Lecture ERP Class 1-2

7/27/2019 Lecture ERP Class 1-2

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Enterprise Resource Planning

(ERP) Implementation

Methodology


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2

RP Implementation


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3

System

A set of detailedmethods, procedures, and routinesestablished or formulated to perform a task or resolve a

problem.

Procedure

A fixed, step-by-step sequence of activitiesthat must

be followed in the same orderto correctly perform atask.
http://www.businessdictionary.com/definition/detailed.htmlhttp://www.businessdictionary.com/definition/method.htmlhttp://www.businessdictionary.com/definition/procedure.htmlhttp://www.businessdictionary.com/definition/routine.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/problem.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/order.htmlhttp://www.businessdictionary.com/definition/task.htmlhttp://www.businessdictionary.com/definition/task.htmlhttp://www.businessdictionary.com/definition/order.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/problem.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/routine.htmlhttp://www.businessdictionary.com/definition/procedure.htmlhttp://www.businessdictionary.com/definition/method.htmlhttp://www.businessdictionary.com/definition/detailed.html


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Methodology is generally a guideline system for solvinga problem, with specific components such as phases,tasks, methods, techniques and tools

A methodology is defined as something that representsa package comprising practical and proven practices fora given area of activity.

Methodology includes the planning, the developmentof the design and the management of the systems


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It provides control mechanisms and road map for

planning of the implementation project.

Methodology can be altered and modified dependingon changing needs, and in the end manages to

establish and deliver the most appropriate release.

It comprises practical ideas and proven practices for a

given area of activity.


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6

Business Process

A business processis a collection of related,structured activities that produces service orproduct and serve the purpose

Sequence of activities of a Business processcan be visualized well in graphical form

Note?. Discuss examples of businessprocessesEveryone has to give example


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A business processis a set of logically related

tasks that uses the resources of anorganization to achieve a business outcome

Reengineeringis the radical redesign of

business processes for improvement(s)


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It is a depiction of a sequence ofoperations, declared as work of aperson(s), or an organization of staff. It covers all possible routes of task.is to:

- Place the controls- Deal all situations


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PR / SR

PR WORKFLOW

PR / SR

Raised By

User

PR / SR

VerifyingAuthorities

Dept. Wise

For Revision

Verified PR

Verification

Cancellation ofPR

PR Type

Non-Stock Items PR

Inventory Items PR / SRAssets PR / SR

Rejected

Approved By

VPM or MES or

MS

Received BY

Buying Dept.

For RFQ

Approved PR / SR

Rejected

Approval

Limit in PakRS

Approval

Limit in PakRS

Up to 2,000,000

More than 2,000,000

Approval Authority

For Revision

Up to 5,000

Up to 50,000

More Than 50,000

Approved By

CEO

Approval Authority

Cancellation of

PR

Approved By

BOD

BOD

Approved By

CFO

Approved By

Head Of Dept.

Received BY

Admin. HO

Dept For RFQ

Approved PR / SR

Approved PR / SR

Approved PR/ SR

Approved PR/ SR

Rejected

RejectedRejected

Rejected

For Revision

Notification of Approval

Notification of Approval

Notification of Cancellation


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Enterprise Resource Planning (ERP) is an industry term for

integrated, multi-module application software packagesthat are designed to serve and support most of business

functions. It enables information entered once to beshared throughout the organization.

It is a pre-designed and developed generic software,which is configured to cater the need of different

industries and organizations

Transaction Processing System


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1. Single Database

2. Online Real time (No batch)

3. Seamless Integration across

modules

4. Most of functions are automated


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C

U

S

T

O

M

E

R

S

S

U

P

P

L

I

E

R

S

FRONT OFFICE

BACK OFFICE

Sales &DistributionInventoryApplication

ProductionApplication

FinancialApplication

CentralDatabase

CorporateReports

HRApplication

ERP Integrated Management


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Customers

Business Partners

Suppliers

ExternalEmployees

Manufacturing

Marketing

Sales

CustomerService

Finance

HR

Logistics/Distribution

Extended ERP


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Timeline System Description

1960s Inventory

Management &Control

Inventory Management and control is the combination of information

technology and business processes of maintaining the appropriate level ofstock in a warehouse. The activities of inventory management include

identifying inventory requirements, setting targets, providing replenishment

techniques and options, monitoring item usages, reconciling the inventory

balances, and reporting inventory status.

1970s Material

RequirementPlanning (MRP)

Materials Requirement Planning (MRP) utilizes software applications for

scheduling production processes. MRP generates schedules for the operationsand raw material purchases based on the production requirements of finished

goods, the structure of the production system, the current inventories levels

and the lot sizing procedure for each operation.

1980s Manufacturing

Requirements

Planning (MRP II)

Manufacturing Requirements Planning or MRP utilizes software applications

for coordinating manufacturing processes, from product planning, parts

purchasing, inventory control to product distribution.1990s Enterprise Resource

Planning (ERP)

Enterprise Resource Planning or ERP uses multi-module application software

for improving the performance of the internal business processes. ERP

systems often integrates business activities across functional departments,

from product planning, parts purchasing, inventory control, product

distribution, fulfillment, to order tracking. ERP software systems may include

application modules for supporting marketing, finance, accounting and humanresources.


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96 s Inventory Control Packages97 s Mat. Requirement Planning (MRP1)

98 s Manuf. Resources Planning (MRP2)

99 s Ent. Resource Planning (ERP)

2 s Extended ERP

ERP Evolution


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1960s Inventory Control Packages97 s Mat. Requirement Planning (MRP1)



2000s Extended ERP

ERP Evolution


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2 s Extended ERP

ERP Evolution


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2 s Extended ERP

ERP Evolution the big 5


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What is MRP and MRPII, write two line

definition of each.

What is ERP, list its characteristics.

Define an Enterprise.

Group Assignment:Write a Business Process and draw

its flowGive a practical example of re-

engineering

Assignment 1


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Single DB means there is no ambiguity in info,Improved visibility, controls and online access toinformation

No reconciliation, data for analytics

Reduce cash to cash cycle Improved Customer service

Workflow for paperless and efficiency

Process reengineering - update old processes

Foundation for new processes, such as e-procurement, with significant ROI

Flexibility: Think Local, Act Global


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1. Input From:To work on the data already exist in

the system

2. Output To:To provide the output of module

functions to another system for furtherprocessing

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Documents

Lecture ERP Class 1-2