Concepts of erp
- 2. Introduction ⚫Enterprise Resource Planning (ERP) is an enterprise wide information system designed to coordinate all the resources, information and activities needed to complete business processes such as order fulfillment or billing. ⚫An ERP system is based on a common database and a modular software design.
- 3. An Ideal ERP System ⚫An ERP software can have functionalities like: ⚪ Human Resource: ⯍ Training, payroll, time and attendance, etc. ⚪ Supply Chain Management (SCM): ⯍ Inventory, supplier scheduling, claim processing, order entry, etc. ⚪ Customer Relation Management (CRM): ⯍ Storing information on current and prospective customers. ⚪ Finance: ⯍ Accounts payable, accounts receivable, cash management, etc. ⚪ Manufacturing: ⯍ Quality control, bills of materials, manufacturing process, etc.
- 4. ERP Architecture – Layered Architecture ⚫ ERP system architecture is organized in layers or tiers to manage system complexity in order to provide scalability and flexibility. ⚫ ERP architecture has 3 layers: ⚪ Data Tier (Data Management): ⯍ Focuses on structure of all organizational data both internal and external. ⚪ Business Tier (Business logic or functional modules): ⯍ Consists of a web browser and reporting tool where business process and end user can interact with the system. ⚪ Presentation Tier (End User Interface – GUI): ⯍ A web based portal which allows users the ability to access and analyze through their web browser.
- 5. Types of ERP Architecture ⚫Two-tier Implementation ⚫Three-tier Client/Server Implementation ⚫Web based Architecture ⚫Oriented Architecture
- 6. Two-tier Implementation ⚫Server: Handles both application and database duties. ⚫Client: Presenting the data and passing user input back to the server. ⚫Benefits: Easy to use and access, low cost, high performance.
- 7. Three-tier Client/Server Implementation ⚫Database and application functions are separated into independent operating units. ⚫Client establishes communication with the application server. ⚫Application server creates a second connection to the database server.
- 8. Web based Architecture ⚫The presentation tier is split into Web services tier and web browser tier.
- 9. Oriented Architecture ⚫Breaks the business tier smaller, distinct units of services, collectively supporting ERP functional module. ⚫Allows message interaction between any service consumer and service provider.
- 10. Logical Architecture of an ERP system
- 11. Physical focuses on the efficiency of the system
- 13. ERP Generic Modules ⚫ Business: ⚪ Business forecasting, planning and control ⚫ Sales: ⚪ Distribution, invoice ⚫ Production: ⚪ Production planning and control ⚫ Materials: ⚪ Management of raw materials ⚫ Finance: ⚪ Accounting and cash management ⚫ Personnel: ⚪ Information of the customers or employees
- 14. ERP Features ⚫ Separation of program code and data ⚫ Business System ⚫ Sales ⚫ Production ⚫ Materials ⚫ Finance ⚫ Personnel ⚫ Fixed Asset ⚫ Maintenance ⚫ Quality Control ⚫ Consolidation of Business Operations