Enterprise Resource Planning (ERP)

113 Pages·2007·1.23 MB·English

Enterprise Resource Planning
(ERP)
Veena Bansal
Indian Institute of Technology Kanpur
India
[email protected]
Organization: Functional Units
(cid:122) Sales and Distribution
(cid:122) Production Planning
(cid:122) Materials Management
(cid:122) Finance and Accounting
(cid:122) Human Resource
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Sales Order Process
(Order-to-Cash)
Check
Sales Order
Availability
Entry
Pick
Materials
Pack
Materials
Receipt of
Customer Payment
Invoice
Post Goods
Customer
Issue 3
Procurement Process
(Procure-to-Pay)
Purchase
Requisition Purchase
Order
Notify
Vendor
Vendor
Payment
Shipment
to Vendor
Invoice
Receipt
Goods
Receipt 4
Sales Order Process
(Order-to-Cash)
Sales Order
Check
Entry
Availability
Pick
Materials
Pack
Receipt of
Materials
Customer Payment
Invoice
Customer
Post Goods
5
Issue
Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
Vendor
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt 6
ERA OF LEGACY SYSTEMS
VERY LOW INTEGRATION / NO INTEGRATION
PRODUCTION
S
I
D

&

S
E
L
A
S
FINANCE
R3
MATERIALS
HR
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ERP
"ERP (Enterprise Resource Planning) comprises
of a commercial software package that promises
the seamless integration of all the information
flowing through the company - financial,
accounting, human resources, supply chain and
customer information”- T.J. Davenport, Harvard
Business Review, July-Aug., 1998
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Customization in ERP Implementation
• ERP System is customized to fit the process
• Requires changes in the code
• We will not change, you change your software
– Discouraged
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ERP
• Enables a company to link it’s business
processes
• Finance and Accounting
• Material Management
• Sales and Distribution
• Production Planning
• Human Resource Management
Veena Bansal, IIT Kanpur 10