what is Enterprise Resource Planning systems (ERP) ???

Enterprise Resource Planning systems (ERP): 

  ERP systems integrates all the processes of the organization with customer satisfaction and plans the management of the resources of an enterprise.

 These solution help in focusing on production capacities, managing logistics and working out financial consequences of each decision rather than just computing costs. 

ERP::

A powerful tool if used properly for Business plan, Sales plan, Production plan, Material and capacity plan, financial plan

ERP help by: Resource availability check at each step - for example, material, capacity, finance, human resource, suppliers-- information and time, “What - If” simulation capability at each step

Provides “Plan vs. Actual” comparisons to improve subsequent actions, Uses computers (Information Technology) to

   - Break down each plan to various levels of detail

   - Simulate resource loads

   - Communicate and coordinate results and operating information

ERP NOT:

A magic to solve your business problems, merely a computerization, merely a tool to automate business transaction processing, merely a tool to reduce inventory, you implement ERP to organize your business and improve business efficiency, which reflects in reduced inventory

 

 Enterprise Resource Planning systems (ERP): 

 ERP systems integrates all the processes of the organization with customer satisfaction and plans the management of the resources of an enterprise. These solution help in focusing on production capacities, managing logistics and working out financial consequences of each decision rather than just computing costs.

When you Need ERP?

• To have improved business performance

• To support business growth requirements

• Want to re-engineer and get control over business

• To eliminate limitation in legacy system

• Need to Co-Ordinate Activities Rigorously

• Size of Organization - People, Plants, Sites, Distances

• Competition - Local and Global

 

ERP at Enterprise::

VISION 

•CUSTOMER CENTRIC ORGANISATION

•SUPPLY AND DEMAND SHOULD  MATCH

•GLOBAL MARKETS

•GLOBAL STD. OF QUALITY

•AMONGST TOP FIVE IN NEXT FIVE YEARS.

Policy

 

•QUALITY

•TRANSPERANCY

•ACCOUNTABILITY

•NO INFORMATION ISLANDS AND PVT. LTD. AFFAIRS

•PRODUCTIVITY

•WORLD CLASS SERVICE TO CUSTOMER

•OPERATING AND FINANCIAL EFFICIENCY

 

 

Benefits/Advantage of ERP System: 

 

•Focus on process:

•Flexibility:

•Reduced cycle time:

•Improved communications:

•Core applications for mission critical business processes

•Solutions tailored to specific industries

•Internet enabled application, global connectivity & specific database services

•Obtaining and using strategic information

•Improve productivity & performance at all levels in an organization

•Powerful tool for BPR

•Gives improved business performance

•supports business growth requirements

•business gets re-engineered

•eliminates limitation in legacy system

•Comprehensive and wide ranging software with modular design and scalability & Flexibility

•Generates executive information for decision making and controls in various areas, identifying Critical success factors

•Cross application integration with ALE, E-Commerce etc..

•Supports Supply Chain Management

 

 

Disadvantages of ERP:

•The employees needed to get trained to use it

•Professionals are needed to train other end users or to use the S/W

•Takes considerable time to get in existence

•Once developed the customization is headache

•Maintenance is very tough

•It is very costly in terms of money, time and Implementation

•Integration and testing

•Dirty data

•Documentation and training

•Planning and project management

•Consulting fees