ERP Overview

Enterprise Resource Planning

 Enterprise Resource Planning
... synchronization of Company functions...

Purchase

Manufacturing Finance

Sales

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 Enterprise Resource Planning
… and extended to the complete value chain...

Tier I Component
Manufacturer

Vehicle OEM

Tier II Component
Supplier

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 Enterprise Resource Planning
... delivering administrative and decision support with...

Decision support and

analysis

Processes monitoring &

feedback

Administrative
registration

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 What is an ERP solution...?
…Integrated across the primary and support processes
Distribution

Manufacturing Marketing

Planning
Materials and Finance
Execution

Engineering Sales

Human Resources

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 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.

• Entails
– Parameterization / Configuration
– Designing & Customization
– Testing and Implementation
– Training

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 Why clients buy ERP?
• Corporate Initiatives
– Strategic initiatives
• A requisite capability in a competitive global business
– Operational initiative
• A foundation for performance and cost improvement
via integration
– Organizational initiative
• To initiate a major organizational change within the company
• Technology
– IT is making the transition from a supporting operational entity to becoming a
strategic competitive tool.
• Because others are buying it !!!

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 Business process benefits clients
•
expect from an ERP
Global process/ Product management
project
• 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
Vendors Inbound Manufacturing Transportation Distribution Delivery Customer Consumer
Logistics

Logistics and Distribution Sales & Customer Service

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 Major ERP vendors
 SAP R/3
 Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier,
but are subsets of Oracle now )
 Peoplesoft
 JD Edwards
 Baan

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 What results can be expected from
 Reduced workingan “ERP culture”?
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 ERP
 Improved quality of life

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