seminar8 erp

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					2-Oct-12   www.fakengineer.com
           CONTENTS
           INTRODUCTION
           WHAT IS ERP ?
           EVOLUTION OF ERP
           ERP ARCHITECTURE
           ERP SOFTWARE PACKAGES
           ADVANTAGES OF ERP
           DISADVANTAGES ERP
           CONCLUSION
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2-Oct-12
ENTERPRISE –
       THE WHOLE BUSINESS VENTURE

RESOURCES OF AN ENTERPRISE –
   FINANCIAL APPLICATION
       HUMAN RESOURCES
       MANUFACTURING AND LOGISTICS
       SALES AND DISTRIBUTION
       MORE RECENTLY USED BUSINESS
   FUNCTIONS

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                                  Sales
  Finance




                                           Logistics
                HR




Manufacturing            Warehouse             Marketing




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Integrates all departments and the functions
across organization onto a single system (and
database)
Facilitates the development of common
processes
Facilitates agreement on common data

ERP systems are a suite of software
applications that have revolutionized the way
enterprises do business.
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                                          (CONT..)

They support the reengineering of business
processes in all areas of activity, including
manufacturing, human resources, finance,
accounting, and sales.

ERP applications automate and integrate business
processes across departments and functions

 They allow information to flow seamlessly from one
end of the company to the other and provide a single
unified business environment.

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Cross Functional Integration
 ERP system can be configured so that
  when a new customer order is created the
  following actions are “triggered”:
  Production schedule is updated
  Shipping schedule updated
  Any needed parts are ordered
  Update online sales reports to reflect order

 Without ERP these 4 actions would have to be
 performed by employees in 4 different
 departments, perhaps using 4 different information
 systems.
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  Tactical – Within function integration –
  relationship between modules
Sales and Distribution   Production Planning     Materials Management
                            Demand management     Direct requisition
Sales planning
Profit planning             Master planning       Purchasing
SOP                                               Inventory management
                            Rough-cut capacity    Goods receipt
Planned requirements        planning
Forecasts                                         Material valuation
                            MRP/Planned orders    Invoice verification
Customer order              Order                 Warehouse management
processing                  - Creation
                            - Release
Shipping,                   - Confirmation       Quality Management
billing, transport          Shop floor control     Lot inspection
                             Capacity leveling     Process charting
                             Process planning
                                                 Preventive Maintenance
                                                 Planned repair
                         Project system          Emergency
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                     What is ERP?
        Human Resource                         Student Systems
       Management System                         (Admissions,
           (HRMS)                               Registration, etc.)



Asset Management             ONE                     State Accounting
(Property Records)       INTEGRATED                       Systems
                                                    (SAMAS / FLAIR)
                           SYSTEM !

            Purchasing                          State Payroll
              System                              Systems
            (GREETS)                              (BOSP)



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   EVOLUTION OF ERP:-
  MRP was developed in the 1970’s.
     -- Calculate what materials are needed?
      --Failed to consider capacity, space,
         capital and cost.
 MRP II added some MRP missing
 elements

 ERP-Integrated across the organization
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Material Requirements Planning (MRP)
 Computer-based information system that schedules and
        orders inventory components.
 Uses the master production schedule, bills of materials,
     and inventory records as inputs.
 Outputs recommendations:
      When to release new orders
      When to reschedule open orders
MRP responds to the following equation:-
      What are we going to make?
       What does it take to make it?
       What have we got?
       What
   2-Oct-12 do we have to get?
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      General
                  MRP
       Item
       Data


                   Production Schedule
       Bills of
       Material

                   Material Requirements
                     Planning - MRP


      Inventory
       Records     Inventory            Exception
                    Transa-             messages
                     ction


                                 Planning
                                  reports

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Manufacturing Resource Planning(MRP II)
 MRP II is MRP with the addition of “Business
 Planning”
 and the integration of production with finance ,marketing,
 engineering.

