ERP Fundamentals Presentation - Learning Cube

Enterprise
Resource
Planning
Pravam Pte Ltd,
Singapore
@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

Agenda
• Overview of Enterprise System
• Evolution
• Risk and Benefits
• Fundamental Technology
• Modules in ERP
• Implementation of cross functional integrated
ERP system
@2017 Pravam Pte Ltd (All Rights Reserved)

Overview of
Enterprise System

Overview
 Enterprise Resource Planning (ERP) system is “Computer
based information system that uses an integrated database to
provide a common integrated infrastructure for typical business
processes within functional areas and consistent information
across areas”.
 ERP is a method of effective planning of all the resources in an
organization.
 Enterprise is a group of people with a common goal, which
has certain resources at its disposal.
 Resources include money, manpower, material, and
infrastructure that are required to run the enterprise.
 Planning is a conscious determination of future course of
action, planning is done to ensure that nothing goes wrong.

Overview
 ERP system can integrate functions of various departments in
an organization, this integration approach aimed at improved
communication and integration of information among various
departments of business units in organizations.
 ERP Packages have their unique feature of flexibility.
Different languages, Currencies, accounting standards and so
on can be covered on one system and functions that manage
multiple locations of a company can be packaged and
implemented automatically. To cope with system globalization
and system unification, this flexibility is essential.
By enabling comprehensive and unified management of
related business and its data, it becomes possible to fully utilize
many types of decision support systems and simulation
functions.

Advantages of ERP
ERP
DIRECT INDIRECT
ADVANTAGES ADVANTAGES
IMPROVED
BUSINESS BETTER
FLEXIBILITY CUSTOMER
INTEGRATION CORPORATE IMAGE
GOODWILL
BETTER ANALYSIS
USE OF LATEST CUSTOMER REDUCED QUALITY
AND PLANNING
TECHNOLOGY SATISFACTION COST
CAPABILITIES
IMPROVED
IMPROVED INFORMATION
RESOURCE
EFFICIENCY INTEGRATION
UTILIZATION
FASTER RESPONSE
BETTER DECISION
TIME TO CONSUMER
MAKING
QUERIES

Questions..?

Evolution of ERP

Historical Evolution of ERP
Types of Systems Year Purpose Results
Re-Order Point 1960s It is used to inform the Designed to manage
management when an items falls high volume production
below a predetermined level, of a few products, with
additional inventory is ordered. constant demand; focus
on cost
Material 1970s Offered a demand based approach Focus on marketing

Requirements for planning manufacture of emphasis on greater
Planning(MRP) products and ordering inventory. production integration
Systems and planning.
Manufacturing 1980s Added capacity planning; could Focus on Quality;

resource planning schedule and monitor the manufacturing strategy
(MRP-II) Systems execution of production plans focused on process
control, reduced
overhead costs, and
detailed cost reporting.

Historical Evolution of ERP
Types of Systems Year Purpose Results
MRP II with 1990s Provide ability to adapt production Focus on the ability to create
manufacturing schedules to meet customer needs and adapt new products and
execution (MES) provides additional feedback with services on a timely basis to
Systems respect to shop floor activities. meet customer’s specific needs.
Flexible ERP Late Integrate manufacturing with supply Integrates suppliers,
( Resource 1990s and chain processes across the firm to create manufacturing and customer
Planning) onward a seamless information flow from data throughout the supply
suppliers, through manufacturing, to chain.
distribution to the customer.
Web Enabled ERP 1995 To incorporate web interfaces and Designed to share data and
onwards networking capabilities with ERP communicate information
among internal and external
environment.
Inter-Enterprise 1999 To incorporate internet as well as It is designed for linking
ERP onwards intranet tools with ERP to enhance subsidiary companies, and
communication and data sharing group companies under single
umbrella for data sharing
decision making.
Customized (ERP) 2002 To provide ERP systems products It is designed to integrate and
E-Business Suits onwards according to the needs of a customer disseminate modules so that
small and medium companies
can buy and use.
Questions..?

