17-03-2011, 09:23 AM
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ENTERPRISE RESOURCE PLANNING
DEFINATION:-
Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources.
It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
How Will ERP Help in business
Integrate financial information—
As the CEO tries to understand the company’s overall performance, he may find many different versions of the truth. Finance has its own set of revenue numbers, sales has another version, and the different business units may each have their own version of how much they contributed to revenues. ERP creates a single version of the truth that cannot be questioned because everyone is using the same system.
Integrate customer order information—
ERP systems can become the place where the customer order lives from the time a customer service representative receives it until the loading dock ships the merchandise and finance sends an invoice. By having this information in one software system, rather than scattered among many different systems that can’t communicate with one another, companies can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time.
Standardize and speed up manufacturing—
Manufacturing companies—especially those with an appetite for mergers and acquisitions—often find that multiple business units across the company make the same widget using different methods and computer systems. ERP systems come with standard methods for automating some of the steps of a manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count.
The ERP application
• An integrated suite of business applications, which..
– Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money.
– Enables corporates to readily change their processes to adapt to the ever changing business scenario.
– Provides expertise in industry specific business processes.
Business process benefits clients expect from an ERP
• Integrated Supply Chain Management
• Leverage purchasing and vendor management
• Order cycle time/ customer service improvement
• Inventory reductions
• Reduced information systems costs on an ongoing basis
• Improved business management through worldwide integration and information
What results can be expected from an “ERP culture”?
Reduced working capital requirements
Improved customer service
Improved direct labor productivity
Reduced purchase costs
Reduced obsolescence
Reduced overtime
Having the figures to make decisions
Having accountability throughout the organization
Improved quality of life
ERP example
TISCO(Tata Iron and steel company Limited)
The steel majors prompt response to market change and shifting to customer orientation from product coupled with the implementation of ERP will speak more than volumes of their success for the timely action.
The company decided to implement SAP ERP 3 after careful consideration for they matched best with their requirements.
ERP example
Problems in TISCO due to which there was a need for an ERP:
Not customer friendly
Less attention to customer demands
Outdated systems
Operations were complex and were full of errors
ERP example
Process:
The business process was divided into two main segments. The core functions were denoted to be major ones. Similarly the supporting functions were named minor ones.
A plan of action on the proposed ERP's impact was drafted depicting their relation to one another and to the business process. All of them were made to bear in mind the fact that ERP's implementation was imperative
ERP example
Process:
The company took all efforts to ensure that the change did not produce any sort of resentment in the organization. This was done by educating everyone on the need and desirability of change.
ERP example
Outcome by using ERP in TISCO:
Effective handling and speed delivery
System were more user friendly and less complex
Drastic fall in amount owed to creditors
Improved quality of work,decreased time rquired therfore increased productivity.
ENTERPRISE RESOURCE PLANNING
DEFINATION:-
Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources.
It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
How Will ERP Help in business
Integrate financial information—
As the CEO tries to understand the company’s overall performance, he may find many different versions of the truth. Finance has its own set of revenue numbers, sales has another version, and the different business units may each have their own version of how much they contributed to revenues. ERP creates a single version of the truth that cannot be questioned because everyone is using the same system.
Integrate customer order information—
ERP systems can become the place where the customer order lives from the time a customer service representative receives it until the loading dock ships the merchandise and finance sends an invoice. By having this information in one software system, rather than scattered among many different systems that can’t communicate with one another, companies can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time.
Standardize and speed up manufacturing—
Manufacturing companies—especially those with an appetite for mergers and acquisitions—often find that multiple business units across the company make the same widget using different methods and computer systems. ERP systems come with standard methods for automating some of the steps of a manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count.
The ERP application
• An integrated suite of business applications, which..
– Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money.
– Enables corporates to readily change their processes to adapt to the ever changing business scenario.
– Provides expertise in industry specific business processes.
Business process benefits clients expect from an ERP
• Integrated Supply Chain Management
• Leverage purchasing and vendor management
• Order cycle time/ customer service improvement
• Inventory reductions
• Reduced information systems costs on an ongoing basis
• Improved business management through worldwide integration and information
What results can be expected from an “ERP culture”?
Reduced working capital requirements
Improved customer service
Improved direct labor productivity
Reduced purchase costs
Reduced obsolescence
Reduced overtime
Having the figures to make decisions
Having accountability throughout the organization
Improved quality of life
ERP example
TISCO(Tata Iron and steel company Limited)
The steel majors prompt response to market change and shifting to customer orientation from product coupled with the implementation of ERP will speak more than volumes of their success for the timely action.
The company decided to implement SAP ERP 3 after careful consideration for they matched best with their requirements.
ERP example
Problems in TISCO due to which there was a need for an ERP:
Not customer friendly
Less attention to customer demands
Outdated systems
Operations were complex and were full of errors
ERP example
Process:
The business process was divided into two main segments. The core functions were denoted to be major ones. Similarly the supporting functions were named minor ones.
A plan of action on the proposed ERP's impact was drafted depicting their relation to one another and to the business process. All of them were made to bear in mind the fact that ERP's implementation was imperative
ERP example
Process:
The company took all efforts to ensure that the change did not produce any sort of resentment in the organization. This was done by educating everyone on the need and desirability of change.
ERP example
Outcome by using ERP in TISCO:
Effective handling and speed delivery
System were more user friendly and less complex
Drastic fall in amount owed to creditors
Improved quality of work,decreased time rquired therfore increased productivity.
