1. An Integrated Solution for
ENTERPRISE RESOURCE
PLANNING
An Integrated Solution for
"Business Management"
Presentation by;
Mr. Abhijeet Shetty
Ms. Ragini Mohite
Mr. Aashay Khawte
Mr. Sagar Shirwaikar
Mr. Vinayak Dhumatkar
Date: 05TH AUGUST 2009

2. ICAI - GMCS (LLIM - Jul/Aug 09)
Contents
Introduction to ERP
Business Process Re-engineering (BPR)
ERP Implementation
Vendors of ERP
Business Modules in ERP
ERP & Role of Chartered Accountants
Conclusion
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3. ICAI - GMCS (LLIM - Jul/Aug 09)
Introduction To
ERP
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4. Why ERP ? To Survive ,Thrive And Beat The Competition Manage future
Manage Information
Automation of the process of Data Collection
Information Technology (ERP Solution)
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5. ICAI - GMCS (LLIM - Jul/Aug 09)
History Of ERP
ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II.
From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes.
From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.
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6. ICAI - GMCS (LLIM - Jul/Aug 09)
Timeline
System
Description
1960s
Inventory Management & Control
It includes identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.
1970s
Material Requirement Planning (MRP)
MRP utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases.
1980s
Manufacturing Requirements Planning (MRP II)
Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.
1990s
Enterprise Resource Planning (ERP)
ERP was introduced by Research & Analysis by Gartner in ERP systems integrate business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources.
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7. ICAI - GMCS (LLIM - Jul/Aug 09)
What is ERP ?
ENTERPRISE:
An enterprise is a group of people with a common goal, which has certain resources at its disposal to achieve that goal.
RESOURCE:
Resources included are money, man-power, materials, and all other things that are required to run the enterprise.
PLANNING:
Planning is done to ensure that nothing goes wrong. Planning is putting necessary functions in place and more importantly, putting them together.
ERP covers the techniques and concepts employed for the integrated management of business as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise.
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8. ICAI - GMCS (LLIM - Jul/Aug 09)
Features of ERP
Integrates Business Operations.
Library of Business Process.
Real Time updating of transactions.
Multi-Tasking & Multi-Currency Features.
Easy Web Enablement Features.
Supports - Alert facilities, data warehouse & OLAP.
Integration of Workflow Management.
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9. Industry wise Uses of ERP…..
Manufacturing
Software
Insurance
Healthcare
Hospitality
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10. ICAI - GMCS (LLIM - Jul/Aug 09)
ERP: Advantages
Reduction of lead-time.
Reduction in cycle time.
Better customer satisfaction.
Improved supplier performance.
Increased flexibility.
Reduction in quality costs.
Improved resource utility.
Improved information accuracy and decision-making capability.
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11. ICAI - GMCS (LLIM - Jul/Aug 09)
ERP: Disadvantages
Lack of clarity of expectations from ERP.
Unreasonable scope & Inadequate Resources.
Choice of wrong ERP product – not all products are suitable for all industries.
Not choosing the right people for implementation.
Lack of participation of end-users.
Lack of proper communication within the organization.
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12. ICAI - GMCS (LLIM - Jul/Aug 09)
Business
Process
Re-engineering
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13. ICAI - GMCS (LLIM - Jul/Aug 09)
Introduction to BPR
Business process reengineering (BPR) is, in computer science and management, an approach aiming at improvements by means of elevating efficiency and effectiveness of the business process that exist within and across organizations. The key to BPR is for organizations to look at their business processes from a "clean slate" perspective and determine how they can best construct these processes to improve how they conduct business.
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14. ICAI - GMCS (LLIM - Jul/Aug 09)
Definitions of BPR
Thomas H. Davenport (1993)
"encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions."
Hammer and Champy (1993)
"... the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed."
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15. ICAI - GMCS (LLIM - Jul/Aug 09)
Benefits of BPR
Business process is streamlined
Business process is optimized and more efficient
Strict controls can be enforced and monitored.
Best practices can be adhered to.
Time and cost saving as a result of eliminated redundant tasks.
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16. ICAI - GMCS (LLIM - Jul/Aug 09)
Principles of BPR
Focus on the Right Processes
Voice of the Customer
Managing Change
Active Participation
Targets and Performance Measure
Integration
Flexibility
Project Management
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17. “The onus of the successful implementation lies with the Organization”
Conclusion of BPR
“The onus of the successful implementation lies with the Organization”
To be successful, business process reengineering projects need to be top down, taking in the complete organization, and the full end to end processes. It needs to be supported by tools that make processes easy to track and analyze.