Benefits & Challenges

Benefits & Challenges
FIRM STRUCTURE DAUNTING
IMPLEMENTATION
C
B H
MANAGEMENT HIGH UP FRONT
E A
PROCESS COSTS
N L
E L FUTURE BENEFITS
F E
I N
TECHNOLOGY T G
PLATFORM S E INFLEXIBILITY
S
BUSINESS CAPABILITY REALISING

STRATEGIC
VALUE

Benefits
 Enterprise system promises to greatly change the following
dimensions: Firm Structure and organization, management,
technology platform and business capability.
1. Flat structure and organization:

Companies use ERP to support,
 Organizational structures that was not previously
possible.
 To create a more disciplined organizational culture.
2. Management Process :
ERP automates many internal business transactions (Order
receipt, entry, paying suppliers, employee benefits, status
change etc.). Further, it can improve management
reporting and decision making.
Benefits
3. Technology Platform:
Enterprise systems promise to create a single, integrated
repository that gathers data on all the key business
processes. It promises to provide firms with a single, unified,
and all encompassing information system technology
platform and environment. The data have common,
standardized definitions and formats that are accepted by
the entire organization.
4. Business Capabilities:
ERP can help create the foundation for a customer driven or
demand organization. By integrating discrete business
processes, the entire organization can efficiently respond to.
 Customer requests for products or information
 Forecast new products
 Build and deliver them as demand requires.
Challenges
 ERP improves organizational coordination, efficiency, and
decision making; they have proven very difficult to build. But it
needs large technology investments but also fundamental
changes in the way the business operates.
1. Daunting Implementation:
ERP causes dramatic charges in business. As per re-
engineering principles, it requires not only deep seated
technological changes but also fundamental changes in the
way the business operates.
2. Large Initial Cost:
ERP start up costs are high, highly visible and often politically
charged. Hence one should be careful in knowing the future
benefits which cannot be qualified at the beginning of a
project.
Challenges
3. Inflexibility:
ERP software are complex, costs high and difficult to master,
world wide shortage of experienced skilled people in
installing and maintaining it. It is deeply intertwined with
corporate business processes.
4. Business Capabilities:
If the standard ERP software do not allow the firm to use
unique business processes needed by the company to gain
competitive advantage over competitors, then the firm fails
to achieve strategic benefits and do not realize strategic
value.

Questions..?

Fundamental
Technology

Single User System
centralized system
presentation application DBMS

services services
user module
• Presentation Services - displays forms, handles flow of

information to/from screen
• Application Services - implements user request, interacts with
DBMS

Centralized Multi User System
communication central machine
presentation application
services services
•••
DBMS
services services
dumb terminal user module

Transactional Processing in a
Distributed System
 Transaction Processing System (TPS) is a type of information system that
collects, stores, modifies and retrieves the data transactions of an
enterprise.
 TPS also attempt to provide predictable response times to requests,

although this is not as critical as for real-time systems.
 Rather than allowing the user to run arbitrary programs as time-sharing,

transaction processing allows only predefined, structured transactions. Each
transaction is usually short duration and the processing activity for each
transaction is programmed in advance.

Two - Tier Model of TPS
database server
client machines machine
services services
•••
DBMS
services services
communication

Three - Tier Model of TPS
application server database server
client machines machine machine
presentation
server •••
application
DBMS
server
presentation
server
communication

Questions..?

Modules in ERP

Modules
 Customer Relationship Management
 Supplier Relationship Management
 Supply Chain Management
 Material Management
Project Management
 Production Planning
 Plant Maintenance
 Warehouse Management
Customer Relationship Management
 Customer Relationship Management is an approach to managing a
company's interaction with current and potential future customers
that tries to analyze data about customers' history with a company
and to improve business relationships with customers, specifically
focusing on customer retention and ultimately driving sales growth .
 The idea of customer relationship management began evolving in

the early 1970s, when customer satisfaction was evaluated using
annual surveys.
 The key year was 1982, when Kate and Robert Kestnbaum
introduced the concept of Database marketing, namely applying
statistical methods to analyze and gather customer data.

