ENTERPRISE RESOURCE PLANNING

ERP

MEANING
Enterprise

resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate back office functions.

ERP software

integrates all faces of an operation, including product planning, development, manufacturing processes, sales and marketing. They are often called back office systems indicating that customers and the general public are not directly involved.

STAND ALONE SYATEM

Strategic & Operation Planning

Finance

Manufacturing

Human Resources

Materials Management

Logistic Management

Quality Management

Maintenance Management

Sales & Distribution

ERP SYSTEM

ERP SYSTEM

Two-Tier Architecture

TYPES OF ERP STRUCTURE

SERVER: Application & Database

Clients: Input & presentation

Three-Tire Architecture
Database Server

Application Server

Local & Remote Clients

PHASES OF ERP IMPLEMENTATION

Go ahead

Pre Selection Screening

Package Evaluation Project Planning Vendors Reengineering Configuration

Company Management

Gap Analysis

Implementation Team Training

Testing

End User Training

Going Live
Post Implementation Phase

ADVANTAGES OF ERP
Reduction

of Lead Time On Time Shipment Reduction in Cycle Time Improved Resource Utilization Increased Flexibility Reduced Quality Costs Improved Supplier Performance

DISADVANTAGES OF ERP
Expenses

and Time in Implementation Difficulty Integrating with Other Systems Difficulty Implementing Risks in Using One Vendor Risk of Implementation Failure

EXAMPLES OF ERP SOFTWARE

The best ERP packages are available from SAP, ORACLE, JD EDWARDS, RAMCO etc. But the ERP package should suit your organisational needs. So, accordingly it is decided either by 1) best in technology and what ever the price may be, 2) good in technology and competitive in price. The ERP package should also be able for data migration from your existing organisation to it. Based on all these factors the best is chosen.