ERP Ch2 Leon
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This document provides an introduction to enterprise resource planning (ERP) systems. It defines ERP as techniques and concepts for integrated management of businesses as a whole from the viewpoint of effective management resource use to improve enterprise management efficiency. The document discusses common ERP myths, the history and evolution of ERP from MRP to MRP-II to current ERP tools. It also outlines advantages such as improved efficiency, information integration, flexibility, and better analysis and planning capabilities through use of latest technologies.
ERP Ch2 Leon
- 1. Chapter 2 Introduction to ERP Prepared By: Lokesh Gagnani, IT Dept, KITRC
- 2. Contents What is ERP? Common ERP Myths History of ERP Advantages/Benefits of ERP
- 3. What is ERP It means techniques and concepts for integrated management of businesses as a whole from the viewpoint of the effective use of management resources to improve the efficiency of enterprise management.
- 4. Common ERP Myths 1.ERP means more work and procedures 2.ERP will make many employees redundant and jobless 3.ERP is the sole responsibility of the management 4.ERP is just for the managers/ decision- makers 5.ERP is just for manufacturing organizations 6.ERP is just for the ERP implementation team
- 5. 7.ERP slows down the organization 8.ERP is just to impress customers 9.ERP package will take care of everything 10.One ERP package will suit everybody 11.ERP is very expensive 12.Organizations can succeed without ERP
- 6. 1.Today's ERP tools automate many of the repetitive,montonous and tedious procedures,task, and processes. 2.ERP is a people system made possible by the computer software & hardware. 3.The company management is not responsible for the day-to-day operation of the ERP system. 4.Users should be trained to fully utilize the various features available. 5.Bcoz it evolved from Material requirement planning(MRP) and Manufacturing Resource Planning (MRP-II)
- 7. 6.employee to use new feature and facilities 7.Business tasks were performed manually which is time-consuming. Lot of work is duplicated. 8.Deliver high-quality products and services at high speed 9.needs people to operate,use and maintain 10.size,functionality,price,technical support,customizability,scalability
- 8. Evolution of ERP MRP-outgrowth of BOM(bill of material) What products are we going to make? What are the materials needed to make these products? What are the materials that are presently available in stock? What are the items that need to be purchased
- 9. Closed-loop MRP Not only material requirements planning but a series of functions for automating the production process MRP-II After above in addition to sales and operational planning, finanacial interface and simulation capabilities ERP
- 10. ADVANTAGES OF ERP Direct-Improved Efficiency, information integration,faster response time to customer queries Indirect-better incorporate image,improved customer goodwill,customer satisfaction
- 11. Direct Benefits Business Integration -ERP packages are called integrated due to the automatic data updation between related business components. Flexibility -Diverse multinational environments such as language,currency,accounting standards are covered in one system, and functions that manage multiple locations that span a company.
- 12. Better Analysis and Planning capabilities -carry out flexibily and in real time the filling and analysis of data from a variety of dimensions,one is able to give decision-makers the information they want,thus enabling them to make better and informed decisions. Use of Latest technology -open systems,client/server technology,Internet/Intranet,CALS(computer- aided acquistion and logistics support),e- commerce