CRM Systems
CRM systems track and measure marketing campaigns over multiple
networks, tracking customer analysis by customer clicks and sales.
 Some CRM software is available as a software as a service (SaaS), delivered

via the internet and accessed via a web browser instead of being installed on
a local computer. Businesses using the software do not purchase it, but
typically pay a recurring subscription fee to the software vendor.
 For small businesses a CRM system may consist of a contact manager
system that integrates emails, documents, jobs, faxes, and scheduling for
individual accounts.
 CRM systems available for specific markets (legal, finance) frequently focus
on event management and relationship tracking as opposed to
financial return on investment (ROI).

Supplier Relationship Management
 Supplier relationship management (SRM) is the systematic, enterprise-
wide assessment of suppliers’ assets and capabilities with respect to overall
business strategy, determination of what activities to engage in with different
suppliers, and planning and execution of all interactions with suppliers, in a
coordinated fashion across the relationship life cycle, to maximize the value
realized through those interactions.
 The focus of SRM is to develop two-way, mutually beneficial relationships

with strategic supply partners to deliver greater levels of innovation and
competitive advantage than could be achieved by operating independently or
through a traditional, transactional purchasing arrangement.
 The starting point for defining SRM is a recognition that these various
interactions with suppliers are not discrete and independent – instead they
are accurately and usefully thought of as comprising a relationship, one which
can and should be managed in a coordinated fashion across functional and
business unit touch-points, and throughout the relationship lifecycle.

Supply Chain Management
 Supply-chain management has been defined as the "design,
planning, execution, control, and monitoring of supply chain activities
with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply
with demand and measuring performance globally.“
 One of the first to formally define supply chains as encompassing all
activities associated with the flow and transformation of goods from
raw materials through to the end user, as well as the associated
information flows.
 Supply chain management was thus defined as the integration of
these activities through improved supply chain relationships to achieve
a competitive advantage.
 The management of upstream and downstream value-added flows
of materials, final goods, and related information among suppliers,
company, resellers, and final consumers.

Material Management
The goal of materials management is to provide an unbroken chain
of components for production to manufacture goods on time for the
customer base.
 The materials department is charged with releasing materials to a

supply base, ensuring that the materials are delivered on time to the
company using the correct carrier. Materials is generally measured by
accomplishing on time delivery to the customer, on time delivery from
the supply base, attaining a freight, budget, inventory shrink
management, and inventory accuracy.
 In some companies materials management is also charged with the

procurement of materials by establishing and managing a supply base.
In other companies the procurement and management of the supply
base is the responsibility of a separate purchasing department.

Project Management
 Project management is the discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and
meet specific success criteria.
 A project is a temporary endeavor designed to produce a unique

product, service or result with a defined beginning and end (usually time-
constrained, and often constrained by funding or deliverables)
undertaken to meet unique goals and objectives, typically to bring about
beneficial change or added value.
 The primary challenge of project management is to achieve all of the

project goals within the given constraints.
 The primary constraints are scope, time, quality and budget. The
secondary and more ambitious challenge is to optimize the allocation of
necessary inputs and integrate them to meet pre-defined objectives.
Production Planning
 Production planning is planning of production and manufacturing
modules in a company or industry.
 It utilizes the resource allocation of activities of

employees, materials and production capacity, in order to serve different
customers.
 Different types of production methods, such as single item

manufacturing, batch production, mass production, continuous
production etc. have their own type of production planning.
 Production planning can be combined with production control into

production planning and control, or it can be combined and or integrated
into enterprise resource planning.
 Production planning is a plan for the future production, in which the

facilities needed are determined and arranged.
Plant Maintenance
 Maintenance is defined as that of function of production management
concerned with the day to day problem of keeping the physical plant in
good operation condition.
 Maintenance Management is concerned with direction and

organization of resources in order to control the availability and
performance of industrial plants to some specified level.
 Plant maintenance is concerned with action taken by the plant user to

maintain an existing system and facilities or to restore it an operating
condition.
 Types of Plant Maintenance are as follows,

• Corrective Maintenance
• Preventive Maintenance
• Predictive Maintenance
Warehouse Management
 Warehouse Management helps to manage complex warehouse
structure, optimizing material flows using advanced binning and picking
techniques.
 Using Warehouse Management we can able to analyze the material

movement and change in material status. Picking and shipping of goods
for sale and also processing of multiple goods with transfer requirement
and delivery simultaneously.
 Advantages of Warehouse management are,

• Monitoring of stocks in hand as well as in different storage area of
warehouse.
• Shows the material status and also how many days it is lying in
particular area.
• Whether Bin is occupied or empty.

