ERP

What is ERP?
ERP stands for:

Enterprise

Resources

Planning
 Components of ERP

Enterprise:
Collection of individuals and physical assets with
a common focus and an aim of gaining profits
Resource :
Include financial resources, inventory, human
skills, production resources, or information
technology (IT).
Planning :
Process for accomplishing purposes with
resources
 What ERP Does
ERP attempts to:
integrate all data and processes of an
organization into a unified system.
use multiple components of computer
software and hardware to achieve the
integration
 unified database to store data for the
various system modules.
 ERP
ERPs are
 Cross-functional

 Enterprise wide

All functional departments that are involved

in operations or production are integrated
in one system.
 ERP Includes

Manufacturing,

Warehousing,

Logistics,

Information Technology,
 ERP contd….
Accounting,

Human Resources,

Marketing, and

Strategic management
 Benefit of ERP
 Help to unify the Company’s structure and
organization: One organization

 Management: Company wide knowledge-based

management processes

 Technology: Unified platform

 Business: More efficient operations & customer-

driven business processes
 Benefit of ERP contd..
Automation of business transactions
Flexibility in changing the system catering to
newer business processes.
Coordination across business functions
Coordination across geographical distances
resulting in better Managerial control
Consistent information and interface thus
easier to understand and work in
Single system
Reasons for Implementing ERP
 Need for common platform
 Process improvement.
 Data visibility that could be used to improve operating
decisions.
 Operation cost reductions.
 Increased customer responsiveness.
 Improved strategic decision making
 Dynamic Reports
 Personal Improvement
Before ERP
After ERP
After ERP Master
Sales &
Marketing)
Material
Delivery
Planning
Note

Job Cards
Production
(Workshops)

Business Raw
Intelligence Materials

ERP
Workflows Finance

Inventory
Erection
Management

Payroll Invoicing

HR
 NEXT:
BUSINESS PROCESS