1 CHAPTER 1INTRODUCTION The growing and the dynamic business environment of today are faced withlots of challenges and

opportunities. The dependence on the information, as adriving energy source is increasing. The business needs today stretch beyondthe transaction processing, requiring an instant real time response wherever itoccurs.The business today is a paperless operation, a wireless communication as aresult of fully transparent and automated operations at all centers in anintegrated and coordinated manner taking care of the business, actions anddecision needs. And these demands of the business are met by systems of information processing and communication.Though the tools and technologies, and the solutions for these needs areavailable but what is required is an integrated solution out of thesetechnologies and the systems offering an enterprise. Such an integratedsolution is called Enterprise Management System (EMS).In EMS, the Enterprise Resource Planning (ERP) system plays a veryimportant role. The major decision making and it execution is done throughERP. Its the system of managing all functions of the business withinformation support coming through the ERP. It handles the operationalsystems to run business and provides the required inputs to planning andcontrol systems handled by the middle management ERP is a way to integrate the data and processes of an organization into onesingle system. Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems usea unified database to store data for various functions found throughout theorganization. Enterprise resource planning (ERP) is a company-wide computer software system used to manage and coordinate all the resources, information,and functions of a business from shared data stores.

1.1 Objective The seminar discuss in detail about the ERP system, its features, itsadvantages and disadvantages. This seminar also explained about the differentfunctional modules, how to the implement the ERP system in an industry, howto make the ERP system user friendly etc. Thus the seminar provides the ideaon how to make the enterprise management easier and effective with the helpof an ERP system. 1.2 Report overview Chapter 1 is the introduction of the seminar. Chapter 2 discuss about the evolution of ERP system. Chapter 3 deals with the functional modules of ERPsystem. Chapter 4 explains about how to implement ERP system and how tomake a sucessesful one. Chapter 5 discusses about the next generation ERPsystem. Chapter 7 is the conclusion about this topic. The last page is thereference

CHAPTER 2 EVOLUTION OF ERP SYSTEMS

The evolution of ERP systems closely followed the spectacular developmentsin the field of computer hardware and

software systems. During the 1960smost organizations designed, developed and implemented centralizedcompu

ting systems, mostly automating their inventory control systems usinginventory control packages (IC). These were

legacy systems based on programming languages such as COBOL, ALGOL and FORTRAN. Materialrequirem ents planning

(MRP) systems were developed in the 1970s whichinvolved mainly planning the product or parts requirements

according to themaster production schedule. Following this route new software systems calledmanufacturi

ng resources planning (MRP II) were introduced in the 1980s withan emphasis on optimizing manufacturing

processes by synchronizing thematerials with production requirements. MRP II included areas such as shopfloor and

distribution management, project management, finance, humanresource and engineering. ERP systems first

appeared in the late 1980s and the beginning of the 1990s with the power of enterprise-wide interfunctionalcoordin

ation and integration. Based on the technological foundations of MRPand MRP II, ERP systems integrate business

processes includingmanufac turing, distribution, accounting, financial, human resourcemanagem ent, project

management, inventory management, service andmaintenance, and transportation, providing

accessibility, visibility andconsistency across the enterprise . During the 1990s ERP vendors

added more modules and functions asaddons to the core modules giving birth to the extended ERPs. TheseERP

extensions includ e advanced planning and scheduling (APS), ebusinesssolutions such as customer relationship

management (CRM) and supply chainmanagement (SCM). Figure

2

.1 summarizes the historical events related