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18. ICAI - GMCS (LLIM - Jul/Aug 09)
ERP
Implementation
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19. ERP Implementation And Methodology
ERP implementation is a special event
Consultants and Users Should Work Together
Improve The Flow of Information
Customization
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20. Steps in ERP Implementation
Identifying the needs for implementing an ERP package
Evaluating the ‘As is’ situation of the business
Deciding the ‘would be’ situation of the business
Reengineering the business process to achieve the desired results in the existing processes
Evaluating the various available ERP packages
Finalizing the most suitable ERP packages
Installing the required hardware & networks for selected ERP
Finalizing the implementation consultants who will assist in implementation
Implementing the ERP packages
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21. ICAI - GMCS (LLIM - Jul/Aug 09)
Vendors of
ERP
Packages
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22. ICAI - GMCS (LLIM - Jul/Aug 09)
Vendors of ERP Package
Oracle corporation
Oracle is one of the top players in the ERP market
Oracle Manufacturing Applications offers internet enabled, network centric computing
As a one stop shop, it offers the database, tools, implementation, applications and UNIX operating systems running on a wide choice of hardware
SAP AG
SAP is the world's second largest business software company.
SAP focuses on six industry sectors: process industries, discrete industries, consumer industries, service industries, financial services, and public services
SAP matches business processes to modules.
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23. Vendors of ERP Package (Contd.)
Baan
It addresses manufacturers from largest global players to smallest ERP user.
It offers tools for Business Process Analysis
It uses 4GL language
SSA
BPCS was developed by System Software Associates (SSA)
It is used in manufacturing companies
It offers functionality of Process and Kanban Manufacturing
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24. Vendors of ERP Package (Contd.)
Sage Group plc
It is engaged in the development, distribution and support of business Management software
Accpac is a vendor of accounting, Customer relationship management and business management software
It has two main product lines
Sage Accpac ERP
Sage Pro ERP
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25. ICAI - GMCS (LLIM - Jul/Aug 09)
Modules of
ERP
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26. Major Modules in ERP Packages
Finance Module
HR Module
Manufacturing Module
Material Management (MM) Module
Sales & Distribution Module
SALES & DISTRIBUTION MANAGEMENT
LOGISTICS
&
CUSTOMER SERVICE MANAGEMENT
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27. ICAI - GMCS (LLIM - Jul/Aug 09)
Finance Module
Finance functionality for organizations whose business is spread over the world.
Company wide control & Integration of Financial Information.
Sub Systems are :
Financial Accounting
Treasury
Control
Enterprise Management
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28. ICAI - GMCS (LLIM - Jul/Aug 09)
Human Resource Module
HR is an essential factor of any successful business. This Module offer company wide solutions for HR departments and make it possible for authorized users of the other departments to access specific employee data.
Personnel Administration
Employee Master Data
Recruitment Management
Open Positions
Selection & Hiring
Travel Management
Personnel cost planning
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29. ICAI - GMCS (LLIM - Jul/Aug 09)
Manufacturing Module
Components of Manufacturing Module :
Material & Capacity Planning
Quality Management
Cost Management
Shop Floor Control
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30. Material Management Module
It supports all phases of Material - Management, planning, control, purchasing, receiving, inventory management & bill payment. Its sub-modules are :
Pre Purchasing Activities
Purchasing
Vendor Evaluation
Inventory Management
Invoice Verification
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31. Sales & Distribution Module
Offers access to real-time, online information from sales to billing.
Sub-systems in this modules are –
Masters Data Management
Order Management
Warehouse Management
Dispatch
Invoicing
Pricing
Sales Support
Transportation
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32. Role of Chartered Accountants
ERP
&
Role of Chartered Accountants
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33. Role of Chartered Accountants in ERP
How does ERP matter Chartered Accountants?
Rapidly changing & challenging business world and automation of processes
ERP helps the organization to realize its vision and objectives in an optimized way.
Role as consultants, auditors, advisors or managers in controlling, managing and supporting the business.
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34. Major Challenges in ERP Audits
Complexity of ERP
Manpower
Inadequate Attention towards security of Systems
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35. ICAI - GMCS (LLIM - Jul/Aug 09)
Conclusion
“A Chartered Accountant without the knowledge of ERP may feel as if he is a fish out of the bowl”
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36. ICAI - GMCS (LLIM - Jul/Aug 09)
Bibliography
ICAI – Reference Books & Study Material.
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37. ICAI - GMCS (LLIM - Jul/Aug 09)
Thank
You
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38. ICAI - GMCS (LLIM - Jul/Aug 09)
Please feel free
To ask
Questions
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