ERP, SAP

1. ENTERPRISE RESOURCE ENTERPRISE RESOURCE
PLANNINGPLANNING
TANIYA BANERJEETANIYA BANERJEE
PRATAP SHEEPRATAP SHEE

2. DEFINATION OF ERPDEFINATION OF ERP
Software solution that addresses the Software solution that addresses the
enterprise needs taking the process view enterprise needs taking the process view
of an organization to meet the of an organization to meet the
organizational goals tightly integrating all organizational goals tightly integrating all
functions of an enterprise.functions of an enterprise.

3. WHAT IS ERP?WHAT IS ERP?
ERP systems are the software tools used to ERP systems are the software tools used to
manage enterprise data.manage enterprise data.
Facilitates Company-wide integrated Information Facilitates Company-wide integrated Information
Systems Covering all functional Areas.Systems Covering all functional Areas.
Performs core corporate activities and increases Performs core corporate activities and increases
customer service augmenting Corporate Image.customer service augmenting Corporate Image.
Organizes & optimizes the data input Organizes & optimizes the data input
methodologies systematicallymethodologies systematically..

4. A Typical Story
Manufacturing
Sales Group
Finance
Corporate office
My growth
will be OK . No?
Human Resource

5. WHAT DOES ERP INTEGRATE?WHAT DOES ERP INTEGRATE?
DatabasesDatabases
ApplicationsApplications
InterfacesInterfaces
ToolsTools

6. Evolution of ERP systemsEvolution of ERP systems
Types of systems TimeTypes of systems Time
 Reorder point 1960sReorder point 1960s
 Material requirement 1970sMaterial requirement 1970s
planning (MRP)planning (MRP)
 Manufacturing resource 1980sManufacturing resource 1980s
planning (MRP-planning (MRP-II )II )
 Enterprise resource 1990s and Enterprise resource 1990s and
planning (ERP) onwardsplanning (ERP) onwards

7. Why ERP ?

8. Why ERP?Why ERP?
 BusinessBusiness
Customer satisfactionCustomer satisfaction
Business Development- new areas, products, servicesBusiness Development- new areas, products, services
Ability to face competitionAbility to face competition
Efficient processes required to push the company to top gearEfficient processes required to push the company to top gear
 ITIT
Present software does not meet business needsPresent software does not meet business needs
Obsolete hardware/ software difficult to maintainObsolete hardware/ software difficult to maintain

9. ERP Implementation ERP Implementation

10. ERP Implementation phasesERP Implementation phases
1.1.Project PlanningProject Planning
2.2.Gap AnalysisGap Analysis
3.3.Business Process Re-engineering (BPR)Business Process Re-engineering (BPR)
4.4.ConfigurationConfiguration
5.5.Project Team TrainingProject Team Training
6.6.TestingTesting
7.7.End User Training End User Training
8.8.Going liveGoing live
9.9.Post-ImplementationPost-Implementation

11. 1.1. Project Planning Project Planning
Designs the implementation processDesigns the implementation process
Project plan is developed. Roles are Project plan is developed. Roles are
identified and responsibilities are identified and responsibilities are
assigned.assigned.
This phase will decide when to begin the This phase will decide when to begin the
project, how to do it and when the project project, how to do it and when the project
is supposed to be completed.is supposed to be completed.

12. 2.2. Gap Analysis Gap Analysis
The gap between the existing company requirements and The gap between the existing company requirements and
what the ERP package is offering is analyzed.what the ERP package is offering is analyzed.
When the ERP package does not meet the company’s full When the ERP package does not meet the company’s full
requirements then the company can simply agree to live requirements then the company can simply agree to live
without a particular function or one can opt for :-without a particular function or one can opt for :-
a) Upgrade, ora) Upgrade, or
b) Identifying a third party product that might fill b) Identifying a third party product that might fill
the gap, orthe gap, or
c) Altering the ERP source code.c) Altering the ERP source code.

