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What Is Enterprise Resource Planning System
ERP stands for Enterprise Resource Planning. It is integrated software that supports information flows across business processes like supply chain, manufacturing, inventory, ordering and more. ERP aims to integrate all company data and processes into a unified system to enable automation, data sharing and improve business operations. It introduces best practices and standardized processes. ERP provides benefits like reduced costs, improved productivity and information sharing across the enterprise.
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Introduction to ERP and its software tools that manage various business processes and integrate data across an organization.
List of ERP software providers and business process modules included, highlighting different functional areas.
Historical development of ERP systems from the 1960s to early 2000s, showcasing key advancements over decades.
Importance and advantages of ERP systems, emphasizing cost efficiency, improved delivery, flexibility, and enhanced operating performance.
How different departments benefit from ERP systems, including sales, manufacturing, and financial services.
Benefits of ERP implementation and potential disadvantages such as cost, training, and system rigidity.
Common misconceptions around ERP, clarifying assumptions about back office systems and the necessity for redesign.
Information about SAP, its market share, revenue, historical milestones, and the extent of its customer base globally.
Details on SAP R/2 and R/3 features, advantages, industry solutions, and enhancements in accuracy and productivity.
Specific examples of SAP implementations in major companies and industries within Pakistan.
Cost factors and challenges in ERP implementation, stressing on management support and scope management.
Overview of ERP software licensing fees, indicating cost variation based on customization and seat licensing.
Detailed logistics processes supported by ERP, including procurement, sales processing, and delivery.
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What Is Enterprise Resource Planning System
- 1. ERP Enterprise ResourcePlanning
- 2. What is ERP?Software tools Manages business systems Manufacturing, Supply chain, receiving, inventory, customer orders, production planning, shipping, accounting, HR, CRM, SRM,DSS, Financials Allows automation and integration of business processes Enables data and information sharing Enterprise-wide system Introduces “best practices”
- 3. What is ERPERP (Enterprise Resource Planning) Integrated software solution for client/server and distributed open system Manufacturing Resource Planning (MRP II) Business Function Integration
- 4. ERP Definitions ERPSystems attempts to integrate all data and processes of an organizations into a unified system. ERP is integrated software that supports the information flows among the processes in the Supply Chain. SAP Supply Chain Management provides extensive functionality for logistics, manufacturing, planning, and analytics.
- 5. ERP SOFTWARES SAPBANN JD Edwards Karen Sage Microsoft Great Plains (GP) Engineer Link People Soft Oracle Client Serve Three ezijobz MRP(II) Lease Soft eX.e.ge.Sys
- 6. BUSINESS PROCESS MODULESales and Distribution Production Planning Financial Accounting Human Resources Material Management Plant Maintenance Quality Management Project Management
- 7.
- 8. Evolution of ERP1960s: software packages with inventory control 1970s: MRP systems Production schedule with materials management 1980s: MRPII systems Adds financial accounting system 1990s: MRPII Integrated systems for manufacturing execution Late 1990s: ERP Integrated manufacturing with supply chain Early 2000s: ERP II ERP II means open ERP architecture of components. The older, monolithic ERP Systems become EAS Include segments of business using ordinary internet browsers.
