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ERP Enterprise Resource Planing

ERP systems integrate internal and external management information across an entire organization, including finance, manufacturing, sales, and customer relationship management. Their purpose is to facilitate information flow between business functions and outside stakeholders. ERP provides a centralized database with uniform access to resources to manage accounting and business operations, lower costs, and improve planning, inventory, and customer service. Potential benefits include increased productivity, timely decision support, and global integration. However, customization can be difficult and costly, and implementation requires significant training and risks project failure.

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Alejandro David Lopez Vega
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28 views

ERP Enterprise Resource Planing

ERP systems integrate internal and external management information across an entire organization, including finance, manufacturing, sales, and customer relationship management. Their purpose is to facilitate information flow between business functions and outside stakeholders. ERP provides a centralized database with uniform access to resources to manage accounting and business operations, lower costs, and improve planning, inventory, and customer service. Potential benefits include increased productivity, timely decision support, and global integration. However, customization can be difficult and costly, and implementation requires significant training and risks project failure.

Uploaded by

Alejandro David Lopez Vega
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ERP

Enterprise Resource Planing


What is ERP??
• ERP or enterprise resource planning
software offers a broad suite of software
functionalities designed to manage
accounting as well as the business's
operational tasks.
• Centralize the data,
• Provide uniform access to resources
across the enterprise, and lower operating
costs by preventing data re-entry.
What is ERP?
• Enterprise resource planning (ERP) systems
integrate internal and external
management information across an entire
organization, embracing:
– Finance/accounting,
– manufacturing,
– sales and service,
– customer relationship management, etc.
What is ERP?
• Their purpose is to facilitate the flow of
information between all business functions
inside the boundaries of the organization
and manage the connections to outside
stockholders. 
Enterprise resource planning

https://www.youtube.com/watch?v=6qys-562kp4
What is ERP?
• Employees, customers and partners are
provided with access to information across
the entire enterprise value chain.
Enterprise value chain

https://www.youtube.com/watch?v=g8p2H7EvoGM
Characteristics of ERP Systems
• An integrated system that operates in real time,
without relying on periodic updates.
• A common database, which supports all
applications.
• A consistent look and feel throughout each module.
Benefits of ERP Systems
· Increased operational effectiveness & productivity
· Timely and targeted information feedback system for decision
support
· Efficient inventory management
· Improved Planning
· Improved customer service
ERP Modules
Manufacturing
Material
Quality Control
Management
Nova-LIMS

Central
Database

Purchase Sales

Finance
Advantages Of ERP
• Integrated processes by which businesses operate saves time
and expense.
• Decisions can be made more quickly and with fewer errors.
• Data becomes visible across the organization. Tasks that
benefit from this integration.
• Sales forecasting, which allows inventory optimization
• Chronological history of every transaction through relevant
data compilation in every area of operation.
• Order tracking, from acceptance through fulfillment
• Matching:
– Purchase orders (what was ordered),
– Inventory receipts (what arrived), and
– Costing (what the vendor invoiced)
Advantages Of ERP
• Eliminate the need to synchronize changes between
multiple systems.
• Bring legitimacy and transparency in each bit of statistical
data.
• Enable standard product naming/coding.
• Provide a comprehensive enterprise view (no "islands of
information").
Advantages Of ERP
• Make real–time information available to
management anywhere, any time to make
proper decisions.
• They protect sensitive data by consolidating
multiple security systems into a single structure
Advantages Of ERP
• Allows easier global integration:
– Currency exchange rates,
– Language, and
– culture
• Updates only need to be done once to be implemented
company-wide
• Provides real-time information, reducing the possibility
of reoccurring errors
• May create a more efficient work environment for
employees
Disadvantages
• Customization is problematic.
• Re–engineering business processes to fit the
ERP system may damage competitiveness
and/or divert focus from other critical
activities
• ERP can cost more than less integrated and/or
less comprehensive solutions.
Disadvantages
• Overcoming resistance to sharing sensitive
information between departments can
divert management attention.

• Integration of truly independent businesses


can create unnecessary dependencies.
Disadvantages
• Extensive training requirements take
resources from daily operations.
• Inflexibility - vendor packages may not
fit a company's business model well and
customization can be expensive
• Return on Investment may take too
long to be profitable
• Implementations have a risk of project
failure.

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