Questions..?

Implementation of Cross
functional integrated
ERP system

Cross functional Integrated ERP
System

Tools Used
 Electronic Mail
 Voice Mail
 Bulletin board system
 Fax
 Video conferencing tools

Cross functional ERP system
It is a group of people with different functional expertise
working towards a common goal.
 It may include the people from finance, marketing,

operations, human resources. Typically, it includes employees
from all levels of an organization.
 Cross-functional enterprise system often function as self-

directed enterprise systems responding to broad, but not
specific directives.

Collaboration system in
Manufacturing
Structured collaboration system
• Easier to organize
• Excellent for hierarchical organizations
• Increases proficiency
 Limitations of structured collaboration system

• Same workflow information
• Can cause groupthink
• Encourages lack of creativity

Enterprise Application
Integration
The use of software and computer systems architectural
principles to integrate a set of enterprise computer applications.
 It is an integration framework composed of collection of

technologies and services which form a middleware to enable
integration of systems and applications across the enterprise.
• Communicate
• Coordinate
• Collaborate and Cooperate

Enterprise Application
Integration
Supplier
 Customer Relationship
Management
SCM
 Supplier Relationship
Management
 Supply Chain
Business Partners
ERP
Partner Relationship
Management Employees
Management
Management
Knowledge
 Enterprise Resource
Planning EAI
 Enterprise Application
Integration
CRM
 E- Procurement
 Knowledge
Management SCM
 Business Intelligence
Customer
Questions..?

Thank You…!

ERP Fundamentals Presentation - Learning Cube

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ERP Fundamentals Presentation - Learning Cube

Uploaded by

Copyright:

Available Formats

Enterprise

@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

Material 1970s Offered a demand based approach Focus on marketing

Manufacturing 1980s Added capacity planning; could Focus on Quality;

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

BUSINESS CAPABILITY REALISING

@2017 Pravam Pte Ltd (All Rights Reserved)

1. Flat structure and organization:

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

presentation application DBMS

• Presentation Services - displays forms, handles flow of

@2017 Pravam Pte Ltd (All Rights Reserved)

dumb terminal user module

@2017 Pravam Pte Ltd (All Rights Reserved)

 TPS also attempt to provide predictable response times to requests,

 Rather than allowing the user to run arbitrary programs as time-sharing,

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

 Supplier Relationship Management

 Supply Chain Management

 The idea of customer relationship management began evolving in

@2017 Pravam Pte Ltd (All Rights Reserved)

 Some CRM software is available as a software as a service (SaaS), delivered

@2017 Pravam Pte Ltd (All Rights Reserved)

 The focus of SRM is to develop two-way, mutually beneficial relationships

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

 The materials department is charged with releasing materials to a

 In some companies materials management is also charged with the

@2017 Pravam Pte Ltd (All Rights Reserved)

 A project is a temporary endeavor designed to produce a unique

 The primary challenge of project management is to achieve all of the

 It utilizes the resource allocation of activities of

 Different types of production methods, such as single item

 Production planning can be combined with production control into

 Production planning is a plan for the future production, in which the

 Maintenance Management is concerned with direction and

 Plant maintenance is concerned with action taken by the plant user to

 Types of Plant Maintenance are as follows,

 Using Warehouse Management we can able to analyze the material

 Advantages of Warehouse management are,

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Nityo Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

@2017 Pravam Pte Ltd (All Rights Reserved)

 It may include the people from finance, marketing,

 Cross-functional enterprise system often function as self-

@2017 Pravam Pte Ltd (All Rights Reserved)