Documentation on ERP

Enterprise Resource Planning (ERP)

What is ERP?

· ERP Stands for Enterprise Resource Planning.

· ERP system is build based on the Client/Server Architecture.

· ERP is a computer-based integrated software architecture that is used to improve the organizations performance, resource planning, management control and operational control.

· ERP architecture purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

· An ERP system will cover all the core functionalities of the organization such as Finance, Supply chain Management, customer relationship, human resources etc…

· ERP system ensures that all the data is in one central location and everyone can access.

· An ERP system should have the following features

1. Should be integrated and operate in real-time with no periodic batch updates.

2. All applications should access one database to prevent redundant data and multiple data definitions.

3. All modules should have the same look and feel.

4. Users should be able to access any information in the system without needed integration work.

· The main objective of the ERP system is to integrate information and functional processes of an organization to make effortless access and workflow.

· The main goals of the ERP system are

§ Customer satisfaction

§ Productivity improvement

§ Increased competitiveness

§ Waste reduction

§ Effort duplication

· The major vendors of ERP system are

a. SAP

b. Oracle

c. People soft

d. JD Edwards

e. Baan Corporation

ERP Software’s

· There are various software’s that are built based on the ERP Architecture. They are categorized into two different types. They are

àOpen source ERP Software

àProprietary ERP Software

1) Some of the examples of Open Source ERP Software are

webERP—PHP, MySQL based

JFire—Java based

BlueErp—PHP based

SQL-Ledger—Perl, SQL based

Tryton—Python

OFBiz—Apache, Java

2) Some of the examples of Proprietary ERP Software are

JD Edwards—enterprise one from Oracle

Maximo (MRO)—from IBM

ERP Adage/LN/LX/SL/SX/VE—from Info Global Solutions

Microsoft Dynamics AX/GP/NAV/SL—from Microsoft

Ramco on Demand ERP—from Ramco Systems

SAGE Pro ERP—from the Sage Group

Why Companies use ERP

· There are various reasons why many organizations implement ERP system. Some of them are

1) ERP helps to reduce operating costs:

o ERP software attempts to integrate business processes across departments onto a single enterprise-wide information system.

o The major benefits of ERP are improved coordination across functional departments and increased efficiencies of doing business.

o By implementing ERP systems we can reduce operating costs of the organization such as

-- Lower inventory control cost

-- Lower production costs

-- Lower marketing costs

-- Lower help desk support costs.

2) Facilitate Day-to-Day Management Tasks:

o Day-to-Day management is another important use of the ERP system.

o The Complete data will be available at the central repository for easy access to the database.

o By ERP systems management can have updated access to information for decision making and managerial control.

o ERP software helps track actual costs of activities and perform activity based costing.

3) Support Strategic Planning: ERP systems also help in making the Strategic Planning in an organization such as

o Assessing needs and resources

o Defining target audience

o Set goals and objectives

o Strategies for planning and designing

o Measure and evaluating the process outcomes and results.

4) Integration of various systems: Different systems are integrated into ERP system so that everyone has something to do with the system. The integrated systems that are included in ERP are as follows.

o Inventory Management

o Purchasing

o Vendor Integration

o Customers Relationship Management (CRM)

o Payroll

o Accounting

o Customers

o Sales

o Internet/sms (WAN/LAN)