1. Enterprise Resource Planning

2. To know the importance of Enterprise Resource Planning.
Aim:
To know the importance of Enterprise Resource Planning.
Objectives:
To know the basics of ERP
To understand the key implementation issues of ERP
To know the business modules of ERP
To be aware of some popular products in the area of ERP
To appreciate the current and future trends in ERP

3. What is ERP ? ERP stands for: Enterprise Resource Planning
ERP system attempts to integrate all data and processes of an organization into a unified system , by use of multiple components of computer software and hardware.
A method for the effective planning and controlling of ALL the sources needed to take, make, ship and account for customer orders in order to do the manufacturing, distribution or service in the company.
A best feature of most ERP systems is the use of a unified database to store data for the various system modules.

4. SYLLABUS

5. UNIT-1
FUNDAMENTALS ERP – Enterprise – Benefits of ERP – ERP and related technologies – Business Process Reengineering (BPR) – Data warehousing and data mining – OLAP – SCM

6. UNIT-2
ERP IMPLEMENTATION
ERP Implementation lifecycle – Implementation methodology – Hidden costs –Organizing the implementation – Vendors– Consultants and users – Contracts with vendors – Consultants and employees – Project management and monitoring.

7. UNIT-3
BUSINESS MODULES Business modules in an ERP package – Finance – Manufacturing – Human resources – Plant maintenance – Materials management – Quality management – Sales and distribution.

8. UNIT-4
ERP MARKET
ERP market place – SAP AG – Peoplesoft – Baan – JD Edwards – Oracle – QAD –SSA

9. UNIT-5
ERP – PRESENT AND FUTURE Turbo charge the ERP system – EIA – ERP and e - Commerce – ERP and internet –Future directions

10. LECTURE TIMING UNIT 19 HOURS UNIT 29 HOURS UNIT 39 HOURS
TOTAL=45 HOURS

11. What is ERP? ERP is a solution, which
UNIT I
What is ERP?
ERP is a solution, which
facilitates company-wide integrated
information systems, covering all
functional areas
ERP is a System for the Entire Company – A Global Tightly Integrated Closed-Loop System
An enterprise is a group of people work together to achieve a common goal with the help of resources.
Enterprise Resource Planning

12. In this real case there the benefits of the ERP systems
Online Data Flow decreases the process time
Fast & Online Confirmation
Less Paperwork
No need for folder storage
Database Security
Less Employee needed
Easy Financial Management
Better Inventory Management

13. ERP - Definition “Software solution that addresses the
Enterprise needs, taking a process view of
the overall organization to meet the goals,
by tightly integrating all functions and
under a common software platform”
Enterprise Resource Planning

14. Evolution of ERP 1960’s - Systems Just for Inventory Control
1970’s - MRP – Material Requirement Planning
(Inventory with material planning & procurement)
1980’s - MRP II – Manufacturing Resources Planning
(Extended MRP to shop floor & distribution Mgnt.)
Mid 1990’s - ERP – Enterprise Resource Planning
(Covering all the activities of an Enterprise)
2000 onwards – ERP II – Collaborative Commerce
(Extending ERP to external business entities)
Enterprise Resource Planning

15. ERP – Expectations Integrating all the functions
Integrating the systems running in all the locations
Transparency of information using a single
data source across the organization
Software must be responsive
Modular
Flexible
Easy to add functionalities
Provide growth path
Enterprise Resource Planning

16. ERP Application Components
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17. Functions Of Enterprise
Engineering
Design
Sales
Human resources
Production
Planning
Inventory
Enterprise
Finance
Controlling
Maintenance
Quality
legal

18. Business Process . . A logical series of related transactions
that converts inputs to outputs or results.
a chain of logical connected, repetitive activities
utilizes the enterprise’s resources
refine an object (physical or mental)
for a purpose of specific /measurable results/products
internal or external customers

19. BPR - Steps Understand Simplify/Improve Automate Step 1 Step 2 Step 3
Understand the existing systems associated with all the functionalities
Draft & frame the possibilities & ways to simplify or Improve or eliminate the processes
Implement with the help of ERP
Business Process Re-engineering

20. Data Warehousing Architectures
Separates functions of the DW, eliminates resource constraints, can create data marts

21. Data Warehousing Architectures
DSS engine runs on same platform as the DW, so more economical

22. Knowledge Discovery (KDD) Process
Data mining—core of knowledge discovery process
Pattern Evaluation
Data Mining
Task-relevant Data
Selection
Data Warehouse
Data Cleaning
Data Integration
Databases

