Documente Academic
Documente Profesional
Documente Cultură
Semester - VI
Definition Of ERP - 1
Business solution that addresses all the
needs of an enterprise with the process
view of an organization to meet the
organizational goals and integrate all the
functions of the Enterprise.
Definition Of ERP - 2
Enterprise Resource Planning or ERP is an
industry term for integrated, multi-module
application software packages that are
designed to serve and support multiple
business functions.
ERP Package
An integrated suite of software
applications typically handling the
manufacturing, logistics, distribution,
inventory, shipping, and invoicing in larger
businesses.
SYSTEM
PLATFORM
DESCRIPTION
1960s
Inventory
Management &
Control
Mainframe legacy
using 3rd Generation
software (eg
COBOL,
FORTRAN)
1970s
Material
Requirement
Planning
(MRP)
Mainframe legacy
using 3rd Generation
software (eg
COBOL,
FORTRAN)
SYSTEM
PLATFORM
DESCRIPTION
1980s
Manufacturing
Requirements
Planning (MRP II)
Mainframe legacy
using 4th Generation
database software
and manufacturing
applications
With a focus on
manufacturing strategy and
quality control, these systems
were designed for helping
production managers in
designing production supply
chain processes from
product planning to parts
purchasing, inventory control
, and overhead cost
management to product
distribution.
SYSTEM
PLATFORM
DESCRIPTION
1990s
Enterprise
Resource
Planning
(ERP)
SYSTEM
PLATFORM
DESCRIPTION
2000s
Extended ERP or
ERP II
Client-platform
using Web platform,
open source and
integrated with fifth
generation
applications like
SCM, CRM and
SFA. Also available
on Software as a
Service (SaaS)
environments.
Packaged software
Integrate the majority of a businesss
processes
Process the majority of an
organizations transactions
Used as a data warehouse
Allow access to data in real time
Integrate transaction processing and
planning activities
Project Management
Business Process Reengineering
User Training and Education
Technological Infrastructure
Change Management
Management of Risk
SAP
ORACLE / PEOPLESOFT
INFOR
MICROSOFT DYNAMICS
LAWSON
SSA GLOBAL
EPICOR
Target Market
Price
Modularity
Obsolescence
Ease of Implementation
Cost of Implementation
Post-Implementation Support
Test runs
User Training
Parallel run
Concurrence from user on satisfactory
working of the system
Migration to the new system
User Documentation
Post-Implementation support
System Monitoring and Fine Tuning
Gap Analysis
The user requirements that cannot be directly mapped
on to the standard system from the basis of gap
analysis. Here, all such uncovered requirements are
compiled into a gap analysis report. The gaps are then
classified into the following three heads:
Gaps which can be taken care of with a little
programming effort.
Gaps which involve an extensive programming effort and
hence require extra resources.
Gaps which cannot be taken care of in the system.
Customization
Once the process mapping and gap
analysis have been done, the actual
customization starts. In this step, first the
customizing needs are chalked out and
then the actual job is handed over to the
respective functional teams.
Development of User-specific
Reports and Transactions
As part of gap analysis, any user
requirements not covered by the standard
system need to be provided by extra
programming effort. In this step, the
required reports and transactions are
created.
Test Runs
In this step, the test runs on the system
are started. Sample transactions are tried
to see whether the customizing and
master data uploading has been errorfree. The result of the sample transactions
is evaluated and any changes required in
settings to get the desired results are
incorporated.
User Training
The training of users can be started along-side
the test runs. Users belonging to different
functionalities are trained in their respective
functions. Normally use training includes:
Parallel Run
With the successful test runs and user
training in place, the parallel run of the
system can be now started. In parallel run,
the business transactions are carried out
both through the existing system as well
as through the new system. The
implementation team then takes care of
any lacunae which come to light during the
parallel run.
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If the parallel run is satisfactory and errorfree, or errors that may have come up
have been resolved, the users may be
asked for their final approval.
User Documentation
User documentation includes the details
on how to carry out the various
transactions. It is different from the regular
ERP package documentation in the sense
that it is more specific in nature than
general documentation. It only covers
alternatives that are being used in the
particular business so as to make it easy
for the user to understand and use them.
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Post-Implementation Support
Post-Implementation support generally
involves queries from the user, minor
changes in the report formats, as well as
small changes in layouts of various printed
formats like purchase orders, etc.
VANILLA IMPLEMENTATION
A Vanilla implementation is the decision to
implement an ERP As-Is and modify business
processes to match the system or to modify the
ERP to match business processes. It is
fundamental to make this decision prior to
starting an implementation. A Vanilla
implementation is when the company chooses
not to modify (i.e., customize) the system, but
instead to change business practices to fit the
system.
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BPR METHODLOGY
BPR METHODLOGY
The BPR Methodology, as shown in Figure below,
includes:
Preparation - set goals and vision, identify teams, and
develop an inventory of processes that need to be
evaluated.
Define the "As-Is" process and evaluate crossorganizational issues
Map out "To-Be" processes based on best practices
(i.e., related to ERP)
Test and measure new processes based on meeting
goals and vision
Re-evaluation - revise, adjust to improve processes
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Q&A
Multiple Choice Objective Questions:
1.
Cautiously
Naively
Should be done after the start of ERP Implementation
None of the above.
2.
How can management of the enterprise make a decision about
the necessity of implementing an enterprise resource planning
system:
Q&A
3.
4.
Inventory Control
Material Requirement Planning
Both a and b
None of the above
Q&A
5. For the success of an ERP Implementation,
factor(s) important is/are:
Modular
Inflexible
Both a and b
Either a or b
Q&A
7.
8.
Q&A
9.
10.
Thank You