025 Enterprise Resources Management

Contents
 Introduction to ERP
 Business Process Re-engineering (BPR)
 ERP Implementation
 Vendors of ERP
 Business Modules in ERP
 ERP & Role of Chartered Accountants
 Conclusion
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04-10-2010www.construction-productivity.co.uk 3

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Why ERP ?
To Survive ,Thrive And BeatThe Competition
Manage future
Manage Information
Automation of the process of Data Collection
InformationTechnology (ERP Solution)

History Of ERP
 ERP (Enterprise Resource Planning) is the
evolution of Manufacturing Requirements Planning
(MRP) II.
 From business perspective, ERP has expanded
from coordination of manufacturing processes to
the integration of enterprise-wide backend
processes.
 From technological aspect, ERP has evolved from
legacy implementation to more flexible tiered
client-server architecture.
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What is ERP ?
 ENTERPRISE:
An enterprise is a group of people with a common goal, which has
certain resources at its disposal to achieve that goal.
 RESOURCE:
Resources included are money, man-power, materials, and all other
things that are required to run the enterprise.
 PLANNING:
Planning is done to ensure that nothing goes wrong. Planning is
putting necessary functions in place and more importantly, putting
them together.
 ERP covers the techniques and concepts employed for the
integrated management of business as a whole, from the viewpoint
of the effective use of management resources, to improve the
efficiency of an enterprise.
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Industry wise Uses of
ERP…..
 Manufacturing
 Software
 Insurance
 Healthcare
 Hospitality
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ERP: Disadvantages
 Lack of clarity of expectations from ERP.
 Unreasonable scope & Inadequate
Resources.
 Choice of wrong ERP product – not all
products are suitable for all industries.
 Not choosing the right people for
implementation.
 Lack of participation of end-users.
 Lack of proper communication within the
organization.
15

Introduction to BPR
 Business process reengineering (BPR) is, in computer
science and management, an approach aiming at
improvements by means of elevating efficiency and
effectiveness of the business process that exist
within and across organizations.
 The key to BPR is for organizations to look at their
business processes from a "clean slate" perspective
and determine how they can best construct these
processes to improve how they conduct business.
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ENTERPRISE RESOURCE
PLANNING(ERP)
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Definitions of BPR
Thomas H. Davenport (1993)
 "encompasses the envisioning of new work
strategies, the actual process design activity, and
the implementation of the change in all its
complex technological, human, and organizational
dimensions."
Hammer and Champy (1993)
 "... the fundamental rethinking and radical
redesign of business processes to achieve dramatic
improvements in critical contemporary measures
of performance, such as cost, quality, service, and
speed."
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Conclusion of BPR
“The onus of the successful
implementation lies with the
Organization”
To be successful, business process
reengineering projects need to be top
down, taking in the complete organization,
and the full end to end processes.
It needs to be supported by tools that make
processes easy to track and analyze.
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ERP Implementation And
Methodology
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Steps in ERP Implementation
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Steps in ERP Implementation
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Vendors of ERP Package
 Oracle corporation
 Oracle is one of the top players in the ERP market
 Oracle Manufacturing Applications offers internet
enabled, network centric computing
 As a one stop shop, it offers the database, tools,
implementation, applications and UNIX operating
systems running on a wide choice of hardware
 SAP AG
 SAP is the world's second largest business
software company.
 SAP focuses on six industry sectors: process
industries, discrete industries, consumer
industries, service industries, financial services,
and public services
 SAP matches business processes to modules.
3030

(Contd.)
Baan
 It addresses manufacturers from largest global players to smallest
ERP user.
 It offers tools for Business Process Analysis
 It uses 4GL language
SSA
 BPCS was developed by System Software Associates (SSA)
 It is used in manufacturing companies
 It offers functionality of Process and Kanban Manufacturing
3131

(Contd.)
Sage Group plc
 It is engaged in the development, distribution
and support of business Management
software
 Accpac is a vendor of accounting, Customer
relationship management and business
management software
 It has two main product lines
 Sage Accpac ERP
 Sage Pro ERP
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3434
Major Modules in ERP
Packages  Finance Module
 HR Module
 Manufacturing Module
 Material Management
(MM) Module
 Sales & Distribution
Module
SALES &
DISTRIBUTION
MANAGEMENT
LOGISTICS
&
CUSTOMER SERVICE
MANAGEMENT

3636
Finance Module
 Finance functionality for organizations
whose business is spread over the world.
 Company wide control & Integration of
Financial Information.
 Sub Systems are :
 Financial Accounting
 Treasury
 Control
 Enterprise Management

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Finance Module
Finance functionality for
organizations whose business is
spread over the world.
Company wide control &
Integration of Financial
Information.
Sub Systems are :
1. Financial Accounting
2. Treasury
3. Control
4. Enterprise Management

3838
Human Resource Module
 HR is an essential factor of any
successful business.
 This Module offer company wide
solutions for HR departments and
make it possible for authorized users
of the other departments to access
specific employee data.

4242
Manufacturing Module
 Components of Manufacturing Module :
 Material & Capacity Planning
 Quality Management
 Cost Management
 Shop Floor Control

Manufacturing Module
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PAGE

4545
Material Management Module
 It supports all phases of Material - Management,
planning, control, purchasing, receiving, inventory
management & bill payment. Its sub-modules are
:
 Pre Purchasing Activities
 Purchasing
 Vendor Evaluation
 Inventory Management
 InvoiceVerification

4 Oct- 20104 Oct- 2010 4747
Sales & Distribution Module
Offers access to real-time, online information
from sales to billing.
Sub-systems in this modules are –
 Masters Data Management
 Order Management
 Warehouse Management
 Dispatch
 Invoicing
 Pricing
 Sales Support
 Transportation

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Role of Chartered Accountants in
ERP
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Major Challenges in ERP
Audits
 Complexity of ERP
 Manpower
 Inadequate
Attention towards
security of
Systems
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Conclusion
“A Chartered Accountant
without the knowledge of
ERP may feel as if he is
a fish out of the bowl”
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Bibliography
 www.erpwire.com
 www.en.wikipedia.org
 www.icai.org
 www.teamtechnology.co.uk
 ICAI – Reference Books & Study Material.
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025 Enterprise Resources Management

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