23. Different Phase of ERP implementation Life Cycle are-
UNIT II
Different Phase of ERP implementation Life Cycle are-
Pre-Evaluation Screening
Package Evaluation
Project Planning Phase
Gap Analysis
Reengineering
Configuration
Implementation Team Training
Testing
End-User Training
Going Live
Post Implementation Phase

24. ERP implementation Lifecycle
Company Management
ERP Vendors
Pre-Evaluation Screening
Package Evaluation
Project Planning
Gap Analysis
Reengineering
Configuration
Implementation Team Training
Testing
End-User Training
Go ahead
Going Live
Post Implementation Phase
ERP implementation Lifecycle

26. Vendors,Consultants & End user
Vendors- They make ERP s/w
Consultants –They who are responsible to implement
the project
End users -They are the people who use the ERP system once it has been developed

27. VENDORS
MAKE ERP S/W
TIME, EFFORT, MONEY FOR R & D OF ERP S/W
FLEXIBLE, EASY TO USE & EFFICIENT

28. HE IS RESPONSIBLE FOR ADMINISTRATION OF THE PHASES
CONSULTANTS
WHO ARE RESPONSIBLE TO IMPLEMENT THE PROJECT
CLEAR CUT IDEA
TELLS THE CHANGE MUST BE MADE SO THAT WITH HIS DECISISON CHANGES ARE MADE
HE IS RESPONSIBLE FOR ADMINISTRATION OF THE PHASES

29. Role of Sales Organisation
UNIT III
Role of Sales Organisation
Once the sales plan has been formulated, the next logical step is to organise a sales force to achieve the organisational objectives.
Major Qualified Sales Objectives
Overall Objectives Break Up or Division
1. Total volume of products 1. Quarter, month and week
2. Total annual value of products 2. Product line and range
3. Total annual selling costs 3. Region and sales area
4. Total annual profit contribution 4. Type of customer
Cont….

30. Components of Sales and Distribution
ECC 6.0
January 2008
Components of Sales and Distribution
Sales and
Distribution
(SD)
Sales
Support
Credit
Mgmt.
Shipping
Transport
Billing
Foreign
Trade
Information
System
Master
Data
Sales Support: Computer-Aided Selling
The Sales Support component provides a wide range of functions for opportunity management. It helps your sales and marketing department to support your existing customers and, at the same time, to develop new business. Within the Sales Support environment, all sales personnel in the field and in the office can share valuable information about customers, sales prospects, competitors and their products, and contact people.
Purpose
The Sales Support component is:
 Sales
a tool for lead generation, lead qualification, and lead tracking
a source of information for all areas of Sales and Distribution
Customer inquiries and quotations
Four groups of sales documents are differentiated:
Sales allows you to execute different business transactions based on sales documents defined in the system.
Complaints, such as free of charge deliveries, credit and debit memo requests and returns
Outline agreements, such as contracts and scheduling agreements
Sales orders
Shipping Transportation
Transportation is an essential element in the logistics chain. It affects both incoming and outgoing goods. Effective transportation planning and processing ensure that shipments are dispatched without delay and arrive on schedule. Transportation costs play an essential role in the calculation of the price of a product. It is important to keep these transportation costs to a minimum so that the price of a product remains competitive. Efficient transportation planning and processing helps to keep these costs down.
Billing 
Creation of:
This component includes the following functions:
Billing represents the final processing stage for a business transaction in Sales and Distribution. Information on billing is available at every stage of order processing and delivery processing.
Pro forma invoices
Issue credit and debit memos
Invoices based on deliveries or services
Cancel billing transactions
Transfer billing data to Financial Accounting (FI)
Issue rebates
Comprehensive pricing functions
Credit management
Credit and Risk Management
Outstanding or uncollectible receivables can spoil the success of the company greatly. Credit Management enables you to minimize the credit risk yourself by specifying a specific credit limit for your customers. Thus you can take the financial pulse of a customer or group of customers, identify early warning signs, and enhance your credit-related decision-making. This is particularly useful if your customers are in financially unstable industries or companies, or if you conduct business with countries that are politically unstable or that employ a restrictive exchange rate policy.
Customer Service Processing 
Service notifications
Customer Service enables you to plan and manage a wide range of service scenarios. It includes functions for processing:
Service contracts
Service orders
Warranties
Service quotations
Customer Service (CS) draws on functionality from different SAP application components, in particular Plant Maintenance (PM) and Sales and Distribution (SD). For example, CS involves the planning and processing of external services, such as contracts for the maintenance and repair of equipment that a customer has either bought or rented. Maintenance planning and servicing is managed in PM; in SD you can create and maintain the relevant service contracts. Contract-related charges that are incurred in PM are passed on in the form of requests for billing in SD
Repair orders
Sales Information Systems - Reports and Analyses  
The SAP R/3 System offers you a wide range of information and analysis tools for sales and distribution. These provide you with a quick overview of your current business situation.
You want to determine how many orders customer XY issued in the last quarter. To see this information, you can execute the report "List orders". This gives you a list of orders and also contains information on the items, order value etc. You can set the scope of this list yourself.
Foreign Trade / Customs
As markets become increasingly more global and business structures more complex, the need for accuracy in handling the foreign trade needs of a business is gaining rapidly in importance. SAP’s R/3 Foreign Trade / Customs application (FT) provides the tools you need to compete effectively in today’s fast-paced market. It is designed to help you meet the rapidly changing foreign trade requirements of your business.
Manage import and export processes, integrating them efficiently into the supply chain
SAP’s R/3 Foreign Trade application enables you to:
Automatically identify licensing requirements for importing and exporting goods based on current regulations
Provide an active interface for sending or retrieving data via internationally available EDI systems and other electronic media
Determine which of your products qualify for preference handling
Simplify reporting with automatic procedures for creating, printing and submitting declarations
Update or change data in all relevant foreign trade documents at any time prior to the final goods issue. Even after you have posted the goods issue, you can still change data in the invoice.
© SAP AG and The Rushmore Group, LLC 2008

