Enterprise resource-planning-erp-final
- 1. Enterprise Resource Planning (ERP) MASRATUL JANNAT ID: 17016005 MD. ZUBAIR TAUFIQ ID: 17016027 KHATUN JANNAT ID: 17016041 MD. MONOWARUL ISLAM ID: 17016051 MD. SHAHED IMRAN ID: 17016063 SAIMA SIDDIKA ID: 17016087
- 2. • An ERP system is an attempt to integrate all functions across a company to a single computer system that can serve all those functions’ specific needs. • “Integration” is the key word for ERP implementation. What is ERP?
- 3. What is ERP? • It may also integrate key customers and suppliers as part of the enterprise’s operation. • It provides integrated database and custom-designed report systems. • It adopts a set of “best practices” for carrying out all business processes.
- 5. Major Reasons for Adopting ERP • Integrate financial information • Integrate customer order information • Standardize and speed up operations processes • Reduce inventory • Standardize Human Resources information
- 6. 6 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
- 7. 7 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
- 8. 8 Who are the main ERP vendors? • Baan • JD Edwards • Oracle • PeopleSoft • SAP
- 9. ERP Implementation Phases 4 Major Phases: • Concept/initiation • Development • Implementation • Closeout/Operation and maintenance
- 10. Major Challenges to ERP Implementation • Limitations of ERP technical capabilities • Inconsistency with existing business processes • Costs • Implementation strategy and execution • Resistance to change
- 11. Potential Benefits of ERP • Internal Benefits • A real-time system • Increased productivity • Reduced operating costs • Improved internal communication
- 12. Potential Benefits of ERP • External Benefits • Improved customer service and order fulfillment • Improved communication with suppliers and customers • Enhanced competitive position
- 13. 13 Best Practices of ERP Implementation • A Business Strategy aligned with Business Processes • Top-Down Project Support and commitment • Change Management
- 14. Best Practices of ERP Implementation Cont.. • Extensive Education and Training • Data Clean up and Data Integrity • Implementation is viewed as an ongoing process
- 15. 15 Conclusion • The benefits of a properly selected and implemented ERP system can be significant. • An average, 25 to 30% reduction on inventory costs; 25% reduction on raw material costs. • Lead-time for customers, production time, and production costs can be reduced. • BUT cost of implementing can be quite high and risks are great.
- 16. Question?
- 17. THANKYOU!