ITCHAP

1. ERP- Enterprise Resource Planning( An Introduction) GAURAV SHARMA

2. Definition Of ERP Software solution that addresses all the needs of an enterprise with the process view of an organization to meet the organizational goals and integrate all the functions of the enterprise

3. What is ERP ? Facilitates Company-wide integrated Information Systems Covering all functional Areas. Performs core Corporate activities and increases customer service augmenting Corporate Image. Organizes & Optimizes the data input methodologies systematically.

4. Evolution of Planning Systems Materials Requirement Planning (MRP) Manufacturing Resource Planning ( MRP II) Enterprise Resource Planning ( ERP) Other terminologies are : Money Resource Planning (MRP III) Supply Chain Management Value Chain Management

5. Is It Only a Jargon ? No. MRP and MRP II were there for a long time. ERP is an enhancement over these. It is true that Year 2000 problem accelerated the sales and acceptance of ERP. Introduction of ERP provides you a chance to have a new look at your working.

6. Is It Going to be there long? Yes and No. ERP will be there for a long time, if you are willing to upgrade to new versions with new features as and when the are released in the market Your ERP may still work after a long time without enhancements, if your company is not growing! Moral : Upgrading the systems are a must!

7. Can We wait ? Wait if you have : Good systems running. No immediate threat of Y2K, Euro and other known/unknown problems. No management commitment. Financial problems. Do not wait if you have : Tough competition in the market. Multiple location operations. Plans to grow Globally. Management Commitment for change.

8. Why ERP ?

9. Profitability You have Two Choices : Increase in sales - Say 30% OR Reduce Procurement Cost - say by 5-10 %

11. Hardware & Networking

12. Software DBMS/RDBMS

13. Communication

14. ERP

15. Supply Chain Management

16. EDI

17. Intranet

19. Better Customer Service.

20. Introduction of Latest Technologies as and when the are ready for the Industry acceptance

21. Expertise database

24. Tough competition

25. Need to analyze costs / revenues on a product or customer basis

26. Flexibility to respond to changing business requirements

28. Applications not complete for existing business practices

30. What is that ERP enables ? Systematic Look into your Systems & procedures Optimizing the processes Enables you to adapt yourself to new technologies Discipline across the functions

31. What does ERP integrate ? Database Applications Interfaces Tools

32. What drives ERP ? Business Customer Satisfaction Business Development - new areas, products, services Ability to face competition Efficient processes required to push the company to top gear IT Present Software does not meet business needs Legacy systems difficult to maintain, Y2K Problem , Euro currency Obsolete hardware/software difficult to maintain

34. On-line Material Status & Shortages

35. Productivity Enhancements

36. Material Planning

37. Customer Service

38. Cash Management

39. Inventory

41. Understanding ERP

43. Inventory management

44. Internal sales, shipping and billing

45. Profit/loss

46. Capacity utilization

47. Information Systems:

48. Project Mgmt

49. Inventory

50. Purchasing

51. Sales

52. Budget

53. Cash Management

54. Sales, shipping and billing

55. Purchasing of trading goods

56. Inventory Management

58. Go Ahead with ERP

59. Business Process Re-Engineering ( BPR) In-depth study of existing systems/processes is required before ERP is considered. This study brings out deficiencies of the existing system/process. This study is called BPR BPR attempts to re-structure and re-organize the human resources, functional areas, Man-Machine interfaces in the organization. Hence BPR attempts to maximize productivity

60. If It is a Big Change, don’t do it! If the Modifications are small and important to the business, you may customize and implement. If the proposed changes are more, discuss with all concerned . Else you may be going towards a dead-end!

61. ERP Selection Check whether all functional aspects of your Business are covered Check whether all the business functions and processes are integrated Check whether all latest IT trends are covered Check whether the vendor has customizing & implementing capabilities Check the Service options available Check your purse & calculate ROI

62. Prepare Base for ERP Do not start without Management commitment Allocate sufficient funds Identify Core Project Team Select specialists from all functional areas Evaluate and select ERP package Evaluate Implementation Partner Make an Implementation Plan Present plan to Management Committee for sanctions Present plan to Employee groups for feedback/acceptability Plan for User Training Plan for Future upgrades

63. Define Requirements Determine the hardware required Analyze the existing Processes Fine tune the processes to be in line with those of ERP defined Analyze effect of system changes. Prototype and present Refine the prototype & freeze the specifications

64. ERP Implementation Commitment from Management Form a task force with personnel from all functional Areas Take care of Hardware requirements Step-by-step rather than big-bang introduction Be patient. ERP implementation takes Time.

66. Business & Operational Analysis, including Gap Analysis

67. Business Process Re-engineering (BPR)

68. Installation & Configuration

69. Project Team Training

70. Business Requirements Mapping to Software

71. Module Configuration

72. System Modification and Interfaces

73. Data Conversion

74. Custom Documentation

75. End User Training

76. Conference Room Pilot

77. Acceptance Testing

78. Production

81. Map Organization

82. Map Business Processes

83. Define Functions and Processes

84. ERP S/w Configuration

85. Build ERP System Modifications

86. Create Go-Live Plan & Documentation

87. Integrate Applications

88. Test the ERP Customization

89. Train Users

90. Run Trial Production

91. Maintain systems

92. Accepted norms & Conditions

93. Project Organization Chart

94. Identify Work Teams

95. Organization Structure

96. Design Specification

97. Process Flow Diagrams

98. Function Model

99. Configuration Recording

100. Systems Modification

101. Testing Environment report

102. Customization Test Report

103. Implementation Report

104. Reconciliation Reports

107. Zero Down time/ planned down time.

108. Readymade solutions for most of the Problems.

109. Only Customization required.

110. Integration of all functions ensured.

111. ROI earlier than the software developed in-house.

112. Easy enterprise wide information sharing.

113. Suppliers and Customers can be on-line communication.

114. Knowledge transfer between industries guarantees innovation.

116. Inhouse Development ERP package Project Development takes time . Ready made Projects. Reinventing the wheel. Needs only customization Process specific to your industry Best Business practices followed are implemented Documentation may not be present Documentation is part of system EDI implementation modifications EDI Compatible. Universally accepted to be taken care of Enterprise implementation is The package itself is designed as difficult as each unit follows Enterprise Package. different S/W option Latest Developments to be studied Constant Updates on Technology as and when they are introduced. and Processes assured

117. Embrace New Technologies

119. Customer satisfaction

120. Seamless integration between Functions

121. Reduced overheads & inventory

122. Timely responsiveness

123. Market share & image enhancement

124. Faster design to manufacturability

125. Keep up with technology changes

126. Only way for integrated systems for a client with multiple locations