ENTERPRISE

RESOURCE PLANNING

By
Deepak Kumar (1602017)
Surendra Nath Murmu (1602050)

Guided By : Prof.(Dr.) Prakash Kumar

 PROJECT OBJECTIVE

 To visit industries working on ERP and study

their procedures.
 To study the methodologies incorporated in
their process of working on ERP.
 To suggest feasible changes to improve
functionality of the system.
 WHAT IS ERP?

 The practice of consolidating an

enterprise’s planning, manufacturing,
sales and marketing ef forts into one
management system.
 Combines all databases across
departments into a single database that
can be accessed by all employees.
 ERP automates the tasks involved in
performing a business process.

Sources:
1. http://www.cio.com/summaries/enterprise/erp/index.html

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 EVOLUTION OF ERP

Source: http://www.intelligententerprise.com/020903/514feat2_1.shtml 4
 HOW DO ERP SYSTEMS
WORK?

Managers and
Stakeholders

Financial
Applications
Reporting
Human
Sales and Applications
Delivery
Resource
Applications
Management
Applications

Sales Force Central

And Customer Back-office
Customers Service Reps Database Manufacturing
Administrators Suppliers
Applications And Workers

Service
Applications Human
Resource
Management Inventory
Applications And Supply
Applications

Employees

Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”, Harvard
Business Review. 5
 ERP COMPONENTS

 Finance: modules  Manufacturing and

for book keeping Logistics: A group
and making sure of applications for
the bills are paid on planning
time. Examples:
production, taking
 General ledger
orders and
 Accounts receivable
delivering products
 Accounts payable
to the customer.
 HR: software for
Examples:
handling personnel-
related tasks for  Production planning
corporate managers  Materials
and individual management
employees.  Order entry and
Examples: processing
 HR administration  Warehouse
 Payroll management
 Self-service HR

Source: http://www.computerworld.com/printthis/1998/0,4814,43432,00.html.
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 AN ERP EXAMPLE: BEFORE
ERP

Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files
Customers

Checks for Parts

Calls back “Not in stock”

Accounting “We ordered the parts”
Files

Accounting
Sends report
Invoices
Sends report accounting

Ships parts
Vendor
Warehouse
Order is placed
“We Need parts #XX”
with Vendor

Inventory
Purchasing Files
Files “We ordered the parts”
Purchasing
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AN ERP EXAMPLE: AFTER ERP

Orders
Parts
Inventory
Data
If no parts,
order is
Sales Dept. placed Accounting
Customers through
DB
Financial Data
exchange;
Books invoice
against PO

Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO

Order is placed
with Vendor

Warehouse
Vendor
Purchasing
Ships parts

And invoices accounting

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 WHY ERP?

3 Major Reasons:
 To integrate financial data.
 To standardize manufacturing
processes.
 To standardize HR information.

Source: http://www.cio.com/summaries/enterprise/erp/index.html.

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BENEFITS OF ERP SYSTEMS

 Improving integration, flexibility

 Fewer errors
 Improved speed and efficiency
 More complete access to information
 Lower total costs in the complete
supply chain
 Shorten throughput times
 Sustained involvement and
commitment of the top management

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 BENEFITS OF ERP
SYSTEMS (CONT’D)

 Reduce stock to a minimum

 Enlarge product assortment
 Improve product quality
 Provide more reliable delivery dates
and higher service to the customer
 Efficiently coordinate global demand,
supply and production

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 RISKS WITH ERP
IMPLEMENTATION

 Expensive (can costs 100 thousands to

millions of dollars)
 Time-consuming (can take months to
years)
 Great risk for the organization
 Transfer of Knowledge
 Acceptance with the company

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 IMPROVEMENTS IN OUR
PROJECT

 Study of benefits, advantages &

disadvantages of ERP has been completed.
 Industries using ERP are found.
 Some of the industries using ERP are TATA
Motors, BIG BAZAAR, Hero motocorp, SAIL
Bhilai & CIL.
 Among all the industries working on ERP, we
have decided to visit TATA Motors as per our
convenience and study their work on ERP.