Enterprise resource planning_system

Guest Lecturer at Govt. model hss calicut um Govt. model hss calicut
13. Sep 2015

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Enterprise resource planning_system

  3. ERP ARCHITECTURE • A design, the term Architecture can refer to either hardware or software , or to a combination of hardware and software. The Architecture of a system always defines its broad outlines, and may define precise mechanisms as well. • ERP Systems are dependent on the consistent storage of large of large amount of data : Master and transitional data. An enterprise class relational database is used for this purpose. Example of such data base are oracle software, Microsoft SQL server and IBM DB’S • The data is processed by numerous programs within the ERP , software and results are presented to the end user through some user interface.
  4. Continue….. • The architecture that supports the connection between the database, processing and presentation is called client/server Architecture • A client is a process that makes services requests to a server. A server is therefore is a process that responds with the requested service to a client. • The third component of this architecture is the network. The network can provide communication to multiple servers that services multiple clients. • Client server processes are separate and autonomous even though the request is made by the client.
  5. Client server concept The sharing of the process between a client and a server is the basis for defining thin and fat clients. A thin client has minimal processing responsibilities, which implies that the corresponding fat server does the majority of processing. On the other hand, a fat client takes on a larger load of processing. The increase in inexpensive desktop processing has helped popularize fat clients. On the other hand, web based client/server architectures are pushing the thin client (sometimes mobile) paradigm. The client is often called the front-end or front-end application. The server is called the back-end application Client Network Server
  6. 6 ERP System Configurations: Client-Server Network Topology Two-tier – common server handles both application and database duties – used especially in LANs
  7. Server Applications Database User Presentation Layer First Tier Second Tier Application and Database Layer Two-Tier Client Server Server
  8. 8 ERP System Configurations: Client-Server Network Topology Three-tier – client links to the application server which then initiates a second connection to the database server – used especially in WANs
  9. Three-Tier Client Server Applications Database First Tier Second Tier Third Tier User Presentation Layer Application Layer Database Layer Application Server Database Server
  10. ERP with OLTP and OLAP Client Server using Data Warehouse OLTP Server OLTP Applications Operations Database Server Operations Database First Tier Second Tier Third Tier User Presentation Layer Application Layer Database Layer OLAP Server OLAP Applications Data Warehouse Server Data Warehouse
  11. SYSTEM DEVELOPMENT LIFE CYCLE • The system development life cycle has a well defined iterative process. It involves a few phases. The development follows the phases exactly. The process theoretically never ends as the cycle gets repeated, that’s on completion of the cycle the next cycle starts with preliminary investigation. • The phase of development through which any individual IS application goes range from an initial information requirement- problem or opportunity – through the design, construction and operation of the system, to the eventual termination of the system, which triggers a life cycle of a new system.
  12. The life cycle of a computerised information system contain the following phases and activities • Definition phase (Preliminary analysis, feasibility study, information analysis, system design) • Construction phase (programming ,procedure development ) • Implementation (conversion) • Operation phase (operation and maintenance, past audit , termination)
  13. Figure 2
  14. DEFINITION PHASE • Preliminary Analysis: The analysis is usually conducted before an information system is designed and implemented. The analysis is to determine if the problem or the subject due for development warrants further analysis. It also refines the problem statement and creates a preliminary plan for an in- depth analysis of the problem. • Feasibility study: The major purpose of feasibility study is to establish whether a project should be done and how it should be done if justified. The major purpose of this activity is to determine whether it’s feasible to develop and install a system
  15. Information analysis • Information analysis is sometimes justifiably called the logical design step • Because of the relatively large scope of the activity, it usually consists of three parts; a) analysis of the present system with the emphasis on what is taking place in the system b) Determination of the information requirement, with the emphasis on why they cannot be provided effectively or efficiently by the current system and c) Conceptual design of the new system
  16. System Design It’s the creative activity of devising the program and procedure specifications for processing data by the new system. It involves the development complete and detailed programming specifications from which the programmers can proceed with little or no additional outside reference. Programming During the programming phase, coding and testing of computer programs take place. The programs are then tested by actual execution on the computer system.
  17. • Procedure development activity While the programming activity results in computer instructions, the procedure development activity results in instruction for human involvement with the new system. Procedures for the various users and operators of the system are written and tested. This activity concurrently proceeds with the programming activity and is equally important. • Conversion Conversion refers to a) Training the personnel operating and using the new system b) Breaking the system in and c) Acceptance testing by the user. In most cases conversion is associated with making changes from an old system to a new system.
  18. • Operation At the conclusion of the conversion activity. The new system moves into the operation phase of the life. The development activities of the information system life cycle are now terminated. The system now operates like a production facility, processing data, producing information and undergoing maintenance. • Post audit Periodical post audit review from control points throughout the operation of the system. These reviews will indicate when the life of the current system is drawing to a close and a new life cycle is indicated.
  19. Termination Termination is imperative when requests for changes and the number of errors reach a land where the continued operation of the current system is not worth while.
  20. ERP COMPONENTS Enterprise resource planning integrates all departments and functions throughout organization into a single IT system. So that employees can make enterprise wide decisions by viewing enterprise wide information on all business operation. There are two components : a) Core ERP components b) Extended ERP components
