Enterprise Resource Planning

1. Prepared by:
Soumen Giri
M.Tech. 1St yr.
Materials Science Centre
IIT Kharagpur
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2. INTRODUCTION
• Full definition of ERP system
• Goal of ERP
• Why ERP?
• Steps to implement an ERP system
• Difficulty of implementation
• Offices before and after ERP
• The ERP Modules
• Advantages & disadvantages of ERP
• Costs of ERP
• Conclusions
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3. Definition of ERP
 ERP is usually referred to as category of business
management software-typically a suite of integrated
applications-that an organization can use to collect, store,
manage, and interpret data from the following business
activities (e.g.; production planning, manufacturing,
marketing and sales etc.).
 ERP provides an integrated and continuous updated view
of core business processes using common data bases
maintained by a database management system.
3https://en.wikipedia.org/wiki/Enterprise_resource_planning

4. ERP History
http://expanderp.blogspot.in/2016/04/the-history-of-erp.html 4

5. Goal of ERP
The goal of our enterprise is simply to get, keep, and grow customers.
GET
 Acquire profitable customers
KEEP
 Retain profitable customers longer.
 Win back profitable customers
GROW
 Up sell additional products in a solution
 Cross sell other products to customers
 Reduce service and operations cost.
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6. Why ERP?
• ERP offers solutions for all business
functions.
• Packages available for organizations of all
sizes and types.
• Global nature (multi currency).
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7. Steps to implement an ERP system
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Definition
and
analysis
design
build
transaction
production

8. Difficulty of implementation
• Very complex.
• Overpriced and time intensive, typical: over $10,000,000
and over a year to implement.
• Company may implement only certain modules of entire
ERP system.
• You will need an outside consultant.
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9. Offices before ERP
https://www.coursehero.com/file/p1poork/owner-of-a-consulting-company-that-installs-and-maintains-ERP-systems-has/ 9

10. Offices after ERP
https://erpfm.com/getting-a-condition-based-monitoring-to-your-erp-for-safekeeping/ 10

11. The ERP modules
 Financials
 Production Management
 HR Management
 Sales & Marketing
 Asset Management
 Quality Management
 Material Management
 Event Planning
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12.  Financial accounting
 Controlling
 Investment management
 Cash management
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fiFinancials

13. Production Management
http://www.definitconsulting.com/expertise 13

14. HR Management
https://clipartfest.com/download/959b773639dd5a3f04aa2e5047417fb34c88039d 14

15. Sales & Marketing
http://www.zigmaindia.com/erp.html 15
 Developing strategies for market penetration for new
products as well as increasing the share of the existing
products.
 Reviewing and interpreting the competition and
market information to fine-tune strategies.
 Selecting and deciding the right distribution channel for the
product and implementing the right pricing and promotional
policies.
 Coordinating marketing activities, obtaining leads
for new projects.

16. Quality Management
http://www.wikiwand.com/en/Enterprise_resource_planning 16

17. Advantages of ERP
 Integration
 Efficiency
 Cost reduction
 Less personnel
 Accuracy
Disadvantages of ERP
 Take time to implement
 Security issues
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18. Costs of ERP
 Direct costs
..hardware
.. Software
..and people on the project
 Indirect costs
..the total cycle life of ERP
..maintenance and upgrades
..increasing salaries and the on going production
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19. New developments in ERP
Availability of web-based and wireless ERP
systems.
Adoption of easy to install ERP systems.
Linkage to other software systems, e.g., supply
chain management system, customer relationship
management system etc.
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20. Conclusions
• To successfully implement; a proper mix of
people, processes and technology should be
maintained.
• Technology is an enabler, not the driver (It
is there to assist the organization to achieve
business goals).
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21. THANKS FOR
YOUR
ATTENTION
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