what is Enterprise Resource Planning systems (ERP) ???

Enterprise Resource Planning systems (ERP): 

ERP systems integrates all the processes of the organization with customer satisfaction and plans the management of the resources of an enterprise.
These solution help in focusing on production capacities, managing logistics and working out financial consequences of each decision rather than just computing costs. 

ERP::

A powerful tool if used properly for Business plan, Sales plan, Production plan, Material and capacity plan, financial plan

ERP help by: Resource availability check at each step - for example, material, capacity, finance, human resource, suppliers-- information and time, What - If simulation capability at each step 
Provides Plan vs. Actual comparisons to improve subsequent actions, Uses computers (Information Technology) to   - Break down each plan to various levels of detail   - Simulate resource loads   - Communicate and coordinate results and operating information

ERP NOT:

A magic to solve your business problems, merely a computerization, merely a tool to automate business transaction processing, merely a tool to reduce inventory, you implement ERP to organize your business and improve business efficiency, which reflects in reduced inventory  

 Enterprise Resource Planning systems (ERP): 

 ERP systems integrates all the processes of the organization with customer satisfaction and plans the management of the resources of an enterprise. These solution help in focusing on production capacities, managing logistics and working out financial consequences of each decision rather than just computing costs.

When you Need ERP?

To have improved business performanceTo support business growth requirementsWant to re-engineer and get control over businessTo eliminate limitation in legacy systemNeed to Co-Ordinate Activities RigorouslySize of Organization - People, Plants, Sites, DistancesCompetition - Local and Global ERP at Enterprise::

VISION 

CUSTOMER CENTRIC  ORGANISATION SUPPLY AND DEMAND SHOULD  MATCH GLOBAL MARKETS GLOBAL STD. OF QUALITY AMONGST TOP FIVE IN NEXT FIVE YEARS.

Policy 
QUALITY TRANSPARENCY  ACCOUNTABILITY
AFFAIRS PRODUCTIVITY WORLD  CLASS  SERVICE TO CUSTOMER OPERATING AND FINANCIAL EFFICIENCY  


Benefits/Advantage of ERP System:  

Focus on process:

Flexibility:

Reduced cycle time:

Improved communications:

Core applications for mission critical business processesSolutions tailored to specific industriesInternet enabled application, global connectivity & specific database servicesObtaining and using strategic informationImprove productivity & performance at all levels in an organizationPowerful tool for BPRGives improved business performancesupports business growth requirementsbusiness gets re-engineeredeliminates limitation in legacy systemComprehensive and wide ranging software with modular design and scalability & FlexibilityGenerates executive information for decision making and controls in various areas, identifying Critical success factorsCross application integration with ALE, E-Commerce etc..Supports Supply Chain Management

  Disadvantages of ERP:

The employees needed to get trained to use itProfessionals are needed to train other end users or to use the S/WTakes considerable time to get in existenceOnce developed the customization is headacheMaintenance is very toughIt is very costly in terms of money, time and ImplementationIntegration and testingDirty dataDocumentation and trainingPlanning and project managementConsulting fees