Enterprise Resource Planning The Enterprise Resource Planning binds the entire enterprise in a right Web of Information System
for efficient decision making in an organization. It can leverage competitive advantage and add value through new definition of process and optimisation of business models. Objectives of an ERP system 1. 2. 3. 4. Provide support to various business practice Enable implementation of these practice with a view enhance productivity Empower Customer to modify implemented business process Fouler the image of the enterprise product + Service
The technology areas that apply to an ERP a. Data base system b. Communication protocol c. User Interface Component of true ERP 1. Flexible 2. Open and Modular 3. Integrated 4. Comprehensive 5. Best Practice 6. Beyond the company 7. New Technology ERP Project Organisation structure For an ERP Implementation Project Brief functions of each division in a PSO Project Sponsor (Usually Top Management) Promote the benefit of ERP Smoothing out internal problems Maintaining support at senior level Steering Committee This committee consists of members from Senior Management, Managing Consultant and ERP Package Vendor Selecting members of project team Approval and authorization of resources Reviewing and approval of quality plan & risk management plan Monitoring the overall progress Assisting in clearing bottleneck
Monitoring risk analysis Quality management Ensuring that project benefits are realized Authorizing project closure
Project Manager is responsible: Develop and update the Project Plan Establish Schedules and Work plans Conduct regular meetings and Report Ensure objectives and expectations are met Monitor and Control project progress Monitor risk and Maintain Communication Determine skill identify resources Review and modify the POS Manage the project staff Functional Team Members from all functional departments Conducting detailed analysis and report Development of prototype ERP model Design user defined reports and screens Conduct a parallel run Customizing user documentation Training and education to end users Post Implementation support to end users
Implementation Consultants Members from Team Leader from the organization Implementation Consultant Specialist Overview of ERP to the Top Management Training the project team members Ensuring training supplies from vendors Conducting an extensive audit Conducting post Implementation review
Information System Team OS / Networking / Database Specialist Training Members Requirement Study Selection and Installations of hardware / software, prototyping, data migration and parallel run
Technical specifications to programmers
Vendors ERP + Hardware + Network Installing all computer system Responsible for installing the ERP software Providing regular updates and feature enhancement Integration of new modules
What does ERP really cost? Direct Cost The total cost of ownership (TCO) of ERP, including hardware, software, professional services and internal staff costs. The TCO numbers include getting the software installed and the two years afterward, which is when the real costs of maintaining, upgrading and optimizing the system for your business are felt. Hidden Cost Training Training is the near-unanimous choice of experienced ERP implementers as the most underestimated budget item. Training expenses are high because workers almost invariably have to learn a new set of processes, not just a new software interface. Worse, outside training companies may not be able to help you Integration and testing Testing the links between ERP packages and other corporate software links that have to be built on a case-by-case basis is another often-underestimated cost. Customization Add-ons are only the beginning of the integration costs of ERP. Much more costly, and something to be avoided if at all possible, is actual customization of the core ERP software itself. Data conversion It costs money to move corporate information, such as customer and supplier records, product design data and the like, from old systems to new ERP homes. Data analysis Often, the data from the ERP system must be combined with data from external systems for analysis purposes. Replacing your best and brightest It is accepted wisdom that ERP success depends on staffing the project with the best and brightest from the business and IS divisions. The software is too complex and the business changes too dramatic to trust the project to just anyone.
Implementation teams can never stop Most companies intend to treat their ERP implementation as they would any other software project. Once the software is installed, they figure the team will be scuttled and everyone will go back to his or her day job. But after ERP, you can't go home again. The implementers are too valuable. Waiting for ROI Post-ERP depression ERP systems often wreak cause havoc in the companies that install them. In a recent Deloitte Consulting survey of 64 Fortune 500 companies, one in four admitted that they suffered a drop in performance when their ERP system went live.
Working Mechanism of EDI EDI can be used as an effective tool for improving the duration of trade cycle. It facilitates the entire information process between Two Trading partners. An effective EDI system accelerates movement of documents between two authenticated trading partners. In every trade, buying and selling are the main activities : The working of the EDI systems is as follows : 1. 2. 3. 4. The representative of the buyer company should specify standard application format to exchange data electronically. Thus an approved standard format of application only will be exchanged. The programs containing EDI will be transferred to the computer system in order to translate the entire data as per standard format specifications that are agreed upon for every document. The receipent of data should be authorized receipent of such electronic data interchange. After confirming authorization the sender transfers or exchanges data. After receiving the data the receiver transfers it to its own computer system for further processing to obtain output.
After this, all transactions are checked electronically for maintaining accuracy and efficient accounting for every business organization.
