Notes

Chapter 1
concept of ERP
ERP is an enterprise wide information system designed to coordinate all the resources information and activities needed to complete business process such as order fulfilment or billing.
An ERP system support most of the business system that maintains in and single database the data needed for a variety of business functions such as manufacturing supply chain management HR and CRM.
An ERP system is based on common database and modular software design. the common database can allow to every department of a business to store and retrieve information in real-time .
the information should be reliable accessible and easily shared.
The modular software design should mean a business can select a module they need mix and match or modules from different Wenders and add new modules of their own to improve business performance today’s ERP system can cover a wide range of function and unigate them into unified database.
* architecture of enterprise resource planning that is ERP ERP system architecture helps management and the implementation teams understand in detail the feature and the components of entire system
it provides a visual representation of a computer system unit new faces among the ERP application and database
following are the types of ERP architecture
1) two tire implementation
in two tire architecture the server handles both application and database.
the clients are responsible for presenting the data and passing user input back to the server
while there will be a multiple servers and clients may be distributed across several several types of local and wide area links this distribution of processing responsibilities remains the same . some of the benefits of this implementations are easy to use and access low-cost and high performance

Three tire implementation
in three tire layer architecture the database and application function are separated into independent operating units.

sometimes satisfying clients request requires two or more network connections.

initially the client as establish communication with the application server.

the application server then creates a second connection to the database server.

some of the benefits of this implementation are
scarability
reliability
flexibility
re-usability
security

enterprise resource planning ERP generic module

the generic ERP package represent the commonly operated business model of the organisation.
it is built with the function model like
finance
materials
marketing
sales and their submodels

these modules are then integrated to perform ensuring data and information consistency and on currency .
the seamless integration of modules allows the user at any level to take a micro and macro view of function and process view of transaction across the function

finance
general accounting functions
hedger payables and receivables
cash flow management
loan management fund management
budgeting planning and control et cetera

materials
purchasing and procurement
goods receipt and issue system
stock management and variation
inventory analysis et cetera

marketing and sales
basic data management
order processing
dispatching and involving
order analysis and forecasting
dealer distributor management system et cetera

production
bill of material classification
work order generation
scheduling and control
production planning interface of CAD and cam

maintenance
break down ,preventive ,conditional, maintenance ,monitoring ,performance for maintenance actions as all kind of production assets

ERP implementation life-cycle
ERP implementation life-cycle is the process of implementation of the enterprise resource planning in any organisation .
it involves many steps and stages in general right from the start planning for project implementation analysis design , implementation transition and operations.
ERP implementation life-cycle highlights different phases of implementing and ERP system .
it started from the projection of the ideal ERP package that is suitable for the company.
the technical phases of the ERP life-cycle are described as follows :
selection of packages
project planning
gap analysis
re-engineering

selection of package
this is the first step of the life-cycle where the ERP package has to be selected in agreement that fits your business environment.
in selection process the ERP package that are not suitable are eliminated .
the package has to carefully selected and testified .
the right choice will determine the success of the ERP implementation.
a proper study and research should be done before selection .

project planning
proper planning of implementation process of the project shall be made and designed .
resources should be allocated and team members have to be selected.

gap and analysis
it is an important step in the life-cycle of ERP implementation .
it is performed to analyse the current situation of the organisation and future position as needed .

re-engineering
this is needed to make the implementation process and involve many changes and alterations .
the job responsibility of employees and the number of employees can be altered as well .
this step is done to make the business process more efficient

application of ERP
ERP software is considered to be a type of enterprise application that is software designed to be used by larger businesses and often required dedicated teams to customise and analyse the data to handle upgrades and developments.
in contrast small business ERP applications are lightweight business management software that often customise for a specific business industry
today most of the organisation implement ERP system to replace legacy software or to incorporate ERP application because no system currently exist

most of the organisation implement ERP for the following reasons
1st to replace outdated ERP software
2nd to replace accounting software
3rd to replace other non-ERP system
*extended ERP (XRP) extended ERP XRP facilitates more efficient business process in the finance manufacturing distribution sales and other core business areas
XRP also include the other software and business processes .
integration with ERP is usually required to eliminate redundant information and process .
software is sold and supported as integrated may reduce ongoing maintenance cost .
ERP system can be eatened with the third party software often via vendor supply interfaces

extensions offer features such as
customer relation management
product life-cycle management
product data management
supply chain management data mining
E procurement e-commerce

cloud computing

Cloud computing often referred to as the cloud
in simple terms it means sorting or accessing your data and programs over the internet rather than on your own hard drive .
everything nowadays is moved to the cloud running in the cloud excessed from the cloud or maybe stored in the cloud .
the services it offers has been divided into three different models
1) software as a service
2)platform as a service
3)infrastructure as a service

1) software as a service
in the service the cloud provider leaves applications for software which are owned by them to its client .
the client can access these software or any device which is connected to the internet using tools such as web browser or any application et cetera
for example software.com provides the CRM on the cloud infrastructure to its clients and charges them for it but the software is owned by the sales force company only
2) platform as a service
in this service the cloud provider gives the ability to the consumer to deploy customer created application using programming language tools et cetera that are provided by the cloud provider .
the customer cannot control underlying architecture including operating systems storage service et cetera
this service would make sense to your only if your a developer since this service provides you a platform for developing applications like Google app engine
3) infrastructure as a service
in this service the cloud provider provides the customer with a vital machines and other resources as a service they abstract the user from the physical machine location data participating et cetera
in the user if the user wants a Linux machine he gets the same he will not Worry about the physical machine or the networking of the system on which the operating system is installed
for example Amazon web services is an infrastructure as a service

Features of various commercial ERP software
1) SAP system application product
2) Oracle E business suite
3) Microsoft’s dynamic
4) PeopleSoft

1) sap
sap is an ERP software designed for specific needs.
this solution can be deployed as software as a service on premises or as a hybrid model that offers the benefits of both .
which ever may you choose to go you will have two full web enabled support for the modules and services provided ensuring full access to the system function at work at home or on the go. sap ERP helps you better manage your entire business from initial product planning to end of year general ledger reporting.
in addition SAP ERP supports business of every size in virtually every industry around the world

2) Oracle E business suite
this is the most comprehensive suite of integrated global businesses application that enable organisation to make better decisions reduce cost and increase performance.
with 100’s of cross industry capabilition spanning enterprises resource planning customer relationship management and supply chain planning
Oracle e business suite application helps customers manage the complexities of global business city environment no matter if the organisation is small medium or large in size

Microsoft’s dynamics
this is referred to as multi currently multi language ERP solution .
this is targeted free primarily at small and mid size business particularly those in the manufacturing and distribution sectors .
the software helps such business in accounting operations and supply chain management .
the application ability to integrate organisation system with data and business processes make it the ideal ERP software
it also allows team collaboration without having to switch application
Microsoft’s dynamic is generated to enrich user experience which will enable employees to complete task anytime and anywhere

PeopleSoft
Oracle is PeopleSoft application are designed to address the most complex business requirement .
they provide comprehensive businesses and industry solution enabling organisations to increase productivity accelerate business performance and provide cover cost of over ownership
Oracle is PeopleSoft human capital management enable you to architect a global foundation for HR data and improved business processes