Development of ERP Systems
By: Sonalisa Samal
1MV09MCM19
Introduction
• Enterprise resource planning (ERP) is an integrated computer-based
system used to manage internal and external resources including tangible
assets, financial resources, materials, and human resources
• It is a software architecture whose purpose is to facilitate the flow of
information between all business functions inside the boundaries of the
organization and manage the connections to outside stakeholders.
• An ERP system can either reside on a centralized server or be distributed
across modular hardware and software units that provide "services" and
communicate on a local area network.
• ERP system development broadly occurs in two phases: i) System Analysis
Phase and ii) System Design and Development Phase.
System Analysis
• Building a computer based information system needs a careful analysis
and design before implementation.
• system analysis can be viewed as the job of an architect, System analysis
is conceptual in nature than programming that involves details.
• system analysis is holistic while programming is individualistic
SYSTEM DESIGN &DEVELOPMENT
At analysis stage, the activities are generic but at design and
implementation stage they get focused. In general the major system
development effort is concentrated on design
Since design constitutes much of the development life cycle, computer
support for this activity (through 4GLs and CASE-Computer Aided
Software Engineering tools) is being applied increasingly.
Both in terms of time and effort the first 10-15 % is consumed by
analysis, 50-70 % goes to the design and implementation accounting for
remaining 15-20 %
Requirement Analysis
The basic requirements of a computerized/information system
would be as follows:
Almost error-free and secure operation
Very fast processing
Cost effective with emphasis on low cost
Intensity of implementation i.e. organization wide or unit wide
etc.
Requirement Specification
The requirements are translated into technical tasks by the analyst
that can be programmed and implemented
Demanding and often conflicting technique
A wide variety of techniques
Diagramming techniques mostly used
Diagramming Techniques
• A data-flow diagram (DFD) is a graphical representation of the "flow" of
data through an information system. DFDs can also be used for the
visualization of data processing (structured design).
• A DFD provides no information about the timing of processes, or about
whether processes will operate in sequence or in parallel. It is therefore
quite different from a flowchart.
• the system may be decomposed into component sub-systems, and to
identify the transaction data in the data model
Figure Data Flow Diagram
Developing a Data-Flow Diagram
Top-down approach
A context level DFD or Level 0
Decomposed lower-level DFD or Level 1 or High level diagram
Low level diagram or Level 2
Feasibility Analysis Feasibility Report
• The viability of the project • cost-benefit evaluation
• Operational and economic feasibility • overall impact
• Technical feasibility • benefits
Time phasing and prioritization
To take up those activities that
are easy to implement
can be implemented relatively fast
benefits the largest portion of users and
are likely to encounter the least resistance
Figure Work Breakdown Structure for
Time phasing and prioritization
Design and Development Phase
Detailed Design
This entails the development of the following
Functional specifications
Data dictionary
Input forms and output reports design
Database design
Program design
screen print out of Input forms
SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
Sanction budget
Business
Planning Capacity Finance
Intended
enhancement
capacity
report
Production Associated
Daily production report and resources
SYSTEM
component details
(Gear
Shop) Design and
Marketing
Development
Forecasted Parts
demand report communization
report
Sales and Market
Service performance
Report
Level o DFD (high Level Diagram)
SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
Intended Production (A) Operation level
Business
capacity details Process details
Planning
production
database (B)
Component shop
number details Operation
Beak up of
Component processes and m/c s
level report model
Production wise
Shop Cycle time &
Allocation and (C) capacity details
scheduling Record of
Associated Break up of report Process available
resource required and details for capacity and
requirement available m/c s similar machine
details etc product Gap analysis utilization
Machine report
requirement
Finance details
Business
Planning
Estimated
budget Level 1 DFD (Expansion of Level 0 DFD)
SYSTEM DEVELOPMENT IN A MANUFACTURING INDUSTRY
Similar
Beak up of processes Decides Cycle time Process
processes and
Component the models details details of m/c s details
number to be available
focused m/c for
Record of similar Decides if
available Gap analysis products underutilize
capacity and d m/c s can
machine be used or
utilization not
Associated
resources
requirement Decides if
Finance new m/c s Similar processes
is to be and common part
procured details
Estimated No of new m/c s
budget & space
requirement Production
Business
Planning
Level 2 DFD (Expansion of process C in Level 1 DFD)
Implementation
It basically constitutes :
Transition planning
Training
Security
Protection
Quality control
Conclusion
• System analysis is the building block for any kind of Information System
• It is purely holistic in nature and this is what makes it difficult to teach and even further difficult to
evaluate.
• Various software like CASE etc. are aid for system analysts particularly for exploding, drawing the
Data flow/Document flow diagrams, specifying processes, prototyping, developing input/output
forms, database design and even in coding by providing linkages to 4GL and databases.
• A CASE tool typically generates data dictionary automatically.
• Database design involves logical design of databases and physical design of databases.
• Logical design amounts to structuring the data store elements of the data flow diagrams
which has been provided in the analysis phase
• Physical design includes the actual structuring, actual storage of database into physical
storage elements, their partition, etc. based on requirement specification as accessed by the
analyst during requirement analysis.
