EMS, ERP System, ERP Architecture, Benefits, Selection, Implementation, CRM & SCM

1. MODULE ENTERPRISE MANAGEMENT SYSTEMS EMS, ERP System, ERP Architecture, Benefits, Selection, Implementation, CRM & SCM

2. Fig: Components of ENTERPRISE MANAGEMENT SYSTEMS (EMS)

3. CAD/CAM/CAE – are the systems which handle design, manufacturing and engineering functions and provide the same to ERP in its execution in its manufacturing application • AMS-keeps track of employees related information for personnel planning, availability and scheduling • DMS-designed to keep important documents in database for viewing, sending messages & for document support in transaction handling. • CMS – used for tracking the important resource for action. ERP uses CMS ,for all its communication needs of recording an event • SMS-handles the security ,entry access requirements of the business operations. • EDI-Electronic Data Interchange System assists ERP in connecting two systems electronically for email, data transfer. Used to handle e-commerce.

4. ERP Enterprise Resource Planning

5. ERP system deals with the planning and use of resources used in the business. • Resources are Finance, Manufacturing, HR, Materials. • ERP is a package encompassing all major functions of the business. • ERP is a way to integrate the data and processes of an organization into one single system • Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems use a unified database to store data for various functions found throughout the organization.

6. ERP System

7. Modules of ERP • Business forecasting, planning and control (Business) • Sales, distribution, invoicing (Sales) • Production planning and control (Production) • Materials Management (Materials) • Finance and accounting (Finance) • Personnel management (Personnel)

8. ERP in Action Production Staffing Inventory Sales Purchasing Planning Order Tracking Source: BusinessWeek Int’l

9. Sub modules of ERP Business • Forecasting • Planning • Goals • Objectives • Targets • Strategy • Control • Fixed assets

10. Sales Modules • Forecasting • Planning • Sales Budget • Order processing • Order Evaluation • Delivery Invoicing • Maintenance

11. Production Modules • Planning • Order control • Quality • Scheduling • Dispatch

12. Materials Modules • Purchase • Inventory • Stores • Valuation • Cost accounting

13. Finance Modules • Accounting (Accounts Payable, Receivable ) • Funds management • Balance sheet processing • Schedules • Management accounting

14. Personnel • Human Resource • Payroll • Accounting • Skill, attendance inventory

15. ERP ARCHITECTURE

16. Features of ERP • ERP facilitates company-wide Integrated Information System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc., • ERP performs core Corporate activities and increases customer service and thereby augmenting the Corporate Image. • ERP bridges the information gap across the organisation. • ERP provides for complete integration of Systems not only across the departments in a company but also across the companies under the same management. • ERP is the only solution for better Project Management.

17. ERP allows automatic introduction of latest technologies like Electronic Fund Transfer(EFT), Electronic Data Interchange(EDI), Internet, Intranet, Video conferencing, E-Commerce etc. • ERP eliminates the most of the business problems like Material shortages, Productivity enhancements, Customer service, Cash Management, Inventory problems, Quality problems, Prompt delivery etc., • ERP not only addresses the current requirements of the company but also provides the opportunity of continually improving and refining business processes. • ERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) for enabling people to make better decisions and thus improve their business processes

18. BENEFITS OF ERP • Business integration • Flexibility • Better Analysis & planning capabilities • Use of latest technology • Better management of resources reducing the cost • Customer satisfaction increase due to shorter delivery cycle • Business operations transparency between business partners & customers

19. Contd… • Intelligent ERP download the decision making at lower level, releasing the burden on the middle management • Due to faster processing technology & SQL, management can see the information in their perspective and take different view of the business • Due to the support technologies like EDI, E-mail, office automation, paperless office is a new possibility as communication is faster and systems get connected directly • The ability to easily share data across

20. The ERP scope can be enlarged through the Internet/Intranet access, making the ERP sensitive to the latest events in the business, market & technology • Order tracking, from acceptance through fulfillment • Tracking the three-way match between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced) • various departments in an organization

21. Disadvantages of ERP • 1) Customization of the ERP software is limited. • 2) ERP systems can be very expensive • 3) ERP’s are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies—this is cited as one of the main causes of their failure. • 4) Some large organizations may have multiple departments with separate, independent resources, missions, chains-of-command, etc, and consolidation into a single enterprise may yield limited benefits. • 5) The need to reengineer business processes

22. ERP vendors: • SAP, Oracle, Microsoft Dynamics, SAGE Group, SSA Group Technologies

23. ERP SELECTION • Vendor Evaluation • Factors • Business strength of the vendor • Product share in total business of the vendor • R & D investment in the product • Future plans of the vendor • Market reach & resource strength of the vendor

24. Contd… • Technology evaluation • Client server architecture & its implementation – two tier or three tier • Front end tools & back end data based management system tools for the data, process & presentation management • Interface mechanism; data transfer, real time access • Use of case tools, screen generators, report writers & screen painter

25. Contd… • Technology evaluation (contd…) • Support system technologies like bar coding, EDI, imaging, communication & network • Downloading to PC based package, MS-office, etc • Hardware - Software configuration management

26. ERP IMPLEMENTATION STEPS • A user meeting is arranged to explain the ERP & process of implementation • The RDD & the DRDD is explained for understanding & approval • The resources to carry out the changes in the system • The DERP (Deviation ERP) solution is tested • The solution is tested on a sample data of substantial nature

27. The solution is then demonstrated to the users for their understanding & confirmation • The users are trained to run the solution & resolve the difficulties in operations of the system solution • The change over from the manual system to the ERP solution are planned, taking care of cut off dates, the opening balances, the data transfers etc. • Log book of system usage is kept to make note of problems, solutions, modifications • The document is updated with changes • The system performance is checked • Review meeting with users

28. Requirement Analysis: RDD 1 Product mapping to RDD 2 Fig: 9 steps is ERP implementation Gap analysis For review 3 Functional Implementation 5 User training Hand holding Testing User feedback Review 7 Implement fully 8 ERP product Configuration 4 Technical Implementation 6 Project & process Review 9

29. MAJOR HASSLES IN IMPLEMENTATION • The resistance of the users • The limited awareness of the users • The ability of the users to change over from the old conventional systems to the technological based new systems • The level of acceptance of the standard business process incorporated in the system. Lower the acceptance, longer the implementation time, resulting into a loss of efficiency & effectiveness of the solution

30. Contd… • A lack of clarity on the business requirement, the customer focus & the strategy of business • ERP implementation is carried out without properly evaluating the business processes • The choice of ERP solution