ENTERPRISE RESOURCE

PLANNING (ERP)
Jasmin Villapando
 OUTLINE OF THE TOPICS

DECENTRALIZE
IMPLEMENTING
AND CHARACTERIS- ERP
ERP DEFINITION ERP EVOLUTION ERP SOFTWARE
CENTRALIZE TICS OF ERP COMPONENTS
SYSTEM
Advantages and
What are the What are the five Challenges of
What is Enterprise Before and After
From 1960’s to characteristics of main components of Implementing ERP
Resource ERP
1990’s ERP? ERP Systems? Software
Planning? Implementation
DEFINITION OF ERP
Business management software that allows
an organization to use a system of integrated
applications to manage the business. It aims
to serve as a backbone for your whole
business. ERP software integrates all facets
of an operation, including product planning,
development, manufacturing processes,
sales and marketing.
LEADER IN ERP MARKET SHARE
Main ERP Vendors
DECENTRALIZED SYSTEM
Before ERP

• Numerous disparate
information system are
developed individually
over the time.
• Integrating the data
becomes time and
money consuming.
• Inconsistences and
duplication of data.
• High inventory, material
and human resource
cost
CENTRALIZED SYSTEM
Example of ERP

• Eliminates the duplication,

discontinuity and redundancy
in data.
• Provides information across
departments in real time.
• Provides control over various
business processes.
• Increase Productivity, better
inventory management,
promotes quality, reduced
material cost, boosts profits.
• Better Customers interaction,
increased throughput,
improves customer services.
 ERP EVOLUTION
From manufacturing co-ordination to enterprise wide backend solutions

Inventory Management and Control is the combination of information

1960’s technology and business processes of maintaining the appropriate level of
stock in a warehouse.

Materials Requirement Planning (MRP) utilizes software applications for

scheduling production processes. MRP generates schedules for the operations
1970’s and raw material purchases based on the production requirements of finished
goods, the structure of the production system, the current inventories levels and
the lot sizing procedure for each operation
 ERP EVOLUTION
From manufacturing co-ordination to enterprise wide backend solutions

Manufacturing Requirements Planning (MRP II)-1980’s Manufacturing

Requirements Planning or MRP utilizes software applications for coordinating
1980’s manufacturing processes, from product planning, parts purchasing, inventory
control to product distribution.

Enterprise Resource Planning (ERP)-1990’s Enterprise Resource Planning or

1990’s ERP uses multi-module application software for improving the performance of
the internal business processes.
CHARACTERISTICS Modular Design
OF ERP distinct business modules

Central Common Database

common centralized database management
system

Flexible and Open Database

Organizations are almost always dynamic in
nature

Automatic Generation of Information

provides business intelligence tools
 ERP COMPONENTS

1. Financial Management 2.Business Intelligence

It keeps a track on all your financial data Business Intelligence (BI) has become a standard
including Accounts receivable, Accounts component of most ERP packages. In general, BI
payable, General ledger, costs, budgets tools allow users to share and analyze the data
and forecasts. It helps to keep a record of collected across the enterprise and centralized in
cash flow, lower costs, increase profits the ERP database. BI supports informed decision
and make sure that all the bills are paid on making by everyone, from executives to line
time. managers and accountants.
 ERP COMPONENTS

3. Supply Chain Management 4. Human Resource Management

Sometimes referred to as logistics, HR management ERP modules should

improves the flow of materials through enhance the employee experience – from initial
an organization by managing planning, recruitment to time tracking. A Sub modules
scheduling, procurement, and fulfillment, can include payroll, performance management,
to maximize customer satisfaction and time tracking, benefits, compensation and
profitability. workforce planning.
 ERP COMPONENTS

5. Manufacturing Operations

Manufacturing modules make manufacturing

operations more efficient through product
configuration, job costing and bill of materials
management. ERP manufacturing modules
often include Capacity Requirements Planning,
Materials Requirements Planning, forecasting,
Master Production Scheduling, work-order
management and shop- floor control.
IMPLEMENTING ERP SOFTWARE
Advantages and Challenges of Implementing ERP Software
THANK YOU!