  21. • CORE ERP COMPONENTS Traditional components included in most ERP systems and they primarily focus on internal operations. • EXTENDED ERP COMPONENTS The extra components that meet the organisational needs not covered by the core components and primarily focus on external operations.
  22. Accounting and Finance Components • manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management 23
  23. Production and Materials Management Components • handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control 24
  24. Human Resource Components • track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities 25
  25. Extended ERP Components • Business intelligence - information that people use to support their decision-making efforts • CRM - involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability • SCM - involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability • E-business - means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners 26
  26. E-Business Components • E-logistics – manages the transportation and storage of goods • E-procurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet 27
  27. Database requirement There are different sized firms in today’s ERP applications software market. In order to be competitive in the market, ERP packages should be flexible enough to adopt requirements which are specific to implementation country, sector and firm. Our hypothesis is that, if we have had enough flexible database design and an interface supports that design, without editing ERP applications source code, we could meet the extra requirements which appears during implementation and post implementation.
  28. DATABASE DESIGN STEPS Classical Approach to Database Design A generic database design process according to Navathe, Elmasri includes four phases, to be carried out in the following sequence: • Requirements Collection and Analysis: consists of identifying and understanding the application’s data and functional requirements. • Conceptual Design: involves two parallel activities. The first consists of examining the data requirements resulting from the previous phase and, ignoring the details of implementation, producing the conceptual data schema. The second activity consists of examining the functional requirements defined in the previous phase and producing specifications for the defined transactions, regardless of the DBMS to be employed. .
  29. Cont…. • Logical Design: consists of transforming the conceptual data schema built in the previous phase into a specific schema of a given DBMS called a logical data schema. • • Physical Design: consists of selecting specific storage and access structures for the DBMS to be used.
  30. ERP APPROACHES Enterprise resource planning (ERP) systems enjoy an increasingly wide coverage. However, no truely integrate solution has been proposed as yet. One of the approach is: a) Integration approach
  31. Integration approach Frequent priority changes in versatile corporations development demand fast and flexible adaptation of personnel organizational structure to rapidly changing modern market with stiff competition. Such adaptation should be based on strategic software integration, and is especially urgent for comprehensive ERP systems that involve a collection of technologies allowing to support complex production- and-trade cycles.
  32. The approach suggested for ERP integration has been practically approved while prototyping and implementing a full-scale HR information system (HRIS). Main objectives of the paper are the following ones:
  33. • ERP design methods classification and analysis; • integrated data and metadata model development; • ERP component integration algorithm development; • HRIS prototyping and full-scale implementation The data model is introduced provides integrated problem-oriented event-driven data and metadata dynamics and statics management of heterogeneous weak structured problem domains in a more adequate way than previously known ones.
  34. Business Process Reengineering The concept of Business Process Reengineering (BPR) was first introduced by Hammer in 1990. BPR has been defined as a fundamental redesign of business processes to achieve dramatic improvements in critical areas such as cost, quality,service and speed. BPR began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors
  35. Cont… The founders of this concept ,felt that the design of workflow in most large corporations was based on assumptions about technology people and organisation goals that were no longer valid. They suggested seven principles of reengineering to streamline the work process and there by achieve significant levels of improvement in quality, time management and cost:
  37. Different phases of ERP • Pre evaluation Screening • Evaluation Package • Project Planning • GAP analysis • Reengineering • Team training • Testing • Post implementation
  38. Pre-selection Process Package Evaluation Project Planning Gap Analysis Reengineering Configuration Implementation Team Training Testing End- user Training Going Live Post – implementation Phase ERP implementation Life Cycle
  39. Pre evaluation screening • Decision for perfect package • Number of ERP vendors • Screening eliminates the packages that are not at all suitable for the company’s business processes. • Selection is done on best few package available.
  40. Package Evaluation • Package is selected on the basis of different parameter. • Test and certify the package and also check the coordination with different department • Selected package will determine the success or failure of the project.
  41. Cont. • Package must be user friendly • Regular up gradation should available. • Cost
  42. Project planning • Designs the implementation process. • Resources are identified. • Implementation team is selected and task allocated. • Special arrangement for contegencies.
  43. Gap analysis • Most crucial phase. • Process through which company can create a model of where they are standing now and where they want to go. • Model help the company to cover the functional gap
  44. Reengineering • Implementation is going to involve a significant change in number of employees and their job responsibilities. • Process become more automated and efficient.
  45. Team Training • Takes place along with the process of implementation. • Company trains its employees to implement and later, run the system. • Employee become self sufficient to implement the software after the vendors and consultant have left.
  46. Testing • This phase is performed to find the weak link so that it can be rectified before its implementation.
  47. Going Live • The work is complete, data conversion is done, databases are up and running, the configuration is complete & testing is done. • The system is officially proclaimed. • Once the system is live the old system is removed
  48. End User Training • The employee who is going to use the system are identified and trained.
  49. Post Implementation • This is the maintenance phase. • Employees who are trained enough to handle problems those crops up time to time. • The post implementation will need a different set of roles and skills than those with less integrated kind of systems.
  50. • An organization can get the maximum value of these inputs if it successfully adopts and effectively uses the system.