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

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MODULE ENTERPRISE MANAGEMENT SYSTEMS
EMS, ERP System, ERP Architecture, Benefits,
Selection, Implementation, CRM SCM
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Fig Components of ENTERPRISE MANAGEMENT SYSTEMS
(EMS)
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• 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.

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ERP

• Enterprise Resource Planning

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• 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.

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ERP System
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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)

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ERP in Action
Production
Staffing
Inventory
Sales
Purchasing
Planning
Order Tracking
Source BusinessWeek Intl
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Sub modules of ERP

• Business
• Forecasting
• Planning
• Goals
• Objectives
• Targets
• Strategy
• Control
• Fixed assets

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Sales Modules

• Forecasting
• Planning
• Sales Budget
• Order processing
• Order Evaluation
• Delivery Invoicing
• Maintenance

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Production Modules

• Planning
• Order control
• Quality
• Scheduling
• Dispatch

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Materials Modules

• Purchase
• Inventory
• Stores
• Valuation
• Cost accounting

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Finance Modules

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

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Personnel

• Human Resource
• Payroll
• Accounting
• Skill, attendance inventory

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ERP ARCHITECTURE
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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.

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• 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

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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

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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

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• 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

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Disadvantages of ERP

• 1) Customization of the ERP software is limited.
• 2) ERP systems can be very expensive
• 3) ERPs are often seen as too rigid and too
  difficult to adapt to the specific workflow and
  business process of some companiesthis 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

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ERP vendors

• SAP, Oracle, Microsoft Dynamics, SAGE Group, SSA
  Group Technologies

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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

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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

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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

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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

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• 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

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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
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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

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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