Erp intro
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Enterprise resource planning (ERP) systems originated from extensions of manufacturing resource planning and computer integrated manufacturing systems. ERP software provides integrated functionality for at least two business systems, such as payroll and accounting. ERP implementations involve consulting, customization, and support services from ERP vendors or third parties. Successful ERP implementations require significant planning, including identifying data to migrate and generating data templates. ERP systems provide advantages like centralized data and process integration across business functions, but also disadvantages such as high costs, potential rigidity, and security risks from centralized data.
Erp intro
- 1. PRESENTED BY:- MAAN CHOUDHARY
- 2. ORIGIN The initials ERP originated from an extension of MRP (Manufacturing Resource Planning) and CIM (Computer Integrated Manufacturing). These systems can now be found in non- manufacturing businesses, non-profit organizations and governments. To be considered an ERP system, a software package must provide the function of at least two systems. For example, a software package that provides both payroll and accounting functions could technically be considered an ERP software package.
- 3. OVERVIEW Some organizations — typically those with sufficient in-house IT skills to integrate multiple software products — choose to implement only portions of an ERP system and develop an external interface to other ERP or stand-alone systems for their other application needs. Ideally, ERP delivers a single database that contains all data for the software modules, which would include:- Manufacturing, Supply chain management, Financials, Project management, Human resources, Customer relationship management, etc.
- 4. Enterprise Resource Planning is a term originally derived from Manufacturing resource planning. Later MRP evolved into ERP when “routings” became a major part of the software architecture and a company’s capacity planning activity also became a part of the standard software activity. ERP software can aid in the control many business activities, including sales, marketing, delivery, billing, production, inventory management, quality management and human resource management. ERPs are cross-functional and enterprise wide.
- 5. IMPLEMENTATION To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. These firms typically provide three areas of professional services: consulting, customization and support. The client organization may also employ independent program management, business analysis and UAT specialists to ensure their business requirements remain a priority during implementation. Data migration is one of the most important activities in determining the success of an ERP implementation. Since many decisions must be made before migration, a significant amount of planning must occur.
- 6. Unfortunately, data migration is the last activity before the production phase of an ERP implementation, and therefore receives minimal attention due to time constraints. The following are steps of a data migration strategy that can help with the success of an ERP implementation: 1)Identifying the data to be migrated, 2)Determining the timing of data migration, 3)Generating the data templates, 4)Freezing the tools for data migration,
- 7. ADVANTAGES In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another. Tasks that need to interface with one another may involve: 1.Integration among different functional areas to ensure proper communication, productivity and efficiency. 2.Design engineering. 3.Order tracking, from acceptance through fulfillment.
- 8. Managing interdependencies of complex processes bills of materials. Tracking the three way match between purchase orders, inventory receipts and costing. ERP Systems centralize the data in one place. This eliminates the problem of synchronizing changes and can reduce the risk of loss of sensitive data by consolidating multiple permissions and security models into a single structure.
- 9. DISADVANTAGES ERP systems can be very expensive. ERP’s are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies- this is cited as one of the main causes of their failure. Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level). Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.
- 10. Some large organizations may have multiple departments with separate, independent resources, missions, chains-of-command, etc, and consolidation into a single enterprise may yield limited benefits. The system may be too complex measured against the actual needs of the customers. ERP Systems centralize the data in one place. This can increase the risk of loss of sensitive information in the event of a security breach.
- 11. THANK YOU