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Introduction: ERP- Enterprise resource
planning, a business management system that integrates all
functional units of the business, including planning, manufacturing,
sales, marketing and finance, through a common corporate
database. In short ERP systems integrate all data and processes
of an organization into a unified system.
The term ERP originally implied systems designed to plan
the use of enterprise-wide resources. Although initially
ERP originated in the manufacturing environment, today's
use of the term ERP systems has much broader scope. ERP systems
typically attempt to cover all basic functions of an organization,
regardless of the organization's business or charter. Businesses,
non-profit organizations, non-governmental organizations,
governments, and other large organizations are using ERP
An organization may already have two or more independent
applications. These applications would require some interfaces
for extracting data. (Using interface, one system can communicate
with other system and exchange data). If these applications
are replaced by an ERP system, it would eliminate the need
for external interfaces previously required between systems,
and provides additional benefits that range from standardization
and lower maintenance (one system instead of two or more)
to easier and greater reporting capabilities (as all data
is typically kept in one database).
Examples of modules in an ERP, which formerly would have
been stand-alone applications include: Manufacturing, supply
Chain, Financials, Customer Relationship Management (CRM),
Human Resources, Water house Management and Decision Support
MRP vs. ERP Manufacturing management systems have evolved
in stages over the past 30 years from a simple means of calculating
materials requirements to the automation of an entire enterprise.
Around 1980, over-frequent changes in sales forecasts, entailing
continual readjustments in production, as well as the unsuitability
of the parameters fixed by the system, led MRP (material
Requirement Planning) to evolve into a new concept : Manufacturing
Resource Planning (or MRP2) and finally the generic concept
Enterprise Resource Planning (ERP).
Major ERP vendors:
Overview: Some organizations implement only portions of
an ERP system and develop an interface to other stand-alone
systems for their other application needs. For example, the
PeopleSoft HRMS and financials system may be perceived to
be better than SAP's HRMS solution. And likewise, some may
perceive SAP's manufacturing and CRM systems as better than
PeopleSoft's equivalents. In this case these organizations
may choose to purchase the PeopleSoft's HRMS and financial
modules from Oracle, and their remaining applications from
Ideally, ERP delivers a single database that contains all
data for the software modules, which would include:
Manufacturing: Engineering, Bills of Material, Scheduling,
Capacity, Workflow Management, Quality Control, Cost Management,
Manufacturing Process, Manufacturing Projects, Manufacturing
Supply Chain Management: Inventory, Order Entry, Purchasing,
Supply Chain Planning, Supplier Scheduling, Inspection of
goods, Claim Processing, Commission Calculation.
Financials: General Ledger, Cash Management, Accounts Payable,
Accounts Receivable, Fixed Assets
Projects: Costing, Billing, Time and Expense, Activity Management.
Human Resources: Human Resources,
Payroll, Training, Time & Attendance
Management: Sales and Marketing, Commissions,
Service, Customer Contact and Call Centre support.
Enterprise Resource Planning is a term originally derived
from manufacturing resource planning (MRP II) that followed
material requirements planning (MRP). It further evolved
into ERP. ERP systems typically handle the manufacturing,
logistics, distribution, inventory, shipping, invoicing,
and accounting for a company. Enterprise Resource Planning
or ERP software can aid in the control of many business activities,
like sales, marketing, delivery, billing, production, inventory
management, quality management, and human resource management.
ERPs are cross-functional and enterprise wide. All functional
departments that are involved in operations or production
are integrated in one system. In addition to manufacturing,
warehousing, logistics, and information technology, this
would include accounting, human resource, marketing, and
Prior to the concept of ERP, various departments within an
organization (for example, HR department, the payroll department)
would have their own computer systems. The HR computer system
(often called HRMS or HRIS) would typically contain information
on the department, reporting structure, and personal details
of employees. The payroll department would typically calculate
and store paycheck information. Each system would have to
rely on a set of common data to communicate with each other.
For the HRIS to send salary information to the payroll system,
an employee number would need to be assigned and remain static
between the two systems to accurately identify an employee.
There were complications with these separate systems. For
instance, a person could not be paid in the payroll system
without an employee number.
ERP software, among other things, combined the data of formerly
separate applications. This made the worry of keeping numbers
in synchronization across multiple systems disappear.
Implementing ERP software is typically not an “in-house” skill,
so even smaller projects are more cost effective if specialist
ERP implementation consultants are employed. The length of
time to implement an ERP system depends on the size of the
business and the scope of the change. A small project (e.g.,
a company of less than 100 staff) may be planned and delivered
within 3 months; however, a large, multi-site or multi-country
implementation may take years.
Consulting Services: The consulting team is typically responsible
for your initial ERP implementation and subsequent delivery
of work to tailor the system beyond “go live”.
Typically such tailoring includes additional product training;
creation of process triggers and workflow; specialist advice
to improve how the ERP is used in the business; system optimization;
and assistance writing reports, complex data extracts or
implementing Business Intelligence. The consulting team is
also responsible for planning and jointly testing the implementation.
