Upload
prashant-sharma
View
2
Download
0
Tags:
Embed Size (px)
DESCRIPTION
basic knowledge of ERP
Citation preview
ERP
Presented by:-
Manoj Singh
Enterprise Resource Planning
1
Presentation flow• Erp Basics
– Defination– Evolution– Why ERP
• Overview of ERP Solutions :-– Modules of ERP– The ERP application– Why clients buy ERP?– Business process benefits clients expect from an ERP project– Major ERP vendors
• SAP R/3 Overview– SAP R/1 , R/2,R/3– SAP R/3 : 3 Tier Architecture
• ERP LIFE CYCLE– Explanation of Different phases of ERP
2
ERP – Defination
“Software solution that addresses theEnterprise needs, taking a process view ofthe overall organization to meet the goals,by tightly integrating all functions andunder a common software platform”
3
Evolution of ERP
1960’s - Systems Just for Inventory Control
1970’s - MRP – Material Requirement Planning (Inventory with material planning & procurement)
1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise)
2000 onwards – ERP II – Collaborative Commerce (Extending ERP to external business entities)
4
Why ERP?
For Management – to know what is happening in the company
One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival
5
Overview of an ERP solution...?
MarketingManufacturing
Materials Finance
Engineering Sales
Planning and Execution
6
Modules of ERP
7
The ERP application
• An integrated suite of business applications, which..
– Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money.
– Enables corporates to readily change their processes to adapt to the ever changing business scenario.
– Provides expertise in industry specific business processes.
• Entails– Parameterization / Configuration– Designing & Customization– Testing and Implementation– Training
8
Companies before ERP Systems
9
Why clients buy ERP?
• Corporate Initiatives– Strategic initiatives
• A requisite capability in a competitive global business– Operational initiative
• A foundation for performance and cost improvement via integration
– Organizational initiative• To initiate a major organizational change within the company
• Technology – IT is making the transition from a supporting operational entity to
becoming a strategic competitive tool.• Because others are buying it !!!
10
Business process benefits clients expect from an ERP project
• Global process/ Product management• Integrated Supply Chain Management• Leverage purchasing and vendor management• Order cycle time/ customer service improvement• Inventory reductions• Reduced information systems costs on an ongoing basis• Improved business management through worldwide integration
and information
Logistics and Distribution Sales & Customer Service
Vendors Inbound Manufacturing Transportation Distribution Delivery Customer Consumer Logistics
11
Major ERP vendors
SAP R/3
Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier, but are subsets of Oracle now )
Peoplesoft
JD Edwards
Baan
12
SAP R/3 Overview Systems Applications & Products
13
SAP R/1 , R/2 The R/1 system
Developed for ICI Chemical Released 1972 Focused on Sales & Distribution and Materials Management Discontinued after release of R/2
R/2Basis System
The R/2 system Reorganized as leading mainframe software for large multinational
corporations No sales effort planned – reactive only 4,300 copies worldwide in 1993 Mainframe-based to replace user legacy software;
co-existence and migration strategy underway for R/2 and R/3
14
15
SAP R/3 : 3 Tier Architecture
Those SAP R/3 software components that specialize in the management , storage and retrieval of data form the Database Layer
The Database Layer
Those SAP R/3 software components that specialize in processing business applications form the Application Layer.
The Application Layer
Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer.
The Presentation Layer
04/22/23
16
SAP R/3 : 3 Tier Architecture
Database servers:
Specialized systems
with fast and large
hard drives.
Application servers:
Specialized systems
multiple CPUs and
vast amounts of RAM.
Presentation servers:
Systems capable of
providing a graphical
interface.
Presentation Layer components
Application Layer
componentsDatabase Layer
components
reside in: reside in: reside in:
04/22/23
17
SAP R/3 : 3 Tier Architecture
The Database Layer
components are installed on
high-end database server.
The Application Layer
components are installed
across one or more high-
end servers.
Presentation Layer components are installed across many PCs
04/22/23
ERP LIFE CYCLE
• ERP lifecycle is in which highlights the different stages in implementation of An ERP
18
Different phases of ERP
• Pre evaluation Screening• Evaluation Package• Project Planning• GAP analysis• Reengineering• Team training• Testing• Post implementation
19
Pre-selection Process
Package Evaluation
Project Planning
Gap Analysis Reengineering Configuration
Implementation Team Training Testing End- user Training
Going Live
Post – implementation Phase
ERP implementation Life Cycle20
Pre evaluation screening
• Decision for perfect package
• Number of ERP vendors
• Screening eliminates the packages that are not at all suitable for the company’s business processes.
• Selection is done on best few package available.
21
Package Evaluation
• Package is selected on the basis of different parameter.
• Test and certify the package and also check the coordination with different department
• Selected package will determine the success or failure of the project.
22
Cont.
• Package must be user friendly
• Regular up gradation should available.
• Cost
23
Project planning
• Designs the implementation process.
• Resources are identified.
• Implementation team is selected and task allocated.
• Special arrangement for contegencies.
24
Gap analysis
• Most crucial phase.
• Process through which company can create a model of where they are standing now and where they want to go.
• Model help the company to cover the functional gap
25
Team Training
• Takes place along with the process of implementation.
• Company trains its employees to implement and later, run the system.
• Employee become self sufficient to implement the software after the vendors and consultant have left.
26
Testing
• This phase is performed to find the weak link so that it can be rectified before its implementation.
27
Going Live
• The work is complete, data conversion is done, databases are up and running, the configuration is complete & testing is done.
• The system is officially proclaimed.
• Once the system is live the old system is removed
28
End User Training
• The employee who is going to use the system are identified and trained.
29
Post Implementation
• This is the maintenance phase.
• Employees who are trained enough to handle problems those crops up time to time.
• The post implementation will need a different set of roles and skills than those with less integrated kind of systems.
30
31