- 9. ERP Importance andBenefits
- 10. Why ERP Benefitsto our customers Cost Quality Delivery Flexibility Integration Service Inventory Productivity
- 11. ERP Helps in….Decision support system (DSS) Smooth flow of routine process Automatic record keeping Common inter-department resource pool Better planning at all levels Data warehousing & various self-service interface for customers, suppliers & employees
- 12. Overall Business BenefitsInformation Maximizes information throughput Provides timely information Integrates information throughout supply chain Minimizes response time Pushes decision making down to lowest levels Reduces costs Cuts inventory Improves operating performance
- 13. Department Benefits SalesIncreased efficiency Lower quotes, reduced lead time, improved responsiveness Manufacturing Concurrent engineering Faster design and production Data Service Accurate customer service history and warranty information Accounts Payable Suppliers paid accurately
- 14. Department Benefits SupplyChain Management Supply Chain Planning, Claim Processing, Commission calculations, Supplier scheduling, Inspection of goods, order entry, Inventory Project Manufacturing Costing, billing, time & expense, activity management Financials Cash Management, Fixed assets, General ledger, Accounts Payables, Accounts Receivables Data Warehouse Self-service interface among Suppliers, Customers, Employees
- 15. Systems Benefits Eliminatinglegacy systems Reduces incompatible data Can cause fragmentation Allows sharing and monitoring of information across organization Foundation of e-Business Back-office functions Standardization Helps obtain and maintain competitive advantage Improved interactions with customers and suppliers
- 16. Disadvantages Limited trainingbudget Lack of Skills and Experience Cost estimate is $ 30,000 to 500,000,000 Limited technical staff Systems difficult to use Too rigid system Compatibly problem with legacy systems
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- 18. Enterprise Misconceptions Backoffice Systems Erodes competitive advantage using best practices ERP is in-house skill Redesign a business process to fit the standardized ERP Fire the members of implementation team
- 19. SAP Facts andFigures
- 20. About SAP “TheCompany” SAP AG, the pioneer in ERP systems is on 1972 by five former IBM employees in Mannheim, Germany. Rank in top 2 companies (with Oracle) with 25.4% Market share in the world. Revenues more than € 9 billion or 2.57 billion dollars. Initial breakthrough was R/2 for mainframes in 1979 R/3 was in 1992 with user of more than one million worldwide First two customers of SAP are CompUSA Inc. & Home Depot in retail market (source data 2007)
- 21. About SAP Morethan 95,000 customers in more than 120 countries run SAP applications SAP currently employs more than 47,578 people in more than 50 countries Providing 28 Industry Solutions More than 21,600 companies run SAP More than 70,000 installations.
- 22. Overview of SAPERP Software Package SAP R/2 & SAP R/3 Advantage of SAP R/3 Highly customized Scalable Suited to all types & sizes of organizations Allow data sharing Employee use concurrently System built on a three-tiered Client/server architecture Proprietary programming language ABAB/4 Compatible with all major DBMS vendors
- 23. SAP R/3 SAPR/3 connotation signifies a three –tier system consisting of Data Base at the backend Application GUI (Graphical user interface) An Open Distributed System is made up of components that may be obtained from a number of different sources, which together work as a single distributed system.
- 24. SAP Industry SolutionWhy Industry solution Aerospace Industry Defense Industry Utilities Industry Automotive Banking Health Care Pharmaceuticals and Others Improved speed, Accuracy, Efficiency, Productivity, Revenue
- 25. SAP Projects inPakistan Siemens Pakistan Pakistan Refinery Ltd Packages Ltd Jahangir Siddiqui & Company ICI Pakistan (Pvt) Ltd Indus Motors Engro Chemical Pakistan Limited Auditor General of Pakistan (PIFRA) Pakistan Petroleum Limited Pakistan State Oil (PSO) Atlas Honda Ltd. National Refinery Limited Thal Jute Mills Lakson Tobacco
- 26. IMPLEMENTATION PROBLEM Costlyif not managed properly: variables that affect Cost of implementation are scope, resources, methodology and management. Business terminology do not match with functionality in ERP Does not define and refine the scope as project progress High turnover of employees Lack of upper management support ERP Team must be empowered to make decisions without being second-guessed by management.
- 27. ERP SOFTWARE LICENSINGFEE Simple Customized ERP to SAP fee varies from Rs. € 3 5,000 (Basic) to € 180,000 (Comprehensive) Minimum $695 per seat for initial purchase and $95 for renewal
- 28. ERP SOFTWARE HOUSESwww.sap.com www.ezijobz.com www.eXegesys.com www.sage.com
- 29. Logistics Business ScenariosContents Logistics Business Process Organizational and Master Data Material Procurement Sales Order Processing Production Planning and Execution Delivery, Billing and Payment