1. Enterprise Resource Planning Notes
SYBCA – HETA DESAI

2. Enterprise Resource Planning
Enterprise Resource Planning (ERP) is a set of integrated programs that manages a Company’s Vital Business operations for an entire multisite, global organisation.
At a core of a the ERP system there is database which is shared by all users by which all business function have access to current and consistent data for operational decision making and planning.

3. ERP Includes Mainly Following Modules
Production and Supply chain Management
Customer relationship Management
Financial & Managerial Accounting

4. Advantages of ERP
Improved access to data for operational decision making
ERP operates via an integrated database using one set of data to support all business functions. The system can support decisions on optimal source of cost accounting.

5. Advantages Elimination of Costly & Inflexible Legacy systems
Adopting ERP enables an organisation to eliminate dozens of other systems and replace them with a single integrated set of application for the entire enterprise

6. Advantages Improvement of work Process
The implementation of ERP systems ensures good work processes based on best practice. for example managing customer payments, the ERP finance module can be configured to reflect most efficient practice of leading companies in industry.

7. Advantages Upgrade of technology infrastructure
In ERP organisation can upgrade and simplify the information technology. When implementing ERP a company must determine which hardware, operating system,and database It want to use.

8. Disadvantages
of ERP system

9. Disadvantages Expense and Time in implementation
Getting full benefit of ERP takes time & Money. A large firm typically needs three to five years and spend tens of millions of dollars to implement a successful ERP system

10. Disadvantages Difficulty in implementing changes
a company has to radically change how it operates to confirm the ERP work process. these changes can be so drastic to long time employees that they retire or quit rather than go through these changes & some time best practice are not appropriate for firms

11. Disadvantages Difficulty in integration with other systems
Most companies have other systems that must have to be integrated with ERP system such as financial analysis programme ,e-commerce etc. Many company faces difficulties in making these other system operate with ERP system

12. Disadvantages Risk of implementation failure
Implementing ERP is extremely challenging and requires tremendous amount of resources.ERP installations occasionally fails and problem with ERP implementation can require expensive solutions.

13. Product And Supply chain Management(SCM)
ERP follows systematic Process for development a Production Plan that draws on the information available in ERP system datebase.
The Process starts with Sales Forecasting to developed an estimate of future customer demand.
The sales and operations plan takes demand and create inventory levels in to account & determine specific product item that needs to be produced

14. SCM (C)
Demand Planning refines the production plan by determining the amount of weekly or daily production needs
Detailed scheduling uses production plan defined by demand management process to determine detailed production schedule
Material requirement planning determines the amonut of timing for pacing raw material order with supplier
ERP do not directly interfere with production machines so some means must be provided to capture information about what was produced and these data passes to ERP acconting to keep counting of finished product inverntory

15. Customer relationship Management
Customer Relationship management helps Company to manage all aspect of customer encounters including Marketing and advertising ,sales ,customer service after sales and programs to keep current & potential customer to increase customer retention and loyalty while optimizing the way product and services are being sold.

16. CRM(C)
Business Implementing CRM systems benefits such as improved customer satisfaction, increased customer retentions, reduced operating costs and ability to meet customer demands.

17. Financial & Managerial accounting
The general ledger is main accounting Module of Business. It is often divided in to different categories including assents ,liabilities ,expense etc. These categories in turn than are divided in to sub ledger to capture information such as cash, account payable ,receivable etc.