Page 177 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Unit 10: Enterprise Resource Planning – I

Just In Time (JIT) strategy basically started by Motorola. After that this techniques is Notes
adopted by all the Japanese company and the success of ‘TOYOTA’ is the bench mark of JIT
in the world. The fundamental concept of JIT is retrieving any material exactly you needed
or you produce the product at schedule time.
ERP reduces the inventory level, inventory ideal time. Each and every item are easily
traceable as per production lots, stock moves, etc. Through ERP a company can understand
the inventory level and ERP can reduces inventory holding cost.

ERP forces small companies to adopt industry base practices.

Task Explain the concept of Just In Time (JIT) strategy.

9. Better CRM: Customer Relationship Management (CRM) is the one of the important part
of any business organization. Basically it includes marketing, customer service and
technical support. ERP provide more ways for better customer relation with companies.
ERP can store every data of a company. So if any customer loss any data accidentally, the
company provide can each and every thing which a customer required. Service after sales
creates a better Customer relation. Through after sales service only company can collect
feedback about their product. If there is any failures or changes required then company
can easily handle it. So in this way any company (using ERP) creates a better relation with
their customer.

Self Assessment

State whether the following statements are true or false:

9. Data redundancy means to ensure correct data in the data base.
10. Data integrity means some data are kept in the multiple locations or some data can be
derived from other data.

11. The fundamental concept of JIT is retrieving any material exactly you needed or you
produce the product at schedule time.
12. Any company which is working through pen paper, they tend to face high amount of
inventory losses.

10.5 ERP Issues

Fundamentally, ERP is an attempt to consolidate all the data and processes of an organization
into an integrated system. Typically, ERP system uses multiple components of computer software
and hardware to accomplish the integration.
The most important issue for ERP implementation is speed as the quicker the implementation,
the better the delivery and benefits in terms of outcomes. Further, the returns can be expected at
a shorter term. The important thing is the knowledge of the components of enterprise resource
planning. Just to define enterprise resource planning is not enough.
The order of business in many companies today, shows sharp deviance from the conventional
practice. The process reengineering, which was formerly popular with business, played an
important role with respect to implementation. This has actually resulted in a gap between the
existent results and those predicted by the process of foreseeing. The ERP system has been tuned
sufficiently in order adjust with the company affairs.

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