31. Internal Sales Organization
ECC 6.0
Internal Sales Organization
January 2008
South India Sales
North India Sales
India Sales
S000
Tamilnadu
Sales Group
Kerala UP MP
Salesperson 1 4 3 6 5 8 7 2
The organization in Sales is represented by the elements sales office, sales group and salespersons
© SAP AG and The Rushmore Group, LLC 2008

32. HUMAN RESOURCE MODULE
Human resource management is an essential factor of any successful business.
The various subsystems under HR module are:
Personnel management:
Organizational management:
Payroll Accounting:
Time management:
Personnel development:

33. Major subsystem of the manufacturing module -
Materials and capacity planning
Shop floor control
Quality management
JIT/repetitive manufacturing
Cost management
Engineering change control
Engineering data management
Configuration management
Tooling
Serialization/lot control

34. PLANT MAINTAINENCE MODULE
The Plant maintenance module includes an entire family of product covering all aspects of plant/ equipment maintenance and becomes, integral to the achievement of process improvement.
The major subsystems of a maintenance module are :
Preventive Maintenance Control.
Equipment Tracking.
Component Tracking.
Plant Maintenance Calibration Tracking.
Plant Maintenance Warranty Claims Tracking.

35. MATERIAL MANAGEMENT MODULE:
The material management module optimizes all purchasing processes with workflow-driven processing functions,
Enables automated supplier evaluation, lowers procurement and warehousing costs with accurate inventory and warehouse management and
integrates invoice verification.
The main module of material management are as follows:
i. Pre- Purchasing Activity.
ii. Purchasing.
iii. Vendor Evaluation.
iv. Inventory management.
v. Invoice verification and material inspection.

36. QUALITY MANAGEMENT MODULE – FUNCTIONS:
The quality management module fulfills the following functions:
QUALITY PLANNING
QUALITY INSPECTION
QUALIT CONTROL

37. UNIT IV
Some of the top-tier ERP vendors are SAP-AG, BAAN, PeopleSoft, Oracle Application and J.D.Edwards.
ERP vendors products.
•SAPAG R/3
•Oracle Corporation Oracle Applications
•JD Edwards World
solutions Co – One world
•People Soft Inc – People soft
•Baan Co Baan

38. SAP AG:COMPANY PROFILE
SAP (System Applications & Products in data processing) .
SAP is the world's leading provider of business software, SAP delivers products and services that help and accelerate business innovation for their customers. Today, more than 82,000 customers in more than 120 countries run SAP applications
SAP defines business software which comprises enterprise resource planning and related applications such as SCM , CRM and SRM.
SAP AG was founded in 1972 by five German engineers in Germany; and is one of the top most ERP vendors providing the client server business application solutions.
The SAP group has offices in more than 50 countries worldwide & employs a workforce of over
SAP’s ERP package comes in 2 versions i.e. (SAP R/2) & (SAP R/3).(R-Real)

39. BAAN :- Company profile
Baan company was founded in Netherlands in by brothers Jan and Paul Baan..
The BAAN Company is the leading global provider of enterprise business software.
The BAAN company products reduce complexity and cost, improve core business processes, are faster to implement and use, are more flexible in adapting to business changes.

