SEMINAR

1. SEMINAR ON ENTERPRISE RESOURCE PLANNING (ERP)

2. CONTENTS INTRODUCTION WHAT IS ERP ? EVOLUTION OF ERP ERP ARCHITECTURE ERP SOFTWARE PACKAGES ADVANTAGES OF ERP DISADVANTAGES ERP CONCLUSION

3. ENTERPRISE – THE WHOLE BUSINESS VENTURE RESOURCES OF AN ENTERPRISE– FINANCIAL APPLICATION HUMAN RESOURCES MANUFACTURING AND LOGISTICS SALES AND DISTRIBUTION MORE RECENTLY USED BUSINESS FUNCTIONS

4. Sales Finance Logistics HR Manufacturing Warehouse Marketing

5. WHAT IS ERP ? Integrates all departments and the functions across organization onto a single system (and database) Facilitates the development of common processes Facilitates agreement on common data ERP systems are a suite of software applications that have revolutionized the way enterprises do business.

6. WHAT IS ERP ? (CONT..) They support the reengineering of business processes in all areas of activity, including manufacturing, human resources, finance, accounting, and sales. ERP applications automate and integrate business processes across departments and functions They allow information to flow seamlessly from one end of the company to the other and provide a single unified business environment.

7. Cross Functional Integration ERP system can be configured so that when a new customer order is created the following actions are “triggered”: • Production schedule is updated • Shipping schedule updated • Any needed parts are ordered • Update online sales reports to reflect order Without ERP these 4 actions would have to be performed by employees in 4 different departments, perhaps using 4 different information systems.

8. Sales and Distribution Sales planning Profit planning SOP Planned requirements Forecasts Production Planning Demand management Master planning Quality Management Customer order processing Lot inspection Process charting Rough-cut capacity planning Materials Management Shipping, billing, transport MRP/Planned orders Direct requisition Order - Creation - Release - Confirmation Purchasing Inventory management Goods receipt Material valuation Invoice verification Shop floor control Capacity leveling Process planning Warehouse management Preventive Maintenance Planned repair Emergency Project system Tactical – Within function integration – relationship between modules

9. What is ERP? Human Resource Management System (HRMS) Student Systems (Admissions, Registration, etc.) ONE INTEGRATED SYSTEM ! Asset Management (Property Records) State Accounting Systems (SAMAS / FLAIR) Purchasing System (GREETS) State Payroll Systems (BOSP)

10. EVOLUTION OF ERP:- MRP was developed in the 1970’s. -- Calculate what materials are needed? --Failed to consider capacity, space, capital and cost. MRP II added some MRP missing elements ERP-Integrated across the organization

11. Material Requirements Planning (MRP) Computer-based information system that schedules and orders inventory components. Uses the master production schedule, bills of materials, and inventory records as inputs. Outputs recommendations: When to release new orders When to reschedule open orders MRP responds to the following equation:- • What are we going to make? • What does it take to make it? • What have we got? • What do we have to get?

12. General Item Data Production Schedule Bills of Material Material Requirements Planning - MRP Inventory Records Inventory Transa-ction Exception messages Planning reports MRP

13. Manufacturing Resource Planning(MRP II) MRP II is MRP with the addition of “Business Planning” and the integration of production with finance ,marketing, engineering. Advantages of MRP II over MRP:- Less risk of inventory shrinkage. Better financial planning. Reduced overtime. Better customer service. More effective management.

14. Business Plan Production Plan General Item Data Rough -cut Capacity Analysis Master Production Schedule Inventory Records Bills of Mate- rial Material Requirements Planning Purchase Order Files Capacity Requirements Planning Work Center & Routing Files NO ? ? YES Shop Floor Control Purchasing System Vendor Quotes P.O. Processing Receiving Vendor Analysis MRP II

15. ERP ARCHITECTUTRES ERP systems today use client/server architectures operating in two-tier, three-tier , or n-tier systems. The tiers describe the logical partitioning of the presentation, application, and database layer for communicating between a server and a client . The presentation component provides the display and user interaction to the application. The application component performs the application routines. The database stores the information from the application process .

16. TWO-TIER CLIENT/SERVER ARCHITECTURE In two-tier architecture application processing is split into two parts between the client workstation and the server. The client runs the presentation and the majority of the application logic. The server stores the information on a database and also runs some application logic. This is often referred to as "fat client" architecture. Simplicity and ease of development for smaller projects is the biggest advantage of the two-tier client/server model, suiting it well for departmental applications.

17. TWO - TIER CLIENT /SERVER :-- SQL , File Server, HTTP Protocols Database server Application software & Database User desktop Client software Application Database Present Application

18. THREE-TIER CLIENT/SERVER ARCHITECTURE ERP applications today, in general, are implemented in a three-tier or n-tier client/server model. In this environment, the presentation, application, and the database can all reside on separate computers for greater scalability, improved operations, and support for multiple platforms. The three-tier architecture offers increased performance and reduced network traffic, since most of the database inquiries are kept local to the data center, and only presentation traffic flows across the enterprise-wide network. The three-tier architecture also provides support for a variety of user interfaces by separating the user interface from the application logic. This also supports better interapplication integration. The latest sets of ERP applications are Web-enabled, providing simple Hypertext Transfer Protocol (HTTP) or Java connectivity to the application servers. In this instance, users connect to an application server that acts as a middle tier between the database and the user's device. Web-enabling these applications simplifies user access and reduces the system cost because it's easier to install, has fewer support and training issues, and enables easier access over the Internet.

