PowerPoint Presentation Civil Engineering, Project Management, Construction Management, Productivity/,Mathematics, Religion etc

2. Contents
 Introduction to ERP
 Business Process Re-engineering (BPR)
 ERP Implementation
 Vendors of ERP
 Business Modules in ERP
 ERP & Role of Chartered Accountants
 Conclusion
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3. 04-10-2010www.construction-productivity.co.uk 3

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Why ERP ?
To Survive ,Thrive And BeatThe Competition
Manage future
Manage Information
Automation of the process of Data Collection
InformationTechnology (ERP Solution)

5. History Of ERP
 ERP (Enterprise Resource Planning) is the
evolution of Manufacturing Requirements
Planning (MRP) II.
 From business perspective, ERP has expanded
from coordination of manufacturing processes to
the integration of enterprise-wide backend
processes.
 From technological aspect, ERP has evolved from
legacy implementation to more flexible tiered
client-server architecture.
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6. What is ERP ?
 ENTERPRISE:
An enterprise is a group of people with a common goal, which has
certain resources at its disposal to achieve that goal.
 RESOURCE:
Resources included are money, man-power, materials, and all other
things that are required to run the enterprise.
 PLANNING:
Planning is done to ensure that nothing goes wrong. Planning is
putting necessary functions in place and more importantly, putting
them together.
 ERP covers the techniques and concepts employed for the
integrated management of business as a whole, from the viewpoint
of the effective use of management resources, to improve the
efficiency of an enterprise.
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7. Features of ERP
Integrates
Business
Operations
Library of
Business
Process
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8. Features of ERP
RealTime
updating of
transactions
Multi-Tasking &
Multi-Currency
Features
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9. Features of ERP
EasyWeb Enablement
Features
Supports - Alert facilities,
data warehouse & OLAP
Integration ofWorkflow
Management
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10. Industry wise Uses of ERP…..
 Manufacturing
 Software
 Insurance
 Healthcare
 Hospitality
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11. ERP: Advantages
Reduction of
lead-time.
Reduction in
cycle time.
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12. ERP: Advantages
Better
customer
satisfaction.
Improved
supplier
performance.
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13. ERP: Advantages
Increased
flexibility.
Reduction in
quality costs.
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14. ERP: Advantages
Improved
resource utility.
Improved
information accuracy
and decision-making
capability.
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15. ERP: Disadvantages
 Lack of clarity of expectations from ERP.
 Unreasonable scope & Inadequate
Resources.
 Choice of wrong ERP product – not all
products are suitable for all industries.
 Not choosing the right people for
implementation.
 Lack of participation of end-users.
 Lack of proper communication within the
organization.
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17. Introduction to BPR
 Business process reengineering (BPR) is, in computer
science and management, an approach aiming at
improvements by means of elevating efficiency and
effectiveness of the business process that exist
within and across organizations.
 The key to BPR is for organizations to look at their
business processes from a "clean slate" perspective
and determine how they can best construct these
processes to improve how they conduct business.
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18. E N T E R P R I S E R E S O U R C E
P L A N N I N G ( E R P )
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19. Definitions of BPR
Thomas H. Davenport (1993)
 "encompasses the envisioning of new work
strategies, the actual process design activity, and
the implementation of the change in all its
complex technological, human, and organizational
dimensions."
Hammer and Champy (1993)
 "... the fundamental rethinking and radical
redesign of business processes to achieve dramatic
improvements in critical contemporary measures
of performance, such as cost, quality, service, and
speed."
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20. Benefits of BPR
Strict controls can be enforced and
monitored.
Business process is streamlined
Business process is optimized and more efficient
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21. Benefits of BPR
Best practices can be adhered to.
Time and cost saving as
a result of eliminated
redundant tasks.
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22. Principles of BPR
Focus on the
Right
Processes
Voice of the
Customer
Managing
Change
Active
Participation
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23. Principles of BPR
Targets and
Performance
Measure
Integration
Flexibility
Project
Management
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24. Conclusion of BPR
“The onus of the successful
implementation lies with the
Organization”
To be successful, business process
reengineering projects need to be top
down, taking in the complete organization,
and the full end to end processes.
It needs to be supported by tools that make
processes easy to track and analyze.
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26. ERP Implementation And
Methodology
ERP implementation
is a special event
Consultants and Users
ShouldWorkTogether
ImproveThe Flow of
Information Customization
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27. Steps in ERP Implementation
Deciding the ‘would be’ situation of the business
Reengineering the business process to achieve
the desired results in the existing processes
Identifying the needs for implementing an ERP package
Evaluating the ‘As is’ situation of the business
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28. Steps in ERP Implementation
Installing the required hardware & networks for
selected ERP
Finalizing the implementation
consultants who will assist in
implementation
Implementing the ERP packages
Evaluating the various available ERP
packages
Finalizing the most suitable ERP packages
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30. Vendors of ERP Package
 Oracle corporation
 Oracle is one of the top players in the ERP market
 Oracle Manufacturing Applications offers internet
enabled, network centric computing
 As a one stop shop, it offers the database, tools,
implementation, applications and UNIX operating
systems running on a wide choice of hardware
 SAP AG
 SAP is the world's second largest business
software company.
 SAP focuses on six industry sectors: process
industries, discrete industries, consumer
industries, service industries, financial services,
and public services
 SAP matches business processes to modules.
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31. Vendors of ERP Package
(Contd.)
Baan
 It addresses manufacturers from largest global players to smallest
ERP user.
 It offers tools for Business Process Analysis
 It uses 4GL language
SSA
 BPCS was developed by System SoftwareAssociates (SSA)
 It is used in manufacturing companies
 It offers functionality of Process and Kanban Manufacturing
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32. Vendors of ERP Package
(Contd.)
Sage Group plc
 It is engaged in the development, distribution
and support of business Management
software
 Accpac is a vendor of accounting, Customer
relationship management and business
management software
 It has two main product lines
 Sage Accpac ERP
 Sage Pro ERP
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Major Modules in ERP
Packages  Finance Module
 HR Module
 Manufacturing Module
 Material Management
(MM) Module
 Sales & Distribution
Module
SALES &
DISTRIBUTION
MANAGEMENT
LOGISTICS
&
CUSTOMER SERVICE
MANAGEMENT