This is a critical part of the project, and one that is often
Consulting for a large ERP project involves three levels;
systems architecture, business process consulting (primarily
re-engineering) and technical consulting (primarily programming
and tool configuration activity). A systems architect designs
the overall dataflow for the enterprise including the future
dataflow plan. A business consultant studies an organization's
current business processes and matches them to the corresponding
processes in the ERP system, thus 'configuring' the ERP system
to the organization's needs. Technical consulting often involves
programming. Most ERP vendors allow modification of their
software to suit the business needs of their customer.
Customization Services: Customization is the process of extending
or changing how the system works by writing new user interfaces
and underlying application code. Customizing an ERP package
can be very expensive and complicated, because many ERP packages
are not designed to support customization, so most businesses
implement the best practices embedded in the acquired ERP
One often-neglected aspect of customization is the associated
documentation. While it can seem like a considerable and
expensive overhead to the customization project, it is critical
that someone is responsible for the creation and user testing
of the documentation. Without the description on how to use
the customization, the effort is largely wasted as it becomes
difficult to train new staff in the work practice that the
Maintenance and Support Services: Once your system has been
implemented, the consulting company will typically enter
into a Support Agreement to assist your staff to keep the
ERP software running in an optimal way. To minimize additional
costs and provide more realism into the needs of the units
to be affected by ERP (as an added service to customers),
the option of creating a committee headed by the consultant
using participative management approach during the design
state with the client's heads of departments (no substitutes
allowed) to be affected by the changes in ERP's to provide
hands on management control requirements planning. This would
allow direct long-term projections into the client's needs,
thus minimizing future conversion patches (at least for the
1st 5 years operation unless there is a corporate-wide organizational
structural change involving operational systems) on a more
dedicated approach to initial conversion.
Key Benefits :
In the absence of an ERP
system, a large manufacturer may find itself with many
software applications that do not
talk to each other and do not effectively interface.
Tasks that need to interface with one another may involve:
engineering (how to best make the product)
taking from acceptance
cycle from invoice through cash receipt
interdependencies of complex Bill of Materials
the 3-way match
between Purchase orders (what
was ordered), Inventory receipts (what
arrived), and Costing (what the
for all of these tasks, tracking the
Cost and Profit
on a granular level.
Change how a products is made,
in the engineering details, and that is how it will
now be made. Effective dates
can be used to control when the switch over will
occur from an
old version to the next one, both the date that some
ingredients go into effect, and date that some are
of the change can include labeling to identify version
Computer security is included
within an ERP to protect against both outsider crime,
such as industrial
crime, such as embezzlement. ERP security helps
to prevent abuse as well.
Financial and Public
Aerospace & Defense
and Defense Manufacturers
Sales & Service
and Personal Care
Durables & Home Appliances
Apparel & Footwear
Construction & Operations
Medical & Consumer OEMs
Semiconductor & Component Manufacturers
Industrial Machinery & Components
and Mining Equipment
Equipment, Appliances, and
Escalators, and Moving Sidewalks
Turbine, Pump, and Compressor
Industrial Machinery and Equipment
Tools and Metalworking
and Material handling Equipment
and Fluid Control Equipment
and Electronic Measurement Equipment
Paper, Printing, and Packaging Machinery
Device / Scientific Instruments
and Solid Wood
Newspapers & Magazines
Audit, and Tax
and BPO Services
: Delphi Computech, Pune
SAP Promises on: Delivering on the promise of business
integration to help our customers gain Return on Investment,
Foster Growth, Innovation and Value Market Leader- Market
share of 70% in Global Market Share.
Already no. 1 ERP solution in the world.
The software has Worlds Best Business Practices. Large,
stable, well known brand and has maximum re-investment
for product development.
Country specific Taxation ready to use
Solutions : SAP provides a comprehensive
range of enterprise software application and business
to empower every aspect of the business. The organization
gains the visibility to pinpoint inefficiencies- and
the capabilities to transform them into competitive advantage.
Customer Relationship Management
- SAP Product
- SAP Supply
- SAP Supplier
- SAP Service
and Asset Management
- SAP xApps
- SAP xApp
- SAP xApps
for Mobile Business
Solutions for Governance, Risk, and Compliance
- SAP Solutions
for Information Workers
- SAP Solutions
for Performance Management
- SAP Solutions
for Midsize Companies
- SAP All-in-one
opportunities in SAP:
Participate? Key Benefits to Students/Fresh Engineering
Specialized SAP Certified training.
- Understand Business Processes, Integration
points and Controls in SAP.
- Articulate how ERP technology supports
- Increase your marketability to prospective
- Get ready to work in SAP Implementation
opportunities in India & abroad:
Banking, Healthcare, Government and Consultancy.
in companies like IBM, Siemens, Satyam,
Infosys, Capgemini, T-Systems, Cognizant,
and L&T InfoTech……
is biggest IT Human Resource Provider Country
in the World.
has 70% ERP market share across globe.
100,000 Projects expected by the year 2010
50,000 new consultants required to execute
these projects. India's contribution alone
is expected to be around
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