40. BAAN ERP Modules:
Manufacturing Module:
Finance Module:
Project Module:
Distribution Module:

41. ORCALE CORPORATION:-Company profile
Oracle Corporation was founded in the year and is the world’s largest s/w company and the leading supplier for enterprise information management.
It provides databases and relational servers, application development, decision support tools and enterprise business applications.

42. MODULES OF ORCALE APPLICATIONS:
Oracle application consists of 45 plus software modules which are divided into following categories
Oracle Financials
Oracle Human Resource
Oracle Projects
Oracle Manufacturing
Oracle Supply Chain
Oracle Front Office

43. PEOPLESOFT:- Company profile
PeopleSoft Inc. was established in 1987 to provide innovative software solutions that meet the changing business demands of enterprises worldwide.
It employs more than 7000 people worldwide.& the annual revenue for the year 1998 was $ 1.3 million.
PeopleSoft develops markets and supports enterprise- wide software solutions to handle core business functions including human resources management, accounting and control, project management, treasury management, performance measurement and supply chain management.

44. The PeopleSoft’s business management solutions are in the areas given below:-
Human Resources Management
Accounting and Control
Treasury Management
Performance Measurement
Project Management
Sales and Logistics
Materials Management
Supply Chain Planning
Service Revenue Management
Procurement

45. JD EDWARDS:COMPANY PROFILE:
On March 17, 1977 J.D. Edwards was formed, by Jack Thompson, Dan Gregery & Ed-Mc Vaney.
In early years J.D. Edwards was designed for small & medium sized computers.
As the company began to out grow, its headquarter in Denver, opened branch offices in Dallas & Newport Beach, California, Houston, San Francisco & Bakenfield. And then internationally expanded its Europe headquarters in Brussels & Belgium.
By the mid of 1980’s, J.D Edwards was being recognized as an Industry-leading supplier of application software
Today J.D Edwards is a publicly traded company that has more than 4700 customers with sites in over 100 countries & more than 4200 employees.

46. QAD : -Company Profile It was found in 1979.
QAD offers a variety of supply chain and enterprise resource planning s/w products to manufacturing industries.
It optimizes the enterprise by increasing the speed of internet processes and synchronizing the business operations.
It is available in 26 languages and supports multiple currencies.
It has an easy-to-understand graphical interface.

47. SSA:-COMPANY PROFILE:
System Software Associates, Inc. (SSA) was founded in 1981.
It has branches in more than 91 countries & more than 2000 employees.
SSA’s vision is to be the best global partner to the world’s industrial companies.
The Mission statement has six key goals.
They are:
Best client satisfaction
Single image worldwide
Enterprise Solution Leadership
Proven leading Technology
Highly skilled & motivated professional
Strong financial results

48. ERP – Options OPTION 1 – MAKE ERP package [Using Internal resources]
UNIT V
ERP – Options
OPTION 1 – MAKE ERP package [Using Internal resources]
OPTION 2 - BUY
OPTION 3 – MAKE [using External resources]
Enterprise Resource Planning

49. Trends in ERP
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50. Trends in ERP
Flexible ERP: This makes the software easier to integrate with other application programs of business users, as well as making it easer to make minor modifications to suit a company’s business processes.
Web-enabled ERP: These features make ERP system easier to use and connect to other internal application as well as to the systems of company’s business partners.
Interenterprise ERP: This Internet connectivity has led to the development of interenterprise ERP systems that provide WEB- enabled links between key business systems (such as inventory and production) of a company and its customers, suppliers, distributors and others.
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51. Trends in ERP
E-business Suites: The major ERP software companies have developed modular, Web-enabled software suites that integrate ERP, customer relationship management, supply chain management, procurement, decision support, enterprise portals, and other business applications and functions.
Example: Oracle’s e-business suite and Sap’s mySAP.
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52. TEXT BOOK 1. Alexis Leon, “ERP Demystified”, Tata McGraw Hill, 2000
TEXT BOOK 1. Alexis Leon, “ERP Demystified”, Tata McGraw Hill, REFERENCES 1. Joseph A Brady, Ellen F Monk and Bret Wagner, “Concepts in Enterprise Resource Planning”, Thompson Course Technology, Vinod Kumar Garg and Venkitakrishnan N K, “Enterprise Resource Planning Concepts and Practice”, Prentice Hall of India, 2003.

53. ASSIGNMENT TOPICS:
Business Process Reengineering (BPR)
ERP Implementation lifecycle
Quality management
Baan
ERP and e - Commerce

54. SEMINAR TOPICS:
Data warehousing and data mining
SCM
Contracts with vendors
Project management and monitoring.
Human resources
Sales and distribution
SAP AG
Peoplesoft
EIA
ERP and internet

55. WEBSITES:

56. THANK YOU !!!