ERP (Enterprise Resource Planning)

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What Is ERP (Introduction of erp)





Various ERP Defination

MY ERP PRACTCAL SCREEN SHORT

ERP MODULE'S LIST


FINANCE MODULE

Hiii Friend's Here I want to discuss topic related to erp practically no to much theoretically.

-> WHY NEED THE ERP?

The problem with the existing system was that everything was that was being done manually. Each single activity was taking a lot of time and manpower. There was no co-ordination among the departments located at different places. So it was needed to develop software which overcomes these limitations and integrates all the departments together to achieve efficiency. The manual system does not have or does not maintain a stock on various processes, day to day inventory related transaction, preparing payroll and give effect to financial accounts.

->Simple Block diagram of ERP.

->Detailed ERP Diagram



->If you have any Query related to this then ask me on ketan_erp@yahoo.com.I try my best.


Now let's Discuss In detail on ERP.

Introduction to ERP :-

->Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.
The term ERP originally implied systems designed to plan the use of enterprise-wide resources. Although the acronym 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. Business, non-profit organizations, non governmental organizations, governments, and other large entities utilize ERP systems.


->Additionally, it may be noted that to be considered an ERP system, a software package generally would only need to provide functionality in a single package that would normally be covered by two or more systems. Technically, a software package that provides both payroll and accounting functions would be considered an ERP software package.
However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates 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/or greater reporting capabilities (as all data is typically kept in one database).

Various Erp Defination

Ø-> Enterprise Resource Planning covers the technique and concepts employed for the integrated management of business as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise.

-> ERP packages are integrated software packages that support the above ERP concepts.

Ø-> (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ERP modules may be able to interface with an organization's own software with varying degrees of effort, and, depending on the software, ERP modules may be alterable via the vendor's proprietary tools as well as proprietary or standard programming languages.


->ØAn ERP system can include software for manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation and human resources. The major ERP vendors are SAP, PeopleSoft, Oracle, Baan and J.D. Edwards. Lawson Software specializes in back-end processing that integrates with another vendor's manufacturing system. See CRM, sales force automation, supply chain management etc..

Limitation:-

Many problems organizations have with ERP systems are due to inadequate investment in ongoing training for involved personnel, including those implementing and testing changes, as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and how it is used.

Limitations of ERP include:

• Success depends on the skill and experience of the workforce, including training about how to make the system work correctly. Many companies cut costs by cutting training budgets. Privately owned small enterprises are often undercapitalized, meaning their ERP system is often operated by personnel with inadequate education in ERP in general, such as APICS foundations, and in the particular ERP vendor package being used.
• Personnel turnover; companies can employ new managers lacking education in the company's ERP system, proposing changes in business practices that are out of synchronization with the best utilization of the company's selected ERP.
• Customization of the ERP software is limited. Some customization may involve changing of the ERP software structure which is usually not allowed.
• Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage.
• ERP systems can be very expensive to install.
• ERP vendors can charge sums of money for annual license renewal that is unrelated to the size of the company using the ERP or its profitability.
• Technical support personnel often give replies to callers that are inappropriate for the caller's corporate structure. Computer security concerns arise, for example when telling a non-programmer how to change a database on the fly, at a company that requires an audit trail of changes so as to meet some regulatory standards.
• ERPs 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.
• Systems can be difficult to use.
• The system can suffer from the "weakest link" problem—an inefficiency in one department or at one of the partners may affect other participants.
• Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, then over time "dirty data" will reduce the reliability of some applications.
• Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level).
• The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale.
• Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.
• There are frequent compatibility problems with the various legacy systems of the partners.
• The system may be over-engineered relative to the actual needs of the customer.

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