13. 4.4. Configuration Configuration
A prototype of the actual business A prototype of the actual business
processes of the company is used for processes of the company is used for
thorough testing of the model in a thorough testing of the model in a
controlled environment.controlled environment.
Configuring reveals not only the strengths Configuring reveals not only the strengths
of a company’s business process but also- of a company’s business process but also-
and perhaps more importantly - its and perhaps more importantly - its
weaknesses.weaknesses.

14. 3.3.Business Process Reengineering Business Process Reengineering
In-depth study of existing systems/processes is In-depth study of existing systems/processes is
required before ERP is considered.required before ERP is considered.
This study brings out deficiencies of the existing This study brings out deficiencies of the existing
system/process.system/process.
BPR attempts to re-structure and re-organize the BPR attempts to re-structure and re-organize the
human resources, functional areas, Man-human resources, functional areas, Man-
Machine interfaces in the organization.Machine interfaces in the organization.
Hence BPR attempts to maximize productivityHence BPR attempts to maximize productivity

15. 5. 5. Implementation Team TrainingImplementation Team Training
This is the phase where the company This is the phase where the company
trains its employees to implement and trains its employees to implement and
later, run the system.later, run the system.
After implementation, the company to be After implementation, the company to be
self-sufficient in running the ERP system, self-sufficient in running the ERP system,
it should have a good in-house team that it should have a good in-house team that
can handle the various situations.can handle the various situations.

16. 6. 6. Testing Testing
This is the phase where one try to break This is the phase where one try to break
the system.the system.
The test cases must be designed The test cases must be designed
specifically to find the weak links in the specifically to find the weak links in the
system and these bugs should be fixed system and these bugs should be fixed
before going live.before going live.

17. 7. 7. End-user TrainingEnd-user Training
In this phase the actual users of the In this phase the actual users of the
system will be given training on how to system will be given training on how to
use the system.use the system.
The employees who are going to use the The employees who are going to use the
new system are identified. Their current new system are identified. Their current
skills are noted and based on the current skills are noted and based on the current
skill levels, they are divided into groups. skill levels, they are divided into groups.
Then each group is given training on the Then each group is given training on the
new system.new system.

18. 8. 8. Going liveGoing live
The system is officially proclaimed The system is officially proclaimed
operational.operational.
Once the system is ‘live’, the old system is Once the system is ‘live’, the old system is
removed, and the new system is used for removed, and the new system is used for
doing business.doing business.

19. 9. 9. Post implementation phasePost implementation phase
There should be people, within the There should be people, within the
company, who have the technical prowess company, who have the technical prowess
to make the necessary enhancements to to make the necessary enhancements to
the system as and when required. The the system as and when required. The
system must be upgraded as and when system must be upgraded as and when
new versions or new technologies are new versions or new technologies are
introduced.introduced.

20. Advantages Of ERP

21. BENEFITS OF ERPBENEFITS OF ERP
Reduction of lead timeReduction of lead time
Reduction in cycle timeReduction in cycle time
Improve resource utilizationImprove resource utilization
Better customer satisfactionBetter customer satisfaction
Improved supplier performanceImproved supplier performance
Increase flexibilityIncrease flexibility
Reduced quality costsReduced quality costs
On time deliveryOn time delivery
Better analysis and planning capabilitiesBetter analysis and planning capabilities

22. DISADVANTAGES OF ERPDISADVANTAGES OF ERP
Cost is very high for implementation of ERP Cost is very high for implementation of ERP
packagepackage
TimeTime
12-18 months implementation12-18 months implementation
1-3 years real transformation1-3 years real transformation
TrainingTraining
AcceptanceAcceptance
Everyone gets brought down to the same Everyone gets brought down to the same

knowledge level knowledge level

23. HOW ERP HAS AFFECTED HOW ERP HAS AFFECTED
CONSUMERS?CONSUMERS?
Consumers demands are met by faster Consumers demands are met by faster
order to shipping datesorder to shipping dates
Tracking information on orders is available Tracking information on orders is available
to consumersto consumers
Consumers can easily view inventory, Consumers can easily view inventory,
sale prices, delivery dates from the sale prices, delivery dates from the
company web pagecompany web page
Painless electronic transactionsPainless electronic transactions

