1. Enterprise Resource Planning
By Manoj Kumar Jain

2. Functional system applications
Human resources System
Accounting and finance systems
Sales and marketing System
Operations management System
Manufacturing Systems

3. Functional system applications
Human resources System
Accounting and finance systems
Sales and marketing System
Operations management System
Manufacturing Systems

4. Human Resources Recruiting Compensation Assessment
Development and Training
Planning

5. Accounting and Finance
General Ledger
Financial Reporting
Costing
Budgeting
Accounts Payable
Accounts receivables

6. Sales and Marketing Lead tracking Sales forecasting
Customer management

7. Operations
Order management
Inventory management
Customer service

8. Manufacturing
Inventory
Planning

9. An ERP Example: Before ERP
Customer
Demographic
Files
Sales Dept.
Customers
Orders
Parts
Sends report
Accounting
Files
“We ordered the parts”
Calls back “Not in stock”
Checks for Parts
Invoices
accounting
Vendor
Inventory
Files
Warehouse
Ships parts
Order is placed
with Vendor
Purchasing
Files
“We Need parts #XX”
“We ordered the parts”

10. What is ERP? Stand for: Enterprise Resource Planning
Key function: information system for integration and back office operations Key rationales: standard business practice, strategic competitive, technology enabler
Detailed Definition
A business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimising enterprise and inter-enterprise collaborative operational and financial processes
source: Gartner’s Research Note SPA

11. Overview of ERP system: Module
Human
Financials &
Resources
Accounting
Central
Bolt-On
Bolt-On
Database
EDI/web
EDI/web
Customers
Suppliers
Sales & Distribution
Inventory & Manufacturing
Architecture
Industry Solutions
source: Mabert et al “ERP: Common Myths Versus Evolving Reality”.

12. Key ERP modules and operation

13. An ERP Example: After ERP
Customers
Orders
Parts
Sales Dept.
Accounting
Inventory Data
If no parts,
order is placed
through DB
And invoices accounting
Financial Data exchange;
Books invoice against PO
Database
Order is submitted
to Purchasing.
Purchasing record
order in DB
Books inventory
against PO
Order is placed
with Vendor
Purchasing
Warehouse
Vendor
Ships parts

14. Why does a company implement ERP?
Streamline financial: speed process (CU-ERP), development of supply chain, eOrdering,
Integrate customer order information: order tracking (USAA- empowerment)
Reduce inventory: consolidated order, visualizing inventory, reducing dead stock,
Standardize HR process: reducing man-hour
Standardize manufacturing process: enforce practice
Typical ERP Implementation Objective
Integration: financial, customer order, accounting, purchasing
Standardization: HR information, merge processes, eliminate variation
Visualizing inventory: realtime inventory, Smooth business process flow & WIP,

15. Types of Organizational information Systems
Administrative systems
Scheduling / Transaction systems
Value oriented systems
Reporting and controlling systems
Analysis and information systems
Planning and decision support systems
(From Business Process Engineering by A.W. Scheer)

16. Problems with function based application
Sharing of data between systems
Data duplication
Data inconsistency
Applications that don’t talk to one another
Limited or lack of integrated information
Isolated decisions lead to overall inefficiencies
Increased expenses

17. Solution to disparate systems?
Integration
Consolidation
Right-sizing
Business Process Redesign
Enterprise wide system

18. Integrated systems or Enterprise Resource Planning System

19. ERP - Definition
ERP is a process of managing all resources and their use in the entire enterprise in a coordinated manner

20. ERP system: Definition
ERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management

21. What is ERP? Enterprise Resource Planning
Support business through optimizing, maintaining, and tracking business functions
Broken down into business processes
HRM
Distribution
Financials
Manufacturing

22. What makes ERP different
Integrated modules
Common definitions
Common database
Update one module, automatically updates others
ERP systems reflect a specific way of doing business
Must look at your value chains, rather than functions