management
Configuration management
Tooling
Serialization/lot control
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The Plant maintenance module includes an entire family of
product covering all aspects of plant/ equipment maintenance
and becomes, integral to the achievement of process
improvement.
The major subsystems of a maintenance module are :
 Preventive Maintenance Control.
 Equipment Tracking.
 Component Tracking.
 Plant Maintenance Calibration Tracking.
 Plant Maintenance Warranty Claims Tracking.
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The material management module optimizes all purchasing
processes with workflow-driven processing functions,
Enables automated supplier evaluation, lowers procurement and
warehousing costs with accurate inventory and warehouse
management and
integrates invoice verification.
The main module of material management are as follows:
i. Pre- Purchasing Activity.
ii. Purchasing.
iii. Vendor Evaluation.
iv. Inventory management.
v. Invoice verification and material inspection.
The quality management module fulfills the following
functions:
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QUALITY PLANNING
QUALITY INSPECTION
QUALIT CONTROL
UNIT IV
ERP vendors
-
•SAPAG
•Oracle Corporation •JD Edwards World
solutions Co.
–
•People Soft Inc.
–
•Baan Co.
-
products.
R/3
Oracle Applications
One world
People soft
Baan
SAP (System Applications & Products in data processing) .
SAP
is the world's leading provider of business software, SAP
delivers products and services that help and accelerate
business innovation for their customers. Today, more than
82,000 customers in more than 120 countries run SAP
applications
SAP
defines business software which comprises enterprise
resource planning and related applications such as SCM , CRM
and SRM.
 SAP AG was founded in 1972 by five German engineers in
Germany;
and is one of the top most ERP vendors
providing the client server business application solutions.
 The SAP group has offices in more than 50 countries
worldwide & employs a workforce of over 19300.
 SAP’s ERP package comes in 2 versions i.e. (SAP R/2) &
(SAP R/3).(R-Real)
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Baan company was founded in Netherlands in
1978 by brothers Jan and Paul Baan..
The BAAN Company is the leading global
provider of enterprise business software.
The
BAAN
company
products
reduce
complexity and cost, improve core business
processes, are faster to implement and use,
are more flexible in adapting to business
changes.
BAAN ERP Modules:
1.
Manufacturing Module:
2.
Finance Module:
3.
Project Module:
4.
Distribution Module:
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Oracle Corporation was founded in the year
1977 and is the world’s largest s/w
company and the leading supplier for
enterprise information management.
It provides databases and relational servers,
application development, decision support
tools and enterprise business applications.
Oracle application consists of 45 plus software
modules which are divided into following
categories
◦
◦
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◦
◦
Oracle
Oracle
Oracle
Oracle
Oracle
Oracle
Financials
Human Resource
Projects
Manufacturing
Supply Chain
Front Office
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PeopleSoft Inc. was established in 1987 to provide
innovative software solutions that meet the changing
business demands of enterprises worldwide.
It employs more than 7000 people worldwide.& the
annual revenue for the year 1998 was $ 1.3 million.
PeopleSoft develops markets and supports enterprisewide software solutions to handle core business
functions including human resources management,
accounting and control, project management, treasury
management, performance measurement and supply
chain management.

The PeopleSoft’s business management
solutions are in the areas given below:◦
◦
◦
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Human Resources Management
Accounting and Control
Treasury Management
Performance Measurement
Project Management
Sales and Logistics
Materials Management
Supply Chain Planning
Service Revenue Management
Procurement
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On March 17, 1977 J.D. Edwards was formed, by Jack Thompson,
Dan Gregery & Ed-Mc Vaney.
In early years J.D. Edwards was designed for small & medium
sized computers.
As the company began to out grow, its headquarter in Denver,
opened branch offices in Dallas & Newport Beach, California,
Houston, San Francisco & Bakenfield. And then internationally
expanded its Europe headquarters in Brussels & Belgium.
By the mid of 1980’s, J.D Edwards was being recognized as an
Industry-leading supplier of application software
Today J.D Edwards is a publicly traded company that has more
than 4700 customers with sites in over 100 countries & more
than 4200 employees.
It was found in 1979.

QAD offers a variety of supply chain and enterprise
resource planning s/w products to manufacturing
industries.
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◦
◦
It optimizes the enterprise by increasing the speed of
internet processes and synchronizing the business
operations.
It is available in 26 languages and supports multiple
currencies.
It has an easy-to-understand graphical interface.
System Software Associates, Inc. (SSA) was founded
in 1981.
 It has branches in more than 91 countries & more
than 2000 employees.
 SSA’s vision is to be the best global partner to the
world’s industrial companies.
 The Mission statement has six key goals.
They are:
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Best client satisfaction
Single image worldwide
Enterprise Solution Leadership
Proven leading Technology
Highly skilled & motivated professional
Strong financial results
UNIT V
ERP – Options
OPTION 1 – MAKE ERP package [Using Internal resources]
OPTION 2 - BUY
OPTION 3 – MAKE [using External resources]
1-49
Flexible ERP:
This makes the software easier to
integrate with other application programs of
business users, as well as making it easer to make
minor modifications to suit a company’s business
processes.
 Web-enabled ERP: These features make ERP
system easier to use and connect to other internal
application as well as to the systems of company’s
business partners.
 Interenterprise ERP: This Internet
connectivity has led to the development of
interenterprise ERP systems that provide WEBenabled links between key business systems (such
as inventory and production) of a company and its
customers, suppliers, distributors and others.
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1-50
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E-business Suites:

Example: Oracle’s e-business suite and Sap’s mySAP.
The major ERP software
companies have developed modular, Web-enabled
software suites that integrate ERP, customer relationship
management, supply chain management, procurement,
decision support, enterprise portals, and other business
applications and functions.
1-51
TEXT BOOK
1. Alexis Leon, “ERP Demystified”, Tata McGraw
Hill, 2000.
REFERENCES
1. Joseph A Brady, Ellen F Monk and Bret Wagner,
“Concepts in Enterprise Resource Planning”,
Thompson Course Technology, 2001.
2. Vinod Kumar Garg and Venkitakrishnan N K,
“Enterprise Resource Planning Concepts and
Practice”, Prentice Hall of India, 2003.
ASSIGNMENT TOPICS:
1.
2.
3.
4.
5.
Business Process Reengineering (BPR)
ERP Implementation lifecycle
Quality management
Baan
ERP and e - Commerce
SEMINAR TOPICS:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Data warehousing and data mining
SCM
Contracts with vendors
Project management and monitoring.
Human resources
Sales and distribution
SAP AG
Peoplesoft
EIA
ERP and internet
http://www.slideshare.net/sonalichauhan/chapter-3-e-r-p-andrelated-tech-alexis-leon
www.scs.dauniv.ac.in
http://notes.indiarhythm.com/erp.php
http://siestyit.0fees.net/ERP%20MARKET.ppt
http://www.scribd.com/doc/53617085/1d4dbe-Commerce-andErp
http://www.google.co.in
THANK YOU !!!