Enterprise Resource Planning (ERP)

Shashi Kant Dikshit

Defining ERP
Integrated software System Multi-module application Common database Help in
Coordinate business activities Facilitate the flow of information across an enterprise Managing crucial business processes

Functional modules of ERP system

Material Mgt. Human Resource SD

Finance

ERP
Customer Service

Production Planning Plant Maintenance

Quality Mgt.

Characteristics of ERP
Integrated architecture Real Time Processing Flexibility Modular and Open Architecture Best Business Practices Global Functionality Beyond Organizational

 How can ERP improve a company's business performance? How long will an ERP project take?

 What will ERP fix in my business?

Why ERP
Integrate functional information Integrate customer order information Standardize and speed up manufacturing processes Reduce inventory Standardize HR information

 Will ERP fit the ways I do business?

 What does ERP really cost?

Hidden Cost of ERP

Training Integration and Testing Data Conversion Data Analysis Consultation fees Replacing your Best to Brightest Implementation team can never stop Waiting for ROI Post ERP- Depression

 When will I get payback from ERPand how much will it be?

 How does commerce?

ERP

fit

with

e-

ERP

Internal Employees

Customers

Suppliers / Partners

 Why do ERP projects fail so often?

Key factors in ERP

Teamwork and Composition Business Plan and Vision Effective Communication Project Management Business Process Re-engineering Software configuration Training and Education Change Management Program

Benefits of ERP system

Improved Organizational Efficiency Implement best business practices and remove information asymmetries Organizational alignment Data accessibility Lower operational cost Additional tangible benefits

Checklist
Which processes are most important now and why? Does this system meet our needs or go beyond them? Who are the stakeholders? What is the business culture at our company and what are its strengths? What cultural attributes are weak or will interfere with the change? What will be the toughest changes, and how will we address them? Who will be responsible for change management?

ERP Project Lifecycle

Stage I Pre-implementation Stage Stage II Implementation Stage Stage III Post Implementation Stage

Pre-Implementation Stage
Business case Analysis
Business Practices Business Processes IT Infrastructure Competitive Environment Strategic Analysis

Feasibility Study
Cost Benefit Analysis Organizational Readiness

Product / Partner Evaluation

Evaluation Criteria

Implementation Stage
Change Management
BPR

Project Management

Implementation
Phased / Big-bang

Post - Implementation Stage

Organization Utilization Extending according to requirements

Impact on business performance

ERP Project
Design an ERP system, required for the company involved in manufacturing of Air compressor for Maruti Ltd. Critically evaluate on following points while designing your ERP System: 1. External environment (Suppliers, Sub-suppliers, Distributors, Agents etc.) 2. Internal Environment (various departments like finance, Quality control Marketing, Material Management, Logistics etc.) Prepare presentation and discuss all points / issues that play major role in successful implementation of proposed ERP System.