An organization needs to provide information from all processes in a manner that ensures its integration to give accurate and comprehensive performance indicators,

The ERP system or enterprise resource planning, which is in Arabic, is simply "an organization-wide information system that facilitates the flow of information and coordinates all resources and events within it".

The ERP system helps the organization improve the performance of its operations, making it more reliable, quality and less expensive, and increasing responsiveness and ability to achieve goals, when using ERP, information from all activities within the organization becomes synchronized and available in real time and in an easy and accurate way.

Profitable organizations where a number of people come together from founders, managers and staff seeking a common goal, namely, that they are active in work and service, hence their need for information is necessary, they need planning information and their work requires documenting all processes and activities, whether service, commercial, industrial or agricultural, in order to track performance to verify achievement of objectives and effective decision-making.

There are three main sets of information that the Organization needs:

1. Implementation

2. Plan of Action

3. Strategic orientation

 

ERP is primarily concerned with information at the implementation stage and is provided to staff members, external service providers (for beneficiaries) and the interior (e.g. finance, personnel, procurement and technology).) and tools for recording all the processes they perform then collect them in centralized databases and analyze them and submit them to the managers in the form of reports that are studied for the plans the objectives, in the light of the State of the Environment studies and the strategic direction for taking effective decisions, bring the organization closer to achieving its objectives.

 

The first step in choosing or building the ERP system is to understand the activity of the Organization and industry or the area in which it operates, with a view to determining the overall framework of the ERP system required, for the organization education, for example, can benefit from ERP systems designed for schools or institutes, and there is an easy way to know the nature of the Organization's activity and the processes that are relevant to the organization.

 

There are three basic ways of choosing and building the ERP system:

1. The choice of ERP system is ready and appropriate for the work and requirements of the Organization and work to adapt and re-engineer the organization's procedures-in order to be able to use the system, be it either by purchasing the software and servers or by purchasing an account on a specialized company system known as could computing services.

 

2. The selection of a flexible ERP system with appropriate open-source and adjustable core requirements and the construction of additional models through an organizational team or a specialized software company operating, it can be a closed-source system and the software company makes the required adjustments, but companies relying on open source systems can offer lower prices.

 

3. Build the ERP system from scratch by using the requirements specification methods, programming languages, and available databases doing this team work of the Organization's developers or outsource to a specialized organization to do all the analysis, development, support and training work.


 

Whatever way the organization chooses to build the desired ERP system, it has to establish reasonable and basic goals and targets aimed at achieving through ERP, then develops an action plan outlining the system-building and core processes to be covered and a timeline, and to make the project investigation team is responsible and accountable for the result and has members from all core sections of service providers and middle management and supreme, and that you test the system in all sections and processes each on their own and with each other in parallel, and finally do The periodic assessment to increase the investment in this system.

We must note that building the ERP system is not an easy process, it has a lot of risks and difficulties, and there are a little less than 50% of companies that suffered some kind of failure during the construction and selection of the system, as the system did not achieve all of the objectives for which it was established or exceed the time limit or require additional financial or human resources therefore, attention must be drawn to the steps of achieving the system as recommended and followed by the experts in a diligent, transparent and professional manner.

 

The advantages of ERP:

There are many advantages to ERP application:

1. One complex system, which has been developed by all users

2. Operational flow and workflow

3. Ability to easily share data between different departments of the organization

4. Improving levels of efficiency and productivity

5. Improved predictability and trends

6. Lower-than-cost

7. Customer service development and after-sales services

 

Defects of ERP System:

There are also advantages of ERP, some defects and some of these defects can be reduced through training and control processes in all departments.

They are as follows:

· He needs to restructure the business.

· It might be prohibitive to run it.

· He needs high tech.

· Be uncomfortable for specialized facilities that would like to change their direction in the near future.

 

ERP Optimization:

The system is optimized when all the programs listed are still unified in one single database network:

-Manufacturing Program: its functions – engineering (work planning, workflow management, quality control, material bills, production process...) etc.

-Finance Program: Vendor accounts A/P-customer accounts A/C, Fixed Assets – accounts directory – Sindh Accounting-bank notes – Financial transactions and journal restrictions – Cash and cheques..... etc.

Human Resources HR: Training, payroll calculations, leave and departure calculations, overtime calculation, attendance and departure, policy development and managerial solutions for employees... etc.

-Supply Chain Management: SCM Inventory, Suppliers table, order entry, purchases... etc.

Customer Relationship Management: CRM Sales and marketing, after-sales services, commissions, customer control, technical support centers. etc.

-Warehouse data: Usually, this program can be accessed through customers and suppliers alongside employees of the organization.

 

Implementation of ERP system:

In fact, ERP application is not easy but needs more planning and study, where it is tested for 3 months and sometimes extends to a year, because the system is more complex in large organizations.

As well as the application of the system requires substantial changes in the work as the team of it will be the project manager of the application and advise the rest of the users and the consultant will be in training in all aspects of the activity.