ERP

Enterprise Resource Planning

People

Process Technology

ERP

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An ERP Example: Before ERP

Customers

Customer

Demographic

Files Sales Dept.

Vendor

Orders

Parts

Accounting

Accounting

Files

Purchasing

Purchasing

Files

Order is placed

with Vendor

Invoices

accounting

Inventory

Files

Warehouse

Checks for Parts

Calls back “Not in stock”

“We ordered the parts”

“We Need parts #XX”

“We ordered the parts”

Sends report

Sends report

Sends report

Ships parts

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Problems with function based application Sharing of data between systems Data duplication Data inconsistency Applications that don’t talk to one another Limited or lack of integrated information Isolated decisions lead to overall inefficiencies Increased expenses

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An ERP Example: After ERP

Database

Customers Sales Dept.

Purchasing

Warehouse

Accounting

Vendor

Inventory Data

If no parts,

order is placed

through DB

Orders

Parts

Order is submitted

to Purchasing.

Purchasing record

order in DB

Order is placed

with Vendor

And invoices accounting

Financial Data exchange;

Books invoice against PO

Books inventory

against PO

Ships parts A K Roy

Solution to disparate systems? Integration Consolidation Right-sizing Business Process Redesign Enterprise wide system

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Integrated systems or Enterprise Resource Planning System

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ERP - Definition ERP is a process of managing all resources and their

use in the entire enterprise in a coordinated manner

ERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management

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What is ERP?

The practice of consolidating an enterprise’s planning, manufacturing, sales and marketing efforts into one management system

Combines all databases across departments into a single database that can be accessed by all employees

ERP automates the tasks involved in performing a business process

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Evolution of ERP

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How Do ERP Systems Work?

Managers and Stakeholders

Central Database

Reporting Applications

Financial Applications

Manufacturing Applications

Inventory And Supply Applications

Human Resource

Management Applications

Service Applications

Sales and Delivery

Applications

Sales Force And Customer Service Reps

Customers Back-office Administrators And Workers

Suppliers

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What makes ERP different Integrated modules Common definitions Common database Update one module, automatically updates others ERP systems reflect a specific way of doing business Must look at your value chains, rather than

functions

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ERP Components Finance: modules for

bookkeeping and making sure the bills are paid on time. Examples: General ledger Accounts receivable Accounts payable

HR: software for handling personnel-related tasks for corporate managers and individual employees. Examples: HR administration Payroll Self-service HR

Manufacturing & Logistics: A group of applications for planning production, taking orders and delivering products to the customer. Examples: Production planning Materials management Order entry and

processing Warehouse management

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Benefits of ERP Common set of data Help in integrating applications for decision making

and planning Allow departments to talk to each other Easy to integrate by using processed built into ERP

software A way to force BPR (reengineering)

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Vendors

ERP vendors

Our ERP is Oracle based provided

by Light House A K Roy

Training schedule: Weighbridge Module (Day 1)

Gate Inward Weighbridge First Weight Loading Advice/Slip Weighbridge Second Weight Gate Outward

Accounting Module (Day 2) Financial Accounting [General Ledger] Financial Accounting: Accounts Payable –AP Financial Accounting: Accounts Receivable –AR Financial Accounting: Cash Management

Production Module (Day 3) Production Entry Details Bill of Material Breakdown Details Reports

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Training schedule: (cont.…) Material Management Module (Day 4 & 5)

Requisition Issue Indent Enquiry Quotation Purchase Order GRN Stock Valuation

Sales & Marketing Module (Day 6 & 7) Customer Enquiry Sales Quotation Sales Contract Delivery Order Sales Invoice cum Dispatch Prepare Sales Invoice

Doubt Clearing & Evaluation (Day 8) A K Roy

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