ERP by zhouwenjuan


                  Enterprise Resource Planning

    Group 3          Presented by:
    IST110L          Patrick Hanley (Group Leader)
  Mr. Curt Day       Sharin Crivellaro
4 December 2007      Bernard Medina
                     Erica Smith
                     Tony Zogheib
Origin of ERP

   Concept developed by the manufacturing industry in
   The first software developed was called MRP
    (Material Resource Planning)
   The first version of the software did not actually
    become available until 1975
Origin of ERP

   Eventually MRP would evolve into ERP,
      benefiting all industries, not just manufacturing

   ERP gradually became multifaceted software
    encompassing many areas of business management
ERP Model

ERP utilizes the concept of Best Practices…

Best Practices: The idea that a desired outcome can be
reached with the fewest problems and errors with
extensive testing, checks and processes.
ERP Model

The Before and After of ERP:

“Before” -- each function is supported by multiple
  applications and interfaces

“After” -- each function is supported by a single application
  module within the ERP system itself, and all
  applications leverage a common, authoritative data
ERP Model and the
Object-Process Methodology

Object-Process modeling methodology is used to generate
a detailed ERP system model.

Object process methodology helps to synchronize the
ERP system to the organization (or enterprise).

It is an algorithm that compares like things between the
ERP system and the enterprise and calculates and forms
a compatible algorithm between the two.
Parts of the ERP Database
ERP covers a broad range of activities that are supported
by a multi-module software application.
The different modules allow the business to manage the
many parts of the business.
Some examples of modules:
Planning                      Sales
Inventory                     Marketing
Parts Purchasing              Distribution
Maintenance                   Accounting
Manufacturing                 Finance
                              Human Resources
Parts of the ERP Database

To allow for the integration of these varying modules,
ERP will typically use a relational database.
    ERP deployment will often involve considerable
      analysis of business processes, as well as
      employee retraining and the establishment of new
     Parts of the ERP Database
7 Sectors of an ideal ERP system:

1.   Manufacturing: Examples are engineering, quality control
2.   Financial: Accounts, money management, etc.
3.   Human Resources: Attendance, payroll, benefits, etc.
4.   Supply Chain Management: Inventory, purchasing, order entry, etc.
5.   Projects: Costing, billing
6.   Customer Relationship Management: Call center report, Sales, Market
7.   Data Warehouse: Accessible by workers, managers and customers,
     like an online store
 Maintenance & Support

Key points of maintenance and support of ERP:
CMMS (Computerized maintenance management systems)
    CMMS handle vast quantities of data and are creating
     new opportunities for maintenance.
Maintenance & Support
CMMS benefits:

 Resource control: tighter control of resources
 Cost management: better cost management and
 Scheduling: ability to schedule fast moving workloads
 Integration: better integration with other business
 Reduction of breakdowns: improved reliability of
  physical assets through the application of an effective
  maintenance program
Advantage of ERP
Interface capability

A business without an ERP system may have many
software applications that do not connect and interface

Tasks that need to interface with one another:
 design engineering
 order tracking from acceptance through fulfillment
 tracking the 3-way match between purchase orders,
   inventory receipts, and costing
Advantage of ERP
ERP allows different business areas and employees within
an organization to instantly access and utilize data
 Great advantage for global companies

 Expense reporting done online in various foreign
 Employees are able to view payroll statements and
  make medical benefit selections themselves online
 Employees can search for information about others in
  the organization, such as department and contact
  information, even view their photos online.
Disadvantage of ERP

Training issues

Insufficient levels of investment in ongoing training for all
personnel involved
    Personnel must be properly trained in order for
      system to be utilized effectively
Disadvantage of ERP
Some limitations of ERP:
 ERP systems can be very expensive to install
 Systems can be difficult to use
 System may be over-engineered relative to
  actual customer needs
 System can suffer due to a “weaker link”
    A problem with one department in the
   system can effect the others connected
 Customization capability is limited
    Customization is required to change the
   software, but changing ERP software is
   usually not recommended.
Companies & organizations
that utilize ERP

Any type of organization can use some type of ERP
system, if resources allow.

   These companies tend be medium to large size.

US Army/US Navy            Automotive Industry
GKN Aerospace              Pharmaceutical Companies
IBM                        Hospitals
Companies & organizations
that utilize ERP
Nuffield Hospitals, located in the UK
 40 hospitals
 Recently began rolling out enterprise resource planning and
  document management software
    installing the software at two or three hospitals at a time
    protecting profit margins by increasing operational efficiencies
          creating a central procurement function for the entire group
          establishing a shared services center for certain functions,
           such as finance and HR

£4m invested – expected to be recouped within 3 years
of improved efficiency
Choosing an ERP Provider
A difficult and time-consuming process, although vital to
success of the project

A business must assess the user’s needs and identify the
expectations for the system before starting the search for
a provider.

   There are many providers
   Providers may specialize in particular areas
   Must choose provider that sufficiently meets all
    needs of the user at best cost, from start to completion
    of the project
Choosing an ERP Provider
SAP                       Great Plains           AremisSoft Corp.
Oracle                    Ross Systems           ProfitKey International
PeopleSoft                SCT                    Solomon Software
invensys                  Cincom                 Macola
ABB Automation            Computer Associates    Made2Manage
i2                        GEAC                   Visibility
SSA Global Technologies   Sage                   PowerCerv
Intentia International    Navison                Clarus Corp
Epicor                    Scala                  Friedman Corp
Lawson Software           Deltek                 ROI Systems
QAD                       Fourthshift            Ramco
IFS                       Lilly Software         Intuitive Manufacturing
Mapics                    Flexi Int'l            Ceecom, Inc.
Mincom                    Glovia International   Technology Group
American Software         Syspro Group              International
Enterprise Resource Planning

          Thank you!
  Works Cited
"Before & After ERP." 03/06/2006. 21 Nov 2007 <>.
“Definitions.” Computerweekly. 2007. Reed Business Information. 30 Oct. 2007.
“Definitions.” ERP History in Depth. 2007. Crewind Technologies Pvt, Ltd. 29 Oct. 2007.
“Definitions.” Find Articles. 2007. HighBeam Research, INC. 30 Oct. 2007.
“Definitions.” Industry Week. 2007. Penton Media, Inc. 31 Oct. 2007.
“Definitions.” TechWeb: Tech Encyclopedia. 2007. The Computer Language Company. 29 Oct. 2007.
"Enterprise Resource Planning - Adempierewiki." 17 Nov.-Dec. 2007.
"Enterprise Resource Planning, Maintenance and Asset Management Systems - are They a Blessing or
    a Curse?" 17 Nov.-Dec. 2007. <Maintenance and Support>.
"Enterprise Resource Planning: Global Opportunities and Challenges." 17 Nov.-Dec. 2007.
Keinert, Elaine S. Personal Interview. 29 Nov. 2007.
“Top ERP Vendors.” Online Consultant Software. 2 Dec. 2007. <>.
"What is ERP?" The Tech-FAQ. 26 Nov. 2007 <>.

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