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Major Modules in
ERP Packages
Finance
Module HR Module
Sales &
Distributio
n Module
Material
Management
(MM) Module
Manufacturin
g Module

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Finance Module
 Finance functionality for organizations
whose business is spread over the world.
 Company wide control & Integration of
Financial Information.
 Sub Systems are :
 Financial Accounting
 Treasury
 Control
 Enterprise Management

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Finance Module
Finance functionality for
organizations whose business is
spread over the world.
Company wide control & Integration
of Financial Information.
Sub Systems are :
1. Financial Accounting
2. Treasury
3. Control
4. Enterprise Management

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Human Resource Module
 HR is an essential factor of any
successful business.
 This Module offer company wide
solutions for HR departments and
make it possible for authorized users
of the other departments to access
specific employee data.

39. Human Resource Module
Personnel
Administration
Employee
Master Data
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40. Human Resource Module
Recruitment
Management
Open
Positions
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41. Human Resource Module
Selection & Hiring
Travel Management
&
Personnel cost planning
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Manufacturing Module
 Components of Manufacturing Module :
 Material & Capacity Planning
 Quality Management
 Cost Management
 Shop Floor Control

43. Manufacturing Module
Components of
Manufacturing
Module :
Material &
Capacity
Planning
Quality
Management
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NEXT
PAGE

44. Manufacturing Module
Cost
Management
Shop Floor
Control
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Material Management Module
 It supports all phases of Material - Management,
planning, control, purchasing, receiving,
inventory management & bill payment. Its sub-
modules are :
 Pre Purchasing Activities
 Purchasing
 Vendor Evaluation
 Inventory Management
 InvoiceVerification

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Material
Management
Module
Pre
Purchasing
Activities
Inventory
ManagementPurchasing
Invoice
Verification
Vendor
Evaluation

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Sales & Distribution Module
Offers access to real-time, online information
from sales to billing.
Sub-systems in this modules are –
 Masters Data Management
 Order Management
 Warehouse Management
 Dispatch
 Invoicing
 Pricing
 Sales Support
 Transportation

48. Sales & Distribution Module
Masters Data
Management
Order Management
Warehouse
Management
Dispatch
Warehouse
Management
Dispatch
Dispatch
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49. Sales & Distribution Module
Invoicing
Pricing
Sales Support
Transportation
Pricing
Sales Support
Transportation
Sales Support Transportation
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51. Role of Chartered Accountants in
ERP
ERP helps the organization to realize its vision and
objectives in an optimized way
Role as consultants, auditors, advisors or managers in
controlling, managing and supporting the business.
How does ERP matter Chartered Accountants?
Rapidly changing & challenging business world and
automation of processes
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52. Major Challenges in ERP
Audits
 Complexity of ERP
 Manpower
 Inadequate
Attention towards
security of
Systems
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53. Conclusion
“A Chartered Accountant
without the knowledge of ERP
may feel as if he is a fish out of
the bowl”
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54. Bibliography
 www.erpwire.com
 www.en.wikipedia.org
 www.icai.org
 www.teamtechnology.co.uk
 ICAI – Reference Books & Study Material.
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