ERP System - Copy

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ERP Systems

Enterprise

Resource

Planning

Dedicated to

Mr. Ammar Khan

Presented By:

Umair Aziz (BME-1131)

Sajjad Raza Muhammad Nasir 

Azeem Mansoori

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What is ERP

ERP is a solution, which

f acilitates company-wide integrated

inf ormation systems, covering allf unctional areas

per f orms core Corporate activities and

increases customer service augmentingCorporate Image

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Integration is Key to ERP

ERP is a way to integrate the data andprocesses of an organization into onesingle system

ERP systems is the use of a unif ieddatabase to store data f or the various

system modules.

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The Current Scenario

Islands of  Inf ormation

Diff icult to get timely & accurate inf ormation

Heterogeneous Hardware & Sof tware

platf orms & practices

Sticking with obsolete technology

Resist to change

Lack of proven man-power to developintegrated sof tware

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Inf ormation Islands

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ERP Architecture

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ERP Structure

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Why ERP?

For Management ± to know what ishappening in the company

One solution f or better Management

For cycle time reduction

To achieve cost control & low working capital

To marry latest technologies

To satisf y the customers with highexpectations

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Evolution of ERP

1960¶s - Systems Just f or Inventory Control

1970¶s - MRP ± Material Requirement Planning(Inventory with material planning & procurement)

1980¶s - MRP II ± Manuf acturing Resources Planning(Extended MRP to shop f loor & 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)

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ERP ² Expectations

Integrating all the f unctions

Integrating the systems running in all thelocations

Transparency of  inf ormation using a singledata source across the organization

Sof tware must be responsive Modular  Flexible Easy to add f unctionalities Provide growth path

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ERP ² Options

OPTION 1 ± MAKE [Using Internal resources]

Developing a custom-built ERP package, specif ic to therequirements of  the organization, with the help of  the

in-house IT department

OPTION 2 ± BUY Readymade)

Going f or Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSof t etc.

OPTION 3 ± MAKE [using External resources]

Developing a custom-built ERP package, specif ic to therequirements of  the organization, with the help of a

sof tware solution provider 

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ERP Product selection Criteria

.

Technology

Support

Costs

5 Strategic5 Strategic

RequirementRequirement

LevelsLevels

FunctionalityGoal:Goal:

To select theTo select the

Most Suitable SoftwareMost Suitable Software

Package SolutionPackage Solution

Vendor

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ERP System Cost Component

Sof tware

Consulting

Hardware

ImplementationTeam

Training

Other 

30.2%

24.1%

17.8%

13.5%

10.9%

3.3%

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Commercial ERP Package

Impleme

nte

d

SAP

ORACLE

BAAN

J.D.Edwards

People Sof t

Other Packages

25%

14.2%

8.8%

7.4%

2.5%

27.3%

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The Ideal ERP System

Manuf acturing :Engineering,

Management, Quality Control, CostManagement, Manuf acturing Process,Manuf acturing Projects

Supply Chain Management :Inventory,Order Entry, Purchasing, Supply ChainPlanning etc.

Financials :General Ledger, Cash

Management, Accounts Payable, AccountsReceivable, Fixed Assets etc.

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. Human Resources :Human Resources,

Payroll, Training, Time & Attendance,Benef its etc.

Customer Relationship Management :

Sales and Marketing, Commissions,Service, Customer Contact and CallCenter support etc.

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ERP Vendors

SAP (SD,MM,HRM,FI/CO,CRM,SCM,PP,QM,WMS)

Inf or Global Solution :

BAAN (manuf acturing, f inancial, projectestimating and management )

Oracle : 89 % SMB Customer . People sof t

(HRM,CRM,Manuf acturing,Financial)

JD Edward(HRM)

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Comparison :

SAP :1)Only 66% SMB Customer Recommendation

2)Average Vendor Support 3.4 f or SMB.

3)Deployment time 69% of  the SAP were on time.

Oracle :

1)Only 89% SMB Customer Recommendation2)Average Vendor Support 4.0 f or SMB.

3)Deployment time 78% of  the Oracle were ontime.

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ERP Selection

Check whether all f unction aspect of  thebusiness are dully covered.

Check whether all the business f unctionand processes are f ully integrated .

Check whether all latest IT trends arecovered.

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ERP Markets

India

Malaysia

Singapore South Korea

 Australia

Europe Japan

Pakistan

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ERP Cost

Based on the ERP survey conducted byMeta Group in 2002, the average cost of  ERP ownership was $15 millions

ranging f rom half millions to $300 millions. The average cost per user per year could be as high as $20,000.

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Advantages of ERP Systems

 A totally integrated system

Only Customization Required

The ability to easily share data acrossvarious departments in an organization

Improved eff iciency and productivity levels

Better tracking and f orecasting

Improved customer service

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Disadvantages of ERP Systems

Customization in many situations is

limited The need to reengineer business

processes

ERP systems can be cost prohibitive toinstall and run

Technical support can be shoddy

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.

Thank You