ER P

Session1

managing information systems of your business world

IIPM

Concept | Benefits

ERP: concept
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Enterprise Resource Planning

Land,

Labor, Capital, Entrepreneur, Machines

General Business Problems:

Managing

Information System Efficient and effective use of resources Managing ratio of profit

Need is growing at 30% every year

ERP: reasons behind demand

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Enabling improved performance

Cycle

time reduction Increased business agility Inventory reduction Order fulfillment improvements

Supporting business growth requirements

Product

planning, execution Getting and managing customers Multilanguage and multicurrency business management

ERP: reasons behind demand

4

Accurate and Faster DSS

To

know what is so Improvement in responses to challenges

Limiting limitations
To

overcome delays in decision making, information management Get flexibility Being techno-friendly

ERP: reasons behind demand

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To take advantage of the untapped markets

Increased

functions at reasonable cost Cloud computing Vertical and Horizontal market expansions

ERP: description
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ERP = techniques and concepts employed for the integrated management of business functions and using resources effectively Started with manufacturing companies and then expanded to each industry Used for automation of business functions Integrated system which can be accessed from remote locations Helps in Execution and Getting things done

ERP: modules
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Finance HRM SCM (Logistics Management) Maintenance Sales & Distribution Material Management Production Quality Management Strategic & Operational Planning

ERP: benefits
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Reduction in lead-time On-time shipment Reduction in Cycle time Customer Satisfaction (CRM) Improved SCM Increased Flexibility Reduction in Operational Cost

ERP: benefits
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Managing Quality Increasing utility Increasing accuracy Business Modeling Managing Sales Faster DSS

ERP: implementation
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Implementation is a process of Selection, Installation of ERP package, Training people, Managing change and Checking postimplementation effectiveness Two methods: Bing bang Sequential

ERP: implementation cycle

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Pre-selection Screening: look for best 5 ERP packages which are falling in your segment. Ex: PeopleSoft is better for HR and BAAN is for Manufacturing, etc.

Package Evaluation: (Points to be considered) Functional Fit, Degree of Integration of business components, Flexibility & Scalability, Complexity, User Friendliness, Implementation Cycle, Ability to support multi-site planning and control, Technology, Customization required, Updates availability, Local support, total cost, etc. By Shankarnarayanan (Sr. Consultant, BAAN)

ERP: implementation cycle

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Project Planning: Time Schedule, Deadlines, Priorities, What to do, Task allocation, Delegation, Contingency planning, etc.

Gap Analysis: 80-20 customization needs, Find what to do, be ready for customization and learning or identify product which serves gap
Re-Engineering: Managing Change, business process implementation

ERP: implementation cycle

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Configuration: Mapping business processes with system (on prototype), check for each problem cases

Implementation Team Training: Training staff to manage/ use ERP, making change agents who are sound
Testing: testing system with real-time scenarios, hitting weak links to check stability

ERP: implementation cycle

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Go Live: Technically complete, Officially Operational System End-User Training: Training to users who will use it daily, giving support, managing resistance, etc

Post-Implementation: Maintenance mode, Auditing, Fixing issues, if any

BPR Cycle
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Thanks
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Vatsal Shah Consultant & Mentor Pragmatic Consultancy 99240 68585