Advantages of MRP II over MRP:-
             Less risk of inventory shrinkage.
             Better financial planning.
             Reduced overtime.
             Better customer service.
             More effective management.
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                  MRP II
                     Business Plan


                    Production Plan
      General
     Item Data                             Rough -cut Capacity
                                               Analysis
                   Master Production
                       Schedule

       Bills of                                    Inventory
                  Material Requirements             Records
       Mate-            Planning
         rial

                  Capacity Requirements            Purchase
       Work             Planning                  Order Files
      Center &
      Routing
       Files
                                      NO
                          ??
                      YES

                   Shop Floor Control      Purchasing System
                                             Vendor Quotes
                                            P.O. Processing
                                               Receiving
                                            Vendor Analysis
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 ERP ARCHITECTUTRES
 ERP systems today use client/server architectures operating
  in two-tier, three-tier , or n-tier systems.
The tiers describe the logical partitioning of the presentation,
  application, and database layer for communicating between
a server and a client .
 The presentation component provides the display and user
       interaction to the application.
 The application component performs the application
      routines.
 The database stores the information from the
 application process . www.fakengineer.com
    2-Oct-12
TWO-TIER CLIENT/SERVER ARCHITECTURE

 In two-tier architecture application processing is split
 into two parts between the client workstation and the
 server. The client runs the presentation and the majority
 of the application logic. The server stores the information
 on a database and also runs some application logic. This
 is often referred to as "fat client" architecture.

 Simplicity and ease of development for smaller projects
 is the biggest advantage of the two-tier client/server
 model, suiting it well for departmental applications.

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TWO - TIER CLIENT /SERVER :--

                   SQL , File Server,
                   HTTP Protocols



 User desktop                        Database server

 Client software                     Application software
                                     & Database

Present   Application              Application Database
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THREE-TIER CLIENT/SERVER ARCHITECTURE
ERP applications today, in general, are implemented in a three-tier or n-tier
client/server model. In this environment, the presentation, application, and the
database can all reside on separate computers for greater scalability,
improved operations, and support for multiple platforms.

The three-tier architecture offers increased performance and reduced network
traffic, since most of the database inquiries are kept local to the data center,
and only presentation traffic flows across the enterprise-wide network.
The three-tier architecture also provides support for a variety of user
interfaces by separating the user interface from the application logic. This also
supports better interapplication integration.


The latest sets of ERP applications are Web-enabled, providing simple
Hypertext Transfer Protocol (HTTP) or Java connectivity to the application
servers. In this instance, users connect to an application server that acts as a
middle tier between the database and the user's device. Web-enabling these
applications simplifies user access and reduces the system cost because it's
easier to install, has fewer support and training issues, and enables easier
access over the Internet.
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Three-Tier or N-Tier Client/Server
               HTTP ,RPC
                  IIOP                  SQL

                       Application servers
                       HTTP Listeners
User desktop
                       Application Logic
Client software                              Database server
browser Java applets                           Database

 PRESENTATION         APPLICATION
                    www.fakengineer.com         DATABASE
   2-Oct-12
NETWORK INFRASTRUCTURE
The network infrastructure is a key success factor to the successful
delivery of mission-critical ERP applications. Problems resulting from not
having the right infrastructure can include late system delivery, poor
system performance, or unacceptable downtime at a time when users and
management tend to have the highest expectations.
The supporting network infrastructure can be described
in terms of five areas of connectivity which are:
•The data center, where the central ERP application and
database servers reside
•The campus network, which provides the connectivity to all
end-users within the campus
•WAN connectivity for connectivity to remote offices
•Telecommuter and mobile user connection over switched
Public Switched Telephone Network (PSTN) or Integrated
Services Digital Network (ISDN) networks, or, more recently, or
cable modem connections
•Internet connectivity for providing extensive access for
employees, customers, suppliers, and partners
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End-to-End Network Infrastructure for Supporting ERP




