ENTERPRISE
RESOURCE PLANNING
By
Deepak Kumar (1602017)
Surendra Nath Murmu (1602050)
Guided By : Prof.(Dr.) Prakash Kumar
PROJECT OBJECTIVE
To visit industries working on ERP and study
their procedures.
To study the methodologies incorporated in
their process of working on ERP.
To suggest feasible changes to improve
functionality of the system.
WHAT IS ERP?
The practice of consolidating an
enterprise’s planning, manufacturing,
sales and marketing ef forts into one
management system.
Combines all databases across
departments into a single database that
can be accessed by all employees.
ERP automates the tasks involved in
performing a business process.
Sources:
1. http://www.cio.com/summaries/enterprise/erp/index.html
3
EVOLUTION OF ERP
Source: http://www.intelligententerprise.com/020903/514feat2_1.shtml 4
HOW DO ERP SYSTEMS
WORK?
Managers and
Stakeholders
Financial
Applications
Reporting
Human
Sales and Applications
Delivery
Resource
Applications
Management
Applications
Sales Force Central
And Customer Back-office
Customers Service Reps Database Manufacturing
Administrators Suppliers
Applications And Workers
Service
Applications Human
Resource
Management Inventory
Applications And Supply
Applications
Employees
Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”, Harvard
Business Review. 5
ERP COMPONENTS
Finance: modules Manufacturing and
for book keeping Logistics: A group
and making sure of applications for
the bills are paid on planning
time. Examples:
production, taking
General ledger
orders and
Accounts receivable
delivering products
Accounts payable
to the customer.
HR: software for
Examples:
handling personnel-
related tasks for Production planning
corporate managers Materials
and individual management
employees. Order entry and
Examples: processing
HR administration Warehouse
Payroll management
Self-service HR
Source: http://www.computerworld.com/printthis/1998/0,4814,43432,00.html.
6
AN ERP EXAMPLE: BEFORE
ERP
Orders
Parts
Sends report Customer
Demographic
Sales Dept. Files
Customers
Checks for Parts
Calls back “Not in stock”
Accounting “We ordered the parts”
Files
Accounting
Sends report
Invoices
Sends report accounting
Ships parts
Vendor
Warehouse
Order is placed
“We Need parts #XX”
with Vendor
Inventory
Purchasing Files
Files “We ordered the parts”
Purchasing
7
AN ERP EXAMPLE: AFTER ERP
Orders
Parts
Inventory
Data
If no parts,
order is
Sales Dept. placed Accounting
Customers through
DB
Financial Data
exchange;
Books invoice
against PO
Order is submitted
to Purchasing. Database
Purchasing record Books inventory
order in DB against PO
Order is placed
with Vendor
Warehouse
Vendor
Purchasing
Ships parts
And invoices accounting
8
WHY ERP?
3 Major Reasons:
To integrate financial data.
To standardize manufacturing
processes.
To standardize HR information.
Source: http://www.cio.com/summaries/enterprise/erp/index.html.
9
BENEFITS OF ERP SYSTEMS
Improving integration, flexibility
Fewer errors
Improved speed and efficiency
More complete access to information
Lower total costs in the complete
supply chain
Shorten throughput times
Sustained involvement and
commitment of the top management
10
BENEFITS OF ERP
SYSTEMS (CONT’D)
Reduce stock to a minimum
Enlarge product assortment
Improve product quality
Provide more reliable delivery dates
and higher service to the customer
Efficiently coordinate global demand,
supply and production
11
RISKS WITH ERP
IMPLEMENTATION
Expensive (can costs 100 thousands to
millions of dollars)
Time-consuming (can take months to
years)
Great risk for the organization
Transfer of Knowledge
Acceptance with the company
12
IMPROVEMENTS IN OUR
PROJECT
Study of benefits, advantages &
disadvantages of ERP has been completed.
Industries using ERP are found.
Some of the industries using ERP are TATA
Motors, BIG BAZAAR, Hero motocorp, SAIL
Bhilai & CIL.
Among all the industries working on ERP, we
have decided to visit TATA Motors as per our
convenience and study their work on ERP.
