Enterprise Resource Planning
ERP - Enterprise Resource Planning is an IT enabled Business Solution. We evaluate the involved typical considerations in selecting appropriate ERP solution, implementation partner and a set of IT infrastructure required towards ensuring successful ERP implementation. ERP Solution consists of an ERP Software residing on an appropriate IT infrastructure (Computer H/W – Servers and Client Front-ends, Networking- LAN and WAN, Web-enabled Technology – EDI, e-Commerce, e-Business, etc.) and is properly implemented in an Organisation to address its Business Problems, Concerns and Issues through Optimal Planning / Utilization of its resources.
-
Defining an Enterprise
An Enterprise could be defined as an Organisation of people, Machinery and Processes for providing products, services etc. An Enterprise could be Commercial or Non-Commercial such as Shop, Hospital, Bank, Financial Institution, Insurance Sector, Power/ Telecom Utility, Media, Manufacturing Industry etc..
An Enterprise could be:
- One or more Manufacturing Plants
- Project Sites
- Business Sectors / Divisions
- Sales Offices
- Corporate functions such as finance, HR etc..
- A Company comprising of all the above
- A Global / Multinational Organization
-
What are Enterprises Resources? – Examples
- Materials (Raw Materials, Consumables, Components etc..)
- Products and Finished Goods
- Plants / Machinery, Work Centers etc..
- Manpower – Skilled, Unskilled, others
- Vendors (Suppliers, Sub-contractors etc.)
- Finance and Cash
- Dealers, Distributors, Warehouses etc..
- Customers
- Technology etc..
-
Typical Problems due to lack of Planning / Utilization of Enterprise’s Resources and Monitoring / Control Systems
- Unable to handle competitiveness
- Unsatisfied vendors
- Not able to book orders
- Unable to deliver orders on time
- Money blocked in inventory
- Too much Money spent on Customer Complaint Handling
- Loosing customers
- Under utilization of capacities – manpower, plant, machinery etc..
- Unable to maintain cash flow properly
- Distribution channel problems
- Low productivity of people
- Unable to meet targets and goals in respect of
- Sales Turnover
- Net Profits as %age of Sales
- Various Financial and Operational indicators.
- Unable to Plan Growth, Future Expansion / diversification
-
Possible Solutions
Customized Software Solution with or without Process Reengineering and IT Infrastructure Up-gradation.
- Means developing Solution around existing Systems and Processes.
- Software Development and it’s Maintenance is Time Consuming, Cumbersome and Expensive
- Retention of IT personnel is difficult, IT not being the core competency of user organisation.
- Adapting to best of Breed Practices, Processes and Systems for the Vertical Industry Segment followed worldwide.
- IT enabled Business Process Reengineering not possible.
- Use of common databases and Linkage / Integration of systems difficult.
ERP Solution with package enabled Process Reengineering and IT Infrastructure Up-gradation. The advantages of ERP Package Solution – is that ERP enables:
- Package Enabled Business Transformation / Process Reengineering and adapting Best of Breed world class Business Practices / Processes for the Vertical Industry Segment that the organisation represents.
- Use of Common Databases and their on-line updating of various transactions.
- Accessibility of updated common databases to the various Functions / Functionality.
- Process-wise Linkages and Integration across Functions.
- Standardization of Computer Hardware, Communications, Networking and Processes.
- An organisation to effectively INTERFACE1, INTEGRATE2 and SUPPORT INNOVATION3
- Integrated Supply Chain Management
- Reduction in Manufacturing Lead-Time, Production Costs and Inventories.
- Improved Cash Flow and Working Capital Management
- Improved Budgeting and Budgetary Control
- Improved Sales Order Processing, Monitoring, Distribution and Customer Services
- Single Point Entry of Data
- Reduction of paper work- aiming towards paperless office.
- Interactive and Fast response system
- Meeting Country specific requirements of Sales Tax, Excise, TDS etc..
- Linkage with External systems like Autocad, Lotus Notes, MS-Office etc..
- Reduction of Batch Processing and On-line availability of information
- Interactive and Participative Management
- Fast Response Systems
- Timely and Reliable Information Flow.
- Management and Control of Quality, Cost, Product Cycle, Delivery Scheduled and Customer Service.
- Interface – refers to implementation of industry specific business practices to better operate with customers and suppliers.
- Integration – reflects the cost effective and timely manner by which the enterprise business processes are made cross-functional.
- Innovation – means the ability to rapidly adapt and leverage cross-industry business practices to specific enterprise requirements.
-
Leading World Class ERP Solutions
SAP |
BAAN |
ORACLE |
• |
Automotive |
• |
Aerospace and Defence |
• |
Consumer Packaged Goods |
• |
Chemicals |
• |
Automotive |
• |
Energy |
• |
Consumer Products |
• |
Electronics |
• |
Financial Services |
• |
High Technology and
Electronics
|
• |
Engineering and Construction |
• |
Industrial |
• |
Steel and Metals |
• |
Primary Metals |
• |
Healthcare and Pharmaceuticals |
• |
Pharmaceuticals |
• |
Heavy Equipment |
• |
Public Sector and Government |
• |
Process |
• |
Discrete Manufacturing and Projects |
• |
Telecommunications |
• |
Publishing |
|
|
|
|
• |
Projects |
|
|
|
|