19. Three-Tier or N-Tier Client/Server HTTP ,RPC IIOP SQL Application servers HTTP Listeners Application Logic User desktop Client software browser Java applets Database server Database PRESENTATION APPLICATION DATABASE

20. NETWORK INFRASTRUCTURE The network infrastructure is a key success factor to the successful delivery of mission-critical ERP applications. Problems resulting from not having the right infrastructure can include late system delivery, poor system performance, or unacceptable downtime at a time when users and management tend to have the highest expectations. • The supporting network infrastructure can be described in terms of five areas of connectivity which are: • The data center, where the central ERP application and database servers reside • The campus network, which provides the connectivity to all end-users within the campus • WAN connectivityfor connectivity to remote offices • Telecommuter and mobile user connectionover switched Public Switched Telephone Network (PSTN) or Integrated Services Digital Network (ISDN) networks, or, more recently, or cable modemconnections • Internet connectivityfor providing extensive access for employees, customers, suppliers, and partners

21. End-to-End Network Infrastructure for Supporting ERP

22. Data Center Network Solutions:- • ERP systems represent a centralization of business-critical enterprise processes, and the data center lies at the heart of the ERP system. • Lack of efficient access to the application and database servers inevitably results in lost revenue and productivity, and, often worse, in lost customer loyalty. • It is normally recommended to collocate the application and database servers in the same data center and to connect these servers via a high-speed and scalable network. • Co-location of the database and application servers also allows for an isolated and more easily monitored and protected environment, where network performance, availability, and security can all be administered and supported in a controlled manner

23. Typical Data Center Solution Figure 8: Typical Data Center Solution

24. ERP SOFTWARE PACKAGE:- • SAP (Systems, Applications, and Products in Data Processing) is the leadingERP software package. • Prior to the proliferation of SAP, most companies supported a full staff of program developers who wrote their necessary business applications to pass data back and forth as necessary to complete any full cycle business transaction. • This process was extremely costly, time-consuming, and error prone. It also made it very difficult for business managers and executives to get a timely, comprehensive view of how their business was doing at any given time.

25. ERP SOFTWARE PACKAGE:- (cont.) • SAP was the first and, to date, the most successful company to integrate nearly all business processes into one software solution for use in any business in any country in the world. • SAP's applications reduce the need for complex and redundant in-house development. • SAP also created new business efficiencies by automating many tasks across a corporation and incorporating business' best practices into each updated version of its software. • SAP applications thus provide an environment where "transactions are synchronized throughout the entire systems, meaning a sales-order entry triggers action's within each application that relates and is relevant to the transaction."

26. PeopleSoft -SAP’s most significant competitor PeopleSoft's Student Administration Module is a Commercial Off The Shelf (COTS) Enterprise Resource Planning (ERP) software suite designed to facilitate the back and front office operations of higher learning Institutions. A module of the PeopleSoft ERP suite • Database management system • Internet based—with self service options for students, faculty and staff • Product sub-modules Product sub-modules • Campus Community • Campus Directory Interface • Community Access • Community Directory • Enrollment Services • Student Financial Services

27. What People Soft does? • Reduce costs in maintaining several independent IT solutions • Centralize and standardize data to save hours in the collection of data . • Provide senior leadership with greater institutional research options • Provide data for making curriculum and program changes • Modernize a variety of administrative functions that improves overall efficiency 

28. Pepole soft incorporates Data collection Admissions Enrollment—catalogue, schedule of classes, online registration. Student Records—grading, transcripts, diploma certificates • to standardize business processes and maximize user productivity. • In addition, there is a capability to create workflows to help train users and to help manage important processes in the educational institution. • As an example, one can create an automated workflow to facilitate the receipt, review, and approval of student applications. Another example would be an automated workflow to prepare for graduation. • Lastly, PS has a robust report and query capability.

29. Aadvantages of ERP Systems No data redundancy, which virtually eliminates inconsistencies in data Online data validation, which results in data being relatively error-free Cross-functional integration, which facilitates streamlined and automated procedures that span functional areas Ability to perform cross-functional queries to answer enterprise wide questions Ability to generate real-time reports Ability to “drill down” to view details of summary reports

30. What Motivates Companies to Deploy ERP Systems?

31. Disadvantages of ERP Systems High cost of the software itself, consultants, employee time, and training Requires significant changes in corporate culture and business processes. Complex and extended undertaking that can fail and waste millions of dollars. Extensive reliance on the ERP vendor

32. Conclusion In summary, ERP systems make tremendous demands of an IT organization's network infrastructure. In order to ensure the success of these business-critical applications, it's crucial that the networking group is involved at an early enough stage, so that they can plan the deployment of a scalable and intelligent infrastructure. This will help ensure that the ERP system meets expectations of both the business managers and the users.

33. THANK YOU