ENTERPRISE RESOURCE PLANNING(ERP) UNDER THE GUIDANCE OF Mr. A SREENIVASAN, M. E Sr. Lecturer, Dept of Mech. Engg. G. V. I. T, K. G. F

ERP: AN OVERVIEW WHAT IS ERP? Enterprise Resource Planning (ERP) covers the techniques and concepts employed for the integrated management of business as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise.

An Enterprise is a group of people with a common goal, which has certain resources as its disposal to achieve that goal. The group has some key functions to perform in order to achieve its goal.

Resources included are money, manpower, materials, and all the other things that are required to run the enterprise.

Planning is done to ensure that nothing goes wrong Planning is done to ensure that nothing goes wrong. Planning is putting necessary functions in place and more importantly, putting them together.

STRATEGIC & OPERATIONAL PLANNING MAINTAINANCE MANAGEMENT A PRE ERP SCENARIO STRATEGIC & OPERATIONAL PLANNING FINANCE HUMAN RESOURCES MANUFACTURING MATERIALS MANAGEMENT LOGISTICS MANAGEMENT QUALITY MANAGEMENT MAINTAINANCE MANAGEMENT SALES & DISTRIBUTION

ORGANIZATION WHERE THERE IS NO OR LITTLE COMMUNICATION B/W DEPARTMENTS

ENTERPRISE WHERE ALL DEPARTMENTS KNOW WHAT THEY ARE DOING

MAINTAINANCE MANAGEMENT ERP SYSTEM STRATEGIC & OPERATIONAL PLANNING FINANCE HUMAN RESOURCES MANUFACTURING ERP SYSTEM LOGISTICS MANAGEMENT MATERIALS MANAGEMENT QUALITY MANAGEMENT MAINTAINANCE MANAGEMENT SALES & DISTRIBUTION

ERP IMPLEMENTATION The different phases of the ERP implementation are given below: Pre-evaluation screening Package evaluation Project planning phase Gap analysis Reengineering Configuration Implementation team training

Testing Going live End-user training Post implementation

ERP implementation lifecycle-different phases GO AHEAD PRE-SELECTION SCREENING END-USER TRAINING TESTING GAP ANALYSIS CONFIGURATION REENGINEERING PROJECT PLANNING PACKAGE EVALUATION IMPLEMENTATION TEAM TRAINING POST-IMPLEMENTATION PHASE GOING LIVE COMPANY MANAGEMENT ERP VENDORS ERP implementation lifecycle-different phases

REASONS FOR GROWTH OF ERP To enable improved business performance Cycle time reduction Increased business agility Inventory reduction Order fulfillment improvement To support business growth requirements New products/product lines, new customers Global requirements including multiple languages and currencies

To eliminate limitation in legacy systems Century dating issues Fragmentation of data and processing Inflexibility to change Insupportable technologies To take advantage of the untapped mid-market (medium size organizations) Increased functionality at a reasonable cost Client server/open systems technology Vertical market solutions

Manufacturers Products SAP - SAP R/3 PEOPLESOFT INC. - PEOPLESOFT J. D. EDWARDS CO. - ONEWORLD ORACLE CORP. - ORACLE APPL. BANN CO. - BANN RAMCO - MARSHALL

ERP WITH E-COMMERCE EDI (ELECTRONIC DATA INTERCHANGE) EFT (ELECTRONIC FUND TRANSFER)

ERP WITH INTERNET

BENEFITS OF ERP Reduction of lead- time On- time shipment Reduction in cycle time Better customer satisfaction Improved supplier performance Increased flexibility Reduction in quality costs

DEMERITS OF ERP Managers cannot generate custom reports or queries without help from a programmer and this inhibits them from obtaining information quickly, which is essential for maintaining a competitive advantage. ERP systems provide current status only, such as open orders. Managers often need to look past the current status to find trends and patterns that aid better decision making. The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence.

CASE STUDY SAP R/3 AT MERCEDES-BENZ

CONCLUSION The success of an ERP implementation depends on a lot of factors, like having the right package, having the right implementation methodology and co-operation of the users. Successful ERP implementations will definitely lead to productivity. The experience in other countries shows that productivity levels have grown 3-4 times after implementing the ERP system. In India it is too early to have any statistics on this matter, but many companies have claimed dramatic improvements in productivity.

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