lecture 123 erp unit1 ex ar

8/3/2019 Lecture 123 ERP Unit1 EX AR

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ENTERPRISE RESOURCE PLANNINGENTERPRISE RESOURCE PLANNING


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Unit 1Unit 1

Prof. Arun MishraEmail: [email protected]


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LEARNING OBJECTIVES

The significance of ERP systems

Describe the evolution and concept ofEnterprise Resource Planning Systems

Know what you need to know about ERP

systems Discuss the role of ERP in business

Understanding the components andmodules of ERP systems

Understanding the IS perspective of ERPsystems and know some of the challengesof ERP systems


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Introduction

ERP System is a highly integrated andenterprise wide information system thatcovers all the functional areas ordepartments in an organization.

Became Popular in last decade

Is considered as backbone of anorganisation.


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ERP System - Why?

Organizations can't do without ERPSystems because of the followingreasons:

Competitive Environment: Need for takingfast and right decisions.

Information Age: needs large volume of

information to be processed in an integratedmanner.


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EVOLUTION OF ERP


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EVOLUTION OF ERP (Contd)

ERP systems have evolved from the MaterialsRequirements Planning (MRP) systems of the1970s and,

The Manufacturing Resources Planning (MRP II)systems of the 1980s.

To respond to the unprecedented globalcompetition, customer focus and shortened

product life cycles, organizations in 1990s,integrated all the functions of management,called ERP systems.


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Now-a-days, the advanced ERP systems, whichare known as ERP-II or Enterprise Systems,

extend beyond the boundaries of an organization,and capture inter-organizational processes suchas Supply Chain Management (SCM) andCustomer Relationship Management (CRM).


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What is ERP?

Enterprise Resource Planning (ERP) Systemis a set of application software/ packagethat integrates manufacturing, finance,

sales, distribution, human resources andother business functions. ERP serves as a cross- Functional enterprise backbone that

integrates all the processes of the business and helps manage

the resources of the organisation.

The basic philosophy of ERP system is that business processes

are to be integrated at all levels & all the resources should be

treated as common.


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Components of ERP Systems

The various components of ERP system are:

People (Users and IT staff)

Hardware (servers, peripherals) and Software

(Information Systems software, Operatingsystems and databases)

Database (organizational data from within andoutside)

Model base

Processes (Business processes, procedures, andpolicies)


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Components of ERP System


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Benefits of ERP System

ERP systems provide a number ofbenefits which include:

Reduced Inventory Reduced carrying cost of Inventory Reduced manpower Reduced cycle time Reduced data transfer time Reduced errors

Reduced quality costs Improved information accuracy Improved decision making capability Improved customer satisfaction


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Pre-ERP Scenario


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Post ERP Scenario


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Scope of ERP System

ERP Systems are organization-wideinformation systems and cover all thefunctional areas of a typical businessorganization. The main areas covered byERP systems are:

Production and manufacturing planning Finance and accounting Sales and Distribution Human Resources

Quality Plant Maintenance Marketing Inventory Management


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What a manager needs to know about ERP

A Manager needs to know the followingabout ERP:

The basic concepts of information systems and

information technology in general and ERPSystem in particular The strategic planning process for establishing

the need for an ERP System The modeling, analysis and redesign of business

processes The implementation process for ERP System The challenges in managing ERP System


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ERP Modules

A typical ERP system consists of thefollowing modules:

The Sales and Distribution (SD) module The Materials Management (MM) module The Production Planning (PP) module The Quality Planning (QM) module The Plant Maintenance (PM) module The Asset Management (AM) module

The Human Resources (HR) module The Project Systems (PS) module The Financial Accounting (FI) module The Controlling (CO) module The Workflow (WF) module


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CHALLENGES TO ERP

The main reason for the failure of

information systems has been the lack of

understanding in the complexity of

planning, development and

implementation required for a new ERP

system.


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Trends In ERP

Flexible ERP

Web-Enable ERP

Inter enterprise ERP

E-business suite


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Any Questions?


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lecture 123 erp unit1 ex ar

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