Enterprise Resource Planning (ERP) Is Defined As An Integrated Computer Based Planning
Enterprise Resource Planning (ERP) Is Defined As An Integrated Computer Based Planning
Enterprise Resource Planning (ERP) Is Defined As An Integrated Computer Based Planning
These days, way of doing business is changing fast due to changing in law and amendments in
the standards. So, management of business process which is done through ERP should be
flexible. If ERP system will be flexible, we can change processing system as per our
requirement.
2. Modular and Open
One of the great characteristics of any good ERP system that it has open module architecture. It
means, if there is error in any module, we can correct it by opening it instead affecting all other
modules.
3. Comprehensive
ERP system should be advance and it should use comprehensive way. It means, all most all the
functions of business should be done through ERP System. If we will get only small number of
activities through ERP and other will be done through manual, then, this ERP system is not ok.
Its capacity should to cover all the functions of business.
Today, in the market, there are lots of ERP solution but which is the best, it will tell its features?
Check whether it has capacity to connect other ERP system online or not. Because, today
business has started to interact with millions of other businesses. So, it is necessary to connect
them online through our ERP.
5. Best Business Practices
Each business activities have lots of standards. For example, accounting follows IFRS, quality
management follows ISO 9000 and marketing follows the standard of MASB. So, your ERP
system will be updated regarding all standards.
6. Multi-Facilities
A good ERP System should have multi-facilities. It means, it can work in multi-currencies, multi-
mode manufacturing and multi-platform.
7.Strategic planning
Strategic Planning is the main and top function of business. It should be done through ERP.
ERP should integrate all its sub-part systems for making better strategic planning.
8. Optimize the data
A good ERP system optimize the data for effective utilization of limited business resources. It
also optimizes the data for reducing cost and risk.
9. Project Management
A good ERP System collaborate the team in real time for working together on a project.
Everything about the project process can be tracked through this.
We can measure the quality of ERP from its advance automatic functions. With these automatic
functions, organisation saves his lots of time. This automatic function may be in electronic fund
transfer, electronic data interchange and eCommerce.
Benefits Of ERP
Characteristics of BPR
1. Several jobs are combined into one: The feature of re-engineered process is absence of
an assembly line. The formerly distinct tasks/ jobs are combined and compressed into one.
The jobs are combined mostly based on the needs and preference of the customer.
2. When jobs are integrated, the chances of errors are reduced, eliminates misunderstandings,
delays and reworking are minimized.
3. Workers make decisions as they are required to do so. Jobs are combined, both
horizontally but also vertically. In other words, jobs are compressed based on job enlargement
and job enrichment. Vertical integration incorporates the tasks of decision making in the top
ladders of the hierarchy. In addition, the workers in the re-engineering are empowered. The
empowered workers are motivated and self determined to make decision. Decision-making is
part of the work of the workers.
4. Compressing the work both horizontally and vertically reduces delays, overhead costs
and betterment of response and satisfaction of customers.
5. The steps in the process are performed in a natural order straight-line sequence is
avoided in the re-engineering. Activities are performed not in artificial order but in natural order.
This process is termed as ‘De-linearising’ which allows performing of many jobs simultaneously.
This process reduces the process time and thereby delay.
Principles of Business Process Re-Engineering
BPR LIFECYLCES:
Phase 1: Visioning • Apply to enterprise-wide reengineering effort. • Develop overview
of current and future business strategies, organizational structure, and business
processes. • Develop organizational commitment to reengineering. • Develop and
communicate a business case for action. • Create a new corporate vision. • Set stretched
goals. • Prioritize objectives. • Assess implementation capabilities and barriers. Define
corporate vision and business goals
Phase 2: Identifying • Construct high-level process map • Develop a process hierarchy •
Build enterprise-wide data models (optional) • Evaluate the processes • Select processes
to be reengineered • Prioritize and schedule processes to be reengineered Identify
business processes to be reengineered
TI Semiconductor Business Process Map Customer Communication Market
Customers Concept Development Manufacturing Customer Design & Support Strategy
Development Product Development Order Fulfilment Manufacturing Capability
Development Source
Criteria for Selecting Processes • Broken • Bottleneck • Cross-functional or cross-
organizational units • Core processes that have high impacts • Front-line and customer
serving - the moment of the truth • Value-adding • New processes and services • Feasible
Phase 3: Analysing • Conduct preliminary scoping. • Develop a high-level AS-IS
baseline process model (work flow model). Avoid analysis paralysis by conducting
preliminary analysis at fairly high level. • Surface purpose and assumptions of the
process (Ask WHY?). • Perform activity-based costing: costs can be assigned based on
actual activities and productivity. • Reveal hidden time and nonvalue-added activities. •
Measure cycle-time and quality. • Measure profitability in terms of task, product, and
customer type. Analyse and Measure an Existing Process
Phase 4: Redesigning Identify enabling IT & generate alternative process redesigns
Business Vision & Strategy Business-pulled How can IT support business strategies and
business processes? How can business strategies be changed business processes be
transformed using IT? Business Reengineering Technology-driven Information
Technology
Three Steps in Redesigning Processes • Simplification: • Task: Change business rules
or procedures of a specific task • Workflow: A process chain is simplified by elimination of
nonvalue-adding activities • Integration: • Redesign tasks into a logical and effective
process. • A reengineered process often crosses functional boundaries. • It offers
opportunity for eradicating interdepartmental redundancies and restructuring the
organization. • Automation: • Usually accompanies nontechnical redesign of organization
structures and procedures. • All reengineering costs and benefits can be projected into a
model. • Reengineering often pays for itself - sources of funding for technology
investments are frequently cost savings generated by organizational change.
Phase 5: Evaluating • Develop criteria of evaluating alternatives of redesigned
processes: Cost, Benefit, and Risk. • Evaluate design alternatives • Select and
recommend a reengineered process Evaluate and select a process redesign
]Phase 6: Implementing • Plan IT implementation • Plan organization implementation •
Conduct a pilot project • Develop a prototype system • Technical Design • Social Design •
Evaluate results from the pilot project and the prototype • Prepare large-scale roll out
Implement the reengineered process
Phase 7: Improving • Develop performance measurement and reward systems in the
reengineered process • Monitor process performance constantly • Improve the process
on a continuous basis Improve the process continuously
1. Process monitoring
It is also known as activity monitoring. On the other hand, process monitoring mainly aims to
track the resources and inputs while understanding how outputs and results are delivered.
2. Beneficiary monitoring
The primary purpose of this is to track the beneficiaries related to the project. This may also
include their complaints and satisfaction related to this project. They can be either direct or
indirect.
3. Compliance monitoring
It is used to check if the project complies with the grants, local laws, contracts, ethical
standards, and overall compliance with the project.
4. Financial monitoring
It is used to track the financial efficiency of the project. In addition, it helps in analysing
the expenditure of the allocated budget.
5. Result monitoring
It helps determine whether the project is on the right path to achieving the expected
result. It also helps collect data regarding the project's overall impact and effects.