24. ERP VENDORSERP VENDORS
Application

25. SAPSAP
SAP is an ERP (Enterprise Resource Planning) SAP is an ERP (Enterprise Resource Planning)
system system
SAP = Systems, Applications and Products in SAP = Systems, Applications and Products in
Data Processing Data Processing
German Based Company German Based Company
One of Largest Independent Software Vendor in One of Largest Independent Software Vendor in
the Worldthe World
ERP Market Leader (SAP R/3 and mySAP ERP)ERP Market Leader (SAP R/3 and mySAP ERP)
80% Fortune 500 Companies Use SAP80% Fortune 500 Companies Use SAP
Over 18,500 Customers in 120+ CountriesOver 18,500 Customers in 120+ Countries
Over 12 million usersOver 12 million users

26. SAP application modulesSAP application modules
1.1.Financial AccountingFinancial Accounting – collects all the data in – collects all the data in
the company relevant to accounting.the company relevant to accounting.
2.2.Asset ManagementAsset Management – manage and supervise – manage and supervise
individual aspects of fixed assets.individual aspects of fixed assets.
3.3.ControllingControlling – coordinating the contents and – coordinating the contents and
procedures of a company’s internal processes.procedures of a company’s internal processes.
4.4.Production PlanningProduction Planning – plan and control – plan and control
manufacturing activities.manufacturing activities.
5.5.Materials ManagementMaterials Management – supports the – supports the
procurement and inventory functions occurring procurement and inventory functions occurring
in day-to-day business operations.in day-to-day business operations.

27. SAP Application Modules SAP Application Modules
1.1.Plant Maintenance and Service Management Plant Maintenance and Service Management – provides – provides
planning, control and processing of scheduled planning, control and processing of scheduled
maintenance and to ensure availability of operational maintenance and to ensure availability of operational
systems.systems.
2.2.Quality ManagementQuality Management – monitors and manages all – monitors and manages all
processes relevant to quality assurance along the entire processes relevant to quality assurance along the entire
supply chain.supply chain.
3.3.Project SystemProject System – designed to support planning, control – designed to support planning, control
and monitoring of long term highly projects with defined and monitoring of long term highly projects with defined
goal.goal.
4.4.Sales and DistributionSales and Distribution – optimize all the activities carried – optimize all the activities carried
out in sales and distribution.out in sales and distribution.
5.5.Human Resource ManagementHuman Resource Management – planning and managing – planning and managing
company’s human resource.company’s human resource.

28. System Wide Features of SAPSystem Wide Features of SAP
1.1.CustomizingCustomizing – it is the configuring of the system to represent – it is the configuring of the system to represent
organization’s legal structure, reporting requirement and organization’s legal structure, reporting requirement and
business processes.business processes.
2.2.Organizational elementOrganizational element – –
* Financial* Financial
* Materials mgmt* Materials mgmt
* Sales & distribution* Sales & distribution
6.6.Master dataMaster data – it is records that remain in the database over – it is records that remain in the database over
an extended period of time.an extended period of time.
7.7.Employee Self ServiceEmployee Self Service
8.8.ClassificationClassification
9.9.Match codesMatch codes
10.10.SecuritySecurity

29. CONCLUSIONCONCLUSION
ERP integrate all aspects of a company into one ERP integrate all aspects of a company into one
solution.solution.
There are both Pros and Cons, depending on There are both Pros and Cons, depending on
the company one will out weigh the other.the company one will out weigh the other.
ERP is very time consuming and costly project.ERP is very time consuming and costly project.
SAP is the major key vendor, with maximum SAP is the major key vendor, with maximum
market share.market share.
ERP has a strong future and will continue to ERP has a strong future and will continue to
grow.grow.

30. Thank YouThank You