Enterprise Resource Planning

Computerized
Accounting

As cited by: Prof. Um Govt. College of Technology, Rail 1

e Farooq way Road Lahore
Introduction
 An effective system combines elements
into an architecture, or design, that is
flexible, cost-effective, technically sound,
and able to support the information needs
of the business.

As cited by: Prof. Um Govt. College of Technology, Rail 2

e Farooq way Road Lahore
 Business Enterprise

Products Materials

Manufacturing
Order Entry and Procurement Purchases
Orders Supplier
Customer System Distribution System
System

Customer Production Vendor

Sales Scheduling Accts Pay
Account Rec Shipping Inventory

Customer Database Manufacturing Procurement

Database Database

Traditional Information System with

Closed Database Architecture
What is ERP?

An Enterprise Resource Planning

System (ERP) is a software package
that supports the traditional “back-
office” functions of finance,
manufacturing and distribution.

As cited by: Prof. Um Govt. College of Technology, Rail 4

e Farooq way Road Lahore
What is ERP?

 Those activities supported by multi-module

application software that help a company
manage the important parts of its business in
an integrated fashion.

As cited by: Prof. Um Govt. College of Technology, Rail 5

e Farooq way Road Lahore
ENTERPRISE SYSTEMS

As cited by: Prof. Um Govt. College of Technology, Rail 6

e Farooq way Road Lahore
Core ERP Functions
 Accounting  Sales and distribution
 Financial  Human resource
 Manufacturing  Supply chain
 Production  Customer relationship
 Transportation  E-business

Core Applications
Business Analysis Applications

As cited by: Prof. Um Govt. College of Technology, Rail 7

e Farooq way Road Lahore
ERP Systems
 Advantages…
 Reliable information access
 Avoid redundant data and operations
 Cost reduction
 Disadvantages
 Time-consuming
 Expensive

As cited by: Prof. Um Govt. College of Technology, Rail 8

e Farooq way Road Lahore
Summary

ERP System
 Can integrate all of our business units.
 Very expensive and time intensive.
 Proper implementation can help the
business function better.
 Poor implementation can hurt the
business immensely.
 Training
As cited by: Prof. Um Govt. College of Technology, Rail 9
e Farooq way Road Lahore
Implementation of ERP’s

Steps for implementation:

• Cost analysis
• Staff Training
• Integration
• Data Conversion
• Going live with ERP

As cited by: Prof. Um Govt. College of Technology, Rail 10

e Farooq way Road Lahore
3 Ways of Integration:
 Implement entire business at once.
 Implement one business unit at a time and make
sure its right.
 Implement one business unit until its right and
then implement the rest all at once.

As cited by: Prof. Um Govt. College of Technology, Rail 11

e Farooq way Road Lahore
Obstacles
 Employees’ Willingness
 Employer’s Knowledge
 Employees Skills
 Supply Chain System
 Compatibility
 Process
 Organizational Resources

As cited by: Prof. Um Govt. College of Technology, Rail 12

e Farooq way Road Lahore
SAP Integration

Financial
Sales &
Accounting
Distribution
Materials Controlling
Mgmt.
Production Fixed Assets
Planning
R/3 Mgmt.

Integrated Solution
Quality Project
Mgmt. Client / Server System
Plant Open Systems Office &
Maintenance Communi-
cation
Human Industry
Resources Solutions

As cited by: Prof. Um Govt. College of Technology, Rail 13

e Farooq way Road Lahore
References

 Accounting Information Systems by

James A Hall
 Building the Dynamic Enterprise by
McGraw-Hill Publishers

As cited by: Prof. Um Govt. College of Technology, Rail 14

e Farooq way Road Lahore