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  Data Center Network Solutions:-
ERP systems represent a centralization of business-critical
enterprise processes, and the data center lies at the heart of the ERP
system.
Lack of efficient access to the application and database servers
inevitably results in lost revenue and productivity, and, often worse, in
lost customer loyalty.
It is normally recommended to collocate the application and
database servers in the same data center and to connect these servers
via a high-speed and scalable network.
Co-location of the database and application servers also allows
for an isolated and more easily monitored and protected
environment, where network performance, availability, and
security can all be administered and supported in a controlled
manner
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Typical Data Center Solution


           Figure 8: Typical Data Center Solution




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ERP SOFTWARE PACKAGE:-
SAP (Systems, Applications, and Products in Data
Processing) is the leading ERP software package.
 Prior to the proliferation of SAP, most companies
 supported a full staff of program developers who wrote
 their necessary business applications to pass data back
 and forth as necessary to complete any full cycle
 business transaction.
  This process was extremely costly, time-
  consuming, and error prone. It also made it very
  difficult for business managers and executives to
  get a timely, comprehensive view of how their
  business was doing at any given time.
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ERP SOFTWARE PACKAGE:-
                                       (cont.)
 SAP was the first and, to date, the most successful company to
 integrate nearly all business processes into one software solution
 for use in any business in any country in the world.
SAP's applications reduce the need for complex and redundant in-
house development.
SAP also created new business efficiencies by automating
many tasks across a corporation and incorporating business'
best practices into each updated version of its software.

SAP applications thus provide an environment where
"transactions are synchronized throughout the entire systems,
meaning a sales-order entry triggers action's within each
application that relates and is relevant to the transaction."
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PeopleSoft -SAP’s most significant competitor
PeopleSoft's Student Administration Module is a Commercial Off The Shelf
(COTS) Enterprise Resource Planning (ERP) software suite designed to facilitate
the back and front office operations of higher learning Institutions.
  A module of the PeopleSoft ERP suite
      – Database management system
      – Internet based—with self service options for students, faculty and
        staff
      – Product sub-modules


  Product sub-modules
      –   Campus Community
      –   Campus Directory Interface
      –   Community Access
      –   Community Directory
      –   Enrollment Services
      –   Student Financial Services
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What People Soft does?
Reduce costs in maintaining several independent IT solutions

Centralize and standardize data to save hours in the collection of
data .

Provide senior leadership with greater institutional research
options

Provide data for making curriculum and program changes

Modernize a variety of administrative functions that improves
overall efficiency

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    •Pepole soft incorporates
            Data collection
          Admissions
          Enrollment—catalogue, schedule of classes, online
          registration.
          Student Records—grading, transcripts, diploma certificates

  to standardize business processes and maximize user productivity.

• In addition, there is a capability to create workflows to help train users and to
help     manage important processes in the educational institution.
  As an example, one can create an automated workflow to facilitate the receipt,
review, and approval of student applications. Another example would be an
automated workflow to prepare for graduation.

• Lastly, PS has a robust report and query capability.


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Aadvantages of ERP Systems
    No data redundancy, which virtually
    eliminates inconsistencies in data
   Online data validation, which results in data
    being relatively error-free
   Cross-functional integration, which facilitates
    streamlined and automated procedures that
    span functional areas
   Ability to perform cross-functional queries to
    answer enterprise wide questions
   Ability to generate real-time reports
   Ability to “drill down” to view details of
    summary reports
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What Motivates Companies to Deploy ERP Systems?




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Disadvantages of ERP Systems

    High cost of the software itself,
    consultants, employee time, and
    training
    Requires significant changes in
    corporate culture and business
    processes.
    Complex and extended undertaking
    that can fail and waste millions of
    dollars.
    Extensive reliance on the ERP vendor
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 Conclusion
 In summary, ERP systems make tremendous demands
of an IT organization's network infrastructure.

 In order to ensure the success of these business-critical
applications, it's crucial that the networking group is
involved at an early enough stage, so that they can plan
the deployment of a scalable and intelligent
infrastructure.

 This will help ensure that the ERP system meets
expectations of both the business managers and the
users.
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posted:10/2/2012
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