WHAT IS ERP ?
EVOLUTION OF ERP
ERP SOFTWARE PACKAGES
ADVANTAGES OF ERP
THE WHOLE BUSINESS VENTURE
RESOURCES OF AN ENTERPRISE –
MANUFACTURING AND LOGISTICS
SALES AND DISTRIBUTION
MORE RECENTLY USED BUSINESS
Manufacturing Warehouse Marketing
Integrates all departments and the functions
across organization onto a single system (and
Facilitates the development of common
Facilitates agreement on common data
ERP systems are a suite of software
applications that have revolutionized the way
enterprises do business.
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.
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
Tactical – Within function integration –
relationship between modules
Sales and Distribution Production Planning Materials Management
Demand management Direct requisition
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
Shipping, - Confirmation Quality Management
billing, transport Shop floor control Lot inspection
Capacity leveling Process charting
Project system Emergency
What is ERP?
Human Resource Student Systems
Management System (Admissions,
(HRMS) Registration, etc.)
Asset Management ONE State Accounting
(Property Records) INTEGRATED Systems
(SAMAS / FLAIR)
Purchasing State Payroll
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
ERP-Integrated across the organization
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.
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?
2-Oct-12 do we have to get?
Planning - MRP
Records Inventory Exception
Manufacturing Resource Planning(MRP II)
MRP II is MRP with the addition of “Business
and the integration of production with finance ,marketing,
Advantages of MRP II over MRP:-
Less risk of inventory shrinkage.
Better financial planning.
Better customer service.
More effective management.
Item Data Rough -cut Capacity
Bills of Inventory
Material Requirements Records
Capacity Requirements Purchase
Work Planning Order Files
Shop Floor Control Purchasing System
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
The database stores the information from the
application process . www.fakengineer.com
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.
TWO - TIER CLIENT /SERVER :--
SQL , File Server,
User desktop Database server
Client software Application software
Present Application Application Database
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.
Three-Tier or N-Tier Client/Server
Client software Database server
browser Java applets Database
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
End-to-End Network Infrastructure for Supporting ERP
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
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
Typical Data Center Solution
Figure 8: Typical Data Center Solution
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
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.
ERP SOFTWARE PACKAGE:-
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-
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."
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
– Product sub-modules
– Campus Community
– Campus Directory Interface
– Community Access
– Community Directory
– Enrollment Services
– Student Financial Services
What People Soft does?
Reduce costs in maintaining several independent IT solutions
Centralize and standardize data to save hours in the collection of
Provide senior leadership with greater institutional research
Provide data for making curriculum and program changes
Modernize a variety of administrative functions that improves
•Pepole soft incorporates
Enrollment—catalogue, schedule of classes, online
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.
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
What Motivates Companies to Deploy ERP Systems?
Disadvantages of ERP Systems
High cost of the software itself,
consultants, employee time, and
Requires significant changes in
corporate culture and business
Complex and extended undertaking
that can fail and waste millions of
Extensive reliance on the ERP vendor
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
This will help ensure that the ERP system meets
expectations of both the business managers and the