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Jayant Chopra (08008)


Nikhil Kumar Lunia (08016)
Rohit shaw (08020)
Sourabh Saha (08025)
Ê Oackground of ERP
Ê Overview
Ê Merits & Demerits
Ê ERP Market
Ê Implementation
Ê Example: Shoe Manufacturing Company
Ê ERP Trends
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1 SAP 4726 28.7
2 Oracle Applications 1674 10.2
3 The Sage Group 1221 7.4
4 Microsoft Dynamics 616 3.7
5 SSA Global 464 2.8
Technologies

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Ê Define your goals
Ê Explore the market
Ê Go modular
Ê Participate
Ê Expect hidden costs
Ê Analysis
Ê Modeling of Ousiness Processes
Ê Integration
Ê Data Conversion
Ê Staff Training
Ê Testing
Transition
is Tough
Work!

HELP!!

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d Assembly Product: leather, lace, sole and accessories.
d Operation in Eastern and Southern Zone
d Total Annual Sale: Rs.1000 cr.
d Average Price of each Shoe is Rs.2500
d The company has a four different manufacturing unit say
A, O, C & D
d The Head Quarter of the company is A.
d Annual Sale from each Manufacturing Units.
d A= 300 Cr., O= 300 Cr., C= 250 Cr., and D= 150 Cr.
d Daily production 14285 pairs from the entire four
different plants .
! Total no. of production per day from each
distributed plant in the ratio of 3: 3: 2.5: 1.5
! A=4286 pairs, O=4285 pairs, C=3571 pairs and
D=2143 pairs.
! Each worker can produce 50 unit per day i.e.
worker required in each plant are A=86w, O=86w,
C=71w and D=43w
! Each supervisor can deal with 10 workers. So, A=
8s, O=8s, C=7s and D=4s.
! Company required 27 ERP users in Production
department.
! 5 users in purchase department.
! 45 users in sales and distribution i.e. 1 chief, 2
regional, 6 districts and 36 circle.
! 20 users for finance.
! 11 users for HR.
! In totality 108 users for using ERP in an
organization.
! 6 month to implement ERP
! Oefore that 2 week for training and 1 month for
consultancy.
! 5 trainers are required which is cost for a company
i.e. 5 trainers will teach 5 Hours per day, 5 days in
a week for 2 weeks @ $ 12 per hour which is
equal to $ 3000 i.e. equivalent to Rs.
1,38,000.($1= Rs 46)
! For consultancy 3 consultants are required which
is cost for a company i.e. 3 consultant will work for
5 Hours per day, 5 days in a week for 24 weeks @
$ 20 per hour which is equal to $ 36,000 i.e.
equivalent to Rs. 16,56,000. ($1= Rs 46)
Ê Small to midsize companies are targeted.

Ê Adding more decision support tools.

Ê Reduction in implementation time and cost.

Ê Adding more functionalities such as CRM and SCM


? ERP II (named by Gartner Group)
Ê Toward more open, flexible Internet-based technologies
(e.g., XML, HTTP) that makes a firm easier
? to integrate with other systems in the company, and
? to collaborate with its business partners

Ê Freestanding components, not interdependent modules,


that enable firms to
? Choose different vendors for each of the components
? Manage the integration of components of multiple vendors