erp prince dudhatra 9724949948

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30 March 2011 prince dudhatra-9724949948 1

ERP: An Overview




MRP (Material Requirements Planning) becamefundamental concept of production

management and control in mid 1970s.

BOM (Bill of Materials) was used.

Then MRP-II (Manufacturing Resource

Planning) included inventory mgmt as well as

plant, personnel planning and distribution

planning.Eventually came ERP which included financial

accounting, HRM, Distribution mgmt etc.

Introduction




What is ERP?

ERP covers the techniques and conceptsemployed for the integrated management of businesses as a whole, from the viewpoint of the effective use of management resources,

to improve the efficiency of an enterprise.

ERP packages are integrated (covering allbusiness functions) software packages that

support the above ERP concepts.

Initially ERP packages targeted Mfg industry.Now, used in diverse types of industry.




What is ERP?

ERP software is designed to model andautomate many of the basic processes of acompany with the goal of integratinginformation across the company and

eliminating complex, expensive links betweencomputer systems that were never meant totalk to each other .

ERP software is a mirror image of the major

business processes of an orgn, such ascustomer order fulfillment andmanufacturing.

Its success depends upon reach.




Reasons for t he Growt h of ERP M arket

To enable improved business performanceTo support business growth requirements

To provide flexible, integrated, real-time decision

support

To eliminate limitation in legacy systems

To take advantage of the untapped mid-market

(medium size organizations)

Future will see fierce battle for market size and

mergers and acquisitions for strategic and

competitive advantage.




T he Adv ant ag es of ERP

Business Integration ± Automatic data updation,one is able to grasp business details in real time

and carry out various decisions in timely manner.

Flexibility support business growth requirements

± different languages, currencies, accountingstandards covered in one system, Manage

multiple locations of a company.

Better analysis and planning capabilities ±

Becomes possible to fully utilize many types of DSS and Simulation functions

Use of latest technology ± Client/Server

technology, Intranet/Internet, e-Commerce




Why are ERP P ack ag es being used now?

ERP packages cannot only handle individualbusiness functions but also the entire range of

business functions necessary for the company¶s

operations.

They are targeted at everything from small

businesses to the largest organizations and

composed of a highly flexible decentralized

database and an IS cluster linked by a network.

Global adaptation, represented by ERP

packages¶ multilingual and multi-currency

capacity.




Problem Areas in ERP Implement ation

The most important thing while installing an ERP

system in a company is the attitude reform of the

employees at all levels of that company.

Companies where the speed of change is fast,have a greater chance of surviving and growing

in this age of intense competition.

Questions like, ³By when and in what way do we

want to do such-and-such?´ or ³How shouldsuch-and-such a thing be achieved?´ and so on

should be answered.




Time schedules and deadlines are to be set andadhered to.

There are many misunderstandings caused by

wrong estimates i.e. company does not have anyprevious experience in estimating the cost of such a massive project.

In ERP implementation, there are substantialadditional costs that are necessary, such asconsultation, customization, training andeducation.

Problem Areas in ERP Implement ation




Roadmap for successful ERP Implement ation

Effective to invite outside consultants with wideexperience in package implementation to the user side.

This consultant can act as a neutral person to resolve

conflicts and can push the project ahead.

Clearly identifying company objectives and targets and

making these known and recognized throughout the

entire company.

The manner in which the company management is

involved in the project and the speed of decision-making

is important.Selection of experienced consultants and integrators.

Company should focus on in-house consultants and

integrators.




T he Role of EDP

EDP professionals and System Analysts constructssystems that are tailor-made for the orgn. These systems

are designed to cater to the current needs of the

company. So, no scope for growth or scalability.

Gaining the approval of the company mgmt to eliminate

the unwanted and redundant business processes, tointegrate the various business functions and to ensure

effective information flow between various business

functions decides the success or failure of the ERP

implementation.Information systems must become CENTRAL ± as a

strategic weapon ± to business reform, be designed from

a managerial perspective and have persuasiveness in

respect to business areas.




T he Future of ERP P ack ag es

There are still many problems with ERP packages, butthey are fit to be rapidly utilized in the future.

In terms of package selection, competition among

vendors increases the options for users, and will be

advantageous in terms of function expansion and

services.

The most important point in favour of using these

packages, is their ability to adapt to version upgrades of

the packages themselves.

The selection of packages that are constructed so as torequire minimum customization and whose customised

portions are guaranteed also for new versions is

important in this respect.

erp prince dudhatra 9724949948

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