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1 - Enterprise Resource Planning (Erp)

An ERP system attempts to integrate all functions of a company, including key customers and suppliers, into a single computer system. An ERP system consists of modules that integrate functions like finance, human resources, sales, purchasing, manufacturing, and customer relationship management. Implementing an ERP system provides benefits like integrating financial and customer order information, standardizing operations, and improving communication within and outside the company. However, ERP implementation faces challenges such as high costs, changes to business processes and organizational structure, and user resistance to change. Critical success factors for ERP implementation include effective decision making, project management, change management, and teamwork.

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Rany Xaviera Tobing
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106 views13 pages

1 - Enterprise Resource Planning (Erp)

An ERP system attempts to integrate all functions of a company, including key customers and suppliers, into a single computer system. An ERP system consists of modules that integrate functions like finance, human resources, sales, purchasing, manufacturing, and customer relationship management. Implementing an ERP system provides benefits like integrating financial and customer order information, standardizing operations, and improving communication within and outside the company. However, ERP implementation faces challenges such as high costs, changes to business processes and organizational structure, and user resistance to change. Critical success factors for ERP implementation include effective decision making, project management, change management, and teamwork.

Uploaded by

Rany Xaviera Tobing
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

ENTERPRISE RESOURCE

PLANNING (ERP)

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 1


What is ERP
An ERP system is an attempt to integrate all
functions across a company to a single
computer system that can serve all those
functions’ specific needs of enterprise’s
operation
An ERP system may also integrate key customers
and suppliers as part

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 2


ERP (Cont’d)

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 3


ERP MODULE

• Financing (GL, Management Report and Financial Report)


• Human Resources and Payroll
• Sales Cycle
• Purchase Cycle
• Manufacture and Production Cycle
• Project Management
• Customer Relationship Management
• System Tools DATA STORAGE (CONT’D)
Sales Accounting Cycle

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 4


ERP COMPONENTS

• People (IT Staff and Users)


• Process (Business process, procedures,
policies)
• Hardware (server and supporting component)
• Software (Operating Systems and Application
program)
• Database (from internal and external)

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 5


What are reasons for adopting ERP?

• Integrate financial information


• Integrate customer order information
• Standardize and speed up operations
processes
• Reduce inventory
• Standardize human resources information

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 6


Potential Benefits of ERP
• Internal benefits
– Integration of single source of data
– A real time system
– Increase productivity
– Reduce operating costs
– Improved internal communication
– Foundation for future improvement

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 7


Potential Benefits of ERP (Cont’d)
• External benefits
– Improve customer service and order fulfillment
– Improved communication with suppliers and
customers
– Enhanced competitive position
– Increased sales and profits

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 8


ERP Implementation Approaches
• Big bang -Install a single ERP system across the
entire organization
• Franchising – independent ERP system –
installed
• Slam dunk – install one or several ERP
modules for phased implementation of key
business processes

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 9


Phases of ERP Implementation
• Initiations design – project scope
• Planning – establish team, determine goals and objectives
• Analysis and processes – analyze and improve existing
processes
• Realization – install a base system – customization – test
the system
• Transition – replace the formal system with new system –
data conversion
• Operation – monitor and improve system performance –
continuing training and technical supports

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 10


Major Challenges to ERP Implementation
• Limitation of and ERP technical capabilities
• Inconsistency with existing business processes
• Cost – Hardware, software, training, consulting, maintenance
• Impact on organizational structure (front office vs back office
• Changes in employee responsibility
• Flexibility of software
• Availability of internal technical knowledge
• Education and training
• Resistance to change

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 11


CRITICAL SUCCESS FACTORS OF ERP
IMPLEMENTATION
• Decision Making Process (involved users)
• Scope of Project (wide – concern time and
cost)
• Teamwork ( employees, outsource and
consultant)
• Change Management (train end users)
• Implementation team and executives
(effective)
Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 12
FAILURE FACTORS OF ERP
IMPLEMENTATION
• Weakness of Consultant effectiveness)
• Weakness of Business Process reengineering
Quality)
• Weakness of Project Management
Effectiveness

Ahmad Adri, Drs.,MBA.,CA